Following the approval of new regulations on the opening of the Brazilian reinsurance market for foreign reinsurers (effective from April 2008), Lloyd's and Munich Re announced plans to open representative offices in Rio de Janeiro and São Paulo respectively.
Lloyd's will be able to register as an foreign authorized reinsurer in Brazil. It will be subject to specific rules, different from those applicable to other foreign authorized reinsurers. The most important rules for Lloyd's are: (i) the net equity of the central fund maintained by Lloyd's must be over 100 million Brazilian Reais; and (ii) all members of Lloyds will be considered one single entity for registration purposes. Lloyd's specific rules are more favourable than those applicable to other foreign authorized reinsurers. All members of Lloyd's should have, jointly, a net worth of 100 million Brazilian Reais and a current account with 5 million US Dollars, while any other authorized reinsurers non-members of Lloyd's will have to meet such requisites individually.