XL Re, the global reinsurance operations of Bermuda-based XL Capital Ltd., has received regulatory approval to serve the Brazilian reinsurance market as an admitted reinsurer.
The newly admitted reinsurer, XL Re Latin America, will operate full offices in both Rio de Janeiro and Sao Paulo, according to Regional Operating Officer Carlos Caputo, who will manage the reinsurance operations.
James H. Veghte, Chief Executive of XL Re, expressed his gratification at the approval, adding that XL Re is looking “forward to serving the Brazilian market by offering primary insurers an array of options for services and business specialties that have not existed under the prior monopolistic reinsurance structure.”
XL Re joins a growing number of international reinsurers who have applied for, and in many cases have also received, licenses to operate in Brazil since it dropped its collateral requirements in December 2007 (See IJ web site – https://www.insurancejournal.com/news/international/2007/12/27/85928.htm). They include Swiss Re, Lloyd’s, Chubb, PartnerRe, Transatlantic Re, Everest Re, Munich Re and SCOR.
Veghte also noted that the reinsurer had “a representative office in Brazil for many years led by an outstanding management team” which puts it into a good position to do business in “Brazil’s newly opened and competitive reinsurance environment.”
He added that XL Re is also awaiting regulatory approval to operate a local reinsurer. “XL Re seeks to operate both local and admitted reinsurance entities to serve the full Brazilian market,” the bulletin explained. “Local reinsurers have rights of first refusal up to 60 percent of coverage sought by primary insurers until 2010, and rights of first refusal for up to 40 percent of business thereafter.”
Source XL Re: – www.xlre.com
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