1

IRBR3

Institutional PresentationMar 2019

2

SECTION 1

IRB at a Glance

33

Company initiates

operations

End of reinsurance

monopoly

Company’s new

management team

Monopoly Period

FIP Barcelona1

20.4% 20.4% 14.9% 9.9%27.4%

In October 2013, IRB became a privately owned company

2007

1930’s

Post-Monopoly Period

The Only Reinsurer in Brazil

for 68 Years

FIP Barcelona1

15.2% 15.2% 11.1% 3.0%11.7%

Current Shareholder structure / Free Float = 43.7%

2013

2017

IPO

History of Market Leadership

1 Includes PREVI, PETROS, FUNCEF, ECONOMUS and PREVIRB

2014

Mar-19

FGEDUC participated with

8.9%,

which is included in the

Free Float

44

IRB Brasil Re at a GlanceBrazil’s undisputed market leader in reinsurance with a strong growth track record

Market share increased from 31% in 2014 to 37% in 2018(~6.0x player #2).

Gross written premium increased from R$4.9 bn in 2016 to R$7.0 bn in 2018 (CAGR 16-18 of 18.9%).

Underwriting discipline – combined ratio improved from 92.2% in 2016 to 83.2% in 2018 and amplified combined was 72.5% in 2018.

Strong efficiency - administrative expenses declined from 6.6% of earned premium in 2016 to 4.8% in 2018.

Investment portfolio of R$6.5 bn in 2018 (2017: R$6.3 bn) with profitability of 141% of CDI. (2017: 131% of CDI)

ROAE of 26% in 2016, 27% in 2017 and 32% in 2018 - makes IRB the world’s most profitable reinsurer

55

330 103 383

Local

PlayersGWP Shareholders’

equityTotal

AssetsAdmitted

Number of reinsurers

✓

Source: SUSEP, 2017. Figures in R$ million

Competitive LandscapeIRB’s competitive advantages set the Company apart from local and admitted reinsurers

2018 Market Share

Admitted22%

Occasional3%

Local38%

IRB37%

Admitted39

Occasional75

Local16

5,784 3,581 14,294

✓714 256 1,584

✓568 447 2,063

579 282 996

349 239 1,447

380 604 1,529

448 253 1,320

✓219 176 847

363 386 1,378

✓

211 137 695

184 314 745

148 100 668

157 104 344

81 289 515

62 82 210

✓

✓

✓

66

Capabilities in Place for Positive Momentum to ContinueNaturally Hedged Business Model

2017 Cycle

Underwriting Results Investment Income Underwriting Results Investment Income

Low Interest

Rate

Investment

Income

2018 Cycle

2019 Cycle 2020 Cycle

Underwriting

Results

Low Interest

Rate

Investment

Income

GDP

GrowthUnderwriting

Results

Underwriting Results Investment Income Underwriting Results Investment Income

GDP

Growth Underwriting

Results

Investment

Income

High Interest

Rate

Modest GDP

Growth

Investment

Income

Average

Interest Rate

GDP

Growth Underwriting

Results

77

The New Disruptive Model

Future of Insurance & Reinsurance

❑ Lean Structure

➢ Centralized Workforce

➢ Low Cost

➢ Connectivity – H2H

➢ Fast Decision-Making on accepting risk and paying claims

❑ Creative and customized product development process

➢ Assessment of new risks

➢ Parametric Insurance Products; autonomous car, cyber risks, drones

➢ Aggregate Coverages – 360º Client View

❑ Encouraging the Innovation

➢ AI, Big Data, Machine Learning, Blockchain

❑ Culture Disruption

➢ Financial & Underwriting sharing decisions

88

Unique Competitive Advantages

Local authority coupled with a qualified technical team supported by vast data and strong system

Better Pricing Assessment

Identify Better Risks

Differentiated capabilities

Team

▪ Highly qualified technical professionals (more than 50% of the total professionals in the

Brazilian reinsurance sector)

▪ Average experience of 10 years

▪ Customer service with technical content

▪ Proven track-record

Database

▪ Abundant industry data accumulated throughout history. given monopoly period and

presence in all segments

▪ Strong technical advantages

▪ Clear underwriting risk management guidelines

System

▪ Innovative technology for quantitative assessment of asset risks

▪ Modern IT infrastructure (Full SAP Hana)

▪ Integrated system for front. middle and back offices

Regional Presence / Authority

▪ Greater proximity to clients. local management empowered and more accessible

▪ Faster development of new products. better understanding and focusing on clients needs

▪ Higher autonomy and flexibility on claims regulation and payment

99

430 539 646

290

729

1.251

140

162

166

134

432

417

202

211

264

2016 2017 2018

Property Life Aviation Rural Others

IRB international expansion has been focusing in LatAm’s countries through partnership to increase its share in strategic markets and reduce local risk exposure

Evolution of Gross Written Premium by Region (R$ mm)

International Gross Written Premium by Segment (R$ mm)

IRB has Changed its Strategy Regarding International Markets

► In 2015 the company deployed a new approach for

the international markets through strategic

partnership

► Branch in Argentina

Strategy

Towards

International

Market

► Exchange portfolio through partnerships in order to

reduce risk exposure

► Leverage our international retrocession programs

Retrocession

Policy

► Property

► Life

► Aviation

► Agriculture

Target

Segments

Main IRB

Partners

Unique Competitive Advantages

2016 2017 2018

Local International

75.7% 64.2% 60.6%

35.8%

39.4%4,928

5,784

6,964

24.3%

1,196

2,073

2,744

1010

Diversified Premium Portfolio

Market Share and Diversification of Written Premium Portfolio

6X Larger than

#2 Player (2018)

#1 Player in

9 out of 11 segments (2018)Highly diversified portfolio

2018 Written Premium:

R$7.0 billion

Property 19.7%

Life4.4%

Rural14.4%

Special Risks8.9%Aviation

1.1%

Others11.8%

International39.7%

6.0x

2nd

3rd

4th

1st

37%

6%4% 3%

1st

69%

50%

25%

6%

23%

40%

81%

26%

61%

12%

36%

Mortgage

Marine

Aviation

Motor

Casualty

Life

Special Risks

Cargo

Agriculture

Financial Risks

Property

1st

1st

1st

1st

5th

1st

1st

1st

1st

2nd

1111

Historical Financial Figures – Annual

a)

b)

c)d)

e)

f)

Historical Figures - Business Vision (R$ Million) 2016 2017 2018 2017/2016 (%) 2018/2017 (%)

Written Premium 4.928,4 5.783,6 6.963,9 17,4% 20,4%

Local 3.732,2 3.710,5 4.219,7 -0,6% 13,7%

International 1.196,1 2.073,1 2.744,1 73,3% 32,4%

Retrocession (1.386,6) (1.732,6) (1.870,0) 25,0% 7,9%

Retained Premium 3.541,8 4.050,9 5.093,9 14,4% 25,7%

Change in Technical Provisions (40,8) (145,0) (296,8) 255,2% 104,7%

Earned Premium 3.501,0 3.905,9 4.797,1 11,6% 22,8%

Retained Claim (2.166,9) (2.304,3) (2.682,7) 6,3% 16,4%

OCR (1.934,2) (1.952,1) (2.284,0) 0,9% 17,0%

IBNR (206,0) (334,1) (422,7) 62,2% 26,5%

Others (26,7) (18,1) 23,9 -32,2% -232,1%

Acquisition Cost (703,2) (700,8) (906,6) -0,3% 29,4%

Other Operating Revenues and Expenses (0,5) (83,9) (38,1) n.m. -54,5%

Underwriting Results 630,3 817,0 1.169,6 29,6% 43,2%

Administrative Expenses (230,2) (214,8) (228,2) -6,7% 6,2%

Tax Expenses (128,7) (67,9) (133,8) -47,2% 97,1%

Investment Income 1.041,2 808,7 706,0 -22,3% -12,7%

Income before taxes 1.312,6 1.343,0 1.513,6 2,3% 12,7%

Income tax and social contribution tax (462,8) (417,9) (294,8) -9,7% -29,5%

Net income 849,8 925,1 1.218,8 8,9% 31,8%

p.p. p.p.

Retention Ratio 71,9% 70,0% 73,1% -1,9 3,1

Retrocession Ratio 28,1% 30,0% 26,9% 1,9 -3,1

Loss Ratio 61,9% 59,0% 55,9% -2,9 -3,1

Loss Ratio measured by OCR 55,2% 50,0% 47,6% -5,3 -2,4

Loss Ratio measured by IBNR 5,9% 8,6% 8,8% 2,7 0,3

Commission Ratio 20,1% 17,9% 18,9% -2,2 1,0

Administrative Expenses Ratio 6,6% 5,5% 4,8% -1,1 -0,7

Combined Ratio 92,2% 86,3% 83,2% -5,9 -3,1

Amplified Combined Ratio 71,1% 71,5% 72,5% 0,4 1,0

1212

Historical Financial Figures – Quarter

a)

b)

c)

d)

e)

f)

Historical Figures - Business Vision (R$ Million) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Written Premium 1.342,4 1.513,2 1.673,6 1.254,5 1.397,3 1.934,4 1.951,1 1.681,2

Local 876,1 1.053,1 1.072,3 709,0 849,3 1.213,1 1.179,2 978,2

International 466,3 460,1 601,3 545,4 548,0 721,3 771,9 703,0

Retrocession (448,7) (481,1) (331,6) (471,3) (345,7) (516,6) (403,5) (604,3)

Retained Premium 893,7 1.032,1 1.342,0 783,2 1.051,6 1.417,8 1.547,6 1.076,9

Change in Technical Provisions (13,0) (148,3) (193,1) 209,5 (110,4) (239,6) (297,9) 351,1

Earned Premium 880,6 883,8 1.148,8 992,7 941,2 1.178,2 1.249,7 1.428,1

Retained Claim (473,8) (541,5) (758,7) (530,2) (467,3) (666,5) (730,6) (818,4)

OCR (400,5) (567,7) (512,1) (471,8) (461,5) (627,6) (541,4) (653,6)

IBNR (69,7) 34,4 (233,8) (65,0) 1,0 (44,1) (183,6) (196,0)

Others (3,6) (8,2) (12,8) 6,5 (6,8) 5,3 (5,7) 31,1

Acquisition Cost (163,1) (148,9) (203,7) (185,1) (208,3) (199,7) (247,8) (250,8)

Other Operating Revenues and Expenses (20,3) (26,7) (19,6) (17,2) (9,1) (15,7) (12,1) (1,3)

Underwriting Results 223,4 166,7 166,8 260,2 256,6 296,3 259,2 357,6

Administrative Expenses (62,7) (55,9) (56,5) (39,8) (49,9) (64,0) (55,5) (58,7)

Tax Expenses (32,1) 7,0 (28,5) (14,4) (28,9) (41,0) (25,4) (38,5)

Investment Income 205,4 232,9 194,7 175,7 151,9 208,6 200,5 144,9

Income before taxes 334,1 350,7 276,5 381,7 329,6 399,8 378,8 405,3

Income tax and social contribution tax (111,4) (119,0) (55,0) (132,6) (75,6) (112,5) (74,3) (32,4)

Net income 222,7 231,7 221,5 249,1 254,0 287,3 304,5 372,9

Retention Ratio 66,6% 68,2% 80,2% 62,4% 75,3% 73,3% 79,3% 64,1%

Retrocession Ratio 33,4% 31,8% 19,8% 37,6% 24,7% 26,7% 20,7% 35,9%

Loss Ratio 53,8% 61,3% 66,0% 53,4% 49,6% 56,6% 58,5% 57,3%

Loss Ratio measured by OCR 45,5% 64,2% 44,6% 47,5% 49,0% 53,3% 43,3% 45,8%

Loss Ratio measured by IBNR 7,9% -3,9% 20,4% 6,5% -0,1% 3,7% 14,7% 13,7%

Commission Ratio 18,5% 16,8% 17,7% 18,6% 22,1% 17,0% 19,8% 17,6%

Administrative Expenses Ratio 7,1% 6,3% 4,9% 4,0% 5,3% 5,4% 4,4% 4,1%

Combined Ratio 85,3% 86,7% 92,9% 79,3% 81,1% 83,8% 85,7% 81,8%

Amplified Combined Ratio 69,2% 68,6% 79,4% 67,3% 69,8% 71,2% 73,9% 74,2%

1313

Shareholders Agreement between the controlling shareholders

effective until 2033

Non-compete term up to 2033 in case any of the controlling

shareholders sells its stake

Free shares: Novo Mercado’s Rules

Successful business strategy has been developed and implemented by the current experienced

management team with the support of the 3 largest Brazilian banks

Experienced Management Team and Strong Shareholder Sponsorship

Ownership Structure

Considerations

Note:

* At IRB since 2014

1 Other shareholder Includes treasury shares of 0.5% and free float of 43.2% of IRB’s shares

2 Includes PREVI, PETROS, FUNCEF, ECONOMUS and PREVIRB

3 As of Dec 28, 2018

✓

✓

✓

Current position3

11.7% 3.0%15.2% 15.2% 43.7%11.1%

FIP

Barcelona2

Other

Shareholders1

1.7% 0.0%1.7% 1.7% 1.1%

Shares tied to Shareholders

Agreement

10.0% 3.0%13.5% 13.5% 10.0%

Shares not tied to Shareholders

Agreement

FGEDUC participated

with 8.9%,

which is included in the

Free Float

Management Team, Board and Committees

José Carlos Cardoso*

CEO and COO

Lucia Silva Valle*

Risk and Compliance VP

Fernando Passos*

Deputy CEO, CFO and

IRO

Internal Audit

(4 members)

Audit Committee

(4 members)

Investment Committee

(7 members)

Underwriting Committee

(7 members)

Human Resources

Committee

(5 members)

Corporate Governance

(6 members)

Board of Directors

(8 members)

(3 independent)

Fiscal Board

(3 members)

Risk Committee

(7 members)

14

SECTION 2: APPENDIX

• Financial Figures

• Stock Performance

1515

Profitability – Net Income and ROAE

Net Income (R$ million) and ROAE (%)

Quarter

Net Income (R$ million) and ROAE (%)

Fiscal Year

850

925

1,219

26%27%

32%

2016 2017 2018

249 254

287

305

373

29%30%

33% 33%

40%

4Q17 1Q18 2Q18 3Q18 4Q18

1616

Written Premium – Brazil and Abroad

Written Premium Breakdown (R$ million)

Quarter

Written Premium Breakdown (R$ million)

Fiscal Year

3,732 3,7114,220

1,196

2,073

2,744

2016 2017 2018

Abroad Brazil

5,784

6,964

4,928

709849

1,213 1,179978

545

548

721 772

703

4Q17 1Q18 2Q18 3Q18 4Q18

Abroad Brazil

1,254

1,397

1,934

1,681

1,951

1717

Retrocession Cost

Retrocession Cost (R$ million)

Quarter

Retrocession Cost (R$ million)

Fiscal Year

1,387

1,733

1,870

2016 2017 2018

471

346

517

404

604

4Q17 1Q18 2Q18 3Q18 4Q18

1818

Retained Premium

Retained Premium (R$ million)

Quarter

Retained Premium (R$ million)

Fiscal Year

3,542

4,051

5,094

2016 2017 2018

783

1,052

1,418

1,548

1,077

4Q17 1Q18 2Q18 3Q18 4Q18

1919

(248)

9M15(307)

9M16

(354)

9M17

(648)

9M18

Changes in the Technical Provision

Changes in the Technical Provision (R$ million)

(50) (42)

(157)

179

(13)

(70)

(223)

266

(13)

(148)

(193)

210

(110)

(240)

(298)

351

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

2020

Earned Premium

993941

1,178

1,250

1,428

4Q17 1Q18 2Q18 3Q18 4Q18

Earned Premium (R$ million)

Quarter

Earned Premium (R$ million)

Fiscal Year

3,501

3,906

4,797

2016 2017 2018

2121

472 462628

541654

65

-1

44 184

196

-7

7

-5

6

4Q17 1Q18 2Q18 3Q18 4Q18

OCR IBNR Other

-31

48% 49% 53%43% 46%

4Q17 1Q18 2Q18 3Q18 4Q18

7%

0%4%

15% 14%

4Q17 1Q18 2Q18 3Q18 4Q18

53% 50%57% 58% 57%

4Q17 1Q18 2Q18 3Q18 4Q18

Retained Claim

Retained Claims (R$ million) – Quarter Loss Ratio (%) – Quarter

530 467667

731

1,934 1,9522,284

206 334

423

27 18

24

2016 2017 2018

OCR IBNR Other

Retained Claims (R$ million) – Fiscal Year

2,1672,304

2,683

Loss Ratio (%) – Fiscal Year

62% 59% 56%

2016 2017 2018

TOTAL

OCR

55% 50% 48%

2016 2017 2018

6%

9% 9%

2016 2017 2018

IBNR

TOTAL

OCR

IBNR

818

2222

Underwriting Result

Underwriting Result (R$ million)

Quarter

Underwriting Result (R$ million)

Fiscal Year

260 257

296

259

358

4Q17 1Q18 2Q18 3Q18 4Q18

630

817

1,170

2016 2017 2018

2323

Administrative Efficiency

Administrative Expense (R$ million) and AE Ratio (%)

Quarter

Administrative Expense (R$ million) and AE Ratio (%)

Fiscal Year

40

50

6456 59

0

20

40

60

80

100

4Q17 1Q18 2Q18 3Q18 4Q18

4.0%

5.3% 5.4%

4.4% 4.1%

230215

228

-

50,0

100,0

150,0

200,0

250,0

2016 2017 2018

6.6% 5.5% 4.8%

2424

Financial Result

Investment Portfolio Breakdown – FY18

Investment Portfolio Result (R$ million) and % of CDI

Assets under management:

R$6.5 billionFY

18

Qu

art

er

Fixed Income86%

Equities2%

Real Estate5%

Subsidiaries/ Branches

3%

USD (Hedge)4%

Investment Portfolio Result (R$ million) and % of CDI

*Calculated as the financial investments result divided by financial assets; does not include real estate investments/assets.

176152

209 200145

1,041

809706

*

*

155139

177 178

135

21

13

32 22

10

128%

143% 139%147%

139%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

50

100

150

200

250

300

4Q17 1Q18 2Q18 3Q18 4Q18

Financial Equity % CDI (Brazilian interest rate)

979

755629

63

54

77

129% 131%

141%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

200

400

600

800

1000

1200

1400

1600

2016 2017 2018

Financial Equity % CDI (Brazilian interest rate)

25

Disclaimer

This presentation was prepared by IRB Brasil RE and shall not be considered as source of data for investments. This

presentation may contain certain forward-looking statements and information related to the Company reflecting current views

and/or expectations of the Company and its Management concerning its performance, businesses and future events.

Forward-looking statements include, without limitation, any statement containing forecast, indication or estimates and

projections on future results, performance or objectives, as well as words like w e "believe", "anticipate", "expect", "estimate",

"project", amongst other similar expressions. Such forward-looking statements are subject to risks, uncertainties and future

events. Investors are cautioned that several relevant factors make actual results to significantly differ from these plans,

objectives, expectations, projections and intentions expressed herein. Under no circumstance, neither the Company nor its

subsidiaries, board members, officers, agents or employees shall be held liable before third parties (including investors) for

any investment decision made based on the information and statements contained herein, or any related or specific damage

resulting therefrom. The market and competitive position information, including the market projections mentioned herein w ere

obtained from in-house surveys, market researches, public information and business publications.

.

For additional information visit:

www.irbre.com