Since early this year the Argentinean Superintendence of
Insurance (the "ASI") has been preparing regulations,
which took everyone by surprise, and which will change Argentinean
business for non-Argentinean reinsurers.
For almost 20 years Argentinean cedants have reinsured with (i)
foreign reinsurers registered with the ASI; (ii) unregistered
foreign reinsurers, via a reinsurance broker registered with the
ASI; or (iii) other Argentinean insurance companies, up to certain
small limits.
According to the new regulations passed by the ASI, from
September 1, 2011 cross-border reinsurance operations will not be
permitted, with a few exceptions. From that date Argentinean
cedants will only be allowed to enter into reinsurance contracts
with Argentinean reinsurance companies or Argentinean subsidiaries
or branches of foreign companies, with a local capital of at least
AR$ 20,000,000 (i.e., approximately USD 5,000,000). At present
there are no such reinsurers, although the
