Sao Paulo, 3 July 2017 – Swiss Re Corporate Solutions Ltd, the commercial insurance arm of the Swiss Re Group, and Bradesco Seguros S.A., a company controlled by Banco Bradesco S.A., have closed the transaction announced in October 2016 and officially started the joint venture operation in Brazil. Bradesco Seguros' commercial large-risk portfolio has been integrated into Swiss Re Corporate Solutions Brasil Seguros S.A. (SRCSB), making it one of the leading Brazilian players in this segment. Swiss Re Corporate Solutions Ltd retains a 60% stake in SRCSB while Bradesco Seguros holds a 40% equity stake.
The partnership gives SRCSB exclusive access to Bradesco Seguros' distribution network, which is comprised of more than 140 insurance branches, over 5 000 Banco Bradesco bank branches and around 40 000 registered insurance brokers and agents. As part of the transaction, approximately 120 of Bradesco Seguros' large-risk specialists in São Paulo and Rio de Janeiro have joined SRCSB.
A promising business
Upon closing this transaction, SRCSB became one of the leading insurers in the large-risk insurance market in Brazil, with a total of roughly BRL 820 million (USD 250 million) in gross written premium and significant growth potential.
"This partnership reaffirms our commitment to the Brazilian market," states Agostino Galvagni, CEO Swiss Re Corporate Solutions and a member of the Swiss Re Group Executive Committee. "By joining forces with Bradesco Seguros, we're able to bring our innovative product offering to an even wider segment of mid-sized and large corporate clients in the region."
With the financial backing of the Swiss Re Group, Swiss Re Corporate Solutions offers in-depth underwriting knowledge and large net capacity. At the same time, Bradesco Seguros brings its deep local market expertise and extensive distribution network with offices throughout Brazil.
Octavio de Lazari Junior, CEO of Bradesco Seguros, states: "The Bradesco Seguros Group and Swiss Re Corporate Solutions are aligned in terms of long-term vision, and have complementary competencies and portfolios. The joint venture enables us to expand our product offering across all insurance lines. The association also reaffirms our belief in the growth potential of Brazil's large-risk insurance segment."
Luciano Calheiros, CEO Swiss Re Corporate Solutions Brazil, will lead the joint venture operation.
The transaction was approved by the Brazilian Superintendence of Private Insurance (SUSEP), the Brazilian government's Administrative Council for Economic Defense (CADE) and the Central Bank of Brazil (BACEN).
Notes to editors
About Swiss Re Corporate Solutions
Swiss Re Corporate Solutions offers innovative, high-quality insurance capacity to mid-sized and large multinational corporations across the globe. Our offerings range from standard risk transfer covers and multi-line programmes, to highly customised solutions tailored to the needs of our clients. Swiss Re Corporate Solutions serves customers from over 50 offices worldwide and is backed by the financial strength of the Swiss Re Group. For more information about Swiss Re Corporate Solutions, please visit corporatesolutions.swissre.com or follow us on Twitter @SwissRe_CS.
About Bradesco Seguros Group
Bradesco Seguros Group, the insurance conglomerate of Bradesco Organization, is a leader in the Brazilian insurance market, with operations in national segments of Insurance, Capitalization and Open Pension Funds. In 2016, annual revenues of the Bradesco Seguros Group reached BRL 71.4 billion – an increase of 10.5% in comparinson with the previous year, mantaining around 25% of market share. At the end of 2016, its technical reserves exeeded BRL 223 billion and its financial assets amounted to BRL 242 billion. The total paid in indemnities and benefits by the Group, last year, reached BRL 52.3 billion (about BRL 207 million per day) – an increase of 15.4% over the daily average of 2015. More information about the Bradesco Seguros Group can be found at www.bradescoseguros.com.br.
Cautionary note on forward-looking statements
Certain statements and illustrations contained herein are forward-looking. These statements (including as to plans, objectives, targets, and trends) and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact.
Forward-looking statements typically are identified by words or phrases such as “anticipate”, “assume”, “believe”, “continue”, “estimate”, “expect”, “foresee”, “intend”, “may increase”, “may fluctuate” and similar expressions, or by future or conditional verbs such as “will”, “should”, “would” and “could”. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Group’s actual results of operations, financial condition, solvency ratios, capital or liquidity positions or prospects to be materially different from any future results of operations, financial condition, solvency ratios, capital or liquidity positions or prospects expressed or implied by such statements or cause Swiss Re to not achieve its published targets. Such factors include, among others:
• further instability affecting the global financial system and developments related thereto;
• further deterioration in global economic conditions;
• the Group’s ability to maintain sufficient liquidity and access to capital markets, including sufficient liquidity to cover potential recapture of reinsurance agreements, early calls of debt or debt-like arrangements and collateral calls due to actual or perceived deterioration of the Group’s financial strength or otherwise;
• the effect of market conditions, including the global equity and credit markets, and the level and volatility of equity prices, interest rates, credit spreads, currency values and other market indices, on the Group’s investment assets;
• changes in the Group’s investment result as a result of changes in its investment policy or the changed composition of its investment assets, and the impact of the timing of any such changes relative to changes in market conditions;
• uncertainties in valuing credit default swaps and other credit-related instruments;
• possible inability to realise amounts on sales of securities on the Group’s balance sheet equivalent to their mark-to-market values recorded for accounting purposes;
• the outcome of tax audits, the ability to realise tax loss carryforwards and the ability to realise deferred tax assets (including by reason of the mix of earnings in a jurisdiction or deemed change of control), which could negatively impact future earnings;
• the possibility that the Group’s hedging arrangements may not be effective;
• the lowering or loss of one of the financial strength or other ratings of one or more Swiss Re companies, and developments adversely affecting the Group’s ability to achieve improved ratings;
• the cyclicality of the reinsurance industry;
• uncertainties in estimating reserves;
• uncertainties in estimating future claims for purposes of financial reporting, particularly with respect to large natural catastrophes, as significant uncertainties may be involved in estimating losses from such events and preliminary estimates may be subject to change as new information becomes available;
• the frequency, severity and development of insured claim events;
• acts of terrorism and acts of war;
• mortality, morbidity and longevity experience;
• policy renewal and lapse rates;
• extraordinary events affecting the Group’s clients and other counterparties, such as bankruptcies, liquidations and other credit-related events;
• current, pending and future legislation and regulation affecting the Group or its ceding companies and the interpretation of legislation or regulations;
• legal actions or regulatory investigations or actions, including those in respect of industry requirements or business conduct rules of general applicability;
• changes in accounting standards;
• significant investments, acquisitions or dispositions, and any delays, unexpected costs or other issues experienced in connection with any such transactions;
• changing levels of competition; and
• operational factors, including the efficacy of risk management and other internal procedures in managing the foregoing risks.
These factors are not exhaustive. The Group operates in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance on forward-looking statements. Swiss Re undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
This communication is not intended to be a recommendation to buy, sell or hold securities and does not constitute an offer for the sale of, or the solicitation of an offer to buy, securities in any jurisdiction, including the United States. Any such offer will only be made by means of a prospectus or offering memorandum, and in compliance with applicable securities laws.
Global Grain is one of the largest industry events for companies active in the grains and oilseeds supply chain. Swiss Re Corporate Solutions will be sponsoring and exhibiting in Geneva at Global Grain 2017.
Learn moreThe Ferma Risk Management Forum is THE major European event for the insurance and risk management industry. This event attracts over 1500 participants and more than 400 of them are risk managers, making it the largest meeting of risk managers in Europe. The conference provides not only great opportunity for participants to network with peers, but it is also a vibrant platform for Swiss Re Corporate Solutions to highlight our broad, global commercial insurance offerings.
Learn moreWe are pleased to invite you to the 4th edition of our exclusive Swiss Re Corporate Solutions Latin America Client Advisory Panel that will take place on October 2-3, 2017, at the famed historic Biltmore Hotel, 1200 Anastasia Avenue, Coral Gables, Florida.
Learn moreSwiss Re Corporate Solutions hosts and sponsors quarterly drinks event in cooperation with A Word About Wind at our iconic London offices at 30 St Mary Axe. These exclusive networking opportunities enable senior wind energy industry professionals to network with their counterparts working in finance and investment in the London City.
Learn more
