Minneapolis-based Collins reinsurance brokerage and Brazil's newly-formed reinsurance brokerage Especializada Re announced yesterday that the two companies have an agreement to serve as exclusive correspondent brokers placing coverage for Brazilian insurance companies.

Under the agreement, Especializada Re, based in Rio de Janeiro, will work directly with insurers and reinsurers operating in the Brazilian market. Collins, in turn, will serve as a consultant to the newly established Brazilian reinsurance broker.

Especializada Re received approval to operate as a reinsurance broker in that country on July 16 from Superintendencia de Seguros Privados (SUSEP), Brazil's superintendent of private insurance.

Earlier this year, SUSEP issued final regulations for the opening of Brazil's reinsurance market to private companies, ending the monopoly of government-owned reinsurer IRB Brasil Resseguros SA (IRB).

Patrick Denzer, Collins president and chief executive officer, said in a joint statement that his firm welcomes “the opportunity to help serve the dynamic, newly opened Brazilian reinsurance marketplace with an experienced and knowledgeable local partner. From their prior experience as insurance brokers, the founders of Especializada Re have a strong reputation for their technical experience and high professional standards among insurers in Brazil.”

Ricardo Rodrigues da Silva, president of Especializada Re, said, “Under this partnership, we are well-equipped to serve companies in all lines of insurance in Brazil. Collins brings a successful track record in the world's reinsurance markets and strong expertise in providing reinsurance brokerage services to a wide range of insurers.”

He added that, in an open market, reinsurance is especially important to insurance companies, as it can be a differentiator in a more competitive environment. The two firms, he added, have the capabilities to provide clients with the services and advice needed to help clients succeed.

Prior to forming Especializada Re, its owners had operated as an insurance brokerage for eight years. This year, Mr. Rodrigues da Silva said, they were responsible for insurance policies for large industrial projects in Brazil, including the hydroelectric complex in Rio Madeira.

Mr. Denzer added that Collins' specialization in several lines of business will offer additional advantages for Brazilian insurers. He said Collins, for example, is the leading reinsurance broker for crop insurers and for professional liability insurers in the United States.

The founders of Especializada Re are owners of Especializada Consultoria Financeira e de Seguros, which assists executives in obtaining insurance for large risks and projects. It also provides financial consulting and obtaining loans from BNDES, Brazil's National Social Development Bank. It has recorded a compound annual growth rate of more than 50 percent since 2000.

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Collins Teams With New Brazilian Reinsurer

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