Privately owned insurance broker Lockton has established a joint venture with reinsurance broker, Security Re, in Ecuador, to strengthen its capability in the Latin American region.

The new establishment will be branded as Lockton Security Intermediarios De Reaseguros SA "Lockton Security" and is scheduled to launch operations in the coming weeks, after receiving regulatory approval.

Lockton has purchased a minority shareholding in the firm.

The new firm will have a team of 18 members and will manage its businesses from Ecuador’s capital Quito and collaboration with Lockton’s international resources, the underwriter said.

Lockton Partner Chris Brown said the agreement commits both firms to an association that will combine the firm’s international resources, consultancy and technical expertise with Security Re’s local skills and capabilities.

"The Quito office will be backed by a wealth of reinsurance expertise operating out of London and across our global operations, which serve clients around the world. We are excited about the development of this business," Brown said.

The agreement with Security Re will not affect Lockton’s partnership with retail broker, Ecuaprimas, which will continue to service corporate clients’ direct insurance and risk management needs in Ecuador.

Security Re is specialized on facultative reinsurance placements for power plants, financial institutions and general property risks.