Susep (Federal Insurance Commissioner) formalized the finishing of the special inspection it kept at IRB Brasil RE, acknowledging the company presented assets required to guarantee the technical provisions defined by the insurance and reinsurance sector regulatory body.
In an official letter sent today (April 07) to the IRB, Susep officially communicated the reclassification and, with that, the inspection activities at the company, started on May 11th last year, were finished.
“It was the last stage for IRB’s definitive return to a period of positive results and its history as the largest reinsurer in Latin America. We have met our commitment”, says the reinsurer’s Chairman of the Board of Directors, Antonio Cassio dos Santos, who adds: “After the return to profitability, according to the monthly results already presented to Susep, the end of the special inspection is a relevant milestone, which definitely finishes a stage in the company’s history and positions it for the future”.
For IRB’s CEO, Wilson Toneto, “the reclassification acknowledges the company’s financial recovery and credibility effort that represented a major challenge for the management and teams in covid-19 pandemic”. According to him, the focus now is to improve results continuously, “without haste, but non-stopping, as we have been doing since the new Management took over the company”.
In the financial statements for 2020, IRB reported that it had reached the regulatory classification for liquidity rates and coverage of technical provisions. “The regulatory disqualification was informed to the market on May 11th, 2020, when the company was notified by Susep, due to an insufficient composition of assets guaranteeing technical provisions and consequently regulatory liquidity,” said the company in a statement of February 18th.
The reclassification was the result of a plan IRB’s management carried out from July to December, and included actions to increase capital and issue debentures, among other aspects. Thus it was possible to raise BRL4.8 billion in financial resources and guarantee the company’s technical provisions.
“It was a successful journey in which we got the guarantee assets to cover the provisions within the expected time, even in a complex market scenario due to the pandemic, an unequivocal proof of IRB’s credibility and the work of our teams. Now, the company will follow its natural path of sustainable growth”, concludes the company’s financial and investor relations vice-president, Werner Süffert.