IRB-Brasil Resseguros (IRBR3) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 ranged from R$118.6 million to R$135 million, with some reports noting a 50% year-over-year increase and others a 43% decrease, reflecting impacts from discount rates, strong finance income, and disciplined underwriting.

• Written premiums declined 13% year-over-year to R$1.25 billion, mainly due to 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.

• Combined ratio for Non-Life stood at 98%, with the overall loss ratio increasing to 66.5% from 58.2% in 1Q24, mainly due to a significant Property claim in Brazil.

• Strategic focus remains on operational efficiency, cost reduction, technology investments, and ESG initiatives to streamline processes and enhance decision-making.

Financial highlights

• Net income for the quarter ranged from R$118.6 million to R$135 million, with finance income and share of profit of equity-accounted investees surging 58% to R$210 million.

• Written premiums: R$1,247.9 million (-13.3% YoY); Brazil: R$857.2 million (-19.2% YoY); Abroad: R$390.7 million (+2.9% YoY).

• Underwriting result: R$103.2 million (-15.7% YoY); Administrative expenses increased 30% YoY to R$97.5 million, with a G&A ratio of 11.5%.

• Portfolio of financial assets at R$8.9 billion as of March 31, 2025.

• Combined ratio for Non-Life was 98%; combined ratio including finance income was 83%.

Outlook and guidance

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

• Premiums are expected to grow throughout the year, especially in non-life, as contract renewals in Latin America progress.

• Ongoing cost optimization through personnel reductions and contract renegotiations.

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