Brazilian reinsurer IRB Brasil Resseguros SA (IRB Brasil Re) has revealed that its Board of Directors unanimously resolved to elect the reinsurer’s Chairman, Antonio Cassio dos Santos, as interim Chief Executive Officer (CEO) of the company.
Earlier this month, Antonio Cassio dos Santos was appointed Chairman of the company’s Board by the Federal Government and he’s set to assume the role as interim CEO for the maximum period of the cumulation provided for in the Novo Mercado Regulation.
During this time, IRB Brasil Re explains that it will be dedicated to finding an individual to take on the CEO role on a permanent basis.
The news comes after Brazilian media reported that Berkshire Hathaway had taken a large stake in IRB Brasil Re and would be adding a member to the reinsurer’s Board. The announcement prompted a reply from Warren Buffett’s Berkshire Hathaway, with the company confirming that it had not taken a stake in the reinsurer, which in turn caused the firm’s shares to plummet and the replacement of its President and CEO José Carlos Cardoso, and CFO Fernando Passos.
The official appointment of Antonio Cassio dos Santos as Chairman of the company’s Board is expected to take place on March 27th, 2020 at an Extraordinary General Shareholders’ Meeting that has already been called.
In light of the recent actions at the Brazilian reinsurer, financial services ratings agency A.M. Best has placed under review with negative implications the ratings of IRB Brasil Re, citing concerns about the effectiveness of IRB’s governance.