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 insurance origination agencies for their parent companies. Over the decades in which it held the monopoly, IRB played a relevant role in building a domestic insurance market, fostering the emergence of insurers with domestic capital by means of lower retention limits and the use of reserves accumulated in the country itself.

IRB Brasil’s historical trajectory includes participation in major Brazilian infrastructure and economic development projects. The company has been involved in risk coverage for industrial and infrastructure projects since the 1950s, including pulp mills, steelmaking, modernization of ports and railways, expansion of storage capacity, power generation projects and support for heavy industry. 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 took part in the coverage of projects such as the Tucuruí hydroelectric plant, major highways, petrochemical projects and mineral extraction activities in states such as Pará and Minas Gerais. This history contributed to the creation of an extensive 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 reshaped. The so-called Plano Diretor promoted the release of tariffs, tighter solvency control for insurers and the gradual opening of the market to companies with foreign capital, preparing the ground for IRB’s future privatization. In 1997, through a provisional measure, the institute was transformed into a mixed-capital company under federal control and had its name changed to IRB-Brasil Resseguros S.A. The reinsurance market monopoly was ended in April 2007, with the entry into force of Complementary Law No. 126, which also transferred the regulatory and supervisory functions previously exercised by IRB to the National Council of Private Insurance (CNSP) and the Superintendence of Private Insurance (SUSEP). In 2013, the corporate restructuring and privatization process was completed, with the entry of new private shareholders and the formation of a control 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 shareholding.

IRB Brasil’s business model is centered on underwriting risks through 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, 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’s strategy focuses on strengthening partnerships with major insurers, including those linked to financial conglomerates, and it recorded a 17.9% market share in 2024, leading several reinsurance business groups in Brazil, particularly in the property and specialty risks segment, which accounts for the largest portion 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, 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 building structures, contents, machinery, merchandise and business interruption, including risks related to large construction projects, industrial assembly and installation, as well as specific covers such as events, filming and works of art. Next are the Life lines, which encompass reinsurance for life, disability, critical illness and daily indemnity for incapacity, and other specialized lines such as Financial Risks, which cover contractual default and credit risks, as well as liability, transportation 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 smaller share than in previous years due to re-underwriting measures and non-renewal of contracts considered technically inadequate. International operations are directed mainly to Latin American countries, focusing on markets such as Argentina, Peru, Mexico and Colombia. In prior 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 subsequently disposed of certain runoff assets and discontinued specific corporate structures abroad. The recent strategy favors South America and the use of reciprocal business to diversify the portfolio, leveraging its position as the leading reinsurer in Brazil as a commercial advantage.

In regulatory terms, IRB Brasil is subject to the rules of the CNSP and SUSEP, which regulate the incorporation, operation, solvency capital, technical limits and investments of local reinsurers. Complementary Law No. 126/2007 defined the new reinsurance framework in the country, establishing reinsurance and retrocession policies as well as the classification of IRB as a local reinsurer. Subsequently, CNSP Resolution No. 325, in 2015, changed relevant aspects of the competitive environment, such as the repeal of the ban on risk transfers between insurers and reinsurers under common control, setting progressive limits for these transactions, and the gradual reduction of 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, in proportional and non-proportional forms. In facultative contracts, it assesses risks individually and may accept, propose changes or decline the transfer, while in treaty contracts it assumes portfolios of risks with characteristics previously defined in the contract. Proportional reinsurance allows the division of premium and loss in pre-established 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, who play a relevant role in more complex transactions, including structuring 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 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 minority shareholder rights, 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 technological 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 continually 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.