This will significantly reduce the regulatory burden and costs to the Corporation of Lloyd’s as well as to Lloyd’s Managing Agents, whilst preserving practically the same level of access for Lloyd’s to the Brazilian reinsurance market.
Lloyd’s keeps its licences around the world under constant review. This decision follows a local regulatory amendment that permits an increase in the amount of reinsurance that can be ceded to Occasional Reinsurers. The Brazilian legislation now permits up to 95% of reinsurance premiums to be ceded to entities with Occasional Reinsurer status (this has increased from 10%).
Lloyd’s office and representatives in Brazil remain unchanged, as does the presence in the country of some Lloyd’s syndicates (Beazley, Liberty and Starr).
Marco Castro, Managing Director of Lloyd’s Brazil, said:
“Our decision to make this change to Lloyd’s licence in Brazil is exclusively due to the benefits it will bring in terms of managing regulatory requirements. With the new Occasional Reinsurer status, the regulatory burden on Lloyd’s Managing Agents will be simplified and streamlined. At the same time there will be no practical impact on the access that Brazilian reinsurance cedents, retro-cedents and brokers enjoy to the Lloyd’s Market.
“Lloyd’s is steadfast in its commitment to the Brazilian insurance and reinsurance market. That remains entirely unchanged.
“As the Brazilian economy begins its recovery, we are confident that Lloyd’s is well positioned, and we will have the opportunity to further develop our business with important customers and partners across the country.”