Rio de Janeiro, October 1st, 2021 – Risk rating agency Standard&Poor’s Global Ratings kept IRB Brasil RE’s issuer credit rating at “brAAA” on the Brazilian National scale, with a stable outlook, as informed in a report sent to the company yesterday (September 30th).
“The rating is a continuation of the recognition that the company’s financial recovery and credibility measures implemented since the beginning of last year are producing lasting results”, says Carlos Guerra, Executive Vice-President, Risks, Compliance and Legal, at IRB.
According to the report, S&P conferred a stable outlook on the rating because the agency expects the IRB’s operating performance to “stabilize in coming two years”. “The outlook also incorporates our expectation that changes in management and board will strengthen the reinsurer’s risk culture and reserve requirements will stabilize, as much of the reserve adjustments due to the due diligence process has been made last year”, as stated in the document.
While considering that “past governance issues still affect current operating performance”, S&P, as stated in the report, opines that IRB has made significant improvements in this area. The agency has also assessed that the liquidity of IRB is adequate.