IRB-Brasil Resseguros (IRBR3) Q4 2025 earnings summary

Executive summary

• Achieved robust net income of R$504.8 million (SUSEP) in 2025, up 35% year-over-year, enabling dividend distribution after five years, despite a 51% YoY drop to R$390.9 million under IFRS 17 due to lower service and financial results.

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

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

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

• Strategic focus on the domestic market, with disciplined international expansion and digital transformation initiatives.

Financial highlights

• Net income for 2025 reached R$504.8 million (SUSEP), up 35% YoY; IFRS 17 net income was R$390.9 million, down 51% YoY.

• Underwriting result for 2025 was R$741 million, up 64% YoY; 4Q25 underwriting result was R$293 million, up 65% YoY.

• Retained premiums for 2025 were R$3,542 million, down 12% YoY, 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 regulatory index reached 268% at year-end, with adjusted equity at R$1,650 million and technical reserve coverage sufficiency at R$895 million.

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.

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

• Focus remains on profitable growth in Brazil and selective international expansion, with continued investment in innovation and new product launches.

• 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.