IRB-Brasil Resseguros (IRBR3) Q2 2025 earnings summary

Executive summary

• Achieved a 23% return on tangible equity over the last 12 months, with net profit rising 82% to BRL 262 million in H1 2025 and 120% to R$144 million in 2Q25, reflecting disciplined underwriting, innovation, and transformation since late 2022.

• Life segment premiums dropped significantly (down 66–90% year-over-year) due to contract cancellations, shifting focus to profitable P&C lines.

• Maintained robust solvency at 237% and sufficiency in regulatory capital and technical reserves.

• Continued investment in technology, data, AI, and team engagement, earning repeated Great Place to Work recognition and launching the Data Lake Project.

• Strategic focus on profitable growth, operational efficiency, and resilience to macroeconomic headwinds in Agriculture and Life.

Financial highlights

• P&C retained premium grew 15% year-over-year in Q2 2025 to R$799M, with international premiums up 36–44%.

• Underwriting result surged 579–1579% to R$229 million in 2Q25, with combined ratio improving to 89.8–90%.

• Net income for 2Q25 ranged from R$106.5 million (down 45% YoY) to R$144 million (up 120% YoY), reflecting volatility from discount rate changes.

• Solvency ratio at 237%, with adjusted equity of R$2.4 billion and technical reserve sufficiency of R$746 million.

• AUM at BRL 8.9 billion, with 59% invested in Brazil and 41% abroad.

Outlook and guidance

• Targeting continued disciplined growth in retained premiums and maintaining core P&C combined ratio at 2024 levels.

• Renewals in Q3 expected to be positive, with increased share in key Latin American markets.

• Plans to introduce a formal dividend policy in the next quarter, aiming for major payouts in 2026.

• Focus on operational efficiency, process automation, and talent development to drive future growth.

• Strategy includes retaining more premiums through changes in retrocession, expected to enhance mid- to long-term profitability.