Austral Re sees net profit growth in H1’24 despite impact of floods in Rio Grande do Sul
- June 26, 2025
- Posted by: Kassandra Jimenez-Sanchez
- Category: Insurance
Brazilian reinsurance company Austral Re has announced its financial results for the first half of 2024, reporting a net profit of R$ 27.7 million (USD 5m) and a 13% increase in gross reinsurance premiums (GRP) compared to the same period in the year prior.
Despite the negative impact the Rio Grande do Sul floods had on the Brazilian insurance and reinsurance market, Austral Re saw an 80% profit growth when compared to the first half of 2023, when it recorded a net profit of R$ 15.4 million (USD 2.9 million).
The firm also increased GRP to R$ 1.4 billion (USD 250m), in H1 2024, mainly due to growth in the Property, business in Latin America and Transport sectors.
For H1 2024, Austral Re has reported a retained claims ratio of 82.8% of earned premiums, down from the 88.2% seen in the same period last year.
Excluding the impacts caused by the floods in Rio Grande do Sul, especially in the Property and Casualty and Housing sectors, the loss ratio in H1 2024 would have been 76.6%, 11.6 percentage points lower than in the first half of 2023, demonstrating the good results obtained in the period.
Austral Re’s net equity in H1 2024 was at R$ 405.9 million (USD 75m), 6.4% above the R$ 381.5 million (USD 71m) reported in H1 2023, with Return on Average Equity (ROAE) of 14.5% compared to 8.5% in the same period the previous year. Excluding the impact of the floods, ROAE would have been 25.6%.
Bruno Freire, CEO of Austral Re, commented: “The tragedies caused by the effects of climate change had an impact on the company’s net income of about R$ 21.1 million.
“Without taking into account the performance of the reinsurer in these claims, our result would have been around R$ 48.8 million. In any case, it is important to highlight the company’s good performance, which reflects continuous work to improve our underwriting processes.”
This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.
