Ariel Sociedade Seguradora de Propósito Específico S.A. (Ariel SSPE) will be the third insurance-linked securities (ILS) structure in Brazil, harnessing the country’s regulations to become an independent issuer of Letra de Risco de Seguro (Insurance Risk Letters), Brazil’s own brand of ILS instrument.
The structure then emerged in a notice posted in a daily newspaper, the Journal O Dia SP, giving readers a chance to raise any objections or request clarifications and documentation, a typical part of the regulatory process in the country.
Typically, a pre-authorisation then needs to be formalised through publication in the Official Gazette of Brazil’s government, which at this stage has not occurred but is likely to be imminent given pre-approval already having been received from the regulator.
With additional information now available, we can confirm that Ariel SSPE has been co-founded by a number of reinsurance and ILS sector specialists.
Ariel SSPE is set to be led by co-founder Aline Meza, who previously worked at IRB (Re) and led much of the effort for the Andrina SSPE structure and its first LRS issuance.
Meza took technical leadership for the structuring and issuance of the Andrina SSPE and promoted the adoption of insurance-linked securities techniques within the reinsurance company, during her career at IRB (Re).
Ariel SSPE is expected to be an independent platform for structuring and issuance of LRS’, aiming to meet the needs and appetite of the local re/insurance market and capital market investors.
Meza’s ambition is to position Ariel SSPE as one of the leading independent players in ILS in Brazil, while helping to build out its marketplace and demonstrate its relevance to the broader region as well.
Eduardo Póvoa is another co-founder of Ariel SSPE, with experience gained in financial controller and accounting executive positions at a number of Brazilian re/insurers, including Você Seguradora, BMG Seguros, Austral Reasseguradora, Assurant and Swiss Re.
Rodrigo Botti, currently the Brazil Country Head of reinsurance broker Lockton Re, previously CFO at IRB (Re) and formerly a co-founder and CEO at Terra Brasis Resseguros, is also a founding investor behind Ariel SSPE.
Botti has been one of the driving forces of Brazil’s ILS strategy over the years, having been involved in the early formulation of the countries plans and its regulations. In addition, at IRB (Re), he was a key architect of its first Andrina structure and LRS transaction.
Recall that, just earlier today we reported that Lockton Re has formalised a Brazilian ILS platform, with Botti one of its leaders. We understand Botti does not have an executive role at Ariel SSPE.
In that announcement Lockton Re said the brokers’ ILS initiative would work with an independent SSPE to issue LRS’. We now understand this new structure Ariel SSPE is expected to be one of the structures Lockton Re envisages utilising.
One Partners, a Brazilian independent financial advisory firm, is also a strategic partner and investor in Ariel SSPE.
Ariel SSPE will be able to conduct insurance, reinsurance and retrocession business, while issuing LRS’ (insurance risk letters or notes) to investors that effectively collateralize the risks, just like an ILS arrangement elsewhere in the world.
Recall that, IRB (Re) was first to sponsor a Letra de Risco de Seguro issuance in Q2 2025, with a R$33.7 million deal to securitize surety bond risks, using its Andrina Special Purpose Insurance Entity (SSPE).
Later that year, Gálapagos Capital Sociedade Seguradora de Propósito Específico S.A., the Brazil based SSPE or special purpose reinsurance vehicle owned by global investment company Galapagos Capital, completed its R$100 million first LRS issuance in December 2025.
Galapagos Capital, using its SSPE again, issued its second arrangement under the Brazilian insurance-linked securities regime earlier this year.
A third LRS issuance from Galapagos Capital also occurred later in April 2026, we have now learned, with an R$180 million transfer of credit insurance risks to a panel of 5 investors and further demonstrating adoption of the new Brazilian ILS regulatory regime.
That latest transaction from Galapagos Capital now becomes the largest Brazil LRS issuance so far at around US $35m, we believe.
Ariel SSPE will make it three Brazilian LRS issuers registered under its brand of insurance-linked securities regulation so far, while there have already been four LRS transactions.
The commitment by Lockton Re indicates further traction is likely ahead and it’s going to be interesting to watch how Brazil’s ILS market continues to develop over time.
We understand that market participants in Brazil are calling for further regulatory steps to be taken to refine the rules, to make the process of sponsoring and issuing LRS’ more streamlined and cost-effective.
Like every other ILS regulatory regime, it is only after the regulations have been utilised that the market seems to identify additional steps that can be taken to enhance the efficiency of the rules, to promote greater uptake.
You can find all our coverage of Brazil’s ILS regime under this archive.
