>> The income, which takes into account the Business Vision, represents an increase of 49.9% compared to the first quarter of 2024.
>> Net profit accumulated in the last 12 months is BRL412 million.
>> Subscription income closes 1Q25 at BRL103.2 million, reaching BRL433 million in the sum of the last 12 months.
>> Financial and equity income reaches BRL210.2 million in 1Q25, an increase of 57.9%.
>> Total loss ratio closes 1Q25 at 66.5%.
>> The Non-Life segment combined ratio stands at 98% in 1Q25, and the total combined ratio is 102.5%.
>> Non-Life Portfolio represents 94.6% of the retained premium.
>> Sufficiency reaches 207% in 1Q25, 38 p.p. above that seen in 1Q24.
>> Net profit determined using the IFRS 17 methodology is BRL134 million in 1Q25.
IRB(Re) recorded a net profit of BRL118.6 million in the first quarter of 2025 (1Q25), an increase of 49.9% compared to the positive income of BRL79.1 million recorded in 1Q24. The figures, released today (12/05) according to Visão Negócio, show the reinsurer’s progress, which posted a profit for the ninth consecutive quarter. The performance was influenced by the financial and equity income, which increased 57.9% in the first three months of the year, and the positive subscription income. In the last 12 months, IRB(Re)’s net profit reached BRL412 million.
“The numbers reflect the consistency of our business strategy. We evolve, quarter by quarter. Looking at the trail of the last 12 months, we can see this evolution more clearly. We promote portfolio cleaning, focusing on the combined index. With this, we verify that the subscription income and net income curves are increasing and positive. We remain committed to generating sustainable incomes in the long term, with a focus on business profitability”, says Marcos Falcão, CEO of IRB(Re).
Non-Life portfolio net profit grows 68.7%
Considering the division of the business portfolio, the net profit of the IRB(Re) Non-Life portfolio was BRL135 million in 1Q25. Increase of 68.7% compared to the positive income of BRL80 million in 1Q24. Life closed 1Q25 with a loss of BRL16 million, compared to a negative income of BRL1 million in 1Q24. In the last 12 months, there was growth in Non-Life net profit, which went from BRL246 million to BRL448 million. In Life, the negative income was reduced from BRL61 million to BRL36 million, following the cleaning of the portfolio.
Subscription income totaled BRL103.2 million in 1Q25, compared to BRL122 million recorded in 1Q24. Considering the last 12 months, there was an increase from BRL274 million to BRL433 million. The Non-Life portfolio recorded a positive subscription income of BRL126 million in 1Q25, an increase of BRL10 million compared to 1Q24. In Life, there was a negative income of BRL23 million in 1Q25.
“Analyzing the numbers from a Non-Life and Life perspective, we recorded a quarter with a net profit of BRL135 million in Non-Life, higher than that seen in the previous quarter. In Life, the negative income is a reflection of the business dynamics, since the portfolio cleaning last year did not generate more premiums, but we still received claims. This is also reflected in the combined and loss ratios. I would also like to point out that the subscription income fluctuated due to the occurrence of a major loss at a lubricants factory, affecting the Material Damage and Loss of Profits lines. However, it is important to mention that despite this loss, we recorded a quarter with a net profit of BRL118.6 million”, says Daniel Castillo, vice president of Reinsurance at IRB(Re).
Non-Life retained premium accumulated in the last 12 months is BRL3.3 billion
In 1Q25, premiums retained by IRB(Re) totaled BRL974 million, compared to BRL1.1 billion in 1Q24. Of this total, BRL921 million refers to the Non-Life portfolio (94.6%) and BRL53 million to Life (5.4%). It is worth noting that in the last 12 months, the Non-Life retained premium increased from BRL3 billion to BRL3.3 billion. Considering the business lines, 52.5% of the premium retained in 1Q25 comes from Property, an increase of 4.2 percentage points (p.p.) compared to 1Q24.
In terms of geography, 61.5% (BRL599 million) of the retained premium is the income of business concluded in Brazil. Another 9.5% (BRL92 million) in Latin America; and 29% (BRL283 million) in other countries around the world. According to the reinsurer’s underwriting strategy, there was a 31% increase in the share of Latin American countries in retained premiums. It is worth noting that the retained premium is the income of subtracting the premium returned from the premium issued. It reflects the premium that is maintained within the company.
“The premium retained in 1Q25 is higher than that recorded in 4Q24. The reduction compared to a year earlier is due to the shift in the validity of relevant contracts between quarters. We hope that this premium will be recorded throughout the year. Furthermore, the Rural market did not behave as expected. I would like to add that we continue to focus on Brazil. In the next two quarters, Latin America’s share is expected to grow, as its business is renewed annually in the months of April, June and July. We are now in full renewal in Argentina, Peru, Colombia and Mexico”, adds Castillo.
Non-Life Combined Index shows stability
In this quarter, the total combined ratio – which includes claims, commissions and other expenses – was 102.5%, compared to 97.8% in 1Q24. In the Non-Life segment, the combined ratio closed 1Q25 at 98%, in line with 96% in 1Q24. In Life, it went from 105% in 1Q24 to 161% in 1Q25. When analyzing the accumulated total over the last 12 months, the Non-Life combined index remains stable at 97%, with a reduction in International Non-Life from 125% to 102%. In Life, the accumulated index is 129%.
The loss ratio in 1Q25 was 66.5%, compared to 58.2% in 1Q24. There was a 3 p.p. reduction in the Non-Life claims ratio, which went from 64% in 1Q24 to 61% in 1Q25. The retained loss in the segment was BRL486 million in 1Q25, compared to BRL529 million a year earlier. In Life, the index increased from 27% to 140%, with retained claims increasing from BRL38 million to BRL76 million.
Regarding commissioning, another central indicator for calculating the combined index, there was a reduction of 7.1 p.p. in the total commissioning index from 1Q24 to 1Q25: from 27.8% to 20.7%. From a total of BRL252 million to BRL175 million. In Non-Life, 22% in 1Q25, in line with 20% in 1Q24. In the Life segment, there was a reduction from 68% in 1Q24 to 3% in 1Q25, reflecting the change in strategy for the portfolio.
Financial and equity incomes increase by 57.9%
The company’s financial and equity income in this first quarter was BRL210.2 million, 57.9% higher than in 1Q24, when it reached BRL133.1 million. “In 1Q25, the income of investments totaled BRL174 million, of which BRL145 million was onshore and BRL29 million was offshore. The increase in financial and equity incomes can be attributed mainly to exchange rate variations, which benefited the income by BRL45 million”, says Paulo Valle, general director of IRB(Asset), the reinsurer’s investment arm.
“We ended the quarter with total assets under management of BRL8.9 billion, compared to BRL8.1 billion in 1Q24. The allocation of these resources can be divided between approximately 56% in Brazil and 44% abroad. It is worth mentioning that the reduction in assets under management from BRL9.1 billion in 4Q24 to BRL8.9 billion in 1Q25 was mainly due to the 7.27% appreciation of the real in this first quarter”, adds Valle.
Sufficiency reaches 207% in 1Q25
The IRB(Re) must observe two regulatory indicators, as provided for in the regulations of Susep, the body responsible for supervising the insurance and reinsurance sector: Adjusted Net Equity Sufficiency Ratio in relation to the Minimum Required Capital (CMR) and the Technical Provisions Coverage Ratio. On March 31, 2025, the company presented sufficiency in both indexes.
“The sufficiency of Adjusted Net Equity in relation to the Minimum Required Capital, which was BRL71 million in 1Q23 and BRL697 million in 1Q24, is currently BRL1.1 billion. This represents a sufficiency of 207%, an increase of 38 p.p. compared to 1Q24. The income is mainly due to the stability of the minimum capital required and the increase in Adjusted Net Equity. The Technical Provisions Coverage Index ended 1Q25 with a sufficiency of BRL728 million”, says Eduarda de La Rocque, director of Internal Controls, Risks and Compliance at IRB(Re).
Net profit under IFRS 17 is BRL134 million
IRB(Re), in addition to reporting its numbers considering the IFRS 4 Business View, used by the sector regulator, Susep, published its 2024 incomes in IFRS 17, a methodology adopted by the Brazilian Securities and Exchange Commission (CVM). The international standard, aimed at the insurance and reinsurance market, brings new concepts, including the time value of money. Considering IFRS 17, the company’s income in 1Q25 was positive at BRL134 million, compared to a profit of BRL237 million in 1Q24.
“The income of the provision of reinsurance services totaled BRL235 million, a slight reduction compared to the same period in 2024, when it reached BRL252 million. The main positive highlights were the Patrimonial and Rural groups, which contributed significantly to the composition of the income. On the other hand, in the Life group, we observed a reduction in the 1Q25 income compared to the same period of the previous year, reflecting the company’s strategy of not expanding the portfolio in this segment”, says Frederico Knapp, CFO of IRB(Re).
Regarding the contractual reinsurance margin (CSM), in 1Q25, there was a 13.7% reduction in CSM amortization compared to 1Q24 (from BRL352 million to BRL304 million), reflecting a lower initial balance, incomeing from the 13% drop in premium underwriting. According to Knapp, this movement is directly related to the strategic decision to redirect its operations in the Life group, prioritizing the non-renewal of contracts that do not meet the minimum profitability criteria established. On the other hand, new business subscribed in 1Q25 showed a growth of 21.7% at CSM compared to the previous period (from BRL161 million to BRL195 million), demonstrating the consistency of the company’s subscription strategy.
“As we have commented in previous disclosures, CSM represents the expected profit from reinsurance contracts that has not yet been recognized in the income and that will be released gradually, as we deliver the services over time. This is a key component of the income of the provision of reinsurance services and measures the future profitability of our portfolios,” explains Knapp.
The complete Performance Analysis is available on the company’s Investor Relations website (www.ri.irbre.com).
