MS Amlin renews Singapore Cat Bond

The development comes after the increasing natural disaster risk environment in the region.

Specialty (re)insurer operating under Lloyd's, MS Amlin Asia Pacific, has completed Singapore's first-ever catastrophe bond renewal. 

This renewal, involving the local special purpose reinsurance vehicle (SPRV) Phoenix 2 Re, marks an achievement in the region's natural disaster risk management, according to the insurer.

The insurer also said in a press statement the renewal was made possible by securing collateralized capacity from global investors, reinforcing MS Amlin's commitment to the Asian market. 

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This development is particularly relevant given the challenging natural disaster risk environment in Asia, as it increases reinsurance capacity and enables insurers to offer more comprehensive natural catastrophe coverage.

MS AAP initially established Phoenix 2 Re in 2022 with the support of the Monetary Authority of Singapore (MAS) and a grant for insurance-linked securities (ILS) catastrophe bonds. The setup also involved collaboration with ILS Advisers, a Hong Kong-based specialist and part of the HSZ Group.

With the latest renewal, MS AAP's portfolio now includes four vehicles: Phoenix 1, 2, 3, and the renewed Phoenix 2 Re (2024), collectively providing over $80m in capacity to support local Asian cedents.