Allianz Global Corporate & Specialty Starts Operations as Local Reinsurer in Brazil
- New office locations in Rio de Janeiro and São Paulo
- Global and local ratings confirm financial strength
- Infrastructure investments drive demand for high-quality capacity and technical expertise
- Angelo Colombo heads AGCS Brazil; Drault Ernanny appointed Head of Market Management
PRESS RELEASE - Rio de Janeiro/New York. January 15, 2013
On December 21, 2012 Allianz Global Corporate & Specialty AG (AGCS) received its local reinsurer’s license in Brazil from the Superintendência de Seguros Privados (SUSEP), the supervisory agency for the Brazilian insurance market. With this local license, AGCS launches its new legal entity known as Allianz Global Corporate & Specialty Resseguros Brasil S.A, or ‘AGCS Brazil,’ and introduces two new offices in Rio de Janeiro and São Paulo.
The financial strength of AGCS Brazil is strong. AGCS Brazil has been assigned a global rating of A – (outlook ‘stable’) and a rating on a national scale of AAA (outlook ‘stable’) by the international rating agency Standard & Poor’s (S&P). The global rating equals the sovereign rating of Brazil, the national scale rating is the highest rating S&P assigns.
Brazil as a cornerstone in regional strategy
With the new reinsurance business model AGCS Brazil aims to double its 2012 premium income of currently 80 million Euro by 2015 cooperating with local primary insurers in the Brazilian market. Brazil represents about 50% of the market potential to AGCS in South America, and is planned to be the hub of operations in this region. After enhancement of operations in Brazil, AGCS will look to further expand across South America. Gross written premiums from South American business is expected to reach over 350 million EUR in total by 2015.
“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,” says AGCS CEO Axel Theis. “Having a local entity established is essential to support our clients in this country and also successfully expand in other South American markets.”
Its two new local offices are ready for operations as a local reinsurer. AGCS Brazil will have its headquarters in Rio de Janeiro and have another location in São Paulo. Local business is managed by Country Manager Angelo Colombo, who carries a strong background in reinsurance and insurance in the region and who has led AGCS’s business in Brazil since 2009, when AGCS was granted its admitted reinsurer’s license.
Strong demand for high-quality capacity
“We see a strong demand for high-quality capacity backed up by strong financial strength and technical risk expertise,” says Colombo. This demand is mainly driven by large infrastructure investments in railways, ports, airports, electricity and the rise of offshore drilling activities. Also, more and more Brazilian corporations are looking to compete within global markets, boosting the demand for international insurance programs.
In order to successfully develop its local operation, AGCS will cooperate with local primary insurers in the Brazilian market as well as corporate brokers. Drault Ernanny leads this initiative as Head of Market Management in Brazil and advances AGCS’s aim to strengthen client services in growth markets. “Our staff is a combination of local insurance insiders and selected foreign experts with proven global experience. Applying global industry standards but also following local best practices will enable us to better serve our Brazilian clients,” says Ernanny.