IRB Brasil stock sale makes Warren Buffet turn to investments in Brazil

The Brazilian market is not going unnoticed by global investors. In the last week, Caixa Econômica Federal announced the sale of a great share of stocks from IRB Brasil Resseguros S.A, the leading reinsurer in Brazil, which, according to Valor Econômico, piqued Warren Buffett‘s interest.


This is not the first time that Berkshire Hathaway, the company where the Oracle of Omah is chairman, and IRB get close. In 2017, there were some exchanges between the two companies, but 2019 is likely to be the golden year for this relationship.

The tranche of stocks represents 8.9% percent of IRB’s capital, representing around BRL 2.5 billion. Expectations are that part of them will be bought by Berkshire Hathaway. According to Valor Economico, the extra percentage that will be sold is yet to be defined.

Nevertheless, what is clear-cut are the reasons that made the Brazilian company appealing to international investors. According to an InfoMoney analysis, the investment bank Credit Suisse classifies IRB as “not substantially sensitive to the Brazilian economic and political environment, especially since Brazil is a non-catastrophic country”. Meanwhile, BTG Pactual, UBS and BB Investments agree with the positive forecast concerning the company and also approve the purchase of the stocks.