Brazilian reinsurance firm IRB Brasil Resseguros S.A. (IRB Brasil Re) has now registered for an initial public offering (IPO) with the Brazilian Exchange Commission (Comissão de Valores Mobiliários CVM).
According to reports from three key shareholders, the applications have been filed for an initial public offering of IRB Brasil Re shares, with a request to register the reinsurer as a publicly listed company and a request to carry out a secondary share offering.
Just over a week ago the shareholders in IRB Brasil Re, Itaú Unibanco Holding S.A. units Itaú Seguros S.A. and Itaú Vida e Previdência S.A., BB Seguridade Participações S.A. and Banco Bradesco S.A., all filed notices of their intention to sell some of their shares in an initial public offering (IPO) of the reinsurer.
Now, with the registration made, the IPO may happen relatively quickly, although the shareholders note that the IPO will not proceed unless the local and international capital markets are conducive to doing so.
IRB Brasil Re is backed by the Brazilian government, which owns a 27% stake in the reinsurer, as well as a number of major financial firms in the country.
The reinsurer was formed in 1939 with the intention of providing reinsurance to local insurers, subsequently becoming the largest domestic reinsurance firm in Brazil.