IRB’s Lean Recovery in May Highlights Discipline in Risk

IRB Brasil Resseguros S.A., Brazil’s leading reinsurer, specializes in providing risk solutions for insurance companies across Latin America, with a primary focus on the non-life segment.

IRB(Re) reported a net profit of R$38.9 million (about $6.95 million) for May 2025. This result exceeded the same period last year, which brought in R$28.4 million (about $5.07 million).

Written premiums reached R$477.3 million (about $85.2 million), up from R$428.2 million (about $76.5 million) in May 2024. Retained premiums also rose, hitting R$296 million (about $52.9 million) compared to R$282.4 million (about $50.4 million) in the previous year.

However, earned premiums dropped from R$339.9 million (about $60.7 million) last year to R$275.9 million (about $49.3 million). Underwriting results strengthened, rising to R$46.3 million (about $8.3 million), more than double the figure for May 2024.

Analysts observed that loss ratios, a key efficiency metric, improved to 60.6%, lower than 63.8% a year ago and sharply below 75.5% in April.

Nevertheless, the report acknowledged a quarterly loss ratio of 68.5%, which remains slightly above the benchmark of 65% forecast by leading financial institutions.

Shares responded by gaining 2.4% for the month, closing at R$44.66 (about $8.00). This performance followed the quarterly announcement and highlighted modest market confidence as IRB continues its turn towards profitability.

IRB Maintains Profit Streak with Strong Non-Life Performance

The non-life segment continued to steer the business, representing more than 94% of retained premiums. Portfolio sufficiency, which measures the company’s capacity to absorb shocks in its obligations, reached 207% in the first quarter, up by 38 percentage points year-over-year.

The combined ratio for Q1 stood at 102.5%, with the non-life subset at 98%, reflecting prudent claims and expense management. Despite challenges, IRB posted profits for the ninth consecutive quarter by Q1 2025, growing its twelve-month net profit to R$412 million (about $73.6 million).

Though domestic premiums contracted in earlier quarters, recent trends pointed to signs of stabilization and adaptability in the local market.

Market participants remain cautious, consistently noting that future growth will depend on reliable domestic revenues and further improvement in the loss ratio.

Overall, IRB’s latest report reveals pragmatic progress rooted in operational discipline. Gains in underwriting and claims management drove the better outcome in a context of tough sector economics and muted top-line growth.

IRB’s management kept expansion ambitions in check, reflecting a realistic view of Brazil’s evolving insurance environment and the importance of stable, risk-based margins for long-term survival.