Published: Tuesday, October 30, 2012
By Ulric Rindebro Business News Americas
Panama-based Barents Re is preparing to expand its current focus on facultative reinsurance to the treaty reinsurance business, the company’s newly appointed head of Latin America, Arturo Falcon, told BNamericas.
The new treaty division will be located at Barents Re’s Latin American hub in Miami, and most likely be up and running in January 2013, said Falcon.
The expansion into the treaty business is part of Barent Re’s strategy to be a niche underwriter in segments where there is strong demand for specialized know-how, the executive said.
In Latin America, Barents Re will also continue to grow its facultative reinsurance business in the liability, personal accident, life, health, mass-market and micro insurance segments, said Falcon, who added that the company also underwrites some property risks without catastrophic exposure.
Falcon added that the treaty business would piggy-back on the facultative business, and cover more or less the same market segments.
Today’s most important market in Latin America for Barents Re is Mexico, which is a very large market with a supportive regulatory framework, Falcon said, while adding that the company has not yet entered Brazil.
The executive also said that other fast-growing and high priority markets for Barents Re in the region are Colombia, Central America and the Spanish-speaking Caribbean.
Barents Re opened underwriting offices last year in Paris and Beirut as part of its internationalization outside Latin America, which it serves through underwriting offices in Panama and Miami.
Barents Re is one of Latin America’s largest reinsurers and its parent is holding company Standard Capital, which is based in the British Virgin Islands.