Independent investigation and intern assessment at IRB Brasil RE finished and conclusions delivered to authorities

Publicado em: 26/06/2020

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IRB Brasil RE informed, on this Friday (June 16), that the independent investigation carried out by KPMG and by the law firm Felsberg Advogados on the disclosure of fake information regarding the share basis of the company was finished. The investigators identified the people responsible for the disclosure of such information on the said interest by Berkshire Hathaway as a shareholder of IRB Brasil RE. These people are company’s ex-executives, who performed irregular actions, out of their offices and regular management powers.
In parallel, IRB Brasil RE’s new executive board has also carried out internal assessments that showed the unduly bonus payment to former executives and employees of the company and controlled companies, in operations performed in the 2019 and 2020 fiscal years. The amount already identified is around BRL60 million. In addition, the new management realized that, in February and March 2020, repurchases of Company’s shares were made, surpassing the amounts authorized by the Board of Directors by 2,850,000 shares. The people primarily in charge of such irregularities, who are not at IRB Brasil RE anymore as well, were already identified.
All activities and operations were made without the information or approval by the Board of Directors, that is, in their absence.
“We made much effort the last weeks to carry out a comprehensive, careful and extremely rigorous evaluation of all operations, shares and decisions taken at IRB Brasil RE before the arrival of the new executive board, in order to provide authorities, shareholders, the Board of Directors and the market with a complete and true view on the company”, says the chairperson of the Board of Directors and CEO, Antonio Cassio dos Santos.
The Company has already delivered all the assessed material to the Prosecution Office, the Securities Commission and the Federal Insurance Commissioner. At the Prosecution Office, the proceeding shall be under seal and, for this reason, the name of the people encompassed and the details on the facts cannot be publicly disclosed by IRB Brasil RE. The company will now contribute to the investigations by the competent authorities and take the duly legal measures in order to be compensated for all the losses caused to it by irregular actions taken by the people in charge.
“We are fully aware of all the work there is to be done at IRB Brasil RE so as the company recoveries the trust which it has cherished up to a recent past”, says Werner Suffert, financial and investors’ relations executive officer. “For such, delivering the results of all internal investigations and assessments to the authorities is a benchmark.”
Wilson Toneto, Risks and Compliance executive officer at IRB Brasil RE, agrees with it. “This is the restatement of what this management has said since it took office some weeks ago: we will not agree with any irregularities that have been performed at the company, aligned to the commitment we have to transparency, integrity, the best governance practices and the nonstop search for improvement of our compliance procedures”, he says.
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