Brazilian reinsurer Austral Re has achieved steady growth since launching its strategic plan for Guarantee Insurance in Latin America (LatAm) two years ago, with subscribed premiums reaching R$ 100 million by September and an expected R$ 110 million by year-end, a 40% increase from the previous year.
Austral Re operates in 13 countries with 51 clients, participating in contracts with the main surety insurers. Since launching its Colombia office in 2020 with R$ 15 million in premiums in this line, the company has projected growth to R$ 140 million in written premiums by 2025.
Regional surety underwriter Mariano Canale, based in Buenos Aires since 2022, highlighted that Austral Re identified a gap in the market caused by limited capacity in the region. This gap also presented an opportunity to balance the company’s portfolio between catastrophic and non-catastrophic exposures.
According to Canale, the initial strategy involved reviewing the existing portfolio, defining risk appetites for insurers specialising in guarantees in each market, and participating in industry events to strengthen Austral Re’s regional presence. In 2023, the company became a member of the Pan American Surety Association (PASA).
Canale stated, “Beyond seeking a portfolio balance, Austral Re has the necessary know-how to support our clients and make a difference in the surety markets.”
He added, “We have agility in response, both for special coverage acceptances, agility in claims payments with experience and close relationships with the main actors in the region.
“We are betting on the growth of our participation in markets such as Mexico and Colombia, mainly, continuing with the service and support to our other clients, as well as oriented towards balanced growth and with good results throughout the region.”
Each Latin American market has unique insurance needs. In Brazil, judicial guarantee insurance is a primary focus, while Argentina emphasises customs-related products, and Colombia focuses on compliance guarantees for public and private works. As a reinsurer, Austral Re strives to understand these distinct markets and provide effective risk management across the region. This requires insight into each country’s political, economic, and social landscape.
Canale said, “For us, more important than premium volume is obtaining positive and solid technical underwriting results, as well as adequate geographic diversification that collaborates, among other things, in the search for good results.
“We also carry out an exhaustive analysis of our accumulations per policyholder, using the same technology applied in Brazil, thus becoming increasingly more efficient.”
Canale concluded, “Due to the complex political and economic context of the region, at Austral Re, we are convinced that our surety solutions are of relevant importance to the development and growth of the different economies of the Latin American region. We offer a broad service to the main players in the sector, reinforcing the role of surety insurance in different industries, promoting the development and economic growth of countries.”
