Lockton Re, the reinsurance business of independent insurance broker Lockton, has announced the launch of a dedicated insurance-linked securities (ILS) platform for Brazil.
The reinsurance broker has fully deployed its advisory and structuring capabilities through locally licensed Special Purpose Securitization Entities (SSPE) dedicated to Brazil’s Letra de Risco de Seguro (LRS) market.
The platform is led by Rodrigo Botti as Country Head Brazil. He played a key role in developing the country’s ILS regulations from 2016 through the enactment of Lei 14.430/2022 and Resolução CNSP 453/2022.
Botti is joined by Dario Luna, Lockton Re (LAC), an expert in parametric insurance who developed Mexico’s catastrophe bond programme.
By partnering closely with an independent, Brazilian licensed SSPE, Lockton Re says that it can bypass lengthy setup delays. This ready-to-deploy vehicle allows the firm to provide rapid issuance, opening the LRS market immediately to institutional investors and Brazilian cedents.
The platform will support indemnity parametric, and index-based triggers for various risks, including agribusiness, infrastructure, climate catastrophes, and regulatory capital relief.
“Brazil has built one of the most thoughtfully designed ILS regulatory frameworks in the world. The domestic LRS market builds on existing global structures, bringing global governance standards, while at the same time creating innovation designed for Brazil’s market realities,” Botti stated.
Adding: “Lockton Re colleagues have been at the table since at least 2023, and we are proud to now offer the full spectrum of services — from structuring and regulatory advisory to investors — to help this market reach its extraordinary potential.”
Global ILS markets demonstrate the value of connecting insurance risks to capital markets, with 2025 cat bond issuance exceeding $25.6 billion and a total market surpassing $61 billion.
Major institutional investors in Switzerland, the Netherlands, and the US have increased allocations due to high returns, low volatility, and minimal market correlation.
Brazil’s LRS market is positioned for a similar expansion. With annual reinsurance premiums near R$30 billion and typical pricing at 3-10% of notional, insurance could reach R$30 billion to R$100 billion annually, matching Brazil’s CRI and CRA capital markets instruments.
Following the first LRS issuance by Andrina SSPE in May 2025, Lockton Re views Brazil as being at a structural turning point in insurance risk financing and is committed to leading this transition.
Luna commented: “Having structured Mexico’s catastrophe bond program and worked across the parametric insurance landscape in Latin America for many years, I can say with confidence that Brazil’s LRS is the most robust regulatory architecture for ILS in Latin America. Our team is now ready to deliver competitive ILS solutions for new cedants and support them in their journey as the market matures.”
