IRB RE COMPLETES CAPITAL RAISING PROGRAMME

Brazilian reinsurer IRB Brasil Resseguros has completed its capital-raising programme. On Monday the reinsurer sold 8.3 million shares to existing shareholders for R59.1m ($11m). The move completes the planned issuance of 332m common shares valued at R2.3bn ($420m). Despite the capital raise, the company was still R1.2bn short of meeting its liquidity needs. The reinsurer is working to sell assets to meet liquidity requirements, IRB Re’s chief executive Antônio Cássio dos Santos told analysts. Earlier this year IRB Re was investigated by Brazil’s insurance regulator for potential liquidity problems. In June, AM Best downgraded the company’s credit ratings and maintained them under review with negative implications status.