IRB Brasil Re shares rise following Brazilian Senate tax reform approval

Shares of IRB Brasil Re (IRBR3) rose following the Brazilian Senate's approval of Bill PL 3.540/2026, which aims to reduce the tax burden on local reinsurers. The bill, which now awaits presidential sanction, proposes several key changes: eliminating the 30% limit on the use of deferred tax assets (DTA), reducing the Social Contribution on Net Profit (CSLL) from 15% to 9% starting in 2027, and phasing out an additional 10 percentage point Income Tax (IRPJ) rate by 2030. These measures could potentially lower the nominal tax rate for companies in the sector from 40% to 24%.

IRB is expected to benefit significantly, as the company holds approximately R$ 2 billion to R$ 2.3 billion in tax credits. Goldman Sachs estimates the net present value (NPV) of this package for IRB at roughly R$ 1.2 billion, representing about 25% of its current market value. JPMorgan projects an NPV gain of approximately 22% for the company. Analysts suggest the reform could also help level the playing field against international reinsurance groups that have been gaining market share through vertically integrated strategies.