IRB-Brasil Resseguros (IRBR3) Q2 2025 earnings summary

Executive summary

• Achieved BRL 262 million net profit in H1 2025, up 82% year-over-year, and R$144 million in 2Q25, up 120%, marking the 10th consecutive profitable quarter and reflecting successful transformation efforts since late 2022.

• Achieved significant milestones in disciplined underwriting, innovation in finance, risk management, and human capital, with repeated Great Place to Work recognition.

• Strategic focus on profitable growth led to contract cancellations in unprofitable Life business and reduced exposure in Agriculture, impacting written premiums.

• Focused on three value levers: disciplined top-line growth, improved combined ratio, and scaling financial results, with P&C as the core business.

Financial highlights

• P&C retained premium grew 15% in Q2 2025 year-over-year to R$799M, with a 20% increase over the last 12 months.

• Underwriting result surged 1579% to R$229M in 2Q25 and 113% to R$332M for 6M25.

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

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

• Financial and equity income reached R$162 million in 2Q25, slightly down 2% year-over-year, with a negative impact from bond sales and real estate fund revaluation.

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.

• Continued investment in technology, AI, ESG, and innovation to drive future growth.