IRB Brasil RE announced today (April 04th), through disclosure to the market and shareholders after closing of the trading day, it removed its guidances for this year. The projections for 2020 had been published on February 18th.
The decision of the company’s new executive board was taken based on the current market conditions, facing the uncertainties on the real impact arising from the covid-19 pandemic effects in Brazil and abroad.
“The last weeks brought great uncertainties for the macroeconomic scenario, with covid-19, what certainly changes the parameters we were working with before”, says Werner Suffert, IRB Brasil RE’s CFO.
The reinsurer highlights that the guidances substantially depend on the economic general conditions, insurance and reinsurance market conditions, as well as on the regulatory conditions, which shall be subject to changes due to the new scenario.
“With the changes in the premises and the uncertainty regarding the scenario, we see the removal of the guidance as something natural and aligned with a more conservative and cautious attitude”, completes Werner.
IRB informs as soon as the board is comfortable with the premises guiding the projection definition, it will assess the convenience and opportunity of disclosing revised guidances again. The company reaffirmed it will keep its shareholders and market informed on any relevant consequences regarding guidances.