IRB Brasil Re on lookout for permanent CEO following departures

Brazil's major reinsurer IRB Brasil Resseguros SA has elected Antônio Cássio dos Santos as chairman of the board of directors and interim chief executive officer (CEO) of the company until it finds a permanent replacement.

The news comes after IRB revealed that its president José Carlos Cardoso, and finance and investor relations executive vice president Fernando Passos, have submitted their resignation to the board on March 4.

The resignations followed Berkshire Hathaway's statement on March 03 denying making any investment in the reinsurer. Warren Buffett’s Berkshire said that it has never been and does not intend to become a shareholder in IRB.

Werner Süffert, a former member of the board of directors at IRB Brasil Re and former CFO and IRO of BB Seguridade, was then appointed to take over as finance and investor relations executive vice president.

Earlier this month, Santos was appointed chairman of the company's board of directors by the Federal Government. He will assume the interim CEO position for the maximum period of cumulation provided for in the Novo Mercado Regulation.

During this period, the company will need to find an executive to perform the CEO functions on a permanent basis.

These recent actions have triggered AM Best to placed under review with negative implications the financial strength rating of A (Excellent) of IRB Brasil Re. The agency has expressed concerns about effective governance after the departures, saying that the reinsurer "will remain challenged" while replacing two key executives.