The Brazilian insurance regulator, SUSEP, has approved the country’s first insurance-linked securities (ILS) structure, named Andrina, which is sponsored by IRB Re. This development enables the newly established Andrina Special Purpose Insurance Company to issue Insurance Risk Letters, thus creating a framework for accessing capital markets in Brazil for reinsurance capacity. It is anticipated that this initiative will enhance the Brazilian reinsurance market and provide new opportunities for both local and international investors. Machado Meyer, the law firm involved in the establishment, emphasized the potential of Andrina to improve the management of catastrophic risks within Brazil’s insurance sector.
