XL Capital Ltd in Bermuda and Brazil's Banco Ita? Holding Financeira S.A. said last week that they have entered a definitive agreement to form a joint venture insurance company in Brazil.
The announcement follows the Jan. 30 news that both parties had signed a memorandum of understanding. The joint venture is subject to final regulatory approval.
The new insurance company, ITA? XL Seguros Corporativos S.A., will combine the current Brazilian property, casualty and specialty commercial insurance business of S?o Paulo, Brazil-based ITA? bank and XL and will operate in Brazil's commercial insurance market.
Commenting on the new joint venture, Ruy Moraes de Abreu, chief executive of Ita? Seguros S.A., said: "ITA? XL will combine ITA?'s Brazilian market expertise and penetration with XL's outstanding underwriting knowledge and access to reinsurance capacity in commercial lines and large insurance risks. We strongly believe that this joint venture will create a winning platform to develop this market in Brazil, with advantages to our clients and brokers."
Clive Tobin, XL Insurance chief executive, said, "This joint venture underscores XL's strategic approach to opportunities in emerging markets."
He said he believes the arrangement "positions us well to meet the current and future needs of the Brazilian market."
ITA?, as of June 30, reported assets of $79.7 billion and shareholders' equity of $8.1 billion, and XL Capital Ltd reported consolidated assets of approximately $58.5 billion and consolidated shareholders' equity of approximately $8.5 billion.
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