MS Amlin, a Lloyd’s global specialist (re)insurer, renewed Singapore-based Phoenix Re sidecar for the fifth consecutive year, increasing its collateralised capacity to over S$151.21m (£90m). This marks a 12.5% increase from 2024, driven by strong performance and heightened investor interest in Asia’s catastrophe risks.
Phoenix Re supports MS Amlin’s reinsurance portfolio across the Asia-Pacific region. Since its inception in 2021, the vehicle has expanded significantly, doubling its capacity to address the region’s substantial protection gap. William Ho, CEO of MS Amlin Asia Pacific, highlighted the vehicle’s success, stating, “The successful renewal of our multiple Phoenix Re investment vehicles demonstrates the growing appetite amongst investors for Asian catastrophe risks.”
Phoenix Re has absorbed various regional loss events, including floods and super typhoons, whilst maintaining consistent returns. Last year, it achieved returns exceeding 11.5%, showcasing MS Amlin’s disciplined underwriting approach. The sidecar offers diversification through over 150 layers annually across Asia-Pacific and the Middle East and North Africa, functioning similarly to a portfolio of catastrophe bonds.
Tim Yip, Executive Director of HSZ Group, which co-invests in the vehicle, expressed satisfaction with the continued growth in interest for MS Amlin’s Asia Pacific portfolio. He noted that advances in data and modelling have bolstered investor confidence in navigating this challenging market.
Phoenix Re, established with an insurance-linked securities (ILS) catastrophe bond grant from the Monetary Authority of Singapore (MAS), remains the most established Asian-focused ILS sidecar, providing investors with exposure to Asian catastrophe risk without correlation to peak zones.
