Reinsurance demand grows 15% YOY in Q1 in Brazil
Demand for reinsurance cover is experiencing significant growth in Brazil, according to a report by Terra Brasis Resseguros.
The total amount of ceded reinsurance originated by Brazilian insurers (gross of commission) grew 15 percent year-on-year to BRL 2.72 billion ($0.83 billion) in the first quarter of 2017.
Analysts estimate that the gross reinsurance premium accepted by local reinsurers from offshore cedants increased about 64 percent year-on-year to BRL 522 million in 2017's first quarter.
Local reinsurers' loss ratio stood at 47 percent (39 percent to Brazil's major reinsurer IRB and 59 percent to the other locals), compared to 87 percent for the previous period. The combined ratio stood at 98 percent (87 percent to IRB and 113 percent to the other Locals). This compares to 97 percent registered in the 2016 first quarter.
Overall, local reinsurers made a net loss of BRL 1 million in the first quarter of 2017 after a net profit of BRL 261 million in the same period a year ago. Excluding IRB, the net loss in the first quarter for local reinsurers was BRL 224 million.
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