Allianz to Start Reinsurance Operations in Brazil

   By Rogerio Jelmayer 

SAO PAULO--German insurer Allianz SE (ALV.XE) will start reinsurance operations in Brazil as it plans to reinforce its presence in emerging market nations, the company said Tuesday.

In December, the company's unit Allianz Global Corporate & Specialty AG, or AGCS, which underwrites marine, aviation, corporate and industrial insurance risks, received authorization from the Brazilian government's insurance regulator Susep to operate in the reinsurance industry in Brazil.

The company has created Allianz Global Corporate & Specialty Resseguros Brasil S.A. and it will establish headquarter in Rio de Janeiro and it will open an office in Sao Paulo. The Brazilian unit will be led by Angelo Colombo.

"We want to triple our premium income from emerging markets in the next five years, and Brazil is an important cornerstone in realizing our growth strategy," said AGCS CEO Axel Theis in a press release. "Having a local entity established is essential to support our clients in this country and also successfully expand in other South American markets," he added.

With the new reinsurance business model, AGCS Brazil aims to double its 2012 premium income of currently 80 million euros by 2015 cooperating with local primary insurers in the Brazilian market, according to the company.

Brazil represents about 50% of the market potential to AGCS in South America, and it is expected to be the hub of operations in the region.

"After enhancement of operations in Brazil, AGCS will look to further expand across South America. Gross written premiums from South American business are expected to reach over EUR350 million in total by 2015," the company said.

Write to Rogerio Jelmayer at [e-mail]

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