REINSURANCE FACULTATIVE FACILITY FOR BONDS
February, 2021: Active Capital Reinsurance, Ltd. – ACTIVE RE, an international and specialized reinsurance company with a risk rating of A- Excellent (AM BEST) has signed an agreement with the underwriting agency Lions Gate Underwriting Latin America, based in Miami, for the facultative underwriting of surety risks in Latin America and the Caribbean.
With this strategic alliance ACTIVE RE and Lions Gate Underwriting Latin America add financial capacity and vast experience of more than 35 years of underwriting in the region, with the aim of providing insurers, contractors and brokers a more professional, competitive and agile service. The reinsurance capacity can reach up to US 10 million and is also protected by major retrocessionaires in the London market (Lloyd’s and non-Lloyd’s).
Juan Antonio Niño P., Executive President of ACTIVE RE, adds that “the surety market, mainly in infrastructure projects in the last decade in LATAM, has been led by international reinsurers, which are either recently out of the market or have substantially reduced their participation. This represents a great opportunity for our appetite, which, together with the talent we have found in our strategic allies of Lions Gate Underwriting Latin America, becomes a timely and correct solution to support the reactivation of the economies of the region. We will be ready to receive all serious proposals that support infrastructure projects that have been stopped by the pandemic and those related to the development of the region”.
Jairo Medina, Executive Vice President of Lions Gate Underwriting Latin America and a leading underwriter for the region, comments that “despite the market contraction in 2020 due to the pandemic and the global crisis, the prospects for the surety market in the coming years are excellent, and, with this alliance, we aim to cover the lack of offers after the exit of several reinsurers in recent times. ACTIVE RE’s support for this initiative reflects its unequivocal long-term commitment to the surety line and to Latin America”.
ACTIVE RE is a reinsurance company that operates since 2007 with a general license to underwrite all types of risks and specializes in massive reinsurance products for financial institutions. During 2019, ACTIVE REE ventured into the surety and facultative surety business in Europe, and during the past year, they have managed to continue expanding their services to new markets with a moderate and selective credit business.
Lions Gate Underwriting Latin America is an independent underwriting agency that operates with the support of a selection of highly rated reinsurers offering an excellent portfolio of products to the insurance and (re)insurance broker community. They recently announced the appointment of Jairo Medina, who has more than 35 years of experience in surety, as Executive Vice President (EVP) and Head of Surety for Latin America, and oversees this alliance.
This alliance is expected to be just the beginning of a long-term relationship with more opportunities and benefits for all.