IRB-Brasil Resseguros (IRBR3) Q4 2024 earnings summary

Executive summary

• Achieved a significant turnaround in 2024, posting net income of R$805.7 million (BRL 806 million), reversing a prior loss, driven by improved underwriting, asset management, and higher interest rates.

• Underwriting profit reached R$451.8 million, the best in four years, with a combined ratio improvement and focus on operational efficiency and global best practices.

• Focused on the Brazilian market, which accounted for up to 82% of reinsurance revenue, while international and life segments are being repositioned for future profitability.

• Received improved outlooks from AM Best and S&P, both moving from negative to stable, reflecting the completion of the turnaround process.

• Released first Sustainability Report and advanced ESG, workplace quality, and diversity initiatives.

Financial highlights

• Net income for 2024 was R$805.7 million, with Q4 net income at R$182 million, reversing prior year losses.

• Underwriting profit for 2024 was R$451.8 million, up 191% year-over-year; combined ratio improved to 101% for the year and 93% for non-life in Q4.

• Reinsurance revenue grew 4.5% year-over-year to R$6.1 billion, with Brazil contributing R$5.0 billion.

• Financial assets under management reached R$9.2 billion, with a total financial and equity result of R$604 million.

• Administrative expenses rose to R$408 million in 2024, with a G&A ratio of 10.3%.

Outlook and guidance

• Focus remains on profitable growth, especially in Latin America, with technical discipline and selective client targeting.

• Premium growth expected to be in the single digits, prioritizing profitability over volume.

• Regulatory ratios remain strong, with technical reserve sufficiency at R$802.1 million and adjusted equity sufficiency at R$894.3 million.

• The insurance market in Brazil is expected to grow 10% in 2025, aiming for 6% of GDP, with a long-term goal of reaching 10% by 2030.

• No formal ROI guidance for 2025; company is still reaching cruising speed.