IRB-Brasil Resseguros S.A. reported a consolidated combined ratio of 96% in 1Q26, improving from 122% a year earlier, with underwriting results increasing while tax-related charges affected net income.
The underwriting result rose to R$180 million ($36 million) from R$103 million ($20 million) in 1Q25, even though retained premiums declined to R$896 million ($179 million) from R$974 million ($194 million).
In property and casualty (P&C), retained premiums reached R$870 million ($174 million), compared with R$921 million ($184 million) a year earlier. The underwriting result increased to R$180 million ($36 million) from R$126 million ($25 million), while net income for the segment declined to R$100 million ($20 million) from R$135 million ($27 million).
The life segment reported retained premiums of R$26 million ($5 million), down from R$53 million ($10 million), while its underwriting result moved to R$0 million from R$-23 million ($-4.6 million).
Loss ratios declined during the period. The consolidated loss ratio stood at 55% in 1Q26, excluding one-off reversals.
Net income totaled R$102 million ($20 million) in 1Q26, compared with R$119 million ($24 million) in 1Q25.
Total tax expenses reached R$70 million ($14 million), including R$61 million ($12 million) in operational taxes and R$9 million ($2 million) in financial taxes. Deferred PIS/COFINS amounted to R$33.5 million ($7 million), with R$194.3 million ($39 million) yet to be realized.
The tax effect relates to Brazil’s reform of PIS and COFINS. Payments were R$31.3 million ($6 million) in 1Q26, compared with R$28.3 million ($6 million) in 1Q25. The current 4.65% rate remains in place through 2026, followed by a 0% rate on CBS and IBS from 2027.
The company stated that the effect results from timing differences between the recognition of claims reserves and their deductibility for tax purposes, with no associated cash impact.
For the last 12 months ending March 2026, retained premiums totaled R$3.464 billion ($693 million), compared with R$3.897 billion ($775 million) in the prior-year period.
The underwriting result reached R$817 million ($163 million), compared with R$433 million ($87 million), while net income totaled R$487 million ($97 million), compared with R$413 million ($83 million).
These figures follow underwriting gains reported in 2025, when IRB(Re) increased underwriting profit by 63.9% to R$741 million ($148 million) and recorded a combined ratio of 96.9%. That period also saw lower retained premiums linked to changes in the life portfolio and reduced agricultural volumes.
Property accounted for 56% of retained premiums in LTM 1Q26, followed by agriculture at 13%, special risks at 5%, life at 3%, and other lines at 23%.
Brazil remained the largest market, with R$2.130 billion ($426 million) in retained premiums in LTM 1Q26. Latin America contributed R$525 million ($105 million), while international operations accounted for R$809 million ($162 million).
The P&C combined ratio stood at 96% in LTM 1Q26, while the life segment recorded 105%.
The reinsurer reported a solvency ratio of 287% and return on tangible equity of 21%.
Shareholder distributions totaled R$128 million ($26 million), consisting of R$51 million ($10 million) in dividends and R$78 million ($16 million) in interest on equity.
The company resumed dividend distributions in 2025 after eliminating accumulated losses and reporting retained earnings of R$145.7 million ($29 million) for the year.
Financial and equity income reached R$683 million ($137 million) in 1Q26, compared with R$682 million ($136 million) in the same period last year. Assets under management totaled R$8.565 billion ($1.7 billion).
The company has also been active in capital market initiatives. In 2025, IRB(Re) sponsored Brazil’s first insurance-linked securities transaction through its subsidiary, part of a framework that Fitch Ratings said could broaden access to alternative reinsurance capital and influence capacity and pricing dynamics in the local market.
IRB(Re) indicated planned payments of interest on equity in May, June, and July, along with adjustments to executive structure and ongoing operational initiatives through 2026.
