Lake Forest, Illinois – January 12, 2011 – A well informed source suggested that the IRB is losing market share quickly and consequently is fighting for its survival by fighting for Resolutions 224 & 225. Chief among the reasons for the new CNSP Resolutions is that in 2006 and 2007 when opening the market was being discussed, studied and passed as law by Congress and signed by the Vice President in late 2007, was that the Instituto de Resseguros do Brasil never imagined that its’ supremacy would or could ever be challenged. When the new Law 126 was implemented, the IRB thought it would receive the majority of the 60% cessions. Clearly this didn’t happen and when the mandatory cessions were reduced to 40%, the pain was further intensified. The IRB never thought there would be so many companies or that it wouldn’t get the lion’s share of the reinsurance business. Today there are six ‘local reinsurers’ and it is rumored that three more are coming. The thought of 8 or 9 local reinsurers competing with the IRB has trying to reinterpret the rule book. A Look Back – December 23, 2009 – IRB Brasil Re: “Preference is not a Monopoly” – Read comments made by IRB Brasil Re’s boss, Eduardo Nakao – Read ». Clearly this isn’t today’s thinking. Zurich Financial Services Acquires in Brazil – Read » June 11, 2008 – IRB Brazil Re, whose state monopoly has just ended, posted a 33.7% drop in net profit to $55.8m for January to April, reports BNamericas.com. May 14, 2008 – New Reinsurers and Reinsurance Brokers in Brazil – Read » April 16, 2009 – Lloyd’s Opens Its First Office in Brazil – Read » December 8, 2008 – XL Re approved to be local reinsurer in Brazil – Read »
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