Brazil Senate Approves Tax Relief for Reinsurers, Bill Heads to Presidential Sanction

Brazil's Senate approved a bill reducing the CSLL rate for local reinsurers to 9% and allowing full offset of tax losses over three years, removing the 30% annual cap. The bill, already passed by the Chamber, now awaits presidential sanction, with changes effective January 2027. This is a targeted fiscal measure that improves the after-tax economics for reinsurers operating in Brazil, potentially attracting capital and altering competitive dynamics in the local reinsurance market.