Reinsurer IRB (Re) posted a profit of R$98.7 million in the third quarter of 2025, a 15% decrease compared to the profit recorded in the same period in 2024, when the company’s performance benefited from the sale of land in Rio de Janeiro.
IRB (Re) divides its portfolio into two segments: life insurance and non-life insurance. Net income for the non-life insurance portfolio, also known as P&C, totaled R$90 million. Life Insurance ended the quarter with a net profit of R$9 million.
Subscription results totaled R$116 million, a decrease of 1.9% on an annual basis.
“The company recorded another quarterly net profit, an increase of 59% when looking at the performance of the past 12 months. This brought the cumulative loss line to zero, bringing the cumulative profit in September to R$61 million,” IRB(Re) President Marcos Falcan said in a note. “We continue to deliver consistent performance metrics in both underwriting and financial results.”
Falcan said the results were in line with Q3 2024 results, but the accident rate was lower, as the subscription business “remains strong and profitable.”
The accident rate has declined, from 67.9% in the third quarter of 2024 to 61.2% in the same period this year.
The management fee index increased by 5.1 points to 14.1%. Tax expense decreased 1.6 percentage points to 4.7%.
The total combined ratio, including claims, commissions and other expenses, was 102.5%, compared to 102.1% in the third quarter of 2024.
This data takes into account what the company calls its “business vision” based on the CPC 11 (IFRS 4) technical declaration. Under CPC 11, some accounting items in the income statement are grouped differently than originally expected under the accounting practices adopted by reinsurance companies in Brazil.
According to IFRS 17, which is used by the Securities and Exchange Commission (CVM), IRB (Re) had a profit of R$112 million in the third quarter, compared with a profit of R$192 million in the same period last year.
In the third quarter, premiums retained by IRB(Re) decreased by 17% to R$866 million. Of the total premiums retained during the period, R$840 million was in the non-life insurance portfolio (97%) and R$26 million was in whole life insurance (3%).
Retained premiums are issued premiums less retroactive premiums. This reflects the premium maintained within the company.
In the past 12 months, the company’s total outstanding premiums amounted to R$3.56 billion. Non-life insurance increased by 8% from R$3.09 billion to R$3.34 billion. In life insurance, retained premiums fell by 75% from R$896 million to R$226 million, according to the company’s already anticipated portfolio clean-up strategy.
“The overall portfolio declined by 11% in the 12 months, but the contraction is explained by a 75% decline in the life insurance business. If we look at our main business, non-life insurance, retained premiums have increased by 8% in the 12 months. 51%,” Daniel Castillo, vice president of reinsurance at IRB(Re), also said in a memo.
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