IRBR3: quote, dividends and indicators for IRB Brasil

IRB Brasil Resseguros S.A., known in the market as IRB Brasil or IRB(Re), is a Brazilian reinsurer founded on April 3, 1939, originally under the name Instituto de Resseguros do Brasil (Brazil Reinsurance Institute). Created by decree-law in the context of industrialization and strengthening the national economy, the then institute inaugurated the state monopoly on reinsurance in the country, replacing the predominance of foreign companies that acted merely as insurance collection agencies for their headquarters. Over the decades in which it held the monopoly, IRB played a relevant role in building a domestic insurance market, fostering the emergence of locally owned insurers through lower retention limits and by employing reserves accumulated within the country.

IRB Brasil’s historical trajectory includes participation in important Brazilian infrastructure and economic development projects. The company has been involved in risk coverage for industrial and infrastructure enterprises since the 1950s, including pulp mills, steelmaking, re-equipping ports and railways, expanding storage capacity, power generation projects and support for basic industry. In the 1960s, it began covering risks associated with the federal railway network, the power sector and state-owned steelmaking, and in the 1970s it participated in the coverage of projects such as the Tucuruí hydroelectric plant, major highways, petrochemical ventures and mineral extraction activities in states such as Pará and Minas Gerais. This history helped build a large database of risks and claims in the Brazilian market, which became an important technical asset for the company.

IRB’s corporate structure underwent significant changes starting in the 1990s, when the insurance and reinsurance sector began to be overhauled. The so-called Master Plan promoted tariff liberalization, tighter solvency controls for insurers and the gradual opening of the market to foreign-owned companies, paving the way for IRB’s future privatization. In 1997, through a provisional measure, the institute was transformed into a mixed-capital corporation under federal control and its name was changed to IRB-Brasil Resseguros S.A. The reinsurance market monopoly ended in April 2007 with the entry into force of Complementary Law No. 126, which also transferred the regulatory and supervisory functions previously carried out by IRB to the National Council of Private Insurance (CNSP) and the Superintendence of Private Insurance (SUSEP). In 2013, the corporate reorganization and privatization process was completed, with the entry of new private shareholders and the formation of a controlling group. As of July 31, 2017, IRB Brasil’s common shares began trading on B3, under ticker IRBR3, in the Novo Mercado segment, with a dispersed shareholder base.

IRB Brasil’s business model is centered on risk underwriting via reinsurance and retrocession, operating as a local reinsurer authorized by SUSEP. The company offers reinsurance solutions for a wide range of lines, covering property, life, financial and specialty risks. In 2024, IRB reported R$ 6.62 billion in written premiums and net income of R$ 372.7 million, after having posted a profit in 2023 and a loss in 2022, reflecting a recent cycle of technical and portfolio restructuring. The company pursues a strategy of strengthening partnerships with large insurers, including those linked to financial conglomerates, and reported a 17.9% market share in 2024, being the leader in several reinsurance business groups in Brazil, with emphasis on the property and specialty risks segment, which accounts for most of its portfolio.

IRB Brasil’s operations are organized into two main operating segments: Domestic and International, which reflect, respectively, the reinsurance business conducted in Brazil and outside the country. Within these segments, the company structures its portfolio by lines of business, such as Property, Life, Financial Risks, Transportation, Auto, Liability, Rural, Aviation, Marine and other specialty risks. In fiscal year 2024, the largest contribution of net written premiums came from the Property line, which includes coverage for damage to property structures, contents, machinery, goods and business interruption, including risks of large construction, assembly and industrial installation, as well as specific covers such as events, film productions and works of art. Next in importance are the Life lines, which include reinsurance of life, disability, critical illness and daily indemnity coverage, and other specialized lines such as Financial Risks, which cover contractual default and credit risks, as well as liability, transport and auto products.

Geographically, IRB concentrates its revenue in the Brazilian market but maintains a relevant presence abroad. In 2024, approximately 20% of the company’s written premium was related to international operations, a lower share than in previous years due to re-underwriting measures and non-renewal of contracts considered technically inadequate. Its international activities are mainly directed toward Latin American countries, focusing on markets such as Argentina, Peru, Mexico and Colombia. In previous periods, IRB maintained overseas operations in London and New York, with runoff portfolios since the mid-1980s, largely associated with liability claims for asbestos contamination, environmental risks and professional liability, having later disposed of certain runoff assets and wound down specific corporate structures abroad. The recent strategy prioritizes South America and the use of business reciprocity to diversify the portfolio, while maintaining its position as the leading reinsurer in Brazil as a commercial lever.

In regulatory terms, IRB Brasil is subject to CNSP and SUSEP rules, which govern the incorporation, operation, solvency capital, technical limits and investments of local reinsurers. Complementary Law No. 126/2007 established the new reinsurance framework in the country, setting out reinsurance and retrocession policies and classifying IRB as a local reinsurer. Subsequently, CNSP Resolution No. 325 of 2015 changed relevant aspects of the competitive environment, such as revoking the ban on risk transfers between insurers and reinsurers under common control, establishing progressive limits for these operations, and gradually reducing the mandatory minimum cession of risk to local reinsurers. This regulatory context increased competition from foreign and domestic reinsurers, requiring IRB to adjust its underwriting, retrocession and capital policies.

From an operational standpoint, IRB Brasil works with different types of reinsurance contracts, both treaty and facultative, on proportional and non-proportional bases. In facultative contracts, it assesses risks individually and may accept, propose changes to or decline the transfer, while in treaty contracts it assumes portfolios of risks with characteristics previously defined in the contract. Proportional reinsurance allows the premium and claim to be split in predetermined proportions between the ceding insurer and the reinsurer, whereas non-proportional reinsurance sets loss limits and prioritizes protection against more severe events, including catastrophes. Reinsurance products are distributed directly to insurers and other reinsurers or through specialized brokers, which play a relevant role in more complex transactions, including the structuring of retrocession programs. IRB maintains formal underwriting policies, technical guidelines by line of business and centralized claims management processes, with specific provisions and structured communication with retrocessionaires, supporting its role as a reinsurer listed on B3 under the ticker IRBR3.

In terms of governance and corporate practices, IRB Brasil is part of B3’s Novo Mercado segment, which entails higher standards of governance, transparency and rights for minority shareholders, with the exclusive issuance of common shares. The company adopts internal policies for underwriting, risk management and compliance with the prudential and solvency rules established by SUSEP, using actuarial models and advanced technology platforms for risk analysis, pricing and definition of retrocession strategies. In addition, it develops relationship initiatives with insurers and brokers, seeking to build long-term partnerships, and continuously adjusts its portfolio through re-underwriting, with the aim of aligning its risk exposure with its financial capacity and with the regulatory and competitive environment of the reinsurance market in Brazil and abroad.