IRB-Brasil Resseguros (IRBR3) Q2 2025 earnings summary

Executive summary

• Achieved consistent and growing underwriting and financial results in 2Q25, with net profit up 82% year-over-year to BRL 262 million in H1 2025 and a 23% return on tangible equity, marking the 10th consecutive profitable quarter.

• Strategic focus on disciplined top-line growth, improved combined ratio, and scaling financial results, with P&C as the core business and Life segment reduced from 30% to 3% of premiums due to cancellation of unprofitable accounts.

• Continued investment in technology, data, AI, ESG, and team engagement, earning repeated Great Place to Work recognition and improved ranking.

• Maintained regulatory capital and liquidity ratios above required levels, with no material uncertainties regarding business continuity.

Financial highlights

• P&C retained premium grew 15% year-over-year in Q2 2025, with international P&C premium up 44% and strong expansion in Latin America (+32%) and the rest of the world (+48%).

• Underwriting result surged 579% to R$229 million in 2Q25 and 113% to R$332 million for 6M25.

• Combined ratio improved to 89.8% in 2Q25 (from 106% in 2Q24), and 96.1% for 6M25 (from 102.1%).

• Solvency ratio reached 237%, with adjusted equity of R$2.4 billion and sufficiency of R$1.4 billion over the minimum capital requirement.

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

Outlook and guidance

• Expect continued disciplined growth in retained premiums, targeting low double-digit increases, and positive renewals in Q3 with increased share in key Latin American markets.

• Plans to introduce a formal dividend policy in the next quarter, aiming to become a major dividend payer 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.