Lloyd's of London syndicates that have established operations in Brazil under a Lloyd's admitted insurer license have seen premiums rise faster than the rest of the market.

Lloyd's premiums have tripled from the $100 million written in 2008 to $300 million in 2011, making the market the largest reinsurer in Brazil behind the state-owned Instituto de Resseguros do Brasil, said Marco Castro, Rio de Janeiro-based Lloyd's representative.

Premiums are expected to increase again in 2012 — the market has already seen premiums increase by 67% in the first half of 2012 when compared with the same period in 2011, said Mr. Marco.

As an admitted insurer, Lloyd's underwrites Brazilian business in London, but the local presence gives some syndicates an edge, according to Mr. Castro. Syndicates with local offices saw their Brazil reinsurance premiums grow by an average 184% between 2008 and 2011, compared with 103% for the market as a whole, he said.

Lloyd's has eight syndicates with offices in Brazil, with six of those co-located in Lloyd's Rio office. Lloyd's Brazil office is a “plug-and-play” model for Lloyd's syndicates, which makes it simpler and more cost-efficient for insurers to join without having to set up local legal entities. And, just like in London, brokers can come in and see all the syndicates in the same place, said Mr. Castro.

Lloyd's platform in Brazil is a low-cost way to access the market, said Florian Kummer, manager of the Latin America operations at Liberty Syndicate Management Ltd., the Lloyd's arm of Liberty Mutual Holding Co. “Local licensed reinsurers have a high fixed cost of business while admitted status gives added flexibility,” he said.

Syndicates with an office in Brazil have first access to business and have a better understanding of the business culture.

They also have a better understanding of the quality of risks, which has contributed to Lloyd's improving loss ratio in Brazil, said Mr. Castro. The loss ratio has improved from 89% in 2008 to 44% in 2011, he said.