IRB defines rules for property contract competition

Brazil's federal reinsurer IRB-Brasil Re has informed the two consortiums competing to place the country's largest property contract on international markets that it will choose the offer with the lowest commissions in absolute terms, IRB announced. US risk and reinsurance firm Guy Carpenter leads one consortium, joined by US insurance group Aon (NYSE: AOC) and UK insurer JLT. UK broker Willis (NYSE: WSH) leads the other group, backed by fellow UK brokers Benfield and Cooper Gay. The Willis-led consortium placed the 2006 property contract on the international markets, which included risks up to US$300mn compared to US$200mn for the 2005 contract. IRB has also trimmed its monthly interest rate on premium payment installments to 1.08% from 1.12% in October, the reinsurer said in a statement. IRB fixes its interest rates to the central bank's Selic benchmark interest rate, which has fallen six percentage points since September last year to its current 13.75%.