Latin America’s reinsurance market sees deepening international interest: Howden Re

Latin America’s reinsurance market is attracting growing international interest, with an influx of new entrants and capital flowing into the region, including a noticeable rise in managing general agents (MGAs), according to Howden Re, the global reinsurance broking arm of Howden Group.

As reinsurers meet in Costa Rica for FIDES 2025, Latin America’s role in the global reinsurance market continues to strengthen, with a growing appetite for risk, additional sources of capacity, and renewed focus on protection gaps.

“We are seeing plenty of capacity entering the market, including a noticeable increase in MGAs,” said April McLaughlin, Managing Director, Howden Miami. “Many of these are relatively new and not just based in the Americas. We’re seeing interest from firms in the Middle East and Asia who want to diversify their portfolios and take on some regional exposure. It’s clear that global appetite for the region is growing.”

Howden Re noted that the industry has entered a hard market softening phase, with conditions in Latin America reflecting this global trend, presenting opportunities for innovation grounded in disciplined underwriting.

Mario Baotic, Head of International Growth Markets, Howden Re, said, “Hurricane Melissa will likely keep reinsurers cautious across the region, especially in Central America and the Caribbean, where wind exposure is high.”

“People want to know what kind of discounts they can expect and how much capital is available,” he added. “In general, we’re seeing the same softening trends as elsewhere, but regional variations are significant.”

McLaughlin explained that local regulation remains a key factor in shaping capacity flow and business structure.

She said, “In Chile, rates have started to come down after several years of steep increases, perhaps more sharply than in neighbouring markets.

“Each country is different, with its own regulatory and rating requirements. In Chile and Peru, reinsurers need two ratings, S&P and AM Best, to write business. Brazil, meanwhile, requires reinsurers to be locally registered, which leads to more fronting arrangements.”

Howden Re also highlighted persistent catastrophe exposure and widening protection gaps. Chile remains heavily exposed to earthquake and flood risk, while Brazil faces climate-linked challenges requiring more sophisticated risk transfer solutions.

In addition, demand for parametric, climate-linked, and alternative structures is rising as cedents seek efficient ways to manage volatility.

“There’s some growth in both fronting and MGA activity. They often go hand in hand, but it’s hard to quantify at this stage,” said McLaughlin. “What’s clear is that we’re seeing a lot of movement and interest across the region, which is encouraging.”

“Growth markets such as Latin America continue to serve as testing grounds for innovation, combining local data, flexible structures and international capital to close protection gaps sustainably,” added Baotic.

As new capital enters the region and cedents seek more tailored solutions, trusted intermediaries play an increasingly important role. Sustainable growth in Latin America depends on collaboration—connecting local insight with international expertise to build long-term resilience.

Howden Re’s expanding operations in Brazil and Peru reflect this approach, connecting local talent with the firm’s global treaty and facultative expertise to create a unified platform supporting clients through changing conditions and complex regulation.

“Our international platform continues to expand at pace, and Latin America is central to that momentum,” said Massimo Reina, CEO Howden Re International. “Over the past two years, we have strengthened our treaty reinsurance presence through the growth of our Brazil operations, a flagship presence in Latin America, with the acquisition of Innova Re in Peru, and though the establishment of Howden Re Miami as a critical gateway to Latin America. These localised capabilities, paired with our global platform, ensure we can bring the best of what Howden has to offer to benefit our clients.”