By Tatiana Bautzer
SAO PAULO (Reuters) – IRB Brasil
IRB reduced the net income in the first quarter of 2019 by 49%, to 178 million reais ($32.94 million).
IRB said in securities filings it had found accounting irregularities and that it would send the conclusions of an investigation about them to Brazilian securities industry regulator CVM.
Last week, IRB said it had found payments of irregular bonuses to former executives and identified the sources of false information about the participation of Berkshire Hathaway in the reinsurer.
Accounting irregularities were first pointed out in February by investment firm Squadra Investments, which shorted the stock.
The reinsurer also said in the filing that had it hired the investment banks of Banco Bradesco SA and Itau Unibanco Holding SA to work on a capital raising to comply with higher provisions requested by insurance regulator Susep.
(Reporting by Tatiana Bautzer, editing by Louise Heavens and Jason Neely)
