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 rogerio.jelmayer@dowjones.com
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