IRB-Brasil Resseguros (IRBR3) Q4 2025 earnings summary

Executive summary

• Achieved strong profitability in 2025, with net income of R$505 million under SUSEP GAAP (up 35% year-over-year) and R$390.9 million under IFRS 17, enabling dividend distribution after five years.

• Upgraded S&P rating to 'brAAA' and maintained A- (Excellent) from A.M. Best, reflecting improved risk management and financial strength.

• Implemented stock-based incentive and share buyback programs to align management and shareholder interests and support talent retention.

• Focused on portfolio quality and disciplined underwriting, especially in Life and Agriculture, with restructuring impacting CSM amortization and service results.

• Recognized as a top workplace in Rio de Janeiro and offset 100% of corporate emissions with UN-certified carbon credits.

Financial highlights

• Net income for 2025 reached R$505 million (SUSEP GAAP), up 35% year-over-year; IFRS 17 net income was R$390.9 million, down from R$805.7 million in 2024.

• Underwriting result for 2025 was R$741 million, up 64% year-over-year; 4Q25 underwriting result was R$293 million, a 65% increase from 4Q24.

• Retained premiums for 2025 were R$3,542 million, down 12% from 2024, mainly due to Life and Agriculture portfolio adjustments.

• Investment portfolio yielded R$666 million in 2025, with onshore portfolio returning 12.6% and offshore 5.4%.

• Solvency ratio reached 268% at year-end, with adjusted net equity up to R$2.6 billion.

Outlook and guidance

• 2026 is positioned as a structuring year, with moderate profit growth expected; more robust results anticipated in 2027 and 2028 as new insurance companies and life portfolio expansion take effect.

• Focus remains on profitable growth in Brazil and selective international expansion, especially in Latin America.

• Targeting a sustainable return on tangible equity (ROTE) of at least 20% in the long term.

• Life segment expected to recover to 20–22% of total premiums over the next 2–3 years.

• Combined ratio goal remains at 95%, with potential for further improvement as legacy expenses are reduced and new business lines mature.