The São Paulo Court of Justice has ruled in favour of Brazilian reinsurer IRB Brasil Re in the public citizen suit filed against the company.
It was decided that IRB proved “its economic capacity to face indemnities granted to shareholders” and, consequently, is no longer required to offer a guarantee in the amount of R$ 1 billion ($194 million).
It’s been an eventful year for the reinsurer, having announced in March that it had replaced its President and Chief Financial Officer amid confusion over a possible investment by Berkshire Hathaway. The announcement prompted its shares to fall 32%.
A month later saw a number of IRB Brasil Re board directors resign and focus on other position due to the pandemic.
The reinsurer also recently announced its decision to postpone the release of its first-quarter 2020 financial results, although this is not uncommon in light of the disruption caused by coronavirus.
