Brazil Looks to Sell Reinsurer Stake

Brazil has advanced the privatization process of government-controlled reinsurer IRB-Brasil Re, according to an official statement. The government plans a capital increase of 2%-15%, and says it would waive its preemptive rights. The price is set at BRL2,577 ($1,260) per share. A shareholder agreement must be signed between the government and BB Seguros, Bradesco Auto Re, Itau Seguros, Itau Vida e Previdencia as well as a fund linked to Caixa Economica Federal. Brazil’s government owns 50% of IRB, with Bradesco, Itau and a group of Brazilian insurance companies owning the remainder. It does not indicate the number of shares to be sold or the timing.