Lockton Re unveils dedicated ILS platform for Brazil

Lockton Re, the reinsurance arm of the independent broking group, has announced the full deployment of its advisory and structuring capabilities dedicated to Brazil’s Letra de Risco de Seguro (LRS /Insurance Risk Letters) market, utilising locally licensed Special Purpose Securitisation Entities (SSPE).

In an announcement made today, Lockton Re said that it is delivering local insurance-linked securities (ILS) structuring expertise, leadership, and a ready-to-deploy Brazilian SSPE to unlock the LRS market for domestic cedants and institutional investors.

To ensure unparalleled speed to market, Lockton Re will work closely with an independent, Brazilian-licensed SSPE, the local special purpose vehicle required to structure and issue LRS instruments. This pathway will allow clients to transition from mandate to issuance rapidly, bypassing the months-long setup processes that typically challenge new market entrants.

The firm’s dedicated Brazilian ILS platform reportedly accommodates a wide range of triggers, including indemnity, parametric, and index-based structures, spanning perils such as agribusiness, infrastructure, climate catastrophe and regulatory capital relief.

Lockton Re’s Brazilian ILS platform is supported by a highly skilled leadership team with extensive knowledge across the ILS sector.

This team includes Rodrigo Botti, the Country Head for Brazil, who, before joining Lockton Re, played a pivotal role in the decade-long regulatory development of Brazil’s ILS regulatory framework. Botti has been actively involved with SUSEP and policymakers since the initial consultations in 2016.

Additionally, Dario Luna will be in the ILS leadership team in Brazil, who holds the position of Regional Leader for Strategic Risk Solutions in Latin America & the Caribbean (LatAm) and was crucial in the establishment of Mexico’s landmark catastrophe bond program, as well as being a recognised leading expert in parametric insurance design throughout Latin America.

Rodrigo Botti, Country Head Brazil, Lockton Re, commented: “Brazil has built one of the most thoughtfully designed ILS regulatory frameworks in the world. The domestic LRS market builds on existing global structures, bringing global governance standards, while at the same time creating innovation designed for Brazil’s market realities.

Adding: “Lockton Re colleagues have been at the table since at least 2023, and we are proud to now offer the full spectrum of services — from structuring and regulatory advisory to investors — to help this market reach its extraordinary potential.”

Dario Luna, Lockton Re, Latin America & Caribbean, said: “Having structured Mexico’s catastrophe bond program and worked across the parametric insurance landscape in Latin America for many years, I can say with confidence that Brazil’s LRS is the most robust regulatory architecture for ILS in Latin America. Our team is now ready to deliver competitive ILS solutions for new cedants and support them in their journey as the market matures.”

The global ILS market has continued to expand in recent years, with catastrophe bond issuance surpassing $25.6 billion in 2025, and the outstanding market now exceeding $61 billion. As well as this, institutional investors, including major pension funds in Switzerland, the Netherlands, and the United States, have allocated meaningfully to ILS after experiencing equity-like returns with bond-like volatility and near-zero correlation to financial markets.

“Brazil’s LRS market is positioned to replicate this growth. With the Brazilian reinsurance market generating approximately R$30 billion in annual premium, and LRS instruments typically priced at 3–10% of notional, the theoretical issuance potential is R$30 billion to R$100 billion per year — comparable in scale to Brazil’s well-established CRI and CRA capital markets instruments,” Lockton Re added.

The firm concluded: “The first LRS was issued by Andrina SSPE in May 2025, and regulatory momentum continues. Lockton Re believes Brazil is at the inflection point of a structural shift in how insurance risk is financed — and is committed to leading that transition.”

So far, Artemis understand there have been four LRS issuances in Brazil and that activity is expected to pick up, with new entrants and brokers such as Lockton Re showing growing interest in and commitment to the ILS regime in the country.

You can find all our coverage of Brazil’s ILS regime under this archive.