Design Highlights
- Phoenix Re’s cat bond has expanded to $115 million for the 2026 underwriting year, marking a $25 million increase from the previous year.
- This renewal is the largest since the bond’s launch in 2021, surpassing the significant $100 million threshold.
- The offering includes $24.5 million in Class E notes, scheduled to settle in December 2025, with a final maturity in January 2038.
- Phoenix Re targets Asia’s catastrophe risk landscape, encompassing 20 diversifying regional perils and approximately 200 high-attaching reinsurance policies.
- The strong investor appetite reflects growing trust in the Asian market, with average annualized returns around 9% from Phoenix Re offerings.
MS Amlin’s Phoenix Re cat bond is on a roll—expanding to a whopping $115 million for the 2026 underwriting year, marking a $25 million jump from the previous year. Yeah, you heard that right. This isn’t just a little bump; it’s the largest renewal since the bond’s launch in 2021. It’s like the cat bond equivalent of hitting the gym and putting on serious muscle. And, to top it off, this milestone blows past the $100 million mark. That’s a big deal in the reinsurance world.
MS Amlin’s Phoenix Re cat bond flexes its muscles, skyrocketing to $115 million for 2026! That’s a serious upgrade!
The latest round features $24.5 million in Class E notes, all set to go under Phoenix 2 Re Pte. Ltd. These notes are scheduled to settle in December 2025, with a final maturity date hanging around early January 2038. You can practically hear the bells of the Singapore Stock Exchange ringing as this is the largest tranche Phoenix 2 Re has ever issued. Talk about making a splash!
This marks the sixth consecutive year for Phoenix Re’s renewal. Just last year, they hit $45 million with Phoenix 3 Re, and in 2024, Phoenix 2 Re had a respectable $35.25 million renewal, bringing the total to nearly $87.5 million. Sponsored by MS Amlin Asia Pacific Pte. Ltd., these guys have been delivering consistent capital market returns for six years running. That’s impressive, but also, it’s about time, right?
Now, let’s not gloss over the risk exposure here. This cat bond is focused on collateralized catastrophe quota share reinsurance, primarily targeting Asia’s catastrophe risk landscape. With around 20 diversifying regional perils and roughly 200 high-attaching reinsurance policies, it’s a varied portfolio. It’s like a buffet of risks, but with specific exclusions. Yum. Additionally, this offering demonstrates the ongoing utilization of sidecar structures as a key strategy for capital market access. The expansion of Phoenix Re reflects strong performance and increasing investor interest in Asian catastrophe risks.
Investors are jumping on this bandwagon. There’s a serious appetite for Phoenix Re offerings, and it’s not just a passing fad. Average annualized returns hover around 9%, and more people are getting familiar with the Asian market. This smooth fundraising process? Yeah, that’s a sign of growing investor trust. Understanding the distinctions between general liability and catastrophe reinsurance is crucial for investors seeking adequate protection across their portfolios.
In a world where low-return perils can feel like a drag, this cat bond allows for seamless portfolio integration. It provides retrocessional protection without clashing exposures. Plus, it signals bold expansion plans.
