Brazil’s minister of finance Guido
Mantega has confirmed the government is to establish a state-owned
insurer to be named Empresa Brasileira de Seguros (EBS). Brazilian
media reports indicate that EBS will have an initial capital of
about $10bn.
According to Moody’s Investor
Services senior analyst Rodolfo Nobrega the current draft of the
bill relating to the establishment of EBS states that it could
function in any segment of the insurance market.
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Nobrega added that, in response to negative market reaction, the
focus of the bill will be redirected, and EBS’ main objective will
be to operate in niches considered to be underdeveloped or lacking
in underwriting capacity, such as exports, low-income homeowners,
micro-companies, credit, surety and engineering.
