The newly 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.
James H. Veghte, Chief Executive of XL Re, said: “We are extremely gratified that our application has been approved by Brazil’s regulators. We look forward to serving the Brazilian market by offering primary insurers an array of options for services and business specialties that have not existed under the prior monopolistic reinsurance structure. We have 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% of coverage sought by primary insurers until 2010, and rights of first refusal for up to 40% of business thereafter.
About XL Re
"XL Re is the global brand used by XL Capital Ltd’s reinsurance operations. The XL Re companies have more than 350 employees in 11 countries. More information about XL Re companies is available at www.xlre.com. Through its operating subsidiaries, XL Capital Group is a leading provider of global insurance and reinsurance coverages to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. More information about XL Capital Ltd is available at www.xlgroup.com."