Latin American Developments

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The Chilean government recently announced that it will raise the capital gains tax rate applicable to foreign insurers, foundations and sovereign funds that operate in the country.  In a joint release, the Ministerios de Hacienda y Economia announced that the regulation will be sent to the Controlaria General this week. …
Read More Chile To Raise Capital Gains Tax Applicable To Foreign Insurers, Foundations and Sovereign Funds

The Ecuadorian government recently announced that, in light of the ongoing global financial crisis, it will step up its supervision of financial institutions in the country.  Ecuador’s Superintendent of Banks and Insurance, Gloria Sabando commented that, although the crisis is not expected to have an immediate impact upon Ecuador, it signals the need to take measures to avoid a future crisis in the country. 

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Read More Ecuador Will Reinforce Supervision Of Financial Companies In Light Of Global Crisis

As the current worldwide economic turmoil has taken its toll on insurance markets, a number of Latin American regulators and commentators have expressed the opinion that the peculiarities of the Latin American insurance markets may make them particularly resilient in the face of a potential global downturn.  According to these sources, despite the current crisis, Latin American insurance markets remain stable and likely to continue to grow. 

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Read More How Will The Credit Crisis Affect Latin American Insurance Markets?

Brazil’s Superintendencia de Seguros Privados (SUSEP) recently granted IRB Brasil Resseguros S.A. (IRB), the government-controlled entity that formerly held a reinsurance monopoly in Brazil, an extension of time through December 31, 2008 to conform to the new regulations that opened the Brazilian reinsurance market to local and foreign competition. …
Read More Brazil: IRB Brasil Resseguros S.A. Granted Extension of Deadline to Conform to Resolution No. 168

As it prepares to compete in the country’s newly de-monopolized insurance, Costa Rica’s state insurance giant, the Instituto Nacional de Seguros (INS), has recently announced the creation of four new insurance entities: INS Internacional, INS Servicios, INS Vida and INS Comercializadora.  The move is part of an effort by INS to restructure, retain customers and grow its business in the face of new competition. …
Read More Costa Rica’s INS Prepares for Opening of Insurance Market

Fitch Ratings recently released a special report entitled “Brazilian Insurance Industry: Annual Results and Prospects.”  In the report, released September 26, 2008, Fitch reports that the Brazilian insurance market grew by 15% in 2007 and predicts that the market, already the largest in Latin America and the Caribbean, will experience “consistent growth in the short and medium term . . . .” …
Read More Fitch Ratings: Participation of Foreign Reinsurers in Brazil Insurance Market Should Help Maintain Consistent Growth in the Short and Medium Term

With stock market turbulence and industry consolidation in 2008 have come financial strength ratings downgrades for more than 100 insurers and reinsurers.  While such downgrades can result in numerous consequences, one potentially unrecognized consequence is non-compliance with regulatory reporting guidelines in numerous jurisdictions in Latin America and other parts of the world. …
Read More Ratings Downgrades Can Result in Regulatory Non-Compliance in Many Countries

A case that began more than a decade ago has reached judgment in the Supreme Court of Bermuda.  The case, Lisa S.A. v Leamington Reinsurance Company Ltd and Avicola Villalobos S.A. 1999: No. 108/2001 No 79, concerned a Guatemalan company, Lisa SA (Lisa), which brought an action against Avicola Villalobos S.A. (AVSA) also a Guatemalan company and Leamington Reinsurance Company Ltd (Leamington) a Bermuda captive reinsurer which reinsured the companies in the Avicola group only. 

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Read More Bermuda Judge Rules on Guatemalan Companies’ Family Feud Case

EAPD lawyer Machua Millett recently participated in the American Conference Institute’s ReAct Brazil International Forum on Positioning for Success in the Brazilian Reinsurance Market. …
Read More Industry Participants and Regulators Discuss Development of the Brazilian Reinsurance Market (Part II)