Euler do Brasil, the local credit insurance unit of German financial group Allianz, has received government authorisation to insure export credit, breaking the virtual monopoly of Seguradora Brasileira de Credito a Exportacao (SBCE), a joint venture led by France's Coface.
"Prospective exports we can insure surpass US$10bn [a year]," Euler do Brasil's chief executive Marc Cambourakis was quoted as saying.
Euler do Brasil will sell insurance to mid-sized and large exporting companies for payments foreign clients are due to make. The company will have online access to Euler & Hermes' databank of 40 million companies worldwide, Cambourakis said.
The insurer is negotiating an automatic reinsurance coverage with IRB Brasil Re, Brazil's government-controlled reinsurance monopoly, whereby most of the risk is passed on to the parent company through IRB Brasil.
