The first insurance-linked securities (ILS) structure under Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk, could be named Andrina Seguros and sponsored by local reinsurance company IRB RE, according to a report.
Brazil has designed its legislative and regulatory framework with domestic market activity first in mind, but the ILS structures can also be used by other sponsors or investors that want to transact in Brazil using capital markets funding as well.
Notably, as a result, the first special purpose reinsurance vehicle Brazil is likely to approve for issuing ILS, an Sociedades Seguradoras de Propósito Específico (SSPE), has been cited as an IRB RE sponsored vehicle named Andrina Seguros.
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