Brazilian reinsurer IRB completes 2.3 billion reais private capital raising

BRASILIA (Reuters) - Brazil's largest reinsurer IRB Brasil Resseguros SA IRBR3.SA said on Monday that it has sold 59 million reais ($11 million) worth of shares to existing shareholder to complete an overall 2.3 billion reais private capital-raising exercise.

The shares were sold at 7.05 reais each at auction last Friday on the Sao Paulo stock exchange, the company said in a securities filing, completing the total private subscription of almost 332 million common shares.

Earlier this year IRB was investigated by the country’s insurance regulator for potential liquidity problems, as it fell short of assets to cover technical provisions. It blamed the real’s steep decline against the dollar higher provisions in the first four months of 2020.

Reporting by Jamie McGeever, editing by Louise Heavens