By Brazil Stock Guide – IRB-Brasil Resseguros SA (IRBR3:BZ) posted net income of R$102 million in the first quarter, down 15% from a year earlier, even as underwriting results strengthened sharply and solvency remained well above regulatory requirements.
The reinsurer’s underwriting result rose 74% to R$180 million from R$103 million a year earlier, while retained premiums fell 8% to R$896 million from R$974 million. The company reported a 287% regulatory solvency ratio, return on tangible equity of 21% and total distributions of R$128 million, including R$51 million in dividends and R$78 million in interest on equity.
The result underscores IRB’s continued shift toward profitability after a period of portfolio cleanup, with management emphasizing conservative underwriting and a focus on profitable lines. Property and casualty remained the core driver, while life business continued to shrink in volume but returned to positive earnings.
In P&C, retained premiums declined 6% to R$870 million, while underwriting profit advanced 42% to R$180 million. Net income from the segment fell 26% to R$100 million. The life segment posted retained premiums of R$26 million, down 50% from a year earlier, while net income turned positive at R$2 million, compared with a R$16 million loss in 1Q25.
On a last-12-month basis, retained premiums fell 11% to R$3.46 billion, reflecting a steep reduction in life premiums and a more selective approach to risk. Underwriting profit, however, rose 89% to R$817 million, while net income increased 18% to R$487 million.
IRB said the improvement reflected better underwriting quality, with lower loss ratios and a combined ratio of 96% for the last 12 months through 1Q26. The company’s loss ratio plus commission ratio fell to 75% from 88% a year earlier.
Tax reform weighed on the quarter. IRB reported a R$122 million impact related to changes in the treatment of PIS and Cofins deferred assets tied to technical claims reserves. The company said the effect stems from a timing mismatch between accounting recognition of claims provisions and tax deductibility, and does not have a direct cash impact.
The reinsurer also reported R$33.5 million in realized deferred PIS and Cofins assets in 1Q26, with R$194.3 million still to be realized, for a total of R$227.9 million. PIS and Cofins payments increased to R$31.3 million in 1Q26 from R$28.3 million in the same period of 2025.
Investment income remained a key support. Financial and equity income totaled R$683 million over the last 12 months, broadly stable from R$682 million in 1Q25. Onshore investment income rose to R$550 million, while offshore investment income excluding currency effects reached R$123 million. Currency variation was negative by R$18 million in the quarter.
IRB’s assets under management totaled R$8.6 billion, with 60% allocated onshore and 40% offshore. The onshore portfolio delivered a 13.2% return over the last 12 months, equivalent to 89.5% of CDI, while the offshore portfolio returned 5.1%, equivalent to 124.1% of the Fed benchmark used by the company.
Capital metrics also improved. IRB reported adjusted shareholders’ equity of R$2.68 billion against a minimum capital requirement of R$932 million, leaving capital sufficiency of R$1.75 billion. Regulatory liquidity sufficiency stood at R$832 million, compared with R$728 million a year earlier.
The company said its 2026 agenda includes efficiency gains, changes in its executive structure, payments of interest on equity in May, June and July, and separate initiatives for P&C and life insurance operations.
Leave a Reply