XL Re, the reinsurer of Bermuda's XL Capital (NYSE: XL), has received approval from Brazilian insurance regulator Susep to become the country's fifth local reinsurer, the company said in a statement.
The company, which will have offices in Rio de Janeiro and São Paulo, received approval as an admitted reinsurer in June and plans to keep both statuses under the law, the statement said.
XL Re joins Spain's Mapfre, Germany's Munich Re, J Malucelli Re and former monopolist IRB-Brasil Re as Brazil's local reinsurers, which have first right on 60% of reinsurance contracts until 2010. Zurich-based ACE (NYSE:ACE) is still awaiting approval.
The law that opened Brazil's reinsurance market in April created three categories of reinsurers: local reinsurers incorporated in Brazil and dedicated solely to reinsurance; admitted reinsurers incorporated outside Brazil but with representative offices in the country; and eventual reinsurers incorporated outside Brazil and without local offices.
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