Q2 2024 IRB-Brasil Resseguros SA Earnings Call (English, Portuguese) Transcript
Key Points
- IRB Brasil Resseguros SA (BSP:IRBR3) reported a net profit of BRL79 million in Q1 2024 and BRL194 million in Q2 2024, showing a significant improvement from the previous year.
- The company has a strong focus on profitability, with a downward trend in the combined index, reaching almost 100%.
- The loss ratio decreased from 77% in Q1 2023 to 65% in Q2 2024, even considering the BRL257 million in claims from the Rio Grande do Sul floods.
- The company's administrative expenses were reduced by BRL3 million in the first half of 2024 compared to the same period in 2023.
- The financial and equity result for Q2 2024 was BRL166 million, higher than both Q1 2024 and Q2 2023, despite a lower CDI in the quarter.
- The unexpected floods in Southern Brazil significantly impacted the company's reserves, with a total provision of BRL257 million.
- The issued premiums showed a downward trend, indicating a stabilization rather than growth in this area.
- The company faces challenges in the renewal of retrocession contracts due to the catastrophic events in Brazil, which could impact future pricing.
- The loss ratio, excluding the Rio Grande do Sul event, is not expected to remain at the low level of 40%, indicating potential volatility in future results.
- The company has accumulated losses under IFRS 4, which means it will not be able to pay dividends until at least mid-2025.
Thank you for waiting, welcome to the results call of the second-quarter of 2024 IRB(Re), that require simultaneous translation. We do have this tool available in the platform to access Simply click on interpretation on the globe icon at the bottom side of the screen and choose the language of your preference, Portuguese or English. For those that are listening to this video call in English, you have an option to mute the original audio.
We inform you that this conference is being recorded and it will be made available at the website, ri.irbre.com, where you have all the materials of this call, you may download the presentation also on the chat icon in English as well. (Operator Instructions)
We emphasize that the information contained in this presentation and other declarations and statements that may be made during this call relative to business prospects, operating and financial goals and projections are beliefs and premises of the management of the company as well as information that is currently available.
Forward-looking statements are no guarantee of performance. They
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