IRB-Brasil Resseguros (IRBR3) Q4 2024 earnings summary

Executive summary

• Achieved a significant turnaround in 2024, with net income rising to BRL 806 million under IFRS17 and R$373 million under local GAAP, reversing prior losses and driven by improved underwriting and financial results.

• Underwriting profit reached R$452 million, the best in four years, supported by operational efficiency and investment strategies.

• Focused on operational efficiency, global best practices, and leadership in the Brazilian market, with investments in innovative products and solutions.

• Portfolio restructuring emphasized non-life domestic growth, with international and life segments being repositioned for future profitability.

• Ratings outlooks were upgraded to stable by AM Best and S&P, reflecting improved business performance.

Financial highlights

• Net income for 2024 was BRL 806 million (IFRS17) and R$373 million (local GAAP), with Q4 net income at BRL 182 million (IFRS17) and R$112 million (local GAAP).

• Underwriting profit for 2024 was R$452 million, up 191% year-over-year; combined ratio improved by 6 p.p. to 101%.

• Financial assets under management totaled R$9.2 billion at year-end, up 11% year-over-year.

• Retained premiums increased to R$4.0 billion in 2024, with non-life up 8% and life down 18%.

• 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 careful risk-adjusted expansion and selective client targeting.

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

• 2025 renewals: 92% renewal ratio with a 2 p.p. reduction in priced combined ratio.

• SG&A ratio targeted to gradually decrease toward 6% over time, with efficiency initiatives underway.

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