The Brazilian Council of Private Insurance (Conselho Nacional de Seguros Privados, CNSP) published Resolutions No. 322 (20 July 2015) and No. 325 (30 July 2015) amending the current Brazilian reinsurance regulations. The resolutions, effective immediately, will reduce existing regulatory restrictions gradually over the next five years, starting from 1 January 2017.

Restriction on Intra-Group Transfer of (Re)insurance and Retrocession Liabilities

In 2011, Resolution No. 232 introduced the restriction for an insurance company or Local Reinsurer to transfer no more than 20% of premiums corresponding to each coverage it contracted to related companies, or to companies belonging to the same financial conglomerate.

For Admitted and Occasional Reinsurers – including Lloyd’s underwriters – the new Resolution No. 322, amended by Resolution No. 325, gradually relaxes the limits on premium which may be contracted to related companies, or to companies belonging to the same financial conglomerate headquartered abroad. The new limits will be as follows:

  • 20% until 31 December 2016
  • 30% from 1 January 2017 until 31 December 2017
  • 45% from 1 January 2018 until 31 December 2018
  • 60% from 1 January 2019 until 31 December 2019
  • 75% from 1 January 2020


Mandatory Reinsurance Cessions

Resolution No. 322 additionally revises the provisions of Resolution No. 225, whereby insurance companies in Brazil were required to cede at least 40% of each reinsurance cession to local reinsurers. The preferential offer of 40% of each reinsurance cession to local reinsurers remains unchanged; however the minimum mandatory cession to local reinsurers will be gradually reduced as follows:

Resolution No. 322 additionally revises the provisions of Resolution No. 225, whereby insurance companies in Brazil were required to cede at least 40% of each reinsurance cession to local reinsurers. The preferential offer of 40% of each reinsurance cession to local reinsurers remains unchanged; however the minimum mandatory cession to local reinsurers will be gradually reduced as follows:

  • 40% until 31 December 2016.
  • 30% from 1 January 2017 until 31 December 2017
  • 25% from 1 January 2018 until 31 December 2018
  • 20% from 1 January 2019 until 31 December 2019
  • 15% from 1 January 2020

Lloyd’s welcomes this effective decrease in trading barriers for Admitted and Occasional Reinsurers in Brazil and is convinced that this will further foster relationships with the local insurance and reinsurance market.

Further information

Please refer to Crystal or Market Bulletin Y4917 for more details.

If you have any queries please contact:

Lloyd’s International Trading Advice
Lloyd’s Desk, Ground Floor, Underwriting Room
t: +44 (0)20 7327 6677
e: LITA@Lloyds.com
www.lloyds.com/crystal