Reinsurer IRB (Re) made a profit of R$98.7 million in the third quarter of 2025, representing a 15% decline compared to what was recorded in the same period of 2024, when the company’s performance benefited from the sale of land in Rio de Janeiro.
IRB(Re) divides its portfolio into two parts: life and non-life. In the non-life portfolio, also called P&C, net profit amounted to R$90 million. Life Insurance ended the quarter with a net profit of R$9 million.
The total subscription result was R$116 million, an amount lower by 1.9% in the annual comparison.
“We recorded another quarter of net profit, and looking at the trajectory of the past 12 months, we saw a 59% increase. With this we have cleared the streak of accumulated losses, reaching R$61 million of accumulated profit in September,” Marcos Falcão, head of IRB(Re), said in a note. “We continue to provide consistent performance indicators, both in underwriting results and in financial results.”
According to Falcao, the subscription business “remains strong and profitable” and the result was in line with what was seen in the third quarter of 2024, but with a lower incident rate.
The accident rate decreased from 67.9% in the third quarter of 2024 to 61.2% in the same period of the current year.
The administrative expenses index rose 5.1 percentage points to 14.1%. Tax expenditures fell 1.6 percentage points to 4.7%.
The total combined ratio – which includes claims, commissions and other expenses – was 102.5%, compared to 102.1% in the third quarter of 2024.
The data takes into account what the company calls “business insight”, based on the CPC Technical Statement 11 (IFRS 4), where some accounting accounts in income statements are compiled differently than initially expected in the accounting practices adopted in Brazil for reinsurers.
According to IFRS 17, used by the Securities and Exchange Commission (CVM), IRB (Re) profit amounted to R$112 million in the third quarter, compared to a profit of R$192 million in the previous year.
In the third quarter, premiums retained by IRB(Re) decreased by 17% to R$866 million. Of the total premiums held in this period, R$840 million refers to the insurance and insurance portfolio (97%) and R$26 million to life (3%).
The retained premium is the result of subtracting the refunded premium from the issued premium. It reflects the premium that is maintained within the company.
In the past 12 months, the company’s total retained premiums amounted to R$3.56 billion. There was an 8% growth in property and casualty, from R$3.09 billion to R$3.34 billion. Over the life, and in accordance with the portfolio clean-up strategy already anticipated by the company, retained premiums decreased by 75%, from R$896 million to R$226 million.
“The total portfolio is down 11% in 12 months, a decline that is explained by the 75% decline in the life business. When we look at property and casualty, our main business, retained premiums are growing by 8% in 12 months. The idea is to continue to choose risks and grow in the more profitable business. In this sense, looking at the business lines, real estate, which was 40% of the portfolio, in the last 12 months represents more than half of our business, with more than half of our business,” said Daniel. Castillo, vice president of reinsurance at IRB(Re), also said in a note: “51%.”
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