Howden Re leaders discuss capital, capacity and connected growth for Latin America
As reinsurers gather in Costa Rica for FIDES 2025, Latin America’s role in the global reinsurance market continues to strengthen. A growing appetite for risk, new sources of capacity and renewed attention to protection gaps are shaping a more confident regional landscape.
An influx of new entrants, including managing general agents (MGAs) and capital providers from the Middle East and Asia, underscores deepening international interest in the region.
“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.”
Softening dynamics amid disciplined underwriting
As outlined in Who Dares Wins, Howden Re’s recent global market report, the industry has entered a hard market softening phase, presenting opportunities for innovation grounded in discipline.
Conditions across Latin America reflect this global trend. “Hurricane Melissa will likely keep reinsurers cautious across the region, especially in Central America and the Caribbean, where wind exposure is high,” said Mario Baotic, Head of International Growth Markets, Howden Re.
“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.”
Regulation, risk and resilience
Local regulation remains a key factor in shaping capacity flow and business structure. “In Chile, rates have started to come down after several years of steep increases, perhaps more sharply than in neighbouring markets,” said McLaughlin. “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.”
Data from Howden Re’s Brazil Climate Report highlights persistent cat exposure and widening protection gaps. For example, Chile remains heavily exposed to earthquake and flood risk, while Brazil faces climate-linked challenges that demand more sophisticated risk transfer solutions.
Innovation and protection gaps
Demand for parametric, climate-linked and alternative structures continues to rise 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.
Local expertise, global connectivity
As new capital flows into the region and cedants seek more tailored solutions, the role of trusted intermediaries becomes even more important. Delivering sustainable growth in Latin America depends on collaboration, connecting local insight with international expertise to create long-term resilience.
Howden Re’s growing operations in Brazil and Peru reflect this approach, linking local talent with the firm’s global treaty and facultative expertise. The result is a unified platform that supports 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.”
As the Latin America reinsurance ecosystem continues to evolve, the next phase of regional growth will be measured not only by capacity but by confidence, innovation and connectedness across the market.