The XL Re unit of Bermuda-based XL Capital Ltd, which announced plans in April for Brazilian operations, said it has now received regulatory approval to function there as an admitted reinsurer.
XL Re Latin America will operate full offices in both Rio de Janeiro and Sao Paulo, according to Regional Operating Officer Carlos Caputo, who will manage the reinsurance operations, XL said.
James H. Veghte, chief executive of XL Re, said the company plans to offer Brazilian primary insurers "an array of options for services and business specialties that have not existed under the prior monopolistic reinsurance structure."
Brazil recently deregulated its insurance market to allow greater participation by foreign companies, and XL is among several firms that have announced expanded operations there.
Mr. Veghte said in a statement that his company "has had a representative office in Brazil for many years led by an outstanding management team. I believe we are ideally positioned to be a market leader in Brazil's newly opened and competitive reinsurance environment."
Mr. Veghte added that XL Re is also eagerly awaiting regulatory approval to operate a local reinsurer. XL Re seeks to operate both local and admitted reinsurance entities to serve the full Brazilian market.
Local reinsurers have rights of first refusal up to 60 percent of coverage sought by primary insurers until 2010, and rights of first refusal for up to 40 percent of business thereafter.
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