Global investment company Galapagos Capital has announced the issuance of up to R$100 million in Insurance Risk Letters (LRS), which are the Brazilian regulatory regime version of insurance-linked securities (ILS), marking the second ever ILS issuance in Brazil, and the first from Galapagos Capital.
Recall at the end of 2024, Galapagos Capital received authorisation from Brazil’s insurance regulator SUSEP to establish its own Sociedades Seguradoras de Propósito Específico (SSPE), a special purpose reinsurance vehicle, that allowed the company to issue the Brazilian brand of insurance-linked securities (ILS).
The first LRS issuance came earlier this year in May, when reinsurance firm IRB (Re) sponsored the issuance of a R$33.7 million deal to securitize surety bond risks, using its Andrina Special Purpose Insurance Entity (SSPE).
FULL ORIGINAL PUBLICATION HERE