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Bom Dia Brazil!

Alex Ferguson writes:
Hello and welcome to the new Brazilian reinsurance market!

Contrary to popular belief, the Brazilian regulatory authorities have decided that their reinsurance market will open THIS week - not in two months' time.

According to insiders, it'll still take "around two months" for everything to get fully up to speed, so if you're Bermudian player PartnerRe, you could be waiting a while for your licence...

Partner, I wouldn't worry seems as though everyone except the Brazilian national reinsurer IRB, Lloyd's of London and Munich Re Germany (that'll be writing business from this Latin American country solely on a retro basis) will be waiting for licences - unless Brazilian regulatory HQ can turn around faster than a reinsurance broker's Ferrari.

So who's there - or more's the case, wants to be there? AIG, Ace, Allianz, Chubb, Swiss Re, Korean Re, Paris Re, SCOR, Catlin, Mapfre, Transamerica Re, Transatlantic Re and XL have all applied.

Now the waiting is over, we can't wait for reinsurance's Brazilian adventure to begin.

As for us at Reinsurance, see you at the Carnival.

Alex Ferguson

Comments (1)

Mark Geoghegan:

But it's going to be mighty crowded down there, isn't it, Alex?

Only about 1.5 billion bucks in premium on offer right now.

But new capital requirements for cedents should push up reinsurance buying demand by about 20%.

Trouble is increased comeptition should do the exact opposite - or probably a lot more!

This is a long-term thing - by 2030 Brazil's market should be huge.

Anyway - who doesn't like caipirihnas?


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