IRB Brasil Resseguros : Earnings Release - 4Q19 and 2019

Earnings Release

2019

Earnings Release - Fiscal Year Ended December 31, 2019

Dear Shareholders,

We submit for your review IRB Brasil RE's Management Report, Financial Statements, and the Independent Auditor's Report of the Financial Statements, for the year ended December 31, 2019, as well as the Independent Actuarial Auditors' Reports.

The technical provisions and retrocession assets booked in the Financial Statements and statements of minimum capital, amounts reducing the need to cover technical provisions, credits with retrocessionaires for claims and claim costs, solvency and retention limits (jointly called "Actuarial Information") of IRB Brasil RE were examined by Ernst & Young (EY) as independent actuarial auditors, in compliance with regulatory requirements, including with regard to the standards issued by the Brazilian Superintendence of Private Insurance - SUSEP and the actuarial principles disclosed by the Brazilian Institute of Actuaries - IBA. In compliance with IRB governance practices, the same actuarial information continues to be examined by PricewaterhouseCoopers Serviços Profissionais Ltda., so, there was a double independent actuarial audit.

The consolidated financial statements were prepared in accordance with the principles adopted in Brazil issued by the Brazilian Accounting Standards Board (CPC), and the standards set by the Brazilian Corporate Law (Law No. 6,404/76), the Brazilian Private Insurance Authority (SUSEP), the Brazilian Private Insurance Board (CNSP), and the International Financial Reporting Standards (IFRS).

The information contained herein is available on IRB Brasil RE's Investor Relations website (http://ri.irbre.com/ptb/central-de-resultados), and on the Brazilian Securities and Exchange Commission's (CVM) website (www.cvm.gov.br).

I - MESSAGE FROM MANAGEMENT

Focusing on high quality customer service, efficiency, and people, in 2019 we had another year of solid results for IRB Brasil RE, with growth in premiums and profits. As we celebrate 80 years of operations, we advanced in digital transformation, anticipating the future of the insurance and reinsurance market; we became a corporation, a diffused capital company with no controlling shareholder; and we reaffirm our leadership in the market in Brazil and relevant presence in major Southern American markets.

We identified a scenario of change in the insurance market and from now on we will take action to capture the benefits of taking the lead in responding to the challenges posed by new technologies and new consumer behaviors. We are investing in innovation, with an emphasis on digital transformation, in a process that will have a medium- and long-term return, but that is key for building the future. We are an agile company to create products and services, which makes us, within the insurance and reinsurance market, the best option for fintechs, construtechs, healthtechs, logtechs and bigtechs to develop the insurance business for these new companies, maintaining, however, the total focus on continuing to serve our customer base and supporting them in their digital transformation.

In this scenario, we subscribed for 8.93% of B3i's shares, one of the leading global initiatives for the development of new technologies for the sector, including the registration of these transactions through a blockchain platform, and we became a leader in this key business theme.

Earnings Release

2019

We maintain our growth strategy, delivering consistent results. We have identified encouraging prospects for 2020, with potential for evolution, especially in agribusiness, as a result of the increase in the largest subsidy for rural insurance, raised by the government from approximately R$400 million in 2019 to about R$1 billion in 2020. The Brazilian General Insurance Federation (FenSeg), for example, estimates that producers reserve up to 20% more resources to minimize crop losses or ensure profitability in the event of strong price fluctuations.

Another growth driver will be the oil and gas sector, which is performing above the Gross Domestic Product (GDP) and should be an important tailwind for the insurance sector in 2020. Prospects are also good for property insurance, driven by the resumption of real estate development launches seen as an investment alternative in a falling interest scenario. Another opportunity comes from mandatory annual insurance policies no longer being mandatory, as determined by SUSEP in August, which should create businesses for which we are already prepared, such as the offer of flexible policies, valid for months, days, hours, or any other criteria established in the insurance plan.

We are committed to being an extremely efficient and agile company, which acts seriously, maintains a structured risk management model and prioritizes the generation of growing and sustainable results. We therefore reaffirm initiatives to keep our leading position in Brazil and to intensify our international expansion process.

II - RECOGNITION

The performance of IRB Brasil RE was recognized by several awards throughout 2019, notably:

• Best Listed Company, in the revelation category. Created by InfoMoney in partnership with Ibmec and Economática, the award ranking evaluated the companies that went public in the last three years based on three criteria: profitability, stock performance, and corporate governance practices.
• First place in the Prêmio Broadcast Empresas award, which assessed 190 publicly held companies listed on B3, the São Paulo stock exchange, and Novo Mercado Highlight, for tripling our market capitalization since the IPO in 2017.
• The Latin America Executive Team 2019 award by Institutional Investor, in the financial institutions category, including best CEO, best CFO, best Investor Relations (IR) professional, best IR team, and best IR program, in addition to second place in three categories - website, analyst day, and best governance practices.
• First in the ranking of the largest reinsurers in Brazil, in the Valor 1000 yearbook, which publishes analyses of the one thousand largest companies in the country based on comparisons of consolidated financial statements.
• Best Reinsurer in Brazil, by the International Finance Magazine (IFM).
• One of the three key players of the Insurance, Pension and Capitalization sector in Estadão Empresas Mais.

Earnings Release

2019

III - CORPORATE GOVERNANCE

As of July 2019, we are a fully publicly held corporation, no longer having controlling shareholders, which reinforced our commitment to adopting high corporate governance standards.

We were able to become a corporation following new regulation for the insurance sector, by SUSEP (Circular Letter No. 589) and the Brazilian Private Insurance Board - CNSP (Resolution No. 373). Subsequently, the Federal Government and BB Seguros Participações, which were part of our controlling block, carried out a follow- on offering and sold 83.98 million common shares. After the offering, the shareholders' agreement was terminated, and the Federal Union now holds only one golden share.

Our governance structure comprises a Board of Directors, a Supervisory Board, an Executive Board and Executive and Strategic Committees, which support the Executive Directors and Board of Directors. These bodies perform specific functions in order to ensure transparency and best management and performance oversight practices. The governance structure also has a Secretariat, which directly supports all Board activities and ensures that the flow of information is directed in a timely, safe manner, to all instances.

The Board has 8 sitting members, and their alternates, elected by the Shareholders' Meeting, for a term of office of 2 years, and re-election is authorized. It is responsible for establishing business guidelines and strategies, assessing risk exposure and the effectiveness of risk management systems, internal controls and integrity/compliance, among other legal and statutory duties.

The Board has six committees (Corporate Governance, Investments, Audit, Human Resources, Risk Management, and Underwriting) that regularly monitor and support IRB Brasil RE's top management.

The Supervisory Board is the body responsible for administrative management oversight, on behalf of the Company and its shareholders. It is instated at the request of the Shareholders' Meeting and currently has four members.

The Executive Officers are elected by the Board of Directors for a term of office of two years. By the end of 2019, it was made up of a president and two vice-presidents (Finance & Investor Relations, and Risks & Compliance), supported by 13 non-statutory executive officers.

Oversight and control bodies perform their activities observing the principles in the Corporate Governance Policy to implement effective management proceedings.

During the year, the Board of Directors held 45 meetings; the Board of Executive Officers, 58; the Supervisory Board, 16; the Audit Committee, 17; in addition to other meetings of the assisting committees.

Independent Audit - Under CVM Instruction No. 381/03, IRB Brasil RE and its subsidiaries adopt a formal procedure for verifying that independent auditors are not affected, regarding the necessary independence and objectivity regarding their performance and work. In 2019, PwC provided the Company with additional services for the total amount of R$2.1 million for issuing comfort letters in the context of IRB offering of shares in the Brazilian (local), American (US) and international (Non-US) markets, and actuarial auditing. This amount corresponds to 48% of the independent audit service fee. The E&Y actuarial external audit contract was R$ 220 thousand for 2019.

Earnings Release

2019

a) Risk Management

In 2013 we adopted a risk management policy to reduce underwriting, market, credit, operating, strategic, and regulatory risks. This policy is approved and revised by the Board; its application is monitored biannually by the Board; on a quarterly basis by the Risk Management and Audit Committees; and regularly, by the Executive Board. The Board of Directors is also responsible for annually approving the Company's Risk Appetite.

Management considers that the operational structure in place, including process mapping, risk identification and classification, and relative internal controls to verify the effectiveness of the operation, are in line with the C.O.S.O Enterprise Risk Management Framework, which reflects the most advanced market practices.

We also have a Risk Appetite Statement, approved by the Board of Directors, in line with the strategic goals established by the business plan.

In 2019, IRB Brasil RE's rating was upgraded to A, in global scale, with stable outlook, by A.M. Best, the oldest company specializing in risk rating in the insurance industry. According to a statement released by the agency, "The ratings reflect IRB's balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The rating upgrades reflect AM Best's view that IRB's balance sheet strength continued to improve from an already high level of risk- adjusted capitalization, taking into account the meaningful dividend payout over the years, and also the increased financial flexibility and stronger corporate governance after the initial public offering (IPO) on the Brazilian stock exchange in 2017."

Our view is that risk management is the responsibility of the entire organization - Board of Directors, Executive Board and employees. We follow the three lines of defense model, establishing the roles and responsibilities for each function in internal rules. The first line of defense is represented by the operational areas, including managers and those directly responsible for the Company's processes. Corporate Risk Management and Compliance are the second line of defense, and the third line is Internal Audit. Our Know Your Customer and Know Your Employee policies also help mitigate risks.

In 2019, we tested the Business Continuity Plan and the Disaster Recovery Plan, in compliance with regulatory requirements and best practices. Scenarios of unavailability of access to the IRB headquarters and the main data center in Rio de Janeiro were simulated, as well as absolute failure in voice and data communication networks. All critical systems were also tested on the contingency site in São Paulo.

Oversight and control bodies shall perform their activities, as determined by the Bylaws, observing the principles in the Corporate Governance Policy, and collaborate to implement effective and bold proceedings.

b) Ethics and integrity

We have a series of codes and policies in place that prove we are committed to maintaining the integrity and ethics of our activities, such as: (1) Code of Ethics and Conduct, (2) Corporate Governance Policy, (3) Risk Management Policy, (4) Compliance Policy, (5) Anti-Money Laundering and Counter Terrorist Financing Policy, (6) Anti-Fraud and Corruption Policy, (7) Information Security Policy, and (8) Authority Spheres Policy. In 2019, we revised the Compliance and Risk Management policies, and updated the Fraud Prevention Manual.

Earnings Release

2019

In 2019, we created the Integrity Program, which consolidated our compliance and governance practices, ensuring our Company is effectively and efficiently in compliance with internal and external rules and regulations, with agility and transparency in its actions. The Program is divided into eight fronts (Sponsorship of Senior Management; Regulatory Compliance; Integrated Risk Management Framework; Internal Controls; Information Technology; Anti-Fraud and Corruption, Conflict of Interest, Anti-Money Laundering and Counter Terrorist Financing; Training and Communication; and Global Alignment), that help us face the challenges of a competitive and globalized market.

We also provide annual training to 100% of our employees, as well as upon hiring or career progression.

We have an independent Corporate Ethics Channel on our website, with guaranteed secrecy and anonymity.

IV - INNOVATION

We have increased our investments in innovation, aware that the insurance and reinsurance market will be completely different in the near future, reflecting new technologies and changing consumer behavior. As an industry leader in Brazil, our Company is positioned as a market benchmark and a driver of digital transformation. We are thus prepared to support our customers in their digitization processes.

Our emphasis is on establishing partnerships to develop solutions with startups and fintechs. We offer an incomparable market database, technology and expertise for underwriting and pricing management, among others. An example is the agreement we entered into between recently launched digital bank C6 and our fintech insurance business, through which we will be the leading reinsurer in the credit life insurance business generated by the bank's distribution channels for 10 years. IRB will retain 85% of the operations, while the fintech's insurer will have 15%.

As part of our open innovation model, we have supported, since 2018, the Insurtech Innovation Program developed in partnership with PUC-Rio and Mongeral Aegon, with the goal of conducting research and innovation in the insurance and reinsurance area. It has mobilized nearly 1,000 students, from 15 different institutions, who presented 42 projects, 13 of which have already been approved and are being accelerated.

We are improving our use of blockchain technology, a kind of database where transactions are grouped in blocks and the registry is decentralized for security. Our goal is to reduce the cost of fraud, human errors and unnecessary intermediation to ensure faster, more secure and cheaper information.

For this purpose, we have subscribed 8.93% of the capital of B3i Services AG, a global initiative for the development of new technologies for the insurance and reinsurance sector, controlled by 17 companies in the sector. B3i is a global platform for recording transactions through blockchain, which should enable gains in speed, transparency, security, standardization and data integration.

On another front, in November we participated in Expo ABGR - the largest risk management event in Latin America - when we presented two projects: Falcon, to manage parametric insurance and accelerate the payment of damages, and Cat Hazard, which will monitor catastrophic events through social networks and thus make insurance pricing even more accurate. These solutions are based on the blockchain and social networks monitoring technologies, respectively.

Earnings Release

2019

V - SOCIAL-ENVIRONMENTAL PERFORMANCE

a) Human Capital

People are at the core of two values of IRB Brasil RE: Team Spirit, because we understand employees form a team and we grow with differences and respect for others; and Recognition, by valuing the professionals who make IRB happen and celebrating each of their achievements.

By the end of 2019, we had 446 employees, including 381 employees and 65 outsourced employees. 53% of the employees were men and 47% were women. Of the management positions, 40% of them are held by women. The turnover rate for the year was 10.2% (19.9% in 2018).

	Number of Employees
446	447	446
64	58	65
382	389	381
2017	2018	2019
	Employees	Third Parties

We remain aware of our employees' welfare, and we carry out annual engagement campaigns in partnership with consulting firm Mercer. In 2019, we created the Engagement Committee, which involves different areas, perceptions and ideas to ensure a healthy work environment, with committed teams and employees. Other initiatives include the Quality-of-Life Program, and health campaigns, such as for vaccination. Over the year, we set up a living room with space for reading, playing collective games and integrating employees. We also promote social inclusion through our Young Apprentice program. In 2019, 19 youths became interns, 21% have already become full-time employees.

To maintain and attract talent, we offer a benefit package that includes health and dental insurance for employees and their dependents, life insurance, meal vouchers, public transportation tickets and reimbursement for children education provided for in a collective agreement. Also, 91% of our employees have subscribed to the pension plan, which is partly paid by the Company.

Our Code of Conduct forbids any kind of moral or sexual harassment, as well as discriminatory actions regarding race, ethnicity, color, sexual orientation, religion, etc. We also support freedom of association and have maintained a union relationship without conflicts, strikes or stoppages in the last three years.

b) Social

We express our commitment to promoting the development of society through own initiatives, support and partnerships for the execution of social responsibility projects, and sponsorship of socio-cultural actions with tax incentive resources. Our main goal is to contribute to improving the lives of children, adolescents and the elderly, primarily in the health area.

Earnings Release

2019

We also promote activities for socially vulnerable groups, schools and social institutions, with the aim of providing new experiences and expanding people's perspective on life through significant improvements in their education and quality of life.

Our Volunteer Program mobilizes employees in actions aimed at building a better and more solidary society. Created in 2016, this program focuses on creating opportunities for our employees to donate time for the common good. It is formed by a management and executing committee, and has four lines of action - Living, Being, Sustainability and Development & Training. Through the collective design of projects, this program considers the participants' wishes, skills and possibilities, highlighting activities such as the Solidarity Bazaar and Blood Donation. The main activities include: Solidarity Bazaar, Blood Donation, Doing Good Week, Beach Cleaning, among others, which benefited around 500 people in 2019.

Suppliers - We adopt strict criteria when contracting suppliers, including, for example, the Know Your Supplier (KYS) policy, where due diligence is carried out before the contracts are executed to ensure that our suppliers comply with labor, social security and tax laws, and that they do not use child or slave labor and adopt practices to avoid any possible accident or social and environmental liability.

c) Environment

IRB Brasil RE has been adopting practices to reduce environmental damage, including processes digitization, a recycling program, not using plastic cups, efficient use of water and electricity, and contracting a certified company for disposing of electronics waste. Since 2017, our employees actively participate in initiatives to reduce waste generation through the "Reduza Seus Resíduos" program. Each employee has received a reusable cup - called "Menos 1 Lixo" - and, subsequently, a ceramic mug for coffee. Through this initiative, more than 370 thousand plastic water cups and another 110 thousand coffee cups were no longer used.

In 2019, we installed an energy automation system at the headquarters building in Rio de Janeiro, whereby energy consumption can be monitored remotely. In a second phase, it will also be possible to remotely turn lights on and off and start the cooling system. We also have plans for the installation of a new water use control system, which will detect wastage. This building also has a green roof - with a vegetation cover that provides benefits such as reduced internal temperature and energy savings - and sound insulation and a bike shelter with outlets for electric bicycles.

In the São Paulo building, there is a rainwater reuse, glass windows designed to reduce internal heat and energy consumption, a bike shelter, and electric car charging outlets. The building is Silver Leed Core Shell certified by the Green Build Council for self-sustainable buildings.

d) Corporate Social Responsibility

The reinsurance market is largely connected with the country's economic development. For us, the society's development is not only important, but it is part of our strategy. Through our own initiatives, sponsorship, or partnerships, we strive for improving several aspects of life in our society, creating purpose, and developing responsible bonds with the world we live in and the people we engage with.

In 2019, in the social field, we invested R$ 2.23 million, of which R$ 1.87 million in sponsorship via tax incentive laws - Pronon, Pronas, FIA and Fundo do Idoso. Selection prioritized projects that promote health and quality of life, focusing on children, adolescents and the elderly. Based on this strategy, eight initiatives were selected from

Earnings Release

2019

institutions such as FioCruz (RJ), Fundação do Câncer (RJ), Apae (RJ and SP), Hospital de Amor (former Barretos Cancer Hospital - SP), Hospital Angelina Caron and Hospital Pequeno Príncipe, both in Curitiba (PR).

In addition to social investment through the incentive law, we carry out strategic social engagement with our employees for access to culture and the good of society in general. These actions include (1) sponsorship of almost 160 children, who received a complete school supply kit; (2) collection of food for the victims of the rains that affected the city of Rio de Janeiro in April; (3) Children's Day event, which included the children of employees and minors assisted by the Sem Barreiras Project; (4) Christmas sponsorship of 244 children by employees; (5) food collection campaign carried out by students from the Insurtech Innovation Program, our open innovation initiative; and (6) promoting seven guided visits to the Museum of Tomorrow, bringing culture and knowledge to approximately 210 children, adolescents and adults.

Social impact has also been prioritized when selecting sports engagements to sponsor. We invested R$500,000, through the Sports Incentive Law, in three projects. Sem Barreiras, an IRB initiative in partnership with volleyball medal winner Adriana Samuel, offers three Olympic modalities-judo, athletics, and volleyball-in a single place to 170 kids in the Estácio neighborhood and surrounding areas, in Rio de Janeiro. Reação Faixa Preta, from the Reação Institute, promotes human development and social inclusion through judo, from beginner classes to high performance athletes. 1,600 children, teens, and youths benefit from this project, which operates out of nine centers in the city of Rio de Janeiro. The Adriana Samuel Volleyball School - a project that has been in operation for four years and has served more than 800 children in Deodoro, in Rio's western region - offers beach volleyball lessons for about 80 socially vulnerable minors, aged 7 to 16.

Our strategy of boosting access to culture, through projects included in the Cultural Incentive Law, and prioritizes projects for the restoration and maintenance of museums, major exhibitions and music projects.

We invested R$2.75 million in three cultural projects, including the Museum of Tomorrow, which had approximately 836 thousand visitors in 2019; the Rio Art Museum (MAR), a symbol of the revitalization of the Rio de Janeiro port area that has more than 30,000 items in its collection and promotes exhibitions, events and educational programs related to the history and culture of the city; and the São Paulo Pinacoteca, the oldest article museum in the city, which promotes exhibitions from its renowned collection of Brazilian art and temporary exhibitions by national and international artists, in addition to hosting a comprehensive and inclusive educational program.

Our Volunteer Program has three programs - "Cuidando dos Seus", "Ler é Amor", and "Saúde é Vida", which have activities that are planned every year. One of the activities is the Bazar Solidário, which regularly benefits two institutions; and the Blood Donation Program, which helped the blood bank of the Santa Casa de Misericórdia hospital save 560 lives in the first six months of the year. In December 2019, the Volunteer Program ended its activities, and the volunteers became Social Multipliers, actively participating in the design, development, planning and execution of our social projects.

Earnings Release

2019

VI - ECONOMIC AND FINANCIAL PERFORMANCE

a) Written Premium

Our overall written premium totaled R$8,515 million, an increase of 22.3% year-over-year.

	Total Written Premium (R$ million) - 2019
	+22.3%
	+20.4%	8.515
	+17.4%
	6.964
4.928	5.784

2016

2017

2018

2019

Of the total written premium, R$4,826 were written in Brazil (56.7%), and R$3,689 abroad (43.3%).

Brazil Written Premium (R$ million) - 2019	Abroad Written Premium (R$ million)	- 2019
		+13.7%	+14.4%			+34.4%
	-0.6%
		4.826			+32.4%
		4.219
3.732				+73.3%		3.689
3.710
						2.744
					2.073
				1.196
2016	2017	2018	2019	2016	2017	2018	2019

Overall written premium in Brazil rose 14.4% in 2019 year-over-year, primarily reflecting the performance of the real estate segment, which corresponded to nearly 33% of the overall written premium in Brazil. Two other highlights were the rural (23%) and special risks (14%) segments.

Overall written premium abroad rose 34.4%; the life segment was the highlight abroad, with 37% of the overall written premium, followed by real estate (25%) and rural (19%), the same sectors we specialize in locally.

Earnings Release

2019

b) Retrocession Ratio

Our retrocession ratio was 25.9% in 2019 compared to 26.9% in 2018, a decrease of 1 p.p..

The Company has historically shown a significant reduction in its retrocession ratio. In 2017, the retrocession ratio went from 30.0% to 25.9% in 2019, down 4.1 p.p..

This reduction in cost, and the maintenance of coverage of reinsured amounts, was possible due to our good loss ratio history over the last 4 years, by the upgrade in our rating by A.M. Best, from A- to A, on a global scale, as well as improved governance after we became a Corporation.

	Retrocession Ratio (%) - 2019
50, 0%
45, 0%	+1.9p.p.		-3.1p.p.	-1.0p.p.
40, 0%
35, 0%		30,0%
	28,1%		26,9%
30, 0%			25,9%
25, 0%
20, 0%
15, 0%
10, 0%
5,0 %
0,0 %
	2016	2017		2018	2019

c) Retained Premium

Retained premium totaled R$6,307 million in FY19, up 23.8% year-over-year (R$5,094 billion in FY18).

Retained Premium (R$ million) - 2019
		+23.8%
	+14.4%	+25.7%
	6.307
		5.094
3.542		4.051

2016

2017

2018

2019

d) Changes in the Technical Provision

The technical provision is used to retain values that are the result of an increase in our retained premium, in order to prevent all their value from being taken prematurely to earned premium and consequently to our underwriting result. Over the policies' coverage term, depending on the performance of the business and the term for the risks to expire, this provision may be taken to earned premium and, consequently, to the underwriting result.

Total technical provisions went from R$297 million in 2018 to R$ 633 million in 2019, according to the table bellow:

Earnings Release

2019

	Changes in the Technical Provision (R$ million) - 2019
			(633)
		(297)
	(145)
(41)
2016	2017	2018	2019

e) Earned Premium

Earned premium totaled R$5,674 million in FY19, up 18.3% year-over-year, driven by a higher written premium, which grew 22.3%, partially offset by the increase in technical provisions.

	Earned Premium (R$ million)	- 2019
		+18,3%
	+22,8%	5.674	*
	+11,6%
	4.797
3.501	3.906

2016

2017

2018

2019

The development triangle of earned premiums per underwriting year enables a view of the evolution by harvests. Using this tool, one can notice that the earned premiums in a period derive from underwritings carried out in the current period as well as in previous years. This way, if we consider the same dynamics of incurred premium recognized in 2017 and 2018, we will have an expressive amount already agreed for fiscal year 2020, which demonstrates the resilience of the dynamics of our earned premiums.

Net Earned Premium by Underwriting Year (R$ Thousand)

Underwriting Year	2014	2015	2016	2017	2018	2019	Total
Earned premium in the year	329.465	890.871	1.017.172	1.219.507	1.799.128	1.868.866
One year later	2.047.290	2.638.664	3.209.335	3.217.313	4.531.245
Two year later	2.411.088	2.924.329	4.068.349	3.760.729
Three year later	2.488.187	2.986.376	4.347.698
Four year later	2.512.890	2.987.319
Five year later	2.522.819

Acumulated Earned premium (g)	2.522.819	2.987.319	4.347.698	3.760.729	4.531.245	1.868.866
Earned premium in 2019	9.929	943	279.349	543.416	2.732.117	1.868.866	5.434.620
Earned premium in 2019 to years prior to 2014							45.955
Earned premium of current risks but not written							(2.551)
Earned premium of Argentina Branch							143.977
							-
Total Earned Premium Included in the Balance Sheet							5.622.0012

*The difference of R$52 million between the total earned premium for FY19 in the table and in the graph refers to R$18 million from premium interest and R$34 million from the change in technical provisions - other provisions.

Note: Information related to Note 2.4.2 of the 2019 Financial Estatements.

Earnings Release

2019

f) Retained Claims

In 2019, the total loss ratio of the Company was 51.1%, compared to 55.9% in 2018, an improvement of 5 p.p.

The retained claims account has two main items: OCR (Outstanding Claims Reserve), which reflects claims reported in the period, IBNR (Incurred But Not Reported), and IBNER (Incurred But Not Enough Reported Losses), which is an actuarial reserve based on statistics to prevent future claim reports. There is also a third item to impact the retained claim, which is the salvage and reimbursements. It reflects the Company's ability to recover amounts of claims already paid.

In 2019, loss measured by OCR, or the Outstanding Claims Reserve, corresponded to 53.5% of the earned premium in 2019, a decrease compared to the previous year (52.6%). In nominal terms, OCR went from a net constitution of R$2,500 million in 2018 to R$3,035 million in 2019.

Loss Ratio measured by IBNR and Others, corresponded to 4.6% of the earned premium in 2019 (8.8% in 2018). In nominal terms, IBNR went from a net constitution of R$423 million in 2018 to a net constitution of R$264 million in 2019.

In nominal terms, the value of retained salvage and reimbursements went from R$241 million in 2018 to R$401 million in 2019.

f1) Claims Triangle

The development of triangle of incurred claims per enables a view of the evolution of claims by underwriting year¹ comparing to the triangle of earned premium by underwriting year.

The claims triangle contains the notices of claims received by the Company, by underwriting year, the evolution of IBNER allocated for each underwriting year (which together with warned claims form the OCR basis), as well as the IBNR allocated by underwriting year.

The triangle also brings the impact generated by the exchange variation of the provision for claims and the respective retrocession assets in order to allow, once this exchange variation component is excluded, which impacts the Company's financial expenses line, it has comparable bases for check the loss ratio per underwriting year.

Earnings Release

2019

f1.a) Claims Triangle, gross of retrocession

Below we present the claims triangle gross of retrocession set out in note 2.4.2 of the financial statements:

(R$ Thousand)
Underwriting Year	2014	2015	2016	2017	2018	2019	Total
Claims incurred in the year	293.187	656.095	330.900	346.916	148.897	534.256
One year later	1.331.605	2.184.610	1.970.743	1.948.886	2.758.119
Two year later	1.709.391	2.588.521	3.151.953	3.537.810
Three year later	1.775.186	2.811.394	4.021.470
Four year later	1.834.823	2.826.539
Five year later	1.863.509	-	-	-	-	-	-
	-
Current estimate of accumulated claims (a)	1.863.509	2.826.539	4.021.470	3.537.810	2.758.119	534.256	15.541.703
(i) Exchange Variat (b)	(63.038)	(106.723)	(305.147)	(387.606)	(170.221)	(24.162)	(1.056.897)
(-) Accumulated payments until base date	(1.735.546)	(2.652.906)	(3.441.802)	(2.773.389)	(1.969.147)	(271.270)	(12.844.060)
Liabilities included in balance sheet (c)	127.963	173.633	579.668	764.421	788.972	262.986	2.697.643
IBNER (d)	4.875	7.242	22.411	28.731	29.710	10.068	103.037
IBNR (e)	23.550	33.033	71.653	110.073	810.780	1.059.530	2.108.619
Liabilities compared to years prior to 2014 (f) (*)						892.509
Exchange Variation to years prior to 2014							(383.951)
							-
Total liabilities included in balance sheet (c)+(d)+(e)+(f)	-	-	-	-	-	-	5.801.808
	-
(II) Loss Ratio ex exchange variation (a+b+d+e) / (g)	52%	65%	62%	66%	58%	60%

f1.b) Claims Triangle, net of retrocession

Below we present the claims triangle gross of retrocession set out in note 2.4.2 of the financial statements:

(R$ Thousand)
Underwriting Year	2014	2015	2016	2017	2018	2019	Total
Claims incurred in the year	194.043	325.364	202.896	305.449	116.046	194.641
One year later	981.979	1.506.852	1.508.804	1.528.694	2.283.173
Two year later	1.252.197	1.833.732	2.547.883	2.775.240
Three year later	1.234.278	1.911.911	2.983.123
Four year later	1.271.674	1.915.968
Five year later	1.286.241

Current estimate of accumulated claims (a)	1.286.241	1.915.968	2.983.123	2.775.240	2.283.173	194.641	11.438.386
(i) Exchange Variat (b)	(46.974)	(40.577)	(193.367)	(276.207)	(142.726)	(22.481)	(722.332)
(-) Accumulated payments until base date	(1.204.153)	(1.832.808)	(2.733.281)	(2.296.631)	(1.810.851)	(77.872)	(9.955.596)
Liabilities included in balance sheet (c)	82.088	83.160	249.842	478.610	472.322	116.769	1.482.790
IBNER (d)	2.984	3.023	9.082	17.397	17.169	4.244	53.900
IBNR (e)	12.188	16.525	48.984	75.898	583.951	847.485	1.585.031
Liabilities compared to years prior to 2014 (f) (*)						235.598
Exchange Variation to years prior to 2014							8.997
							-
Total liabilities included in balance sheet (c)+(d)+(e)+(f)	-	-	-	-	-	-	3.357.319
	-
(II) Loss Ratio ex exchange variation (a+b+d+e) / (g)	50%	63%	66%	69%	61%	55%

1. The loss ratio per underwriting year after exchange rate variationis calculated without the exchange rate effects, since such effects are recorded in the financial result, in accordance with SUSEP Circular 517, thus demonstrating the same method of calculating the accounting loss ratio used by the Company. The variation in financial assets that generate economic protection for this liability position in foreign currency is also recorded in the financial result, in accordance with SUSEP Circular 517. Thus, isolating the effects of exchange rate variation, there is the real comparative effect of the development of claims with the development of earned premiums in each underwriting year (harvests).
2. The loss ratio per underwriting year shown in the triangle does not include the amounts of salvage and reimbursements (an integral part

of the reinsurance operating activity) obtained in each year, which make up the accounting loss ratio for the year.

Earnings Release

2019

The third component of claims, which is salvage and reimbursements, are not components of the loss triangle, however they have to be considered for the calculation of the Company's real loss ratio, as is the case with the main global reinsurers.

According to the Company's provision dynamics, a prudent claims estimate is made for the provision, mainly for recent underwriting years. As a result, it is expected that part of the margins of the constituted provisions will be reverted in future years when the risks expire.

f2) Salvage and Reimbursements

IRB Brasil RE and its assignors, following contractual guidelines, actively seek amounts subject to reimbursement, both administratively and through agreements and lawsuits.

The salvage and reimbursements line is considered relevant to the Company's business, as is the case with reinsurers in operation for a long time.

Since its privatization, the Company has structured an area dedicated to the recovery of salvage and reimbursements, aware of how important this line could become for its results, as it occurs with the main reinsurers in the world of long-standing operations. Thus, we present below a summary of salvage and reimbursements amounts recognized in the fiscal years ended in 2018 and 2019:

R$ million

2018

2019

Salvage and Reimbursements gross of retrocession	268	788
Salvage and Reimbursements to retrocessionaries	(27)	(386)
Effectively retained Salvage and Reimbursements	241	401

Additionally, we present in the table below, a summary of the various lawsuits filed by the Company and its assignors with the goal to recover salvage and reimbursements, which are not whatsoever recognized in the Company`s assets, nor are contributing to reduce the OCR and are not impacting Company`s results, but have a potential to affect positively the results in the future:

Object	Number		Updated amount, net of
	Retrocession
Forensic report	98	R$	874.741.182,25
Favorable first instance decision	47	R$	399.554.477,18
Favorable second instance decision	4	R$	1.857.527,66
Supreme Court Decision	30	R$	68.195.619,28
Waiting Supreme Court Decision	4	R$	3.931.607,53
Sentence Execution	68	R$	1.408.802.791,73
Closing phase/Agreement negotiation	50	R$	624.625.896,21
TOTAL	301	R$		3.381.709.101,85

Earnings Release

2019

These are not cases whose effectiveness depends only on the Company's efforts, but they have potential to help the Company's results.

f3) Claims from years prior to 2014

The balance of claims for years prior to 2014, in the net retrocession view, totaled R$236 million in 2019, compared to R$1.016 million in 2018.

The dynamics of the business means that there will always be a movement of the balance of liabilities from previous years, as the risks begin to expire (which impacts especially the IBNR/IBNER), claims are being paid and legal disputes come to an end.

However, as years go by, additional provisions will be made for the new risks that will be part of the Company's portfolio until its next effectiveness or not, when the contracts should expire.

Changes in Claims Technical Provisions to years prior 2014 (R$ million)
Gross of Retrocession		Net of Retrocession
Balance in 2018	2,075	Balance in 2018	1,016
Changes in Saved and Reimbursed Estimates	(242)	Changes in Saved and Reimbursed Estimates	(65)
Paid Claims	(386)	Paid Claims	(296)
Finished Administrative Claims*	(203)	Finished Administrative Claims*	(170)
Finished Judicial Claims *	(139)	Finished Judicial Claims *	(82)
IBNER Variation	(49)	IBNER Variation	(33)
IBNR Variation	(164)	IBNR Variation	(134)
Balance in 2019	893	Balance in 2019	236

* Finisehd by payment

Note: Note 1: the estimate (expectation) of salvage adds to a variation of an additional R$35 mi for the the OCR base for the 2019 financial year.

and Reimbursements in the amount of R$65 mi pointed out above for the years prior to 2014 underwriting years after 2014, representing a total impact of only R$100 mi in the reduction of

In the triangle claims in item (f1), it is possible to see that when we consider that when we consider the year 2019, period that has already concentrated the most current portfolio of the Company, there was a constitution of R$968.5 million of claims provisions (R$116.8 million of OCR and R$851.7 million of IBNR), net of retrocession, a preparation for the next contracts which should expire later.

Earnings Release

2019

g) Underwriting Result

The underwriting result totaled R$1,513.9 million in FY19, an increase of 30.9% compared to FY18 (R$1,169.6 million), reflecting the combined effect of the main factors mentioned previously.

Underwriting Result (R$ million)

+30.9%

	+43.2%	1.532
+25.9%		1.170

817

631

2016

2017

2018

2019

h) General and Administrative Expenses

General and administrative expenses totaled R$283.1 million in FY19, up 24.1% year-over-year. This amount is equivalent to 5.0% of earned premiums, in line with the ratio reported for 2018 (4.8%).

Administrative Expense (R$ million) and AE Ratio (%)
6,6%	5,5%	4,8%	5,0%
			283
230	215	228

2016

2017

2018

2019

The main factor that impacted administrative expenses was the post-employment benefit, as the fluctuations between assets and liabilities of the social security/health benefit plans of the Company's active and inactive employees, which in 2018 generated a positive contribution of R$65.4 million for the administrative expenses of the Company, in 2019 contributed with only R$5.4 million. The pension benefit plans, as noted in Note 26.5 to the Financial Statements, are in surplus and have asset allocation based on their ALM (Assets and Liabilities Management). The vast majority of assets are marked to market, with a value below their market value, which signals their potential to continue to generate a future excess, even in a scenario of historically low interest rates.

Earnings Release

2019

i) Financial Results

Our consolidated financial investments (parent company and subsidiaries/branches) totaled R$733.5 million in FY19, up 16.6% compared to the R$628.9 million reported for FY18.

The performance of the management of the consolidated financial assets of the parent company and its subsidiaries and branches was 122% of the CDI interest rate in 2019. The performance is caused by allocations made in fixed-rate and inflation-indexed government securities, which were positively impacted due to the closing of interest rates in 2019, as well as some exchange rate and variable income operations.

	Investment Portfolio Result
	(R$ million) and % of CDI (%)
131%	141%
122%
755	733
	629

2017

2018

2019

Our investment portfolio decreased when compared to December 31, 2018, mainly due to (i) the payment of dividends in April 2019, (ii) the payment of interest on capital in December 2019, and (iii) the relevant volume of payment of claims, with immediate cash effect, however, whose recovery with reinsurers does not happen in the same time, following specific basis of protection contracts

In addition, I would like to highlight that, with the new Selic rate scenario at its lowest level, the Company decided to negotiate contracts with discounts on the payment of claims, which benefits the claims interest line.

In compliance with the provision in item IV of Article 145 of SUSEP Circular No. 517, of July 30, 2015, IRB Brasil RE declares to have financial capacity compatible with its operations.

j) Breakdown of Results of Operations with Shopping Malls (rent and sale)

The year 2019 was marked by the sale of the interest in the Company's shopping malls, as shown in the table below:

R$ million	2019
Net Capital Gain - Shopping Centers' Sale	103,4
Rental Revenue	43,3
Financial Results	74,3
Taxes and Total Contributions	(33,7)
Administrative Expenses	(4,4)
Results at the end of the period	182,9

Earnings Release

2019

k) Net Income

Net income rose 44.7% to R$1,763.5 million in FY19 versus R$1,218.8 million in FY18.

	Net Income (R$ million)
		+44.7%
	+31.8%	1.764
	+8.8%
	1.219
850	925

2016

2017

2018

2019

l) Specific Events that impacted the year 2019

1. Rural segment negative impact in the underwriting results

Some specific events were recognized for the FY19 result that either contributed positively or negatively.

In 2019, the agro segment in Brazil contributed in a negative way to the Company's underwriting result, due to the El-Niño effect. We had an increase in the Company's loss ratio of this specific segment of R$697 million, when we consider the losses net of retrocession, as shown in the graph below:

Net Claims from the Rural Segment - Brazil (R$ million)

Climatic Event	Climatic Event
	1.079
885
	697
431	382

2016

2017

2018

2019

In addition to the atypical impact due to the El-Niño effect, recorded in its retained claim, the Company also stopped using a relevant part of the tax benefit, which comes from this segment in Brazil, according to Decree Law No. 73 of 1966, which reduced the tax effect in 2018 by R$123.9 million and in 2019 reduced the tax effect by only R$31.6 million, according to Note 25.10 to the Financial Statements. So, this El-Niño effect, which happens every four years, created a relevant negative impact on the Company's results.

Earnings Release

2019

1. Positive impact of capital gains on real estate assets

The capital gain of R$103.4 million impacted the Company's annual results, as explained in the section (j): Breakdown of Results of Operations with Shopping Malls.

1. Tax credit impact

The deferred tax credit on the loss with an international branch (London branch), in accordance with SUSEP circular number 517 of 2015, in the amount of R$146.0 million, was recognized in 2019, impacting the result for the year in this amount.

m) Dividends and Interest on Capital

The payment of dividends and interest on capital (IOC), gross of taxes, proposed by the Board for 2019 totaled R$1,217.1 million, or 71% of the net income reported for FY19, deducted of the tax credit for the London branch. Of the approved amount to be paid as interest on capital (R$257.3 million), R$198.5 million were paid in advance in November 2019. The proposal for the allocation of net income for FY19 will be submitted for approval by the Annual Shareholders' Meeting to be held in March 2020.

1400,00		Dividends and IOC (R$ million)	1.217,1
1200,00
1000,00			893,4
800,00	660,2	683,1		959,8
600,00			647,5
400,00	417,6	441,3
200,00
	242,6	241,8	246,0	257,3
0,00
	2016	2017	2018	2019
		IOC	Dividends

n) Capital markets

Our stock (IRBR3) appreciated by 44.4% in 2019 on B3 (Brasil Bolsa Balcão), compared to an increase of 31.58% in Ibovespa, the main index of the São Paulo stock exchange.

From December 28, 2018 to December 30, 2019, our stock (B3: IRBR3) reached an average daily traded volume of R$176 million in 5.3 million trades. On December 30, 2019, our market capitalization was R$36.5 billion, compared to R$8.5 billion on our IPO on July 31, 2017. Our stock appreciated by 337% from our IPO to the end of 2019.

In May 2019, our shares were listed on the Ibovespa Index, weighing 0.793%. Our stock now represents 1.772% of the portfolio in force from January to April 2020. Our stock is also listed on IBrX 100, index made up of the most actively traded and best representative stocks on B3; the MSCI (Morgan Stanley Capital International) Brazil, a benchmark for several global investment funds; and FTSE Renaissance Latin America.

On September 19, 2019, the Extraordinary Shareholders Meeting approved the split of shares issued by IRB Brasil RE, with no change to the capital stock. Each share issued by the Company was split into 3 shares. Therefore, our capital stock now consists of 936,000,000 common shares, up from the previous 312,000,000 common shares. This measure has already resulted in increased asset liquidity, enabling the dilution of the company's capital.

Earnings Release

2019

VII - RELATIONSHIP WITH INDEPENDENT AUDITORS

Under CVM Instruction No. 381/03, we hereby declare IRB Brasil RE and its subsidiaries adopt a formal procedure of verifying that PricewaterhouseCoopers' (PwC) auditors are not affected, regarding the necessary independence and objectivity when working for the Company, by providing services to other companies.

In the year ended December 31, 2019, PwC provided the Company with additional services for the total amount of R$2.1 million, referring to Actuarial Auditing and issue of comfort letters in the context of IRB offering of shares in the Brazilian (local), American (US) and international (Non-US) markets. This amount corresponds to 48% of the independent audit service fee.

PricewaterhouseCoopers Auditores Independentes considers the services were provided in strict observance of the audit standards that address the independent auditor's impartiality when conducting audit works and, therefore, do not represent a situation that could adversely affect its independence and objectivity when performing the external audit.

Regarding the Independent Actuarial Audit service agreement with E&Y, as required by CNSP Resolution 321/2015, the total value of the services contractually signed is R$ 220 thousand per year, totaling R$ 660 thousand at the end of three annual closings financial statements. No billing was made for the services provided, therefore, there were no payments made in 2019.

VIII - ARBITRATION CHAMBER

The Company, its shareholders and management are subject to arbitration at the Market Arbitration Chamber, under Article 59 of its Bylaws.

IX - STATEMENT OF THE BOARD OF EXECUTIVE OFFICERS

Under CVM Instruction No. 480/09, the Board of Executive Officers herein declares it has discussed, reviewed, and agreed with the opinions in the Independent Auditor Report and the Financial Statements for the year ended December 31, 2019.

X - ACKNOWLEDGEMENTS

We want to express our gratitude and recognition to all employees, suppliers, and partners, in addition to shareholders and clients from insurers for choosing IRB Brasil RE as the priority reinsurer for their protection. We also want to thank government representatives and brokers for their support and trust in our mission of providing solutions to the insurance market, focusing on profitability, innovation, and sustainability.

Earnings Release

2019

Management

Executive Board	Board of Directors	Supervisory Board
José Carlos Cardoso	Ivan de Souza Monteiro	Reginaldo José Camilo
Fernando Passos	Alexsandro Broedel Lopes	Gabriela Soares Pedercini
Lúcia Maria da Silva Valle	Pedro Duarte Guimarães	Otavio L. de Medeiros
	Vinicius J. de Almeida Albernaz	Pedro Bramont
	Werner Romera Süffert
	Marcos Bastos Rocha
	Maria Elena Bidino
	Roberto Dagnoni

Earnings Release

2019

INCOME ESTAMENT

Income Statement		Quarter		Accumulated
Business View - R$ million	4Q18	4Q19	Var.	2018	2019	Var.
(19/18)	(19/18)
Written Premium	1.681,2	2.098,5	24,8%	6.963,9	8.515,5	22,3%
In Brazil	978,2	1.180,9	20,7%	4.219,5	4.826,1	14,4%
Abroad	703,0	917,5	30,5%	2.744,4	3.689,4	34,4%
Retrocession	(604,3)	(614,6)	1,7%	(1.870,0)	(2.208,5)	18,1%
Retained Premium	1.076,9	1.483,9	37,8%	5.093,9	6.307,0	23,8%
Change in the Technical Provision	351,1	138,7	-60,5%	(296,8)	(633,2)	113,4%
Earned Premium	1.428,0	1.622,6	13,6%	4.797,1	5.673,7	18,3%
Retained Claim	(818,4)	(747,2)	-8,7%	(2.682,7)	(2.898,1)	8,0%
OCR	(622,4)	(479,1)	-23,0%	(2.260,1)	(2.634,4)	16,6%
IBNR	(196,0)	(268,1)	36,8%	(422,7)	(263,7)	-37,6%
Acquisition Costs	(250,8)	(282,6)	12,7%	(906,6)	(1.126,5)	24,3%
Other Operating Revenues and Expenses	(1,3)	(50,1)	3899,7%	(38,1)	(117,3)	207,6%
Underwriting Result	357,6	542,7	51,8%	1.169,6	1.531,8	31,0%
Administrative Expenses	(58,7)	(105,0)	78,8%	(228,2)	(283,1)	24,1%
Tax Expenses	(38,5)	(40,4)	5,0%	(133,8)	(113,2)	-15,4%
Financial and Real Estate Investments	260,4	397,3	52,6%	807,6	1.135,4	40,6%
Financial Investments	135,0	113,2	-16,1%	628,9	733,6	16,7%
Real Estate Investments	10,0	12,2	22,5%	77,1	43,2	-43,9%
Earnings Before Tax and Profit Sharing	405,3	522,7	29,0%	1.513,6	1.912,3	26,3%
Taxes and Contributions	(32,4)	109,4	-437,7%	(294,8)	(148,7)	-49,5%
Total Net Income	372,9	632,1	69,5%	1.218,8	1.763,5	44,7%
Retention Ratio	64,1%	70,7%	6,7 p.p.	73,1%	74,1%	0,9 p.p.
Retrocession Ratio	35,9%	29,3%	-6,7 p.p.	26,9%	25,9%	-0,9 p.p.
Overall Loss Ratio	57,3%	46,0%	-11,3 p.p.	55,9%	51,1%	-4,8 p.p.
Loss Ratio measured by OCR	43,6%	29,5%	-14,1 p.p.	47,1%	46,4%	-0,7 p.p.
Loss Ratio measured by IBNR	13,7%	16,5%	2,8 p.p.	8,8%	4,6%	-4,2 p.p.
Commission Ratio	17,6%	17,4%	-0,1 p.p.	18,9%	19,9%	1 p.p.
Administrative Expense Ratio	4,1%	6,5%	2,4 p.p.	4,8%	5,0%	0,2 p.p.
Combined Ratio	81,8%	75,5%	-6,3 p.p.	83,2%	80,0%	-3,2 p.p.
Amplified Combined Ratio	74,2%	70,1%	-4,1 p.p.	72,5%	70,4%	-2,1 p.p.

Earnings Release

2019

ASSETS

	Parent Company			Consolidated
Assets -R$ Million	Dec. 31, 2019	Dec. 31, 2018	Var.	Dec. 31, 2019	Dec. 31, 2018	Var.
(19/18)	(19/18)
Current Assets	10.157,1	10.303,2	-1,4%	10.984,9	10.374,0	5,9%
Cas h	24,9	27,0	-7,8%	35,9	43,1	-16,8%
Cash and cash equivalents	24,9	27,0	-7,8%	35,9	43,1	-16,8%
Investments	826,9	2.551,9	-67,6%	1.232,8	2.595,5	-52,5%
Credits from reinsurance and retrocession transactions	5.476,1	4.490,9	21,9%	5.476,1	4.491,0	21,9%
Transactions with insurers	3.846,2	3.166,2	21,5%	3.846,2	3.166,2	21,5%
Transactions with reinsurers	1.510,0	1.304,4	15,8%	1.510,0	1.304,4	15,8%
Other operating credits	153,6	56,6	171,6%	153,6	56,7	171,1%
(-) Provision for credit risks	(33,8)	(36,3)	-6,8%	(33,8)	(36,3)	-6,8%
Retrocession assets - technical provisions	3.596,0	3.055,6	17,7%	3.596,0	3.055,6	17,7%
Premium - retrocession	1.143,7	929,1	23,1%	1.143,7	929,1	23,1%
Claims - retrocession	2.444,5	2.116,9	15,5%	2.444,5	2.117,0	15,5%
Other provisions	7,8	9,5	-18,2%	7,8	9,5	-18,2%
Bills and credits receivable	131,4	100,7	30,5%	542,4	111,7	385,6%
Bilss and credits receivable	42,8	30,7	39,5%	452,3	40,1	1027,4%
Tax and social security credits	88,6	70,1	26,5%	90,2	71,6	26,0%
Prepaid expenses	8,7	11,9	-27,0%	8,7	11,9	-27,0%
Deferred acquisition costs	93,0	65,2	42,7%	93,0	65,2	42,7%
Non-current assets	6.902,8	5.610,8	23,0%	6.189,3	5.566,4	11,2%
Long-term assets	5.837,6	4.857,5	20,2%	5.900,2	4.876,2	21,0%
Investments	3.608,8	3.327,0	8,5%	3.630,9	3.366,4	7,9%
Retrocession assets - technical provisions	29,0	28,8	0,7%	29,0	28,8	0,7%
Premium - retrocession	29,0	28,8	0,7%	29,0	28,8	0,7%
Bills and credits receivable	2.189,9	1.496,6	46,3%	2.230,3	1.475,9	51,1%
Bills and credits receivable	845,3	385,1	119,5%	887,2	398,1	122,9%
Tax and social security credits	650,0	458,5	41,8%	648,6	424,9	52,7%
Tax credits	44,7	38,7	15,5%	44,7	38,6	15,7%
Deferred tax assets	605,3	419,8	44,2%	603,9	386,2	56,4%
Court and taxes deposits	694,6	653,0	6,4%	694,6	653,0	6,4%
Deferred acquisition costs	9,9	5,1	93,9%	9,9	5,1	93,9%
Investments	939,1	636,5	47,5%	162,6	573,1	-71,6%
Equity interest	933,7	631,0	48,0%	15,9	0,0	-
Investment property	5,2	5,5	-5,7%	146,6	573,0	-74,4%
Other investments	0,1	0,1	155,6%	0,1	0,1	155,6%
Property and equipment	81,7	74,3	10,0%	81,8	74,4	10,0%
Intangible assets	44,4	42,5	4,6%	44,7	42,8	4,5%
Total assets	17.059,9	15.914,0	7,2%	17.174,3	15.940,4	7,7%

Earnings Release

2019

LIABILITIES

	Parent Company			Consolidated
Liabilities and Shareholders' Equity -R$ Million	Dec. 31, 2019	Dec. 31, 2018	Var.	Dec. 31, 2019	Dec. 31, 2018	Var.
(19/18)	(19/18)
Current liabilities	11.212,8	10.833,2	3,5%	11.300,7	10.859,2	4,1%
Accounts payble	431,3	366,2	17,8%	519,1	391,5	32,6%
Obligations payble	295,8	220,9	33,9%	302,1	235,2	28,4%
Taxes and social charges payble	13,9	32,0	-56,7%	14,0	32,2	-56,5%
Labor provisions	10,3	9,0	15,0%	10,7	9,1	17,8%
Provisions for post-employment benefits	40,3	39,0	3,4%	40,3	39,0	3,4%
Taxes and contributions payble	71,0	65,4	8,6%	152,1	70,0	117,2%
Provisions for investment devaluation	0,0	0,0	-	0,0	6,0	-100,0%
Debts from reinsurance and retrocession transactions	1.508,6	1.392,8	8,3%	1.508,6	1.393,1	8,3%
Transactions with insurers	2,1	0,3	734,7%	2,1	0,3	734,7%
Transactions with reinsurers	1.355,5	1.251,3	8,3%	1.355,5	1.251,3	8,3%
Reinsurance and retrocession brokers	144,0	105,8	36,1%	144,0	106,1	35,7%
Other operating debts	7,1	35,5	-80,1%	7,1	35,5	-80,1%
Third-party deposits	336,4	427,4	-21,3%	336,4	427,4	-21,3%
Technical provisions - reinsurance and retrocession	8.936,5	8.646,8	3,4%	8.936,5	8.647,2	3,3%
Property and casualty and group life insurance	8.936,5	8.646,8	3,4%	8.936,5	8.647,2	3,3%
Provision for unearned premiums	2.904,4	2.147,2	35,3%	2.904,4	2.147,2	35,3%
Unsettled claims	3.569,6	4.222,1	-15,5%	3.569,6	4.222,5	-15,5%
Provision for claims incurred but not reported	2.232,2	1.999,1	11,7%	2.232,2	1.999,1	11,7%
Other provisions	230,2	278,4	-17,3%	230,2	278,4	-17,3%
Non-current liabilities	1.205,8	1.080,1	11,6%	1.232,3	1.080,5	14,1%
Long term liabilities	1.205,8	1.080,1	11,6%	1.232,3	1.080,5	14,1%
Accounts payble	473,3	426,7	10,9%	498,8	427,1	16,8%
Provisions for post-employment benefits	434,3	412,9	5,2%	434,3	412,9	5,2%
Obligations payble	38,9	13,8	182,5%	64,4	14,2	353,8%
Debts from reinsurance and retrocession transactions	0,8	0,8	0,0%	0,8	0,8	0,0%
Other operating debts	0,8	0,8	0,0%	0,8	0,8	0,0%
Technical provisions - reinsurance and retrocession	232,7	158,7	46,6%	232,7	158,7	46,6%
Property and casualty and group life insurance	232,7	158,7	46,6%	232,7	158,7	46,6%
Provision for unearned premiums	232,7	158,7	46,6%	232,7	158,7	46,6%
Other debts	499,1	493,9	1,0%	500,1	493,9	1,3%
Civil and labor contingencies	48,0	58,6	-18,2%	48,2	58,6	-17,9%
Tax liabilities	451,1	435,3	3,6%	451,9	435,3	3,8%
Total liabilities	12.418,6	11.913,3	4,2%	12.533,0	11.939,7	5,0%
Shareholders' Equity	4.641,3	4.000,8	16,0%	4.641,3	4.000,8	16,0%
Capital stock	1.953,1	1.953,1	0,0%	1.953,1	1.953,1	0,0%
Profit reserves	2.127,0	1.595,1	33,3%	2.127,0	1.595,1	33,3%
Equity valuation adjustments	(191,1)	(113,4)	68,5%	(191,1)	(113,4)	68,5%
Proposal for distribution of additional dividends	764,5	578,9	32,1%	764,5	578,9	32,1%
Treasury shares	(13,0)	(13,0)	0,0%	(13,0)	(13,0)	0,0%
Retained earnings	0,8	0,0	-	0,8	0,0	-
Total liabilities and shareholders' equity	17.059,9	15.914,0	7,2%	17.174,3	15.940,4	7,7%

Earnings Release

2019

CONFERENCE CALL AND WEBCAST

February 18, 2020 (Wednesday)

in Portuguese at 8:30 am BRT (6:30 am US EDT, 11:30 pm London) in English at 11:00 pm BRT (9:00 am US EDT, 2:00 pm London)

For participants in Brazil: [phone] or 55 11 4210-1803

For participants abroad: [phone] or [phone]

Webcast in Portuguese:Click here

Webcast in English: Click here

Replay Access: + 55 11 3193-1012

Code for Portuguese: 9053809#

Code for English: 1780322#