IRB-Brasil Resseguros (IRBR3) Q1 2026 earnings summary

Executive summary

• Net income for 1Q26 ranged from R$93.6 million to R$102 million, down 15–30% year-over-year, mainly due to tax reform and lower service results, especially internationally.

• Underwriting result improved 74–75% year-over-year to R$180 million, driven by better loss and combined ratios.

• Solvency ratio reached 287% in March 2026, enabling R$128 million distribution to shareholders.

• Return on tangible equity was 21% for the quarter, among the highest internationally.

• Dividend and interest on equity distributions resumed, totaling R$128 million.

Financial highlights

• Net income for LTM 1Q26 was R$487 million, up 18% year-over-year, with underwriting result up 88–89% to R$817 million.

• Life segment retained premium dropped 38–50% year-over-year due to restructuring, while P&C fell 6% but grew 2% LTM.

• Combined ratio improved to 96–98%, and loss ratio improved to 55–58%.

• Float reached R$5.9 billion, with assets under management at R$8.6 billion.

• Investment portfolio LTM return was 9.9%, with onshore yield at 13.2% of CDI.

Outlook and guidance

• 2026 is a transition year due to tax reform; 2027 expected to benefit from zero rate on reinsurance and retrocession.

• Management targets increased profitability through selective premium growth, especially in Life and international markets, and aims to reduce combined ratio via expense control.

• Administrative expense ratio targeted to reach 7% by 2029 through cost reduction and technology investments.

• Efficiency projects and structural optimization underway to reduce G&A expenses.

• Life segment expected to return to growth in 18–24 months as portfolio is rebuilt.