IRB Re posts 96.1% CR in H1 as written premiums fall 10%

By Navneeta Nandan

Aug 15 - (The Insurer) - IRB Brasil Re has posted a combined ratio of 96.1% for the first six months of 2025, a 6 percentage point improvement from 102.1% in the prior-year period.

Net income for the second quarter of 2025 stood at R$143.6 million, marking a 120.3% increase from R$65.2 million in the second quarter of 2024.

For the year to date, net income for the Brazilian-headquartered reinsurer amounted to R$262.1 million, which is an 81.6% rise from R$144.3 million last year.

The combined ratio improved 16.2 percentage points in the second quarter to 89.8% from 106% in Q2 of 2024.

Written premiums in Q2 decreased by 6.3% year-on-year to R$1.34 billion, of which 74.1% (R$996 million) were written in Brazil. Property remained the largest line of business, accounting for 44.3% of the overall written premiums in Brazil.

For six months, written premium saw a 9.8% year-on-year decline to R$2.59 billion from R$2.87 billion in the prior-year period.

Underwriting results plunged 579.5% to R$229 million in the second quarter, compared to R$33.7 million last year. For the six-month period, the increase was of 112.7% to R$332.2 million, compared to R$156.2 million in the previous year.

The loss ratio fell by 13.1 percentage point year-on-year to 51.9% in Q2. During the first half of the year, the loss ratio declined 2.6 percentage point to 59.2%.

As of June 30, the company reported accumulated losses of R$37 million.

Administrative expenses in quarter were up 17% year-on-year. The company said that amongst other measures, it laid off employees in the first quarter to reduce the administrative expenses.

"In the reinsurance sector, there are signs of higher capacity in some lines, but the market is still 'hard', that is, in a period of greater rigor in risk selection, premiums with restricted coverage, and high prices," the company's management said.

"Price adjustments by insurers and lower federal subsidies contributed to the drop in demand for insurance. Nevertheless, the Brazilian Government, through the Agricultural Insurance Premium Subsidy Program (PSR), announced the release of an additional R$179 million (which is a part of this year's budget) for agricultural insurance to be contracted by farmers to alleviate their cost burden and protect the planted areas."

The reinsurer stated that the domestic market grew from R$38 million to R$258 million, driven by the results of the property, life, and agriculture segments. On the other hand, the international market registered a loss of R$30 million, partly explained by the result from the agriculture line.