IRBR3 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. Created by decree-law in the context of industrialization and strengthening of the national economy, the then institute inaugurated the state monopoly on reinsurance in the country, replacing the predominance of foreign companies that operated merely as agencies for collecting insurance for their parent companies. Over the decades in which it held the monopoly, IRB played an important role in building a domestic insurance market, fostering the emergence of insurers with domestic capital through lower retention limits and the use of reserves accumulated in the country itself.

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 ventures since the 1950s, including pulp mills, steelmaking, modernization of ports and railways, expansion of storage capacity, power generation projects and support for the basic industries. In the 1960s, it began to cover risks associated with the federal railway network, the power sector and state-owned steelmaking, and in the 1970s it participated in coverage for 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 contributed to the building of an extensive database of risks and claims in the Brazilian market, which became an important technical asset for the company.

IRB’s ownership structure underwent significant changes starting in the 1990s, when the insurance and reinsurance sector began to be overhauled. The so-called Plano Diretor (Master Plan) promoted the liberalization of tariffs, tighter solvency control for insurers and the gradual opening of the market to foreign-capital companies, paving the way for IRB’s future privatization. In 1997, through a provisional measure, the institute was transformed into a mixed-capital company under federal control and its name was changed to IRB-Brasil Resseguros S.A. The monopoly in the reinsurance market was ended in April 2007 with the entry into force of Supplementary Law No. 126, which also transferred the regulatory and supervisory functions previously exercised by IRB to the Conselho Nacional de Seguros Privados (CNSP – National Council of Private Insurance) and the Superintendência de Seguros Privados (SUSEP – Private Insurance Superintendence). In 2013, the corporate restructuring 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 the ticker IRBR3, in the Novo Mercado segment, with dispersed share ownership.

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 business lines, covering property and casualty, life and personal, financial and specialty risks. In 2024, IRB recorded R$ 6.62 billion in written premiums and net income of R$ 372.7 million, after posting a profit in 2023 and a loss in 2022, reflecting a recent cycle of technical and portfolio restructuring. The company maintains a strategy of strengthening partnerships with major insurers, including those linked to financial conglomerates, and reported a market share of 17.9% in 2024, being the leader in several reinsurance business groups in Brazil, with emphasis on the property and special 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, 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 and Personal, Financial Risks, Transport, Auto, Liability, Rural, Aviation, Marine and other special risks. In fiscal year 2024, the largest contribution of net written premiums came from the Property line, which includes coverage for damage to building structures, contents, machinery, merchandise and business interruption, including risks related to large construction, assembly and industrial installation projects, as well as specific covers such as events, film shoots and works of art. Next in relevance are the Life and Personal lines, which encompass reinsurance for life, disability, critical illness and daily benefits for incapacity, 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 premiums were related to international operations, a lower share than in previous years due to re-underwriting measures and non-renewal of contracts considered technically inadequate. International activities are directed mainly 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 arising from asbestos contamination, environmental risks and professional liability, and later disposed of certain runoff assets and discontinued specific corporate structures abroad. The recent strategy prioritizes South America and the use of reciprocal business to diversify the portfolio, while maintaining its position as the leading reinsurer in Brazil as a commercial lever.

With respect to regulation, IRB Brasil is subject to the rules of CNSP and SUSEP, which govern the incorporation, operation, solvency capital, technical limits and investments of local reinsurers. Supplementary Law No. 126/2007 defined the new reinsurance framework in the country, establishing reinsurance and retrocession policies, as well as classifying IRB as a local reinsurer. Subsequently, CNSP Resolution No. 325, in 2015, changed relevant aspects of the competitive environment, such as revoking the prohibition on risk transfers between insurers and reinsurers under common control, establishing progressive limits for these transactions, and gradually reducing the minimum mandatory cession of risk to local reinsurers. This regulatory context increased competition with 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, whereas in treaty contracts it assumes portfolios of risks with characteristics previously defined in the contract. Proportional reinsurance allows the premium and the claim to be shared in predetermined proportions between the ceding insurer and the reinsurer, while non-proportional reinsurance sets loss limits and prioritizes protection against higher-severity 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 reserves and structured communication with retrocessionaires, supporting its role as a reinsurer listed on B3 under the code IRBR3.

In terms of governance and corporate practices, IRB Brasil is part of B3’s Novo Mercado segment, which implies a higher standard 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 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 consolidate long-term partnerships, and continuously adjusts its portfolio through re-underwriting in order to align its risk exposure with its financial capacity and with the regulatory and competitive environment of the reinsurance market in Brazil and abroad.