Max Capital Group Ltd. has recruited two executives who had led Bermuda rival XL Re's reinsurance operations in South America to head its own new office in the region.

Carlos Caputo will serve as chief executive officer of Max's Latin American business, while Sonia Galvis will serve as chief underwriting officer.

Max said yesterday it will open offices in Rio de Janeiro, Brazil, where it intends to act as an admitted reinsurer operating through Lloyd's Brazilian representative office, and in Bogotá, Colombia.

Lines of business initially offered include property, property catastrophe, aviation, casualty, marine and surety. Max chairman and CEO Marston (Marty) Becker said yesterday: "The addition of a Latin American reinsurance platform represents an important step in the development of Max's global franchise. Latin America is an exciting reinsurance market with huge growth potential.

"The region, in particular Brazil, is emerging fast from the global economic crisis, with significant GDP growth predicted in 2010, and Brazilian reinsurance premiums are projected to increase by 20 percent per annum through 2011. We expect this to be an important market for Max.

"In addition to Brazil, we see excellent opportunities emerging throughout Central America and in rapidly developing markets such as Colombia, Ecuador, Panama, Peru, Chile and Argentina." Mr. Caputo, who has 36 years of underwriting and management experience in Latin America and, in particular, Brazil, was previously regional director and operating officer for XL Re Latin America Ltd., based in Brazil.

Ms Galvis boasts 30 years of insurance and reinsurance underwriting and management experience, most recently as the regional director and underwriting officer of the Northern Region for XL Re Latin America Ltd., based in Bogota.

"Carlos and Sonia are accomplished and well-connected professionals," Mr. Becker said. "With their proven track records and strong regional expertise, we believe they will succeed in building a profitable book of Latin American business for us."

Before joining XL, Mr. Caputo was was deputy chairman of Aon Group Ltd. Brazil.

Ms Galvis was CEO of Seguros Alfa and Seguros de Vida Alpha before joining XL.

A spokeswoman for XL said last night the company would be announcing new appointments within its Latin American operations shortly.