Austral Re seeks international growth with LatAm expansion
Brazilian reinsurer Austral Re has announced its plan to expand in the Latin American region as its seeks to further build its overseas business.
The company has projected that its international operation should grow at 15 percent of the reinsurer's gross premium and reach around $20.6 million in 2017. Last year, the international revenue was 9 percent and totalled $13.2 million.
"Our long-term plan estimates that the international operation will reach 50 percent of the portfolio in five years," said Bruno Freire, Austral Re CEO.
The company's decision to expand its overseas business is based on the economic and geographic potential of Latin America, where reinsurance premiums totalled $5.4 billion in 2016. Of this, 85 percent is outside Brazil, according to the statement.
The reinsurer is investing in technology to develop new products to conquer new markets, especially in agro, surety, life and health.
"We want to establish an advisory sale each time, making reinsurance more comprehensive and less transactional," Freire said.
The internationalisation process also includes retrocession deals in global programmes and activities in ten Latin American countries.
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