IRB-Brasil Resseguros (IRBR3) Q2 2026 earnings summary

Executive summary

• Net income for 2Q26 reached R$157 million, a 10% year-over-year increase, with adjusted net income for 1H26 at R$307 million, excluding a non-recurring tax asset write-off; recurring net profit and ROTE were strong, and profitability was maintained in a soft market.

• Solvency ratio reached 316%, representing a surplus of R$1.9 billion above minimum regulatory capital, with tangible equity of R$2.39 billion.

• Strategic initiatives included completion of DOJ obligations, London runoff closure, and international expansion with new insurance companies and pending approvals in Switzerland and Malta.

• Dividend and interest on capital payments resumed after five years, totaling R$127 million in 1H26.

• Focus on underwriting discipline, risk selection, and building an integrated risk protection ecosystem.

Financial highlights

• Retained premiums for 2Q26 were R$783 million, down 5% year-over-year, with LTM retained premiums at R$13.4 billion; underwriting result rose 9% to R$250 million in 2Q26 and 34% to R$839 million LTM.

• Life segment premiums fell sharply, while P&C premiums declined modestly; Property segment showed growth.

• Investment portfolio yielded 9.8% in the last 12 months, with financial results of R$708 million; financial income in 2Q26 was R$176 million.

• Administrative expenses increased due to international expansion and personnel, but cost rationalization initiatives are underway.

• Float stood at R$6.1 billion, with a float-to-premium ratio of 165%.

Outlook and guidance

• Management targets increased profitability through disciplined premium growth, combined ratio reduction, and higher financial income from maturing investments.

• Administrative expenses targeted for reduction, with R$16 million in cuts mapped.

• Anticipates benefits from tax reforms, including zero-rated IBS/CBS from 2027 and continued reinsurance tax advantages.

• Dividend payout expected to increase from 25% to 50% as initiatives mature and cash generation improves.