IRB-Brasil Resseguros (IRBR3) Q3 2025 earnings summary

Executive summary

• Net income for 3Q25 ranged from R$99 million to R$474 million, with accumulated net income reaching R$361 million for the nine-month period; profitability was driven by disciplined underwriting and improved loss ratios.

• P&C retained premiums grew 8% year-over-year, while Life segment premiums dropped significantly due to portfolio sanitation and contract cancellations, but Life losses narrowed.

• Regulatory solvency ratio reached 251%, well above the minimum requirement, reflecting robust capital sufficiency.

• S&P upgraded the rating to 'brAAA' and AM Best affirmed 'A-' (Excellent), citing strong capital and improved profitability.

• International business expanded, with notable growth in LATAM and other international markets.

Financial highlights

• Underwriting results for the last 12 months rose from R$379 million to R$626 million, a 65% increase.

• Loss ratio improved to about 61%, down 7 percentage points year-over-year.

• Return on tangible equity reached 21% for the last twelve months.

• Administrative expenses increased due to digital transformation, post-employment obligations, and legal fees.

• Financial investments reached R$8.9 billion as of September 2025.

Outlook and guidance

• Focus remains on profitable domestic P&C business, expanding in Latin America, and capitalizing on climate and sustainability opportunities.

• Life segment expected to recover with new leadership and product development.

• Dividend payout of at least 25% of adjusted net profit planned for 2026.

• Emphasis on disciplined underwriting, portfolio quality, and maintaining high solvency and liquidity ratios.