Brazil banks halt IPO of reinsurance company

Banco Bradesco and IRB Brasil Resseguros, Brazils largest private sector banks, have halted their initial public offering (IPO) of IRB-Brasil Resseguros, a reinsurance company in which they own stakes.

The announcement comes as the nation experiences its worst economic downturn in a quarter of a century.

The banks have asked the country’s Securities and Exchange Commission, or CVM, to postpone for 60 working days the agency’s analysis of the IPO of local reinsurer IRB-Brasil Resseguros.