Brazilian reinsurer IRB on the lookout for international partners
Brazilian reinsurance company IRB-Brasil Re will continue to look for international partnerships to expand its presence outside the home market.
"We stick with our international strategy with partnerships in order to mitigate our risks," IRB president Jose Carlos Cardoso told a conference call to discuss company's Q2 results.
The partnerships outside Brazil seek to reinforce its presence in strategic markets, mainly the property, life, aviation and agriculture lines, said Cardoso.
Bottom line performance and underwriting discipline are key aspects that IRB considers when choosing an international partner, Cardoso added.
IPO
IRB's shareholders recently raised 2bn reais (US$634mn) from an IPO on the São Paulo stock exchange.
"The IPO was the result of intensive work and it placed us among the world's top 10 reinsurance companies in market value," said Cardoso.
IRB, which is Latin America's largest reinsurer, is controlled by the federal government, Bradesco Seguros, BB Seguridade and Itaú Seguros.
Q2 RESULTS
IRB posted a net profit of 232mn reais (US$74.6mn) in the second quarter, up from 202mn reais a year ago.
Higher underwriting results allowed the company to offset the impact of lower interest rates on financial income," said Cardoso.
IRB's written premiums totaled 1.5bn reais in April-June, up 12% year-on-year. The volume of premiums from domestic operations increased 0.5% to 1.05bn reais, while premiums from international operations jumped 49% to 460mn reais.
"The expansion of international premiums is in line with our strategy," said Cardoso, who declined to provide future guidance for premiums.
The return on average equity rose to 30% in the second quarter from 27% in 2Q16.
The company's administrative expenses dropped 26% in the quarter to 56mn reais. "We are continuously focused on the reduction of our expenses," Cardoso said.
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