Brazilian reinsurance company IRB (Re), which was formerly named IRB Brasil Re, has reported an underwriting profit of R$35.4 million for the second quarter of 2023, compared with an underwriting loss of R$661.0 million in the second quarter of 2022.
The reinsurer posted a net income in Q2’23 of R$20.1 million, compared to a loss of R$373.3 million, while written premiums reduced from R$1,685.0 million to R$1,394.4 million, including a 24.7% decrease in premiums written outside of Brazil.
The company’s net income for the Q2’23 was impacted by both underwriting profit and finance income, which were positive.
The reinsurer’s combined ratio accordingly fell from 154.3% for Q2 last year to 108.3% in the most recent quarter, on a total loss ratio of 73.6%.
Looking at the first six months of 2023, the picture is much the same, with IRB (Re) posting an underwriting profit of R$39.1 million, compared to an underwriting loss of R$757.4 million.
The combined ratio for the first half was 109.7% compared with 137.8% in H1’22.
“In the 2Q23, we renewed 80% of the contracts we wanted to retain. The company maintains the target for business made in Brazil to account for 80% of the portfolio – with reinforcement of competitive differentials –, completing the portfolio with 15% in written premiums in Latin America and 5% in other markets.”
“For this purpose, we envision opportunities in key sectors in Brazil, such as infrastructure. In the 2Q23, the domestic share already accounted for 71% of written premiums,” the reinsurer stated.
