IRB(Re) 3Q26 slides: tax reform drives loss, solvency hits 333%

Resseguros S.A., known as IRB(Re) in Brazil, released its third quarter 2026 financial results on November 13th showing a net loss of R$54 million for the period. While tax reform-related write-offs contributed to the loss, underlying earnings rose 18% year-over-year to R$561 million. IRB(Re)'s shares rose 2.56% in after-hours trading following the announcement.

The company's solvency ratio improved significantly to 333%, an 82 percentage point increase from 251% in the prior quarter, exceeding regulatory requirements by R$2 billion. Brazil's recent tax law changes reducing CSLL and eliminating PIS/COFINS taxes on premiums are expected to boost after-tax profitability in 2027. IRB(Re) demonstrated solid core business performance, with comparable net income increasing 18% year-over-year and a 21% return on tangible equity.

The company's portfolio shifted toward more profitable property insurance, now representing 61% of retained premiums, while reducing exposure to agricultural insurance. IRB(Re) also upgraded its credit ratings to brAAA from S&P Global and A- (Excellent) from AM Best, reflecting confidence in its financial strength and strategic direction.