Alterra Capital said Monday that it plans to apply for a license to incorporate a local reinsurance company in Brazil.
“The addition of a local reinsurance company is a key element of our strategy for Brazil,” said CEO W. Marston (Marty) Becker in a prepared statement. “It will complement our existing presence in that market, which we are currently developing from our Alterra at Lloyd’s office in Rio de Janeiro, and will provide us with greater access to additional reinsurance opportunities.
Alterra said that changes in the Brazilian reinsurance market — including new rules requiring more reinsurance business to be written by local companies — have “enhanced the position of local reinsurers”
“We are confident that Latin America, and Brazil in particular, is a market with extraordinary growth potential, and we intend to favorably position Alterra by increasing our presence there,” Becker added.
Alterra is not the first reinsurer to announce that is was planning a local market play. Last month Swiss Re said that it may create a local reinsurance subsidiary in Brazil
The result of the merger of Harbor Point Limited and Max Capital Group, Alterra said also announced last month that its initial loss from the earthquake and tsunami in Japan was between $60 million to $100 million in addition to an investment $25 million loss on a “catastrophe bond.”
