More than 250 leaders from business, insurance and government attended Merchant Taylors’ Hall for the sixth annual Lloyd’s City Dinner last night, where the keynote speaker was Sergio Cabral, Governor of the State of Rio de Janeiro.
Brazil has recently undergone rapid economic development. It now ranks as the tenth largest economy in the world and the largest insurance market in Latin America. UK business sees a bright future in the country.
“Brazil is going through a new cycle of development, based on sustainable growth and social inclusion,” said Cabral. “As a result, more wealth is being generated and it is being more evenly distributed.”
Cabral was elected to his current position in 2006 and was previously Senator of the State and President of the State Legislative Assembly.
Earlier this year, Lloyd’s became the first admitted reinsurer in Brazil following approval from the Superintendence of Private Insurance, and is planning to establish its first representative office in Rio de Janeiro. Cabral said these developments made him ‘extremely glad’ and added: “It is a market that still can be better explored and has good chances of a promising growth in the near future. Experts estimate that the reinsurance market may double in the first two years after its opening. The Brazilian insurance market currently accounts for over $13bn of premium. It is the largest in Latin America.”
Lord Levene acclaimed Brazil’s growth and called on Lloyd’s to play a role in its future.
“We must recognise that there is a vast difference in performance, perception, attitude and results between the old world and the new world,” he said. “For me, the new world is what we used to call not so long ago ‘emerging markets’. Recently, the US and Europe have been heading rapidly down, while this new world has been heading rapidly up.
“What does this change in the balance of power mean for Lloyd’s? Today 40% of our world premium income stems from the US, and that is built on foundations laid by our predecessors over a hundred years ago. We must work to maintain and grow our business there, but at the same time we must build the markets of the future to bequeath to our successors.”
Lord Levene championed Brazil, saying: “This is a nation in respect of which the world must sit up and take proper notice. The Governor, as one of the leading politicians in the country, is extremely well placed to be at the forefront of his nation’s rapid development.”
