Munich Re Adding Brazil Subsidiary

Following the opening of the Brazilian reinsurance market, Munich Re will be represented by a subsidiary in São Paulo. Georg Daschner, whose responsibilities on Munich Re's Board of Management include Latin America, said: "We are very pleased that the Brazilian market has been opened for foreign reinsurers. Now we can offer reinsurance protection to primary insurers in Brazil in all lines of business and provide them with the Munich Re Group's entire range of services. This creates promising new business opportunities for us." Munich Re has had a representative office in São Paulo for 10 years and said it is therefore very familiar with market conditions there. Daschner added, "A local subsidiary will enable us to give the market the best support possible and make our capacity extensively available to clients from the outset. And we will succeed in participating appropriately in the expected expansion of the market." With a premium income from primary insurance of approx. US$ 27bn, Brazil is by far the largest insurance market in Latin America. Reinsurance premium income was roughly US$ 1.4bn in 2006. Liberalisation of the reinsurance market coupled with the country's overall economic development is expected to make demand for reinsurance solutions in Brazil increase markedly.