IRB Brasil Re’s CEO Carvalho Resigns; Board Elects Falcao as Successor
IRB Brasil Resseguros SA said on Thursday that chief executive Raphael de Carvalho had resigned after just over a year in the position, following a difficult few months at the Brazilian reinsurer.
Falcao will take the reins at a difficult time for IRB, which in September completed a new share offering priced at a 28.5% discount after successive monthly losses led analysts to raise alerts about whether it had enough capital.
In the third quarter, the reinsurer nearly doubled its net loss on a yearly basis after climate issues affected its rural insurance business.
Falcao, who holds a master’s degree from Stanford University, has previously worked as an executive at insurer and asset management firm Icatu. He has been a board member at IRB since May 2020.
IRB entered a downward spiral in 2020, when Rio de Janeiro-based asset manager Squadra Investimentos uncovered accounting irregularities at the company, forcing a management overhaul.
In April 2022, a former senior executive was charged with fraudulently planting a false story that Warren Buffett’s Berkshire Hathaway Inc. had made a significant investment in the company.
IRB shares were down more than 78% this year as of Wednesday’s close.
(Reporting by Gabriel Araujo; editing by Mark Potter)