IRB-Brasil Resseguros (IRBR3) Q4 2024 earnings summary

Executive summary

• Achieved a net income of R$805.7 million in 2024, reversing a net loss of R$123.9 million in 2023, marking the end of a turnaround period and reflecting improved operational performance despite significant claims from catastrophic events in Brazil.

• Underwriting profit reached R$451.8 million, the best in four years, driven by quality underwriting and investment strategies.

• Regulatory ratios remain strong, with technical reserve coverage of R$802.1 million and adjusted equity sufficiency of R$894.3 million.

• Upgrades in credit ratings outlooks by A.M. Best and S&P to stable, reflecting improved business performance.

• Revenue from reinsurance grew 4.5% year-over-year to R$6.1 billion, with 82% from the domestic market and 18% from international operations.

Financial highlights

• Net income reached R$805.7 million in 2024, compared to a net loss of R$123.9 million in 2023.

• Underwriting profit for 2024 was R$451.8 million, up 191% year-over-year.

• Reinsurance revenue totaled R$6.1 billion, up 4.5% year-over-year.

• Administrative expenses for 2024 were R$408 million, up 15% year-over-year; G&A ratio was 10.3%.

• Total assets at year-end were R$16.4 billion, with equity of R$4.9 billion.

Outlook and guidance

• The company is positioned to benefit from an expected 10% growth in the Brazilian insurance market in 2025, with the sector aiming to reach 10% of GDP by 2030.

• Management expects to meet increased demand for reinsurance as the market expands and aims to maintain leadership in Brazil.

• Premium growth is expected to be modest, focusing on profitability and technical discipline.

• No dividends declared due to accumulated losses, but future distributions are subject to regulatory and statutory requirements.