US-based Axon Underwriting Services has formed a new reinsurance entity to offer its cargo and stock throughput reinsurance programme across the Latin American region.

Axon Re will offer both facultative and treaty reinsurance protection for cargo and stock throughput risks.

It will also offer coverages for property and environmental lines for exposures within the Latin America region.

At the outset, Axon Re will be offer the reinsurance protection in Chile, Panama, and Ecuador, and will expand to other countries in the region in the near future.

The reinsurer has secured financial backing for Axon Re through Asian partners to provide available capacity of up to $10m.

Expansion for Latin American specialty lines builds upon the company’s current STAPLE and stock throughput programmes that are offered in the US.

Axon Underwriting executive vice president and partner Randy Hampton said: “The timing of the launch of this program is ideal given the current market restrictions for cargo and stock throughput reinsurance cover within the Latin American region.

“Axon Re’s ability to deliver much-needed capacity to specialty risks in target markets further broadens Axon Underwriting Services’ international footprint.”

Axon Underwriting executive vice president and partner Doug Gahagan said: “After five years of strengthening our specialty underwriting platform, the move into Latin America with new, available capacity reflects our thoughtful, strategic approach to meet the coverage needs of underserved markets.”

Formed in 2013, Axon Underwriting offers insurance-based programmes and solutions to partners.