MS Amlin launches Singapore-based ILS vehicle Phoenix 1 Re

MS Amlin Asia Pacific (MS AAP) has launched a local special purpose reinsurance vehicle in Singapore, Phoenix 1 Re, to provide collateralised capacity to support MS Amlin Syndicate 2001’s Asia reinsurance portfolio through its Singapore based underwriting platform.

Phoenix 1 Re has secured $42 million of collateralised capacity, with alternative capital providers now able to access MS AAP’s regional portfolio, spanning over ten territories and specifically excluding key peak perils, including Japan and Australasia. Approximately half of the capacity was supported by Asia based investors or fund managers.

Phoenix 1 Re allows MSAAP to provide better products and services to its clients and partners locally and to introduce new alternative capital sources to help reduce the region's protection gap.

MS AAP worked in conjunction with the Monetary Authority of Singapore (MAS), Lloyd’s Asia and Hong Kong based ILS specialist ILS Advisers to establish Phoenix 1 Re.

Will Ho, chief executive of MS AAP, said: “Through the creation of a remote risk facility, which caters to regional business, MS AAP will now be able to leverage larger capacity that we can deploy to our core clients on their reinsurance programmes as demand and growth increases in Asia. Phoenix 1 Re is an important long-term strategic initiative for MS AAP as we continue to seek ways to build capacity and relationships with capital market partners.”

Pavlos Spyropoulos, chief executive of Lloyd’s Asia, said: “The launch of MS AAP’s ILS vehicle is an important milestone in the Lloyd’s Asia platform’s growth story and evolution, setting a new paradigm for how capital can leverage the underwriting expertise we have developed in Singapore to access Asia Pacific business through Lloyd’s.  The faith Phoenix 1 Re’s investors have placed in MS AAP is an endorsement of their strong underwriting capability, and of the value proposition of our platform in Singapore that enables local access to Lloyd’s unique licence network, financial security, expertise, and brand.”

Tim Yip of ILS Advisers called the venture “a very important step in the continued development of the Asia ILS market.”

Yip added: “Phoenix 1 Re finally allows ILS investors to gain access to the regions diversifying perils and exposure in a way that is specifically catered to alternative capital provider’s differentiated risk appetites and requirements, and through an underwriting team that has shown consistent success in navigating a very diverse region.”

Lim Cheng Khai, executive director at MAS, said the regulator welcomed the launch of Phoenix 1 Re. “Phoenix 1 Re is also the tenth catastrophe bond issued in Singapore, and bears testament to MAS’ continuing effort to grow the Asian ILS market and facilitate the use of innovative ILS structures to narrow the protection gap in Asia,” he added.