Brazilian reinsurer Terra Brasis Resseguros (Terra Brasis Re) has announced that the volume of reinsurance protection provided by Brazilian insurers increased by almost 13% in the first nine months of 2019, with 66% placed in the local market.
The reinsurer has a focus on the Brazilian and wider Latin American marketplace, and has now released the 32nd edition of its Terra Report on the Brazilian reinsurance sector.
Reinsurance volume provided by Brazilian insurance companies jumped by 12.9% year-over-year to BRL 10.27 billion (approximately USD 2.5 billion).
The reinsurer notes that 66% of the reinsurance volume placed was done so in the local market, and, at the same time, the amount of risk accepted from offshore insurers also continued to rise, up almost 31% when compared with the same period in 2018.
Reinsurance accepted by local reinsurance companies (gross of commissions), considering both domestic and foreign businesses, grew by 12% to BRL 9.63 billion (approximately USD 2.3 billion).
The gross loss ratio did increase in the period for local reinsurer, reaching 75% in 2019 when compared with the 61% posted in the first nine months of 2018. At the same time, the combined ratio weakened from 90% to 95% for local reinsurers in the period.
At BRL 1.3 billion (approximately USD 305 million), net income for the nine month period in 2019 improved against the BRL 994 million (approximately USD 233 million) recorded in the same period in 2018.