XL wins approval to set up insurance operation in Brazil

HAMILTON, Bermuda—XL Group P.L.C. said Friday that it has obtained preliminary approval from the Brazilian regulator Superintendencia de Seguros Privados to establish an insurance operation in the country.

Upon receipt of final regulatory approval, the Hamilton, Bermuda-based insurer and reinsurer plans to open XL Seguros Brasil S.A. in Sao Paulo to offer a range of casualty, property, professional and specialty insurance products.

“The Brazilian contribution to the global economy continues to grow and will only become more central to our clients' goals,” XL CEO Mike McGavick said in a statement.

Global reinsurers have been working to gain entry in the Brazilian market since a 69-year monopoly by Instituto de Resseguros do Brasil S.A. came to an end in April 2008.

Later that year, Brazilian regulators approved XL Re Brazil, a reinsurance unit of XL Capital Ltd., to begin operations in the country as a reinsurer regulated by local authorities.