SOURCE: Fairfax Brasil Seguros Corporativos

November 07, 2011 12:30 ET

Fairfax Brasil Licenses Risk Explorer™

SÃO PAULO, BRAZIL--(Marketwire - Nov 7, 2011) - Fairfax Brasil Seguros Corporativos S/A has licensed Risk Explorer, the DFA modelling software from Ultimate Risk Solutions (URS), in order to assist the Company's strategic decisions through dynamic financial modelling, Jacques Bergman, CEO, announced.

"The acquisition of Risk Explorer will help us assess our risks and adapt our operations to a new market reality as well as measure the impact of the new solvency rules and implementation of IFRS (International Financial Reporting Standards), enabling us to use our capital more efficiently," Bergman said.

"We're pleased to provide Fairfax Brasil with financial analysis software to assist in strategic planning," said David O'Gorman, URS Managing Director-Latin America.

Fairfax Brasil is a subsidiary of Fairfax Financial Holdings. Founded in 1985, the Group operates in over 100 countries, with a net premium of $5 billion, $8 billion in capital in 2010 and a compound annual return on investment of 15.7 percent from 1985 to 2009. Fairfax Brasil began operations in March 2010 in the country, working in the sectors of commercial and industrial insurance. Since beginning operations until August 2011, Fairfax Brasil recorded more than R$137 million in written premium.

At present, Brazil's commercial insurance market is highly concentrated, where the country's seven largest insurance companies hold approximately 60 percent of the market. "However, it is expected that the recent changes in capital allocation rules will impact market shares in the coming years as companies look to a more efficient use of capital," Bergman predicted.

In 2010, the Brazilian insurance market recorded revenues of $162 billion, an increase of 14.85 percent over the previous year. In the same period, return on investment grew 1.20 percent. Commercial insurance accounts for 12 percent of the market with revenues of $19 billion, an increase of 6.67 percent over 2009.

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