IRB Brasil Resseguros S A : 2Q23 Press Release

Performance Analysis

Second quarter of 2023

08/14/2023

Evolution of net income, underwriting profit, and loss ratio

2Q23 Highlights

To take on a leading role in the protection of the future of the society - our purpose - IRB(Re) accelerated the process of change, promoting efficiencies and effectively establishing stronger relationships with customers. In the second quarter of 2023, we are able to note that the company's figures continue to gradually and continuously evolve, as demonstrated below.

The company reports net income: R$ 20.1 million for the 2Q23. A figure that represents a growth of R$ 393.4 million, compared to the net loss of R$ 373.3 million for the 2Q22, and shows the evolution from the 1Q23, of R$ 8.6 million. Considering the six-monthperiod of 2023, IRB(Re) reports net income of R$ 28.6 million.

In line with the strategy for portfolio review, risk dilution and business concentration in Brazil and Latin America, IRB(Re) also reports for the second consecutive quarter an underwriting profit of R$ 35.4 million for the 2Q23. A growth of R$ 696 million from the 2Q22. The comparison with the 1Q23, when we reported a profit of R$ 3.7 million, confirms the evolution, showing evidences of a more qualified portfolio and with higher profitability.

Such change is also reflected in the drop in the loss ratio, which stood at 73.6% for the 2Q23, down 50.6 p.p from the 2Q22. We highlight that the ratio for the second quarter remained at 3.7 p.p. below the ratio reported for the 1Q23. In the YTD, the ratio stood at 75.6% in 2023.

In the 2Q23, we renewed 80% of the contracts we wanted to retain. The company maintains the target for business made in Brazil to account for 80% of the portfolio - with reinforcement of competitive differentials -, completing the portfolio with 15% in

R$ 20.1 million

Net income for the 2Q23: + R$ 393.4 million vs. 2Q22

R$ 35.4 million

Underwriting profit for the 2Q23: + R$ 696 million vs. 2Q22

73.6%

Loss ratio for the 2Q23: - 50.6 p.p. vs. 2Q22

108.3%

Combined ratio for the 2Q23: - 46.0 p.p. vs. 2Q22

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	Combined ratio for the

written premiums in Latin America and 5% in other markets. For this purpose, we envision opportunities in key sectors in Brazil, such as infrastructure. In the 2Q23, the domestic share already accounted for 71% of written premiums.

It is also worth noting that in June we gave an important step towards the consolidation of the vision of a lighter, more agile and efficient company. We launched the IRB(Re)'s new brand

• that sums up a company that communicates better, and that, above all, values people and knowledge - and launched our new headquarters - a modern, more open environment, that favors integration and proximity to business partners.

The IRB(Re) of the future has its management based on financial discipline, excellence in underwriting, and agility in performance with simple and clear targets. The potential for growth of our sector is huge, and after the adjustment process, which brought balance to our portfolio, we are prepared to compete and grow, as we have as differential market know- how, capacity and qualified personnel.

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2. Corporate governance

Statutory executive officers

According to the governance strategy for decentralizing decisions and speeding up processes, on July 3 the Board of Directors approved the new statutory board of the reinsurer, with two- year term of office. The new board is as follows:

• Marcos Falcão, CEO, accumulating the Chief Financial and Investor Relations officer duties;
• Daniel Castillo, Reinsurance vice-president;
• Thaís Peters, Internal Controls, Risks and Compliance officer
• Bernardo Arruda, Legal officer;
• Carlos Eduardo Teixeira, Actuarial officer;
• Daniel Volpe, Underwriting Technical officer;
• Rodrigo Botti, Technical and Operations officer;
• Willy Jordan, officer with no specific designation, in medical leave.

Paulo Valle has taken over as managing-director of IRB Asset, the manager of IRB(Re)'s

reserves.

Board of Directors

On June 30, we communicated to the shareholders and market in general that we received an official communication from the Federal Union, in the capacity as holder of the golden share, nominating the former minister Mauricio Quintella Malta Lessa to occupy the position of chairman of the Board of Directors of IRB(Re), by election to be held at the Shareholders' Meeting to be timely called once SUSEP gives the required regulatory approval. The company adopted the necessary measures and is waiting for the regulatory approval.

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3. Scenario in the industry

Insurance and reinsurance market

The expansion of the insurance and reinsurance market continues. The data analyzed by the IRB+Inteligência platform from the information provided by SUSEP, the body that governs the industry, shows that from January to May the insurance industry's revenue amounted to R$ 73.4 billion, up 14% on the same period in 2022. With two-digit growth in nearly all segments, the highest increase in the period was attained by the Motor segment (+19.9%). Meanwhile, overall loss ratio fell 13.7 p.p. YoY, and stood at 45.2% in the 5M23. Ceded premiums in reinsurance reported a 14.1% increase YoY.

Increase in prices

We have noted that the reinsurance industry is going through a hard market, that is, when prices increase and the risk underwriting becomes stricter. The rating agency Fitch states that the environment of higher costs for acquiring reinsurance capacity "shall persist during 2023, with increase in prices helping to counterbalance claim inflation and volatility in financial markets".

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