Bermuda-based re/insurer Alterra Capital Holdings Ltd is planning to apply for a licence to incorporate a local reinsurance company in Brazil.In a statement released yesterday, Alterra chief executive officer Marston (Marty) Becker said: “It has been just over a year since we set up Alterra Latin America, and we are continuing to develop our presence in the region through our offices in Bogota, Rio de Janeiro and Buenos Aires.“The addition of a local reinsurance company is a key element of our strategy for Brazil. It will complement our existing presence in that market, which we are currently developing from our Alterra at Lloyd’s office in Rio de Janeiro, and will provide us with greater access to additional reinsurance opportunities.“We are confident that Latin America, and Brazil in particular, is a market with extraordinary growth potential, and we intend to favourably position Alterra by increasing our presence there.”Carlos Caputo, CEO of Alterra Latin America, added: “We have built a tremendous local team of accomplished reinsurance professionals to drive the operations of Alterra Latin America in each of our Latin American locations. We are excited by the opportunity to incorporate a Brazilian reinsurance company that will complement our existing platform and enable us to better serve our clients.“This initiative and capital investment clearly demonstrate Alterra’s commitment to Brazil and its Latin American businesses.”Recent changes in the Brazilian reinsurance regulations have enhanced the position of local reinsurers by replacing the “first right of refusal” requirement with a rule making it compulsory for insurance companies purchasing reinsurance to cede a minimum of 40 percent of each risk to local reinsurers.