XL Group of companies has received final approval from the Brazilian insurance and reinsurance regulator, Superintendencia de Seguros Privados, to establish an insurance operation in the country.

XL Seguros Brasil in Sao Paulo provides property, casualty and specialty products to industrial, commercial and professional firms.

According to XL Group, insurance offerings will expand their capabilities in Brazil and complement its existing reinsurance operations.

XL Group Regional Manager for Iberia & Latin America Bruno Laval said that in 2010, Brazil represented 42% of the South America’s non-life insurance premiums, and forecasts show that Brazil’s non-life market could reach $160bn by 2030, similar to projections for Western European economies such as Germany.

"Local investment programs, global attention and a diversified spread of trading partners and manufactured products, position the country for continued opportunities," laval added.

The operations are expected to start in the first quarter of 2012 and the insurance office will be led by Juan Bragadin, country manager.