NU Online News Service, Jan. 6, 11:05 a.m. EST
XL Group says it now has final approval from Brazilian regulators to start insurance operations in the South American county.
XL Seguros Brasil, located in Sao Paulo, is expected to begin offering a range of casualty, property, professional and specialty insurance products sometime during the 2012 first quarter, according to a statement.
In April 2008, XL Re announced it was entering the reinsurance market in Brazil as it was opened to the private sector. The company was approved to begin operation that June.
“Brazil is at the intersection of global development, connectivity and growth,” says Mike McGavick, chief executive officer of XL, in a statement. “We are thrilled to expand our operations in the country.”
According to Bruno Laval, regional manager for XL's insurance segment in Latin America, says Brazil held 42 percent of South America's non-life insurance premiums in 2010 and forecasts predict the country's non-life market could reach $160 billion by 2030.
“Local investment programs, global attention and a diversified spread of trading partners and manufactured products position the country for continued opportunities.”
Long-established domestic monopolies that barred foreign entry into Latin American markets had been abolished, according to a late 2011 report on emerging markets from Swiss Re. Latin America's premiums jumped from $45 billion in 2001 to $128 billion in 2010, according to the report.
However, U.S. life and property and casualty insurers are urging Brazil to stop newer resolutions restricting reinsurance access to only domestic reinsurers.
Hub International entered the Latin American market late last year its buy of Harmonia Corretora de Seguros.
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