> This result considers Business View and exceeds by R$258.5 million the amount calculated in 2023
> In 4Q24, net income reached R$112.4 million, an increase of 196.9% compared to 4Q23.
> Underwriting result closes 2024 at R$451.8 million, a growth of 191.4% compared to 2023.
> The loss ratio closes 2024 at 63.9%, registering an improvement of 6.1 p.p. compared to 2023.
> The total combined ratio of 101.2% last year is 6.3 p.p. better than in 2023.
> The combined ratio of the Non-Life portfolio was 96.8% in 2024, and the Life portfolio closed at 121.7%.
> Sufficiency closes 4Q24 at 183%, 37 p.p. higher than in 4Q23.
> Net income for 2024 calculated under the IFRS 17 methodology is R$ 806 million.
IRB(Re) recorded net income of R$372.7 million in 2024, a increase of 226.2% compared to the positive result of R$114.2 million recorded in 2023. The figures, released today (02/25) according to Business View, show the evolution of the reinsurer, which recorded a profit of R$112.4 million in the fourth quarter of last year (4Q24), 196.9% higher than the R$37.9 million recorded in 4Q23. The good performance was influenced by the result of underwriting and the financial and equity result.
“In 2024, we reached a milestone in the company, ending the turnaround period with growth in operating income. We are talking more about the future than the past. We now analyze the company in a different way, considering the portfolio and geography. On the portfolio side, we can think that we have two companies: Life and Non-Life. We have completed the review of the Life portfolio and are ready to implement a new profitability strategy. The domestic Non-Life portfolio is at cruising speed, and international Non-Life is in our focus in 2025”, says Marcos Falcão, CEO of IRB(Re).
Considering the division of the business portfolio, net income from IRB(Re)’s Non-Life portfolio closed 2024 at R$394 million, compared to a positive result of R$199 million in 2023. In 4Q24, Non-Life recorded net income of R$74 million. In Life, there was a reduction in losses from R$84 million in 2023 to R$21 million last year. In 4Q24, the Life portfolio had a positive result of R$39 million.
Underwriting result grows 191.4%
The underwriting result totaled R$451.8 million last year, 191.4% higher than the R$155 million recorded in 2023. Considering 4Q24, the underwriting result reached R$177.8 million compared to R$105.1 million in 4Q23. “Our result is a consequence of the strategy adopted by the company, always focusing on business profitability, reinforcing our competitive differentials and strengthening proximity to our customers,” says Daniel Castillo, vice president of Reinsurance at IRB(Re).
“To give even more visibility to the quality of our portfolio, we will focus on the retained premium. The prize issued is the premium accepted by IRB(Re), without any deduction. Of this volume, we have ceded a part to a retrocessionaire. When we subtract the retroceded premium from the issued premium, we are left with the retained premium, which is what is actually kept within the company. Therefore, we understand that this photo better represents the IRB(Re) premium,” Castillo explains.
In 2024, retained premiums totaled R$4 billion, an increase of 2.8% compared to 2023. The share of deals signed in Brazil went from 69.2% in 2023 to 71% of the retained premium in 2024 (R$ 2.9 billion) – in line with the strategy of business concentration in the country. Equity, which accounts for 43% of the total retained premium, recorded the highest growth (+52.7%), totaling R$1.8 billion last year. The increase in retained premium is in line with the volume of premiums written in 2024, which advanced 1.5% compared to a year earlier, totaling R$6.6 billion.
“Last year, we grew the domestic retained premium by 5.5%, while the international premium remained constant. Although we continue to focus on Latin America, in 2024, we reduced our volume of retained premiums, as we did not find adequate price conditions. For 2025, our strategy will be to focus our business on a smaller number of customers in this region. In this way, we will be able to offer more capacity, but with adequate pricing,” says Castillo.
Loss ratio drops by 6.1 p.p.
The loss ratio in 2024 was 63.9%, including the impact of floods in Rio Grande do Sul. The value is 6.1 percentage points (p.p.) lower than that obtained in the previous year. In the last quarter of lastyear, the loss ratio totaled 64%, against a normalized ratio of 62% in 4Q23.
Considering geography, the loss ratio of contracts closed in Brazil was 58.5% last year, down 1.3 p.p. when compared to the total for 2023. In nominal terms , retained claims increased 3%, closing 2024 at R$1.6 billion. Claims abroad ended 2024 at 76.5%, 11.6 p.p. lower when compared to 2023. In nominal terms, the retained claim totaled R$ 902.4 million, a reduction of 32% compared to the previous year. The good performance of the Rural portfolio influenced the lower loss ratio in 2024.
The total combined ratio – which includes claims, commissions and other expenses – went from 107.5% in 2023 to 101.2% in 2024, registering a drop of 6.3 p.p. In 4Q24, it was 98.8%, compared to 102.7% in 4Q23. Considering the division of the business portfolio, the combined ratio in the Non-Life segment closed 2024 at 96.8%, a decrease of 5.5 p.p. compared to 2023. Analyzing by geography, domestic Non-Life obtained 89% of the ratio in 2024, and international Non-Life, 110%. The combined Life ratio closed 2024 at 121.7%. “Note that the combined domestic Non-Life ratio is already below 90%, delivering the expected profitability for this segment,” Castillo points out.
Financial and equity result rises 10.2%
The company’s financial and equity result in 4Q24 was R$109.1 million, totaling R$ 604.5 million in 2024, an increase of 10.2% compared to the previous year, when it reached R$548.7 million.
“We ended 2024 with a total of assets under management of R$9.2 billion, against R$8.3 billion in 2023. The allocation of these resources can be divided between approximately 58% of assets in Brazil and 42% abroad. The result of our onshore and offshore portfolios was R$142.1 million in 4Q24”, says Paulo Valle, general director of IRB (Asset), the reinsurer’s investment arm.
Sufficiency in regulatory indicators
The IRB(Re) must observe two regulatory indicators, as per Susep regulations, the institution responsible for supervising the insurance and reinsurance sector: Adjusted Owner’s Equity Sufficiency Ratio in relation to the Minimum Required Capital (CMR) and the Technical Provisions Coverage Ratio. On December 31, 2024, the company presented sufficiency in both ratios.
“The sufficiency of Adjusted Shareholders’ Equity in relation to the Minimum Capital Required, which was only R$18 million in 2022 and R$534 million in 2023, is currently R$894 million. This means a sufficiency of 183%, an increase of 37 p.p. compared to 4Q23. The result is mainly due to the decrease in the minimum capital requirement and the increase in Adjusted Shareholders’ Equity. The Technical Provisions Coverage Ratio ended 2024 with a sufficiency of R$802 million,” says Eduarda de La Rocque, director of Internal Controls, Risks and Compliance at IRB(Re).
IFRS 17
IRB(Re), in addition to reporting its numbers considering the IFRS 4 Business View, used by the sector regulator, Susep, published its 2024 results 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 result in 2024 was positive at R$806 million, compared to a loss of R$124 million in 2023. In 4Q24, net income was R$182 million against a loss of R$106 million in 4Q23.
“I highlight the result of the provision of reinsurance services, which totaled R$777 million compared to a loss of R$326 million in 2023. An increase observed, mainly in the Non-Life segment, with an impact of approximately R$600 million in the period. Reinsurance revenue increased 4.5%, and reinsurance expense decreased 6.4%.
In addition, the result obtained in retrocession operations generated a positive variation of R$558 million. Finally, the net financial result increased by R$285 million”, says Falcão.
The complete Performance Analysis is available on the company’s Investor Relations website (www.ri.irbre.com).
