The Brazilian Superintendence of Private Insurance (SUSEP) published a new version of the Manual of Accounting Practices and Procedures for the insurance market, introducing a new section (item 3.5) on the accounting records for key securitization operations, particularly those involving Letras de Risco de Seguro (LRS). The new section addresses LRS as debt instruments linked to insurance and reinsurance risks, issued by special purpose insurance companies (sociedades seguradoras de propósito específico, SSPE) under Law No. 14,430/2022. It aligns with National Council of Private Insurance (CNSP) Resolution No. 453/2022, including the requirement that each securitization operation be accounted for separately from the SSPE’s own accounts, with financial statements for each operation comprising a statement of financial position, a statement of changes in the operation’s equity, and related explanatory notes. The manual continues to apply to all SUSEP-supervised entities, including insurers, open pension entities, capitalization companies, local reinsurers and SSPE. The updated manual is already in force.
Brazilian Superintendence of Private Insurance (SUSEP) 2025-07-14
Brazilian Superintendence of Private Insurance adds securitization bookkeeping rules for SSPE and Letras de Risco de Seguro to accounting manual
The Brazilian Superintendence of Private Insurance (SUSEP) updated its Manual of Accounting Practices and Procedures, adding a section on accounting for securitization operations involving Letras de Risco de Seguro (LRS). This mandates separate accounting for each operation by special purpose insurance companies, in line with National Council of Private Insurance Resolution No. 453/2022. The manual applies to all SUSEP-supervised entities and is currently in effect.