Lloyd’s Chairman Lord Levene, speaking at a recent Lloyd’s seminar in Rio de Janeiro, gave high marks to the successful establishment the Lloyd’s market has made in Brazil, describing it as “uniquely qualified to support Brazil in its transformation into one of the world’s most powerful economies.
“Brazil and Lloyd’s – especially at this stage of its development – are a good match for each other,” Levene continued. He was addressing 170 guests from across Brazil’s insurance market, including some representatives from some the country’s biggest firms, such as Petrobras and EBX.
A bulletin on the Lloyd’s web site (www.lloyds.com) explained that the Brazilian government “has ambitious plans for a $360 billion infrastructure program, which includes a high-speed rail link between Rio and Sao Paulo, a hydroelectric power station in Belo Monte and large-scale investments in oil and gas infrastructure following the discovery of vast oil reserves.”
In addition the country is set to host the two highest profile global sporting events – the 2014 Football (Soccer) World Cup and the 2016 Olympics. The infrastructure initiatives have been undertaken in anticipation of the events.
They are “signs,” said Lloyd’s, of Brazil’s “growing importance on the world stage.” Lloyd’s is also rather upbeat about the prospects for insuring the new rail links, buildings and airports. In addition the bulletin noted that the “events also create a number of other perils for which Lloyd’s has designed innovative products. These range from covering the stadiums against damage or terror attack, to protecting athletes against injury and insuring the organizers from the threat of bad weather.”
Lloyd’s was one of the first to enter the Brazilian market following the country’s decision to relax its collateral requirements for reinsurers in 2007 [See IJ web site – https://www.insurancejournal.com/news/international/2007/12/27/85928.htm]. It formally opened its first office in Rio last year ([See IJ web site – https://www.insurancejournal.com/news/international/2009/04/17/99714.htm].
Lloyd’s noted that the office “has recently been expanded as Lloyd’s business in Brazil continues to flourish. Since being granted a license as an admitted reinsurer in 2008, Lloyd’s has quickly grown to become the second largest reinsurer in Brazil.”
Levene pointed out that, “our business here has doubled over five years. This success has happened over all classes of business and with an estimated growth rate of 8 percent per annum, it is not surprising that over two thirds of our syndicates now write business in Brazil.”
Eight managing agents now have local presences in the country, with Navigators Syndicate 1221 announcing at the seminar that it is establishing a representative office in Rio [See IJ web site – . https://www.insurancejournal.com/news/international/2010/07/20/111718.htm].
Stephen Coward, President of Navigators Technical Risk, who spoke at the event, told Lloyd’s that he considers it a “privilege for Navigators to be associated with the growing success of the Lloyd’s operation in Rio de Janeiro.”
He also praised the attendees at the event, stating: “Delegates at the seminar showed considerable interest in how to both insure and reinsure construction projects that arise from Brazil’s enormous upcoming investments in infrastructure and energy sectors. Moreover, they were able to appreciate the important role that will be played by underwriters at Lloyd’s over the next decade and beyond.”
Source: Lloyd’s of London
Was this article valuable?
Here are more articles you may enjoy.