Parana Banco, a Brazilian bank, recently sought authorization to form the country's first ever private-sector reinsurer. Parana Banco indicated that the reinsurer, which will be named J. Malucelli Resseguradora S.A., will have nearly $40 million in capital and initially provide reinsurance cover only for surety bonds issued by J Malucelli Seguradora, the insurance unit of the bank.

Despite being the one of the largest insurance markets in Latin America, the Brazilian reinsurance market was not open to other reinsurers until last year, when legislation passed ending the monopoly position previously held for many years by the government-run reinsurer, Instituto de Resseguros do Brasil. Recently, both Munich Reinsurance Co. and Lloyd's of London have announced that they intend to open offices in Brazil.