Brazilian reinsurance company IRB(Re) produced a stronger underwriting result for both the fourth quarter and full year 2025 with an improved combined ratio, although the top-line reduced for both periods, driven mostly by the impact of cancelled contracts in the life business, while the property and casualty (P&C) portfolio shrank amid a drop in the agriculture line.
IRB(Re) states that during 2025 it reached an important milestone that consolidates its return to profitability, leading the firm to resume dividend distribution after five years.
In fact, in 2025, the reinsurer eliminated its accumulated losses and ended the year with retained earnings of R$145.7 million (USD 24m), while statutory reserves hit R$10.2 million (USD 2m).
For the fourth quarter of 2025, written premiums decreased by 16.4% to R$1.3 billion (USD 250m), and decreased by 11.8% to R$5.8 billion (USD 1.1bn) for the full year. Retained premiums fell by 2% to R$875 million (USD 168m) for Q4’25, and fell by 12.5% to R$3.5 billion (USD 671m) for full year 2025. Earned premiums also fell, by 5.4% to R$1 billion (USD 191m) for the quarter, and by 12.2% to R$3.5 billion (USD 671m) for 2025.
Commenting on the lower premiums year-on-year, the reinsurer said: “In 2025, the growth of total premiums was limited by two factors. The first was the cleanup of the Life insurance portfolio, which had been registering losses. By cancelling unprofitable Life insurance premiums, the profitability of this business line increased.
“The second factor was the crisis in the agricultural sector, marked by high levels of default and bankruptcy filings, which affected the volume of insurance premiums and, consequently, reinsurance. The profitability of the agricultural business line remained positive throughout 2025.”
Retained claims for the company fell by 23.8% to R$527 million (USD 101m) for Q4’25 and decreased by 21.1% to R$2 billion (USD 384m) for full year 2025.
The Brazilian reinsurer’s underwriting performance improved significantly in both periods, hitting R$293 million (USD 56m) in Q4’25, an increase of 64.7% on the prior year. For 2025, underwriting profit rose by 63.9% to R$741 million (USD 142m).
The combined ratio strengthened by 4.4 percentage points in Q4’25 and by 4.3 percentage points for 2025 to 94.3% and 96.9%, respectively, supported by a lower loss ratio for both periods.
Together, financial and equity income increased by 50.6% in Q4’25 to R$164 million (USD 32m), and rose by 19.6% to R$723 million (USD 139m) for full year 2025.
IRB(Re) generated net income of R$143 million (USD 27m) for the fourth quarter of 2025, an increase of 27.4% on the prior year. For the full year 2025, the firm’s net income rose by 35.5% to R$505 million (USD 97m).
