IRB-Brasil Resseguros (IRBR3) Q1 2025 earnings summary

Executive summary

• Net income rose 50% year-over-year in 1Q25 to R$119 million, driven by strong finance income and improved profitability, with a solvency ratio of 207%.

• Written premiums declined 13% year-over-year to R$1.25 billion, reflecting strategic non-renewal of unprofitable Life contracts and lower Agriculture segment volumes.

• Underwriting profit reached R$103 million, down 16% from 1Q24, with domestic market results impacted by large Property and Special Risks losses, while international operations saw a turnaround to profit.

• Management highlights include board elections, ERP and sustainability policy revisions, and contract renewals.

• Finance income and share of profit of equity-accounted investees surged 58% to R$210 million, benefiting from higher interest rates and favorable exchange rates.

Financial highlights

• Net income: R$119 million in 1Q25 vs. R$79 million in 1Q24; written premiums: R$1,247.9 million (-13.3% YoY).

• Underwriting result: R$103.2 million (-15.7% YoY); financial result: R$210 million in 1Q25 vs. R$133 million in 1Q24.

• Combined ratio for Non-Life stood at 98%, with the overall loss ratio increasing to 66.5% from 58.2% in 1Q24.

• Retained premiums decreased to R$973.7 million in 1Q25 from R$1,124 million in 1Q24.

• Administrative expenses increased 30% YoY to R$97.5 million, with a G&A ratio of 11.5%.

Outlook and guidance

• Focus remains on maintaining domestic P&C combined ratio at 2024 levels and developing international P&C to match domestic performance.

• Contract renewals in January 2025 and ongoing operational enhancements signal continued focus on efficiency and profitability.

• Continued emphasis on profitability, underwriting discipline, and selective renewal, especially in Life and Agriculture segments.

• Sustainability initiatives and ESG policy revisions are expected to support long-term value.

• Ongoing cost optimization through personnel reductions and contract renegotiations.