Brazilian reinsurer IRB (Re) has announced its first quarter of 2024 financial result, reporting an improved net income of around USD 15 million (R$ 79.1mn) as well as an underwriting profit of around USD 23 million (R$ 122.4mn), and a combined ratio of 99%.

In the same period last year, the company saw a net income of USD 1.63 million (R$ 8.6mn) and an underwriting profit of USD 0.70 million (R$ 3.7mn) and a combined ratio of 110.9%.

According to IRB (Re), the company’s net income for Q1 2024 was impacted by both underwriting profit and finance income, which were positive.

The Q1 2024 combined ratio included an improved loss ratio of 58.2%, which compares to the 77.3% loss ratio reported in Q1 2023.

The reinsurer’s total written premiums in Q1 2024 were around USD 273.77 million (R$1,440.1mn), compared to Q1 2023 USD 301.07 million (R$1,583.7mn).

For its Brazil business, IRB (Re) reported USD 201.51 million (R$ 1,060mn) written premiums, a 5.3% increase year-on-Y-year, with the Property and Agriculture segments positively impacting the volume of written premiums.

Written premiums abroad totaled USD 72.24 million (R$ 380mn) for the Q1 2024, a 34.2% decrease from the Q1 2023. This decrease, according to the reinsurer, was a result of the portfolio cleanup strategy widely reported by IRB (Re) and the reduction in international exposures, which reached 26% of total in the quarter.

Retroceded premiums for the Q1 2024 decreased 5.7% from the Q1 2023. The retrocession ratio changed from 21.1% for last year’s first quarter to 21.9% for Q1 2024.

Total earned premiums were down 24.7%, to USD 172.82 million (R$ 909.1mn) in Q1 2024 from USD 229.51 (R$ 1,207.3mn) in Q1 2023. According to the company, the reduction in the earned premium volume is in line with the 10% decrease in retained premiums.

Total underwriting profit increased to USD 23.27 million (R$ 122.4mn) in Q1 2024, from USD 0.70 million (R$ 3.7mn) in the same period the year prior, a result of the improvement in nearly all segments, the reinsurer noted.

As part of this figure, IRB (Re)’s Brazil business apported an underwriting profit of USD 32.20 million (R$ 169.4mn), which was an improvement from the USD 3 million (R$ 15.8mn) reported in Q1 2023. Underwriting abroad improved from USD 2.30 million (R$ 12.1mn) in Q1 2023 to USD 8.93 (R$ 47mn) in Q1 2024.

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