XL Group says it now has finalapproval from Brazilian regulators to start insurance operations inthe South American country.

XL Seguros Brasil, located in Sao Paulo, is expected to beginoffering a range of casualty, property, professional and specialtyinsurance products sometime during the 2012 first quarter, thecompany says.

In April 2008, XL Re announced it was entering the reinsurance market in Brazil as it was opened to the privatesector. The company was approved to begin that operation inJune.

“Brazil is at the intersection of global development,connectivity and growth,” Mike McGavick, XL’s CEO, says in astatement. “We are thrilled to expand our operations in thecountry.”

According to Bruno Laval, regional manager for XL’s insurancesegment in Latin America, Brazil held 42 percent of South America’snon-life insurance premiums in 2010, and forecasts predict thecountry’s non-life market could reach $160 billion by 2030. “Localinvestment programs, global attention and a diversified spread oftrading partners and manufactured products position the country forcontinued opportunities,” Laval says.

Long-established domestic monopolies that barred foreign entryinto Latin American markets have been abolished, according to alate 2011 report on emerging markets from Swiss Re. LatinAmerica’s premiums jumped from $45 billion in 2001 to $128 billionin 2010.

However, U.S. life and P&C insurers are urgingBrazil to stop newer resolutions restricting reinsurance accessto only domestic reinsurers.

Hub International entered the Latin American market latelast year with its buy of Harmonia Corretora de Seguros.