brazil

According to Fitch Ratings, recent catastrophe bond and insurance risk letters (LRS) issuances within Latin America represent a strategic opportunity to expand and sophisticate the regions’ insurance debt market.

Global investment company Galapagos Capital has announced the issuance of up to R$100 million in Insurance Risk Letters (LRS), which are the Brazilian regulatory regime version of insurance-linked securities (ILS), marking the second ever ILS issuance in Brazil, and the first from Galapagos Capital.

Insurance and reinsurance broking firm Aon has structured and placed the first and largest parametric forest fire insurance policy ever undertaken in Brazil, developed for stationery manufacturer Faber-Castell.

Following the completion of Brazil’s first-ever insurance-linked securities (ILS) issuance earlier this year, analysts at Fitch Ratings have highlighted how the country’s ILS framework marks the beginning of a new chapter for its re/insurance market.

The first ever insurance-linked securities (ILS) issuance in Brazil has been completed today, as local reinsurance firm IRB (Re) sponsored the issuance of a R$33.7 million deal to securitize surety bond risks, using its Andrina Special Purpose Insurance Entity (SSPE).

Lockton Re, the reinsurance arm of the global independent broker, has announced the hiring of senior reinsurance executive and advocator for insurance-linked securities (ILS) in Latin America, Rodrigo Botti, as its new Treaty Country Head of Brazil.

Galapagos Capital has now received the expected official authorisation from Brazil’s insurance regulator SUSEP to establish its own Sociedades Seguradoras de Propósito Específico (SSPE), a special purpose reinsurance vehicle that can issue Letra de Risco de Seguro (Insurance Risk Letters), which are insurance-linked securities (ILS).

Galapagos Capital, a global investment company headquartered in Brazil that offers a range of investment management, banking and financial services, has received pre-authorisation from the insurance regulator SUSEP to establish an issuer of Letra de Risco de Seguro (Insurance Risk Letters), which are Brazil’s own type of insurance-linked securities (ILS).

The Brazilian insurance regulator SUSEP has now authorised the first insurance-linked securities (ILS) structure in the country, with Andrina sponsored by IRB Re and now approved to issue Letra de Risco de Seguro (Insurance Risk Letters), which is the name for the insurance-linked notes a Brazilian ILS structure can issue to be sold to investors.

Speaking at a Fitch Ratings event on the development of insurance-linked securities (ILS) in Brazil, Rodrigo Botti, former CFO of IRB and former CEO of Terra Brasis, emphasised a domestic market-first approach, with no intention of competing with other established ILS hubs.