IRB Brasil projects tax asset write-down after new law

IRB Brasil reported on Tuesday, September 29, 2026, that Law 15,525/2026 was enacted, originating from Bill 3,540/2026. The legislation introduces changes to the tax framework for local reinsurers to strengthen the Brazilian reinsurance market and improve its competitiveness.

The law reduces the Social Contribution on Net Profit (CSLL) rate from 15% to 9% starting January 1, 2027. It also cuts the Corporate Income Tax (IRPJ) rate from 25% to 15% starting January 1, 2030. In addition, the legislation modifies rules for offsetting tax losses and negative CSLL tax bases. The standard 30% limits established in Laws 8,981/95 and 9,065/95 will not apply to losses and negative bases that have not been fully offset within three years of calculation, including those calculated before the enactment.

Because tax rates will fall, IRB Brasil stated it could record a non-recurring accounting impact on its financial statements from the revaluation of deferred tax assets (DTAs) tied to CSLL and IRPJ. The reinsurer noted that this revaluation could result in a partial write-down of these assets, with no impact on cash or solvency indicators.

Separately, Citi identified 12 positive catalysts for IRB starting in 2027 that could support premium growth, earnings expansion, cash generation, and shareholder returns. The bank raised its price target for IRB to R$ 74 per share from R$ 64, representing an upside potential of 19.4%, and reiterated its buy recommendation.