Rio seminar celebrates Brazil success

That was the message delivered by Lloyd’s Chairman Lord Levene at a recent Lloyd’s seminar in Rio de Janeiro.

“Brazil and Lloyd’s – especially at this stage of its development – are a good match for each other,” Lord Levene told 170 guests from across Brazil’s insurance market, including some representatives from some the country’s biggest firms, such as Petrobras and EBX.

Brazilian economy set to boom

The Brazilian government has ambitious plans for a $360 billion infrastructure programme, which include a high-speed rail link between Rio and Sao Paulo, a hydroelectric power station in Belo Monte and large-scale investments in oil and gas infrastructure following the discovery of vast oil reserves.

Brazil is also set to host both the 2014 World Cup and the 2016 Olympics – signs of its growing importance on the world stage. But not only will the new rail links, buildings and airports being built to cope with the millions of spectators need insuring; these events also create a number of other perils for which Lloyd’s has designed innovative products. These range from covering the stadiums against damage or terror attack, to protecting athletes against injury and insuring the organisers from the threat of bad weather.

Lloyd’s is 2nd largest reinsure in Brazil

Sergio Cabral, the Governor of Rio de Janeiro, highlighted the importance of Lloyd’s establishing its representative office in the city, during his lunchtime speech at the seminar. The office, which was established one year ago, has recently been expanded as Lloyd’s business in Brazil continues to flourish. Since being granted a licence as an admitted reinsurer in 2008, Lloyd’s has quickly grown to become the second largest reinsurer in Brazil.  “Our business here has doubled over five years,” Lord Levene said. “This success has happened over all classes of business and with an estimated growth rate of 8% per annum, it is not surprising that over two thirds of our syndicates now write business in Brazil.”

Eight managing agents now have local presences in the country, with Navigators Syndicate 1221 announcing at the seminar that it is establishing a representative office in Rio. Stephen Coward, President of Navigators Technical Risk, who spoke at the event, told lloyds.com: “It’s a privilege for Navigators to be associated with the growing success of the Lloyd's operation in Rio de Janeiro.”

Coward praised the attendees at the event: “Delegates at the seminar showed considerable interest in how to both insure and reinsure construction projects that arise from Brazil's enormous upcoming investments in infrastructure and energy sectors. Moreover, they were able to appreciate the important role that will be played by underwriters at Lloyd's over the next decade and beyond.”