May 22, 2014 / 12:17 PM / 3 years ago

Brazil grants 'eventual reinsurer' permit to Buffett's Berkshire

Berkshire Hathaway Chairman Warren Buffett wanders the company trade show before his company's annual meeting in Omaha, Nebraska April 30, 2011.Rick Wilking

(Reuters) - Susep, Brazil's insurance industry regulator, on Thursday issued a license allowing Berkshire Hathaway Inc (BRKa.N) to operate in the country as "eventual reinsurer."

The license permits reinsurers domiciled in a foreign country to operate in Brazil without a representative office in the country. According to the government's official gazette, Berkshire's U.K.-based unit, Berkshire Hathaway International Insurance Ltd, will be granted the license. Berkshire is controlled by U.S. billionaire Warren Buffett.

In Brazil, there are three classes of reinsurers - local, admitted and eventual. According to current industry rules, eventual reinsurers must have minimum global net assets of $150 million, be rated a notch above the minimum investment-grade ranking by a major credit rating company and have its headquarters based outside a tax-haven country.

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