or "Company") hereby informs the market and its shareholders that Andrina Special Purpose Insurance Entity (SSPE), a wholly owned subsidiary of IRB(Re), has issued today the first Insurance Linked Security (ILS) in the Brazilian market, in the amount of R$33,7 million. The transaction, in this case, involves the securitization of surety bond risks and was structured in partnership with Itaú-Unibanco.
Fully owned subsidiary of IRB(Re), Andrina was the first Special Purpose Insurance Entity (SSPE) to receive authorization from the Brazilian Insurance Regulator (SUSEP) to operate in Brazil, in December of last year. SSPEs transfer insurance, supplemental health, reinsurance, or retrocession risks from one or more insurers or reinsurers -referred to as counterparties - to capital markets investors. This is done through the issuance of an Insurance Linked Security (ILS), which securitizes the underlying receivable.
In 2022, Law 14,430 authorized the creation of the Insurance Linked Security (ILS) market in Brazil. For this inaugural issuance, collaboration with public authorities and other key stakeholders was necessary to structure the market - mostly notably the Ministry of Finance, SUSEP, and the Brazilian Federal Revenue Service, in addition to support from B3 (the Brazilian stock exchange), Oliveira Trust, and law firms Machado Meyer and Mattos Filho.
IRB-BRASIL RESSEGUROS S.A. Marcos Pessôa de Queiroz Falcão Chief Executive Officer Investor Relations Officer2/2