MS Amlin completes world-first Singapore ILS renewal

MS Amlin has announced that its Singapore-based operation has completed Singapore’s first ever catastrophe bond renewal.

The Lloyd’s insurer’s Singaporean subsidiary MS Amlin Asia Pacific secured collateralised capacity through a number of investors worldwide.

The re/insurance company has successfully renewed its local special purpose reinsurance vehicle (SPRV), Phoenix 2 Re.

MS Amlin emphasised that against the backdrop of the challenging natural disaster risk environment in Asia, the region’s first catastrophe bond renewal will allow for more capacity to the local market, as well as increased reinsurance capacity for insurers, enabling more natural catastrophe cover to be written.

The firm’s Asia Pacific business worked in conjunction with the Monetary Authority of Singapore (MAS), to originally establish Phoenix 2 Re in 2022, using an insurance-linked securities (ILS) catastrophe bond grant, alongside Hong Kong-based ILS specialist ILS Advisers, part of the HSZ Group.

Following the renewal of Phoenix 2 Re, MS APP now has four vehicles in its series – Phoenix 1,2,3 and the renewed Phoenix 2 Re in 2024, giving it more than $80m capacity to support local Asian cedents.

“We are excited to have completed Singapore’s first ever catastrophe bond renewal, and our fourth transaction in the Phoenix Re series,” said Will Ho, CEO, MS Amlin Asia Pacific.

“This milestone confirms our commitment to Singapore’s expanding ILS market, and highlights the hub’s growing importance as a conduit for investment in Asia,” he continued.

To mark the bond’s listing on the Singapore Exchange, he has been invited to strike the gong to officially open the day’s trading.

“We see strong growth opportunities in the region’s attractive ILS market, and have ambitious plans to further expand our Phoenix Re series. We are also exploring other Singapore-based risk transfer solutions to support global investors, increase insurance capacity in Asia, and help close the region’s insurance protection gap,” Ho added.

Tim Yip, head of ILS, ILS Advisers, said: “We are delighted to have been able to provide our ongoing support, alongside the Monetary Authority of Singapore (MAS), to MS Amlin as they further their leadership role in expanding the Asia ILS market with the launch of their fourth Phoenix series.

“It is extremely rewarding that not only have the majority of investors renewed their commitment to the programme, but also to welcome new investors who have contributed additional capacity, demonstrating confidence in this opportunistic and promising region,” Yip said.