NU Online News Service, April17, 3:40 p.m. EDT
Lloyd's said it is opening its office in Brazil today, a year after receiving approval from the Superintendence of Private Insurance (SUSEP) to become the first admitted reinsurer in the country.
Located in Rio de Janeiro, Lloyd's Brazil will allow syndicates and managing agents to offer reinsurance in the country, Lloyd's said. The operation, it noted, already has two syndicates with a permanent local presence–Liberty and Marlborough–with a third, Catlin, already established in Sao Paulo.
Lloyd's said it is registered as an "Admitted" reinsurer in Brazil and, as required, has a representative office in the country. This allows Lloyd's syndicates to write reinsurance and retrocession business from outside Brazil.
Peter Levene, Lloyd's chairman, said in a statement that Lloyd's is "delighted to be opening our office today and very much look forward to a long future in Brazil, working with the Instituto de Resseguros do Brasil and other local reinsurers to share our expertise and capacity.
He thanked Sergio Cabral, governor of the State of Rio; Joaquim Levy, the Secretary of Finance for the State of Rio; and Maria Silvia Bastos, president and chief executive officer of Icatu Hartfort for their support.
While in Brazil, Lord Levene will also host a Lloyd's seminar at the Governor's Palace: "Challenges and Opportunities in the Reinsurance Market."
According to Lloyd's, the seminar will focus on key trends and challenges in the local market, including: a Lloyd's perspective on global and Brazilian reinsurance, accessing the global and Brazilian reinsurance markets from a syndicate's perspective, and a keynote speech about Brazil and Rio by Gov. Cabral.
Since the Brazilian reinsurance market opening at the beginning of 2008, Lloyd's said it has seen a 79 percent rise in premiums compared to business in 2007, up to ?95m ($140.55 million) from ?53m ($78.41 million).
Brazil is Latin America's largest insurance market, representing 44 percent of gross written premium, and with a lack of natural catastrophes, a stable economy and vast mineral wealth, "it is a very attractive market for re/insurers," Lloyd's said.
Lloyd's also announced it is
The new partnership will seek to help businesses, government bodies and individuals throughout the region understand climate change and how they can respond and adapt to future changes, Lloyd's said.
Lord Levene said while natural catastrophes in the country are low, Brazil is already starting to experience events triggered by climate change. For example, he said, the Southeast of the country has had extreme rainfall not seen in 100 years, while the Amazon region saw drought in 2005.
Israel Klabin, chairman of the Board of Trustees of FBDS, said: "Climate change is the most important problem that humankind has to face this century and is the essence of the FBDS' work. Our partnership with Lloyd's is very important and will surely contribute to increasing the knowledge of the main stakeholders in Brazil on this subject."
The project will focus on four key aspects:
o Global climate change and extreme events in Brazil
o Adaption in the agricultural sector in Brazil
o Risk and adaption in the energy sector in Brazil
o Sea level rise and adaption in Brazil's major coastal cities.
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