Bermuda-based Alterra Capital Holdings Limited announced that the Brazilian insurance and reinsurance regulator, Superintendencia de Seguros Privados (SUSEP), has given final approval for it to establish a local reinsurance company.
The subsidiary, Alterra Resseguradora do Brasil S.A., will be located in Rio De Janeiro and is “expected to offer a wide range of reinsurance products to Brazilian insurance companies with immediate effect,” said the bulletin. Carlos Caputo, CEO of Alterra Latin America, will also serve as Alterra Re Brasil’s CEO.
President and CEO W. Marston (Marty) Becker commented: “We are pleased that SUSEP has given us approval to move ahead with our local Brazilian reinsurance company, which will be an important addition to our developing operations in Latin America.
“Alterra Re Brasil will complement our Alterra at Lloyd’s office in Rio de Janeiro, providing us with additional reinsurance opportunities. We are committed to increasing our presence in the buoyant economies of Latin America, including Brazil, the region’s largest insurance market, which experienced impressive double-digit premium growth in 2010.”
Caputo pointed out that since setting up Alterra Latin America late in 2009, “we have opened reinsurance offices in Bogota, Rio de Janeiro and Buenos Aires, each staffed by experienced local professionals with deep local market knowledge. We believe this staffing strategy enables us to serve our clients more effectively and is a key to our success in the region. We believe that the addition of Alterra Re Brasil will assist us in reaching our goal of being the reinsurance market of choice for our Brazilian insurance company clients.”
Alterra also noted that “recent changes in the Brazilian reinsurance regulations have enhanced the position of local reinsurers by replacing the ‘first right of refusal’ requirement with a rule making it compulsory for insurance companies purchasing reinsurance to cede a minimum of 40 percent of each risk to local reinsurers.
Source: Alterra Capital Holdings Limited
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