Brazilian reinsurer IRB (Re) reported strong underwriting results in both the fourth quarter and full year 2025, with improved combined ratios, although revenue declined in both periods, primarily due to the impact of contract cancellations in its life business, while its property and casualty (P&C) portfolio shrank due to declines in agriculture.
IRB(Re) said that in 2025, it reached a major milestone, cementing a return to profitability that led to the company’s resumption of dividend distributions after five years.
In fact, by 2025, the reinsurer eliminated accumulated losses and ended the year with retained earnings of R$145.7 million ($24 million) and statutory reserves of R$10.2 million ($2 million).
Premiums written fell 16.4% to 1.3 billion reais ($250 million) in the fourth quarter of 2025 and 11.8% for the full year to 5.8 billion reais ($1.1 billion). Retained premiums fell 2% to 875 million reais ($168 million) in the fourth quarter of 2025 and 12.5% ​​to 3.5 billion reais ($671 million) for the full year 2025. Premiums earned also fell 5.4% to 1.0 billion reais ($191 million) in the quarter and 12.2% to 3.5 billion reais ($191 million). 671m) in 2025.
Commenting on the year-on-year decline in premiums, the reinsurer said: “In 2025, growth in total premiums is limited by two factors. The first is the cleanup of the life insurance portfolio, which has been losing money. By eliminating unprofitable life insurance premiums, the profitability of this business line has increased.”
“The second factor is the crisis in the agricultural sector, which is characterized by a high number of defaults and bankruptcy filings, which affects the volume of insurance premiums and therefore the size of reinsurance. Profitability in the agricultural business line remains positive throughout 2025.”
The company’s retained claims fell 23.8% to 527 million reais ($101 million) in the fourth quarter of 2025 and 21.1% to 2 billion reais ($384 million) for the full year 2025.
The Brazilian reinsurer’s underwriting performance improved significantly in both periods, reaching BRL 293 million (USD 56 million) in 4Q25, a 64.7% increase from the previous year. In 2025, underwriting profit increased by 63.9% to R$741 million (US$142 million).
The combined ratio improved by 4.4 percentage points and 4.3 percentage points to 94.3% and 96.9% in the fourth quarter of 2025 and 2025, respectively, with lower loss ratios in both periods.
Combined financial and equity revenue increased 50.6% to R$164 million ($32 million) in the fourth quarter of 2025 and 19.6% for the full year of 2025 to R$723 million ($139 million).
IRB(Re)’s net profit for the fourth quarter of 2025 was 143 million reais ($27 million), an increase of 27.4% over the previous year. For the full year of 2025, the company’s net profit increased by 35.5% to R$505 million (US$97 million).
