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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
[Interpreted] Good morning, ladies and gentlemen. Thank you very much for your presence, and welcome to the conference call of the fourth quarter of IRB Brasil.
Today, we have with us Antônio Cassio, CEO and Chairman of the Board; Mr. Werner Süffert, CFO and IRO; Mr. Wilson Toneto, Technical VP and Operations VP; Ms. Isabel Solano, VP of Reinsurance; and Mr. Carlos Guerra, VP of Risks, Compliance and Legal.
We would like to inform that this conference call is being recorded. [Operator Instructions] This presentation has been prepared by IRB Brasil RE and should not be considered as a source of data for investments.
This presentation may contain forward-looking statements and information related to the company that reflects the current visions and expectations of the company and of its management regarding its performance, future businesses and events.
Forward-looking statements include, without limitation, any statement that has a forecast indication or estimates or projections about future results, performance or objectives, as well as words like we believe, we anticipate, we expect, we estimate, we project among others with similar meaning.
Such forward-looking statements are subject to risks, uncertainties and future events. We warn investors that many relevant factors may affect the effective results to be materially different from such plans, objectives, expectations, projections and intentions expressed in this presentation.
Under no circumstance, neither the company nor its subsidiaries, Board members, executive officers, agents or employees will be held responsible before third parties, investors included, for any investment decision made based on the informations and statements present in this presentation or for any damage resulting from it that is corresponding or specific.
The market and competition information, including market projections mentioned along this presentations have been obtained through internal research, market research and public domain information and our corporate publications.
Mr. Antônio Cassio dos Santos, CEO and Chairman of the Board of IRB Brasil RE is now going to start the presentation. Please, Mr. Santos, the floor is yours.
[Interpreted] Good morning, everyone. It's a pleasure to be with you once again on this summer, and that is a very warm summer in spite of the pandemic.
So we have prepared this presentation for today in terms of rendering accounts to you. And maybe in the 80-something years of IRB, this might have been one of the most important years for the company or for the former institute as we used to call it.
So certainly, it has become a fully private company. And this is a year that as a manager or as a Brazilian citizen and someone working in insurance, I hope that we never again have a year such as this for the history of this organization or any other.
But the most important aspect today is to celebrate a historical achievement for our company, which is the regulatory compliance regarding the coverage of technical provisions and the liquidity margin of our company that we achieved on December 31. And this has been the first achievement and the main goal that I had in my mind from the moment we designed and we entered the main storm that have been all the months, especially May and June in 2020, the main objective and the main goal or target that we had and I particularly had as a deliverable to you in a very short space of time, 6 months.
So I'm very happy to talk to you today and saying that this goal have been achieved, and we have the honor of delivering it, as you can see in our audited financial statements for the quarter. So we are going to go over within the spirit of rendering accounts that is part of this, and we'll tell you where we are in this process and where we are headed towards.
So now thinking about the concept of run-on -- run-off and run-on, one-off effects, they are all defined here.
Now we are going straight to Slide #3. And the main message, as expected, the fourth quarter of the year has been a break-even quarter. We expected -- we were expecting that we would break even slightly earlier, but we did so on the fourth quarter. And those of you who have the presentation, so we have the accounting net result.
And if we take off, deduct from you, as requested by you and the press, everything that was one-off that was not recurring that took place in the fourth quarter, we get to a net revenue of BRL 19 million-something, we round it up to BRL 20 million. BRL 20 million is something close to 1% of the earned premiums, and this indicates that the company has, in fact, broken even. And in any way, this is the main message of the first slide that you're seeing here.
So this brings our company to a new normal. This characterizes that the process that has been triggered also in the operational front is already generating results. When we look at the recurring result without the one-off effects of the businesses that have been discontinued in the quarter. And we should always remember that re-underwriting process of the company started on the 1st of July, and it took the whole half, second half of the year.
So here, on this first slide, the main message is that the company has reached breakeven and the re-underwriting process is going to show you that it's been really a turning point. So what we used to have in the past is in the past. And now we are sailing in clear waters as we can see from now on, we see a clear horizon ahead of us.
The second main message is slide -- in the same slide on letter B. For the second quarter in a row, the company is presenting cash results, although it improved greatly its payment so we expedited our processes of collection and payments, too. So the operational efficiency of the company has gained thanks to administrative efficiency.
In our capacity of collecting what the others owe us and in terms of paying our obligations as required by the business, and we work with very complex claims. And this also indicates the massive compliance that our customers have with the IRB services, which has made possible for the company to invest in innovation for the businesses that we decided to keep and also to generate new businesses as you're going to see next.
But the main information here is after 4 quarters without generating cash, and this was one of the observations made in the near past, that the company didn't generate any cash, and this was one of the objections that people had to us, and now, in just 6 months of work of the new management, the company started generating cash, or 9 months.
Overall, we have reached this situation and we are more efficient in cash management. The number in itself is not so important. What is most important is that the company, as it started generating cash, it automatically demonstrates its financial health to meet its obligations, to have provisions, to keep compliance with regulation requirements.
Now moving to Slide #4. We are briefly going to cover, and Guerra is going to give you more details further ahead about this, we have our position on the 30th of June. So this is important. The company was even with a lower limit of solvency as required in Brazil. And today, or rather, on the 31st of December, the company had a surplus. So the company has a solvency standard that is of the highest standard, even considering international standards. And this is the message of letter C here that you can see on Slide #4.
Now letter D, that talks about regulatory liquidity or the requirements, liquidity requirements. So we have a comparison from December 2018 to December 2020. And so we had 2019 and June '20. So very clearly, this process of making the company comply and attain regulatory sufficiency shows that we made a great effort and we invested a lot in terms of attaining this level from the company that was noncompliant in terms of reserves regarding the safety margin since the middle of 2019 and on the 31st of December, according to audited numbers.
This is part of our financial statements as you can see on the footnote here to facilitate the work of analysts. As part of our financial statements, we have presented BRL 0.5 billion of surplus. And after the safety margin, and we should always remember that the safety margin is related to liquidity and something that is set forth within the regulatory framework in the country. And so this is related to public solvency, and we did that last half of the year. And even in spite of that, and after that, the company had a surplus of BRL 167 million.
So I would like to take this moment to thank the IRB directors for their efforts. I'd like to thank our employees, the ones that trusted the organization so that we could reach this level of success in such a short amount of time.
Moving on to the next slide, and of course, we'll go into details on this. But letter E shows one of our key messages, which is that IRB now has the highest level of technical provisions that it ever had. We reached BRL 8.3 billion -- excuse me, I meant high liquidity financial assets, BRL 8.3 billion. This is our level of cash for the reinsurer. BRL 8.3 billion based on December 31 figures, which shows our cash capacity, our payment capacity, our quality and the liquidity of our financial assets.
Letter F, despite all the ambiguity that the company has had this year, as took place in all of the world and especially in the reinsurance world, for IRB, due to the circumstances and contingencies that the company has, the company remained resilient when it comes to the growth of our income. So despite all of the circumstances, our gross income grew by about 13% to BRL 9.5 billion, and of course, despite the re-underwriting effort in the second half of the year, which led to the cancellation of large premiums, which did not generate any margin at all or which actually removed margins from the company.
So this is why we have the re-underwriting effort. So these are businesses that exclude the effects of discontinued businesses. But nonetheless, and this is a surprise, we managed to grow 13% last year.
Next slide. Slide 6 shows that at the same time we did that, we managed to implement a major restructuring process. And this is not only an intention; this is something that we actually carried out. Despite all of the ambiguities of the current moment for the situation, it is very difficult to implement such a broad plan. And it included governance improvements, so we restructured our executive directors. We expanded and changed the Board. We completely restructured the support committees. We now have 5 high-level committees, which are 100% made up of outside members who are independent from the organization.
We completely reviewed the company's bylaws. All of the company's policies have been reviewed. Our main internal controls have been reviewed. The main price governance aspects as well as underwriting policy application controls have been reviewed. Different roles have been segregated in our structure to minimize the concentration of power as we had in the past. And we also remade our Ombudsman and whistle blowing channels with -- following the best practices in the market. So we also implemented our re-underwriting strategy for the company, which means re-underwriting the risks in our portfolio.
So many decisions have been made at the close of the contracts. And this is what we call CFG, or clean, fix and grow, meaning that we are cleaning and fixing in order to grow. And our aim is to grow with profits. We started with a global leader, who you know but due to the confidentiality contract, we cannot name, a leading global consultancy company who is now working with the company's management, and that means both the management and the Board, and they are helping us in creating middle-term strategy for the company. The short-term strategy has already been defined, and we have been implementing what we had set. So the idea of this consultancy is to support us in defining, well, basically the priorities for our regional print. So where does the company work?
As a reminder, I'd like to make a comparison to a house. If IRB was a house, the inside is our own company. The backyard is the Latin American part of IRB. And the condominium, that is whatever is contiguous to the backyard, is our global market.
So the big effort that we're making with this consultancy company is to get data and strategical information so that we can reflect through workshops in order to be able to make decisions about how we want the inside of the house to be like, what we're going to have in our backyard.
First, it needs to be mowed. We need to have some good grass, but maybe we can also have a pool and a gazebo. And we want to continue the contiguous part of the backyard. And this is all done through a continuous reflection with our strategical services. And this is the first pillar, business segments. And the third pillar is looking at the client's point of view.
So all of these aspects include efficiency in administrative costs. We are often thinking about how we can make the company more efficient or how we can keep it in our excellent levels and making inferences about the future.
Naturally, we also contracted a strategical consultancy company that is cutting edge. They're a branding consultancy company working in Brazil and abroad. It's a Brazilian company. It's a different consultancy. The first one is a global leader, but this one is Brazilian. And they are working with branding. They're one of the best in Brazil, but they also work abroad, in France, for example. And they're helping us with our image, with our visual brand and helping us to create an image based on the spirit and the new culture that we are creating in the company, in IRB.
Continuing with the next page, I now will give the floor to Isabel, our VP, who will discuss Slide #7.
[Interpreted] Thank you, Cassio. Good morning, everyone. Well, Slide 7 discusses briefly what the renewal process was like. Here, we're talking about 2021. So this is one of the most important contract renewal dates for any reinsurance company. We have January 1, May 1 and July 1. And last July, we were not able to follow this plan so closely. So this was the first milestone. Underwriting could have a deep effect to clean our portfolio and to make it better somehow.
So within this re-underwriting strategy, we had to cancel, of course, a part of our premium. We canceled 11% of our portfolio because we knew that we would not be able to adjust the terms and conditions for these specific contracts. In a different part of the portfolio, we identified some target contracts to be renewed, and we started working -- following in the steps of the market.
As we discussed in our last call, we -- well, the entire market is actually in a hard market process, meaning that terms and conditions are becoming harder. And of course, we have higher fees in different segments. So we knew that through this renewal, we needed to be -- we could not support 100% of our target contracts if we were so hard.
So we had very positive renegotiations in January 1 because even by restructuring our portfolio and changing our fees, we were able to renew 87% of the target contracts. And as with any renewal, we also captured some new businesses, which we felt fit into our appetite, and these new contracts represented around 13%. So what we ended up canceling somehow was offset by some new contracts, but we have to highlight that much of what we canceled, just as in July last year, were proportional contracts. Proportional contracts have a high premium level. And they, of course, were canceled because they were not profitable to the company.
But this business discontinuation, of course, brought an impact to our January 1 premium, which was reduced. But the most important thing is that, of course, this was done to clean our portfolio and to bring us better profits. So this was definitely positive in the end, and we're very happy about the renewals.
Of course, we have to remind you that this will not have immediate impact, but it will be throughout the year. And this continues the movement. We started it with our contract renewal program last year. So it's that allusion to the backyard pool. These results are going to bring positive effects throughout 2021.
Now I'd like to give the floor to Guerra, who's going to tell us about credibility.
[Interpreted] Good morning, everyone. I'm on Slide 8. And there are a couple of very important words here for our story, as Cassio said at the beginning of the presentation. The first has to do with credibility and also trust.
So there's a list here of 5 events that show our capacity to generate trust for the stakeholders which allowed us to raise BRL 4.8 billion in 4 months, in a short span of time. It was a significant value. And this was not concentrated only on stakeholders. So along with our shareholders, we raised BRL 2.3 billion without a significant share dilution.
[Interpreted] It's a marginal dilution actually.
[Interpreted] Yes, that's right. And with the capital markets, we were able to, for the first time, issue debentures. And we actually issued 2 debentures with a total of BRL 827 million, showing that the market believes the company. So they gave us a vote of confidence in investing these debentures. So commercial partners that believe on the strength of IRB have made it possible for us to have many restructuring operations, and this has been very important.
And there are some other operations. The total BRL 600 million that are related to an exercise we conducted inside the company as capital reduction with some controlled companies, anticipation or payout of dividends of subsidiary companies. And here, we also contemplate the agreement that we signed as part of our lawsuit that even though it's not part of cash, it's in the phase of being approved by court but it's already certain.
And so I think that, as importantly, that didn't mean the entry of cash or inflow of cash, but demonstrated trust was the rating classification of important rating agencies. So we have -- they have all kept our ratings at a very good level for the company, demonstrating their trust and confidence in the future of our company and in the capacity of this management.
And the specific rating in order to back up the issuance of our debentures and has kept us at a very good level, at the highest level of trust.
So everything taken together demonstrate an incredible success of the company. And now I would like to give the conference over to Süffert.
[Interpreted] So we are talking about 6 months. It's in a period of 6 months the company has raised BRL 4.8 billion. So many times, we talked about credibility, that the company has lost credibility. Of course, in some industries, we'll need to win back credibility. But in working with those stakeholders, the main evidence that the company has kept very high credibility and efficiency, and this is translated in the numbers that we are presenting to you.
So here, we have the equity equivalents through operations that 6 months ago many people regarded impossible. And people were even joking and we -- people joked about us, and they thought that we were stalling or maybe we were making promises that we couldn't meet.
And the first one was very -- the surprising gain of capital. And reference shareholders have allocated proportionately to their stakes they have invested in the company. So our shareholders, we have more than 300,000 shareholders, they came in a process that was absolutely compliant with the market conditions and compliant with the market rules to earn -- for the surprising subscription that took place in less than 60 days from the date of its launch until we completed the operation.
And then debentures, as to debentures, this is the very first time ever that a reinsurance company in Brazil has launched debentures in the capitals market. So really, in fact, this is work that has been conducted by the company's management, especially our financial department, along with other executive officers. And this was really surprising work. We counted on the support of our advisers. And in fact, we were able to launch bonds at a very, very reasonable level and a very good amount.
And the 2 next items, the 2 following items, I have heard sometimes people joking about it. And when we hear about it, we feel bad, and it hurts: so you're going to swap assets; that's impossible. You can't do it. Well, we managed to do it. We managed to swap unregulated for regulated assets amounting to BRL 581 million. And with the technical capacity of our company to structure together with our business partners both global and local, we had sophisticated structured operations to release regulated liabilities, which are the so-called LPT operations.
So everything taken together make it -- makes it possible for us to effectively feel or have the feeling that we have fulfilled our duty in a very short span of time to achieve regulation compliance, which was our main goal for the second half of the year.
Now I would like to turn it over to Werner, who's going to talk about Slide #9.
[Interpreted] So good morning, everyone. Now on Slide #9. Of course, as Cassio and Guerra said, so with -- they demonstrated lots of evidence about the company's credibility, but we still have some goals to attain regarding credibility, especially with regards to the position that we used to have until the 31st of December of noncompliance with regulations, which has been solved on December 31.
Now we are fully compliant in terms of sufficiency of liquidity and technical provisions. So this new scenario of coverage of sufficiency of liquidity makes it possible for us to, once again, see credibility of important segments.
For a segment that's as important as IRB and the banking industry for credit and everything that is related to our foreign guarantees that have also been affected by the pandemic, which has affected the market as a whole, but of course, IRB suffered with credibility during 2019 that -- as the rest of the market.
As to regulation compliance, once again, we can try and find space of credit lines, both in Brazil and internationally. Also, in the capitals market, this is a daily challenge. It's a challenge of transparency, a challenge of transparency in delivering results of applying our strategy and translating that into numbers.
And as Cassio said, this started, as Cassio said, and we are continuing it, and we want companies to support our management in this challenge. And as I should point out, in addition to us having the work of recovering credibility in the capitals market, in 2021, we also have the duty of starting to defining the direction in terms of the midterm results of the company, so much so that the companies want to disclose to the market and to publish a guidance that is going to be published after our shareholders' meeting. And right after our shareholders' meeting, the company is going to publish a guidance to the market in order to have a more clear communication with the market.
Now moving to Slide #11.
[Interpreted] So before going to Slide #11, we should summarize. Of the 7 main stakeholders, of 7 main sectors of credibility, for 5 of them, we may say that we have met to keep or win back those industries.
One, we are in a clear process of recovery, which is regarding our partners, international banking institutions. And with regards of the volatility of our assets in terms of what we have in the stock exchange, we have started working in a much more consistent way as we started on July 1 to clean up the company with great transparency in the pursuit of sustainable results, which enables us after we hired the consulting services.
And as we go further and get more knowledge in terms of the company's contract portfolio and we have built knowledge along these 7 months, we are able to make the commitment that after the shareholders' meeting, the company will publish a guidance for the year of 2021 for the rest of the year.
And I like to work with a slightly longer time horizon. If possible, I would like to have a guidance covering the whole term of my office, which is biannual.
Now moving to the next page, and we are on Page 11. And before starting talking about Page 11, I would like you to jump forward to Page 12. And on Page 12, you can see where we are coming from in June. So a robust company with BRL 19.6 billion assets and with solidity on the limit. If you look at letters E and F comparing the minimum required capital is the company that -- the capital that the company had for solvency back then.
So the company had a solvency or a solidity that ask on the lower limit of the regulation requirements. And regulatory liquidity and the coverage of reserves was compromised. If you compare B2 to age or if you sum B2 with F1 and you deduct H. So when you do the math, you can see that the company, even though it had a significant cash position back then, from the standpoint of regulation, it was not -- it didn't have sufficiency.
And now going back to Page 11, and you can compare the situation that we have now, what we had and what we achieved on the 31st of December. If we compare the 30th of June and the 31st of December, so the same company on the 30th of June, already had a robustness of assets. So we went from BRL 19.6 billion to BRL 22.7 billion in assets. It's very solid. We went from a net equity -- regulation equity from BRL 1.60 billion to BRL 4.6 billion. It grew a lot very significantly. And also, in terms of cash, it grew twofold. It doubled twice in a half. So absolutely liquid. BRL 8.3 billion in cash, which indicates major liquidity of the company and it equates the major quality of our financials on the 31st of December. And all the work that we've been doing in terms of cleaning up the company and our financials, that is a reflection of the swaps that we had that we mentioned shortly ago.
Now if you move to Page 13, you can see all our index's total solvency of 226%, already considering the runoffs and the write-offs that we had. All the cancellations, regulation solvency already considering all the cancellations, we had 167%; cash over total equity of almost 200%; cash over adjusted equity, 260%. And someone might say, well, we went down. Yes, it was very low. But we had an equity that is much bigger. And the cash is also much bigger.
And lastly, cash over capital requirement that grew fourfold with a growth of 441% and a gain of regulation liquidity that we attained compliance successfully in this moment.
Now I give the floor back to Werner, and thank you very much, and I'll come back afterwards.
[Interpreted] So continuing on Slide 15 -- actually, on Slide 14, we have some concepts and definitions that are very important for you. And they explain our results, so we just want to make it very clear, and we listed these terms in the presentation itself.
So I'd like to call your attention to some one-off impacts. Some of them are LPT operations, which obviously suffer an impact that do not repeat. And this is due to a reduction in the earned premium on one side and on the other side, expenses with claims. So that's why we have this reduction and it excludes the impact of LPT operations when we look at one-off effects, so that we can see a normalized result that yet deducting nonrecurring operations.
The second is provisioning in the operational portfolio. This also created an impact for this quarter's results. But again, it's not a recurring event. And this is explained in our statements and in our performance analysis in detail.
A third effect is related to the Proper Norte amount -- Eletronorte agreement impact, which generated a loss and this, again, is not a recurring value. So we separated it to make our statements more transparent.
There's also a fourth effect of a restatement of a judicial credit amount impact, which had a positive impact to our result and is also nonrecurring. So in order to be transparent, we also separated this positive effect.
And finally, we have some effects from the deferred tax assets from the London office, both in financial and real estate investments and also in earnings before tax. So this was also separated because this is a one-off event.
[Interpreted] It's important to make this very clear, what are the one-off effects, so we separated that and the description for these effects are in our performance analysis as well as our financial statements.
It's important to note one thing here. The 5 one-off events, out of them, 3 do not have any cash impact, which are the Eletronorte agreement. It's a simple accounting listing of that value. The restatement of the judicial credit also has no cash impact. And the impairment also had no cash effect.
[Interpreted] So IRB is reinforcing its best practices and LPT taxes are pure cash. So out of the BRL 600 million, we can infer that only about 18% to 20% have a cash impact. And it has been recorded and taken into account. The rest is simply accounting matters or economic matters, you can select the term you prefer. But basically, there are noncash effects.
Just to go into detail about the Eletronorte effect. There are 2 moments here: There was a 2020 effect when it was reassessed; and the expected effect, which we have also described in our explanations, which is a cash release due to asset swaps, cash asset swaps, so that we can use guaranteeing assets and reinforce our regulatory liquidity.
[Interpreted] And it's BRL 307 million, which, at some point, in February or possibly in March. So the cash of these resources, as Werner said, will be used to reinforce our sufficiency, our regulatory liquidity in 2021.
[Interpreted] Continuing with Slide 15. I'd just like to highlight the normalized net income of a negative BRL 19 million, which shows that our operation has broken even. This is not even counting the runoff effects, which would take us to BRL 190 million. So in the fourth quarter, we can already start seeing a very positive trend in the company's results and the profits from the continued business continuing to increase.
Continuing on Slide 16. Here, we are also showing how the first half of 2021 (sic) [ 2020 ] and the second half of 2020 have normalized our runoff income. So it's positive in the second half, nearly BRL 200 million versus the effect in the first half of 2020, which had suffered a major impact. So this turnaround is also very important to show how, in this half, the company's results have already improved. That is, our results have already become stable in the continued business lines, which provides us a very -- with a very positive projection for 2021 forward.
[Interpreted] And this reinforces what I mentioned in the first slides about our cash. What we're seeing here, the run-on impact is supported by very similar volumes to the company's operational cash generation.
[Interpreted] We're now going to continue. Guerra will tell us about Slide 18.
[Interpreted] And just one thing before we continue. Someone asked about Slide 15 and what is a cash impact and what isn't a cash impact here? Apparently, there was a disconnection there. And Vitor Alves is asking us to repeat what we said.
So out of the 5 one-off items here, accounting one-offs, the only one that has a cash impact and has already impacted in December is items B and C, which amount to about BRL 100 million. So BRL 100 million are economic impact and BRL 500 million are just cleaning the accounting balance with no cash impact right now.
But it's important to note what Werner said. When it comes to Eletronorte, what we have here is an accounting impairment. So Eletronorte is BRL 70 million above the agreement that we had and carried out and documented and formalized with Eletronorte. So from Eletronorte, we will receive, at some point, as soon as this is approved by the courts, which is basically only a procedure, we will receive BRL 307 million net with our retrocessionaires.
This BRL 307 million, which should come in at some point this month or in March, will help our cash to be reinforced and will increase our surplus sufficiency and our technical provisions. So it will be a permanent addition to the company.
[Interpreted] Okay. So now Guerra will tell us about our corporate solvency continuing from Slide 18.
[Interpreted] Thank you, Werner. Actually, we're going to go into some detail about solvency, and this has been said before. We are at the highest standard of reinsurance solvency. Just as a reminder, the company's capital based on the current regulations needs to be the highest than the base capital, which is very low, BRL 60 million, or risk capital, which is a sum of all the values given to each risk class as we see here in the graph.
So we have from underwriting risk, which is calculated to BRL 1.5 billion. And we add or deduct according to the standard for each risk, each one. So credit risk gives us an additional BRL 500 million; operational risk, BRL 100 million; market risk, BRL 200 million; and because of the risk diversification benefit, we have a reduction of BRL 200 million, which takes us to our minimum capital requirement used by SUSEP, which is BRL 1.9 billion.
So in order to have that minimum capital requirement, we have our shareholders' equity, which gives us 2 point -- excuse me, BRL 1.2 billion in excess, or 226%, which is quite comfortable. But based on the current regulation, we have to disregard some assets which are not guaranteeing. So we deduct from this value an amount so that they can be used as eligible solvency assets. And the adjusted shareholders' equity goes to BRL 3.1 billion, which gives us BRL 1.2 billion in excess or 170 -- excuse me, 67% in regulatory solvency. So this shows that we reached a very comfortable level of solvency for our operations, this is the indicator that shows that the company has enough equity to continue its operations.
I think that's all, and now I'll pass it on to Toneto, who will discuss the next slide.
[Interpreted] Good morning, everyone. We're on Slide 19. So I'll refer back to what Cassio has said on our regulatory liquidity compliance just to reinforce some points.
This is a requirement that we received in mid-2020. So we actually saw that we were noncompliant to this obligation since 2019. The amount was BRL 1.4 billion. And the peak was in June 2020, and it reached BRL 3.4 billion in regulatory noncompliance. In September, it went down to BRL 2 billion. And as we announced in December, we overcame this issue. And our compliance was over BRL 167 million.
So the main plans have already been mentioned. So far, we mentioned a capital increase, debentures, retrocession operation. So we basically transferred some liabilities that the company had and they were transferred to retrocessionaires and also the swaps we mentioned before. These were the main plans for our contingency. And they were carried out along with other actions that we presented to the regulatory agencies so that we could pass this on so that we could become compliant.
And so here, we are going to explain you in a more directive way how is this compliance with regulations. So on the last column, we have the total of our technical provisions, which are the obligations that we need to meet and to book for our customers as a result of our operations that they totaled in December, BRL 13.5 billion.
So on the other hand, we need to have a set of assets that are available to provide these guarantees. And also because of the joint regulation of assets, that will reduce this need. So the chart on the right, you can see the retrocession assets, BRL 5.2 billion. And then we have credit rights, which will reduce the need for technical provisions, BRL 7.5 billion are the assets available to provide this guarantee. All that taken together, we have reached BRL 14.1 billion in terms of elected and reduction assets totaling more than BRL 500 million in terms of our need to comply with the technical provisions. I would like to remind you that this has been the main driver for the initial inspection going on for a while now.
And we have our Regulation agency, SUSEP that has followed up the whole compliance plan defined by management. So we have a surplus greater than BRL 500 million in terms of the regulatory compliance with regards to technical provisions.
As I said before, there's a safety margin. If we move to slide #21, that is defined by the Brazilian law, our safety margin today is more than BRL 375 million, which must also be covered by eligible assets. And if we take this additional need into account, the coverage and the surplus that was BRL 583 million -- or BRL 543 million, better saying, is BRL 367 million. So in terms of provisions, technical provisions, and also thinking of the safety margin, we have reached compliance with the law in effect.
In addition to the assets, we have a set of other assets also related to liquidity that are not eligible right now. And so right now, we are working to get to those swaps or to find solutions so in order to expand the compliance margin. So we have a set of complementary actions going on that will assure the sustainability of our compliance.
So I think this is all and I give the floor back to Werner to complete with the executive summary on Page 23.
[Interpreted] Now going into the executive summary, slightly more quickly because we have very long working and then breaking down all the results in the half year and annual vision. So I am going to talk about it.
On Slide #23, you can see the performance of the company and the quarter. In terms of written premium, we were down by 0.9%, a drop of 13.6% in Brazil and 15.5% internationally. Year-to-date numbers, written premiums have grown 12.7% as compared to 2019, and Brazil premiums were stable with the growth with 1% up and 28% up overseas.
In terms of earned premium, looking at 2020, earned premiums went down by 43.8% in Q4 '20 as compared to Q4 '19 and practically stable as compared to 2019. It also excludes the LPT effect in terms of earned premiums in 2020. So if we deducted LPT, the growth would be 7.1% as compared to 2019.
In terms of loss ratio, if we see continued businesses run-on, ex one-off items, Q4, the loss ratio of our businesses was 74.6%, going back to normal levels as we have said before here.
In terms of acquisition costs, so excluding one-off, it is 22.4% in Q4, in line with historical numbers of the company, around 20%.
In terms of admin expenses, so it's expenses over premiums earned, so we had 9.3%; in year-to-date numbers, 5.5%, also impacted by LPT operations. If we exclude those effects in year we wouldn't have in the quarter, rather, we would have 4.9%, which is very much in line with our historical levels. And for the year, as a whole, we would have 20 -- sorry, 4.6% for 2020.
In terms of equity and financial result, we had BRL 47.8 million for the quarter; and for the year, BRL 188.5 million.
Now moving to Slide #24, you can see our main indicators, the main indicators for the company. We have the combined index. And when we look at the continued businesses, excluding runoffs, in the fourth quarter, we get to 102.1%, as you can see on the table in the middle of the slide, 102.1% already normalizes 132.5%, and this is close to the industry in the year, which was a difficult year and also in the fourth quarter.
Now talking about the evolution of technical provisions, as we've been saying in our most recent statement, we tried to make them, our technical provisions, comply in the right way. So we had a growth of 30%, going from BRL 10.4 billion provision that we had in December '19 to BRL 13.5 billion in the end of 2020. And as we have said before in this presentation, too, we have had a quite significant growth in our investment balance getting to BRL 8.3 billion as compared to BRL 4.5 billion in December 2019, an increase of 84.5%.
And so we are going to talk about the impact. And this has been mentioned before by my colleagues, by Cassio. So just for the record, so we have a result close to '19 as the normalized after the run-on for the quarter. And here, in the annual vision, on the right, this is important, and all the efforts that the management made, we got to a net result of BRL 195 million. And so this is the normalized run-on net revenue. So we take the runoff, we discount it.
Now going to Slide #26. On Slide 26, you can see the evolution of our technical provisions. And here, you can see, as we have mentioned before, growth of almost 30% in our technical provisions. And you see that there was a drop in the last quarter of the year because of the LPT going from BRL 14.5 billion to BRL 13.5 billion at December 2020.
And last, talking about our financial assets, we need to make it clear because of the stress that we had, our debenture holders and the new shareholders, the company has been able to issue many bonds. We went from BRL 4.5 billion assets in December 2019 to BRL 8.3 billion in December '20. And we had a significant cash increase for the company in the year of 2020.
Now we'll give the floor back to Cassio for his closing remarks.
[Interpreted] Well as to everything that we said, on Page 28, in the second half of the year, so if we look at the second quarter, according to our own assessment, so there's an item here, you see that we have met almost all items. Our focus on ESG and ERM, we're okay with that. We met that. Goes -- going further into our CFG business strategy and disclosure of our ongoing businesses and discontinued businesses, this was very hard work for us. So we had a deficit in July, and this was influenced by the runoff of our canceled accounts. And here, this is yellow because we are taking on the blame. This is a mea culpa because we expected that we would have reached breakeven. So although the trend was correct, it was not as good as we had initially expected. So there was a slight setback here, so to speak, or rather, a delay in our expectations in our goals.
So that so, August was -- the deficit was smaller than it was in July. In September, if there was no abnormal claims, we are very close to breakeven, but it went further on. We postponed it a little bit. But in summary, the quarter, with deficit tending towards 0, and with runoff of BRL 210 million, run-on, BRL 119 million, so the difference was BRL 20 million. So we almost reached breakeven on the second quarter. And looking in our business, including all our operations, both run-on and runoff, we got very close to 0, those BRL 19 million that we said before. So we completed.
So we implementation (sic) [ implemented ] the new managerial structure in the company. So we were able to do that. We succeeded in doing that.
As our promises, for the third quarter, the compliance with the regulatory liquidity, we met that. So as my colleague said before, compliance with the coverage of technical provisions, okay with that. Stability of results, if there were no abnormal events, we said that before.
And then we went further in the strategy for the 3-year period, '21, '23. We are evolving on that.
So a strategic state-of-the-art international consultant company is helping us also in terms of smart working. And when we brought the provisions, we thought that going back to work -- so we expected that people would be going back to working in the offices, in the company's facilities, we expected that to take place earlier on. But unfortunately, the COVID crisis in Brazil went on. So we need to continue the smart working or home office system with people working at home. But in any way, this is done almost by osmosis, so to speak. And the smart working is a new reality, a new normal.
So in this manner, I'm going to close my presentation. And now we are open and available. All executive officers are available to answer any questions that you may ask. Thank you very much.
[Interpreted] [Operator Instructions] Tamyris Cardoso, an individual will ask the first question.
[Interpreted] I'll be very straightforward and quick because I think we want to hear you, as shareholders, what we really want to know. Are you remaining in the company in 2021, Mr. CEO?
And London, is it opening or not? And if it reopens, why do you have low tax credits? Is that an indication?
My third question is, if we can think about profits for the quarter for 2021.
[Interpreted] Tamyris, sorry, so you had asked about income; London; and about me, right? Okay. So to answer your first question about me, since I have 2 roles in the company, one of them as the Chairman of the Board, it depends on a confirmation that we are expecting from the union. As the CEO, we depend on a confirmation from the Board, which should happen in the next month. Honestly, I will probably be offered one of the positions by the company.
Of course, I also have my own personal decisions. So the commitment I had taken, the commitment I made myself, a personal commitment, was to -- and of course, this was not a commitment that I took when I joined the company, but a commitment I made after a couple of months when we saw the size of the problem that we had to face. So the commitment I made, and I'm speaking here especially on behalf of Werner and my other colleagues, the commitment was to deliver what we are delivering now, regulatory compliance, which took a supernatural effort, so to say. And it was very ambiguous because considering the market conditions, considering the problems the company was facing and still is facing in several of its sectors, especially related to credibility, and to raise BRL 4.8 billion in 6 months, if you had asked me 10 months ago, if I would be able to do it, my answer might have been no.
So it's like they say in the U.S., they didn't know it was impossible, so they went ahead and did it. So I think that answers your first question. But I do believe that in the next weeks, we'll come to a common denominator with the company and we'll announce a decision.
Of course, every decision has its implications. I also have to consider my personal life and all the stress and how many years of my life I've lost in the last 6 months because of this effort we made. So how many years of my life did I lose because of the stress I had during this last quarter, which extended even to the holidays. But I do thank you for your question and your concern about me and the company, of course, when you're asking about this.
And when it comes to London, what happens is we requested an assessment, and we had a deep reflection. We hired a company, which is not strategical in nature, a global leader in taxes and business strategy, especially here for our market, to analyze the possibility of transferring all international operations to our London office, making London the company's international hub. So when we did that, we came to the conclusion that it would require a lot of capital from Brazil to be used abroad. So if our main market, as we said initially is Brazil, if the backyard is Latin America, displacing this amount of resources to London and forgetting about the local market would not be responsible.
And the second thing is if we were to displace this amount of capital, there are some better opportunities from the regulatory point of view. [Technical Difficulty]
[Interpreted] Please hold. We will continue soon. Ladies and gentlemen, please hold. We will continue soon.
[Interpreted] So with that, I believe that answers your second question.
And about returning to make a profit, we believe that this will happen in 2021. We'll be in full steam between 2022 and 2023 because we continue our cleanup, but the company is presenting clear recovery signs.
I had mentioned to Werner when we had a call with journalists, with the press, that we intend to present a guidance, which can be light, but it may not be, right after the next general assembly, which will be in late March. And we will present the company's figures for 2020. We will feel more comfortable because we'll know how the Board and the management will look like. And we'll have a guidance based on what the management, right, our executive directors, believe about the short-term future for the company and also for the middle-term future.
In the morning, we had also mentioned how we -- what we can expect from the next years. I think about the top line will be very similar in 2018. In terms of results, if we reduce the interest rate effects and negative effects of that reduction in interest rates, which influenced 2017 to 2018, the positive effects were there. And after that, we only saw the negative effects. So if we normalize interest rates in 2017 and 2018, and if we disregard the devaluation we suffered, the major foreign exchange impacts that we suffered in 2020, we might find -- interest rates dropped significantly in the last years and foreign exchange went up significantly. So if we consider these 2 factors, we believe that the company's performance will be much better. Much better than it was in 2020, and it's growing.
The cleanup process in the company, it's like a pool being cleaned. So when you have a contract, it still has a tail. What does that mean? It's the time between the notice for the claim and how that notice is accounted for and received by us. When you cancel a contract, it still has a couple of months depending on the level of activity. In IRB, our operations don't have very long tails. They are usually short or very short. So even though we have the run-off effect, it's going to be increasingly offset and balanced by the run-on effects, up to the point in which run-on overcomes it. So we already see a clear trend in that direction. So I believe that answers your third question too. Thank you.
Tamyris, I've heard that when I was talking about London, the Internet was down. So the thing about London is much more for future administrations at IRB do not carry the burden. Why do we say a burden? Because once we conducted a strategic tax assessment of that aspect, we came to the conclusion in order to use it, we would need to transfer loads of money from Brazil to London. So something that would be completely unfavorable to concentrate international operations over there and to use the credit, meaning the benefit that the transfer of assets from Brazil to overseas, so the benefit that would generate the tax credit would be very harmful that would mean the transfer of capital from Brazil to abroad without the compensation in our local capital. So this is one thing.
The other thing, how competitive is London as compared to other markets? So when we assess that, we compare to other markets in the world, for example, the Bermudas, there's an issue of labor. So when we talk about our London office, it's not really an office. It's -- we call it office, but it's a company. It's like having a fully instituted incorporated company, and this company has run-off operations there. And as part of its assets, including the local income tax, we have tax credits that never mature or expire. According to the British law, they don't expect that credit to expire, so it is a life-long asset. So if we sell our operation in London to a third party, there is an economic value, which is a percentage of the benefit that it would generate. So the benefit -- the economic benefit will not be lost and the company is not giving up the economic benefit. But if, in the future, once we prioritize and we decide to close or sell our London operations, we have an asset there that will be booked -- that will be valued at the time of sale.
So once again, once we write it off our financial statements, so it is prudent, and it's in compliance with accounting principles in terms of being very conservative with the accounting practices as a reinsurance company should be based on absolutely clean and transparent financials. And more than that, because we are a corporation, so we need to be sure of what we are booking in terms of our assets. And we should also be sure of the size or amount of our assets. And this is what we have been doing, and we are doing that strictly ever since we have -- or rather, I have taken on the company.
[Interpreted] Our next question comes from Carlos Daltozo from Eleven International.
[Interpreted] I have a question regarding the noteworthy cleaning work that you have conducted in the company. And I would like to understand what are the next steps. What would be the main initiatives of this adjustment plan? What still needs to be done to bring the company up to a level of growth?
And the second question always -- also regarding the guidance, and I know you're still preparing it. But on Page 7 of your presentation, you say that -- and there is an underwriting strategy in terms of the renewal of contracts and a focus on profitability based on premium growth or increase. So can we infer that 2021 will be a year of drop in premiums of a smaller company, but going back to profit?
[Interpreted] Thank you for your question, Carlos. So when we talked about the third quarter, so when we have a re-underwriting process, it means that the company is willing to give up premiums, revenue; in terms of gross revenue, favoring profit. So what do we favor when we do this clearing up? So we are going to cancel contracts with very poor performance consistently, meaning the following: so everyone -- so naturally, for that to happen, and there is a time between the time when you cancel the contract and the time when the tail disappears from our books. So while there is the tail, there is a runoff. So once the tail disappears, automatically, the impact of that tail that was negative before becomes fully positive and absorbed into the bottom line.
So in terms of revenue that we had a guidance from the previous management, and when I came back from abroad to here, I was very surprised because no one defines guidance based on premiums written. So we may give a guidance in terms of earned premiums, but not written premiums. So when we talk about written premiums, you're stimulating management to bring in any premium for you to meet the guidance. So in the future, certainly, written premiums is not going to be a guidance for our company.
And the second part of your question was, what was it? So the cleaning process will be continuing from now on. It peaked in the last 6 months, and we completed it on January 1. That was the peak when practically everything that we had announced in the third quarter, we met everything.
We canceled the main life operations that did not provide very good results, especially the foreign ones, operations that had a combined rate above 20%. We also cancelled almost the entire portfolio of aviation. We did not renew the aviation portfolio. We stepped out from aviation pools, and we retained just a minor share in some pools where we had seen, along the last 3 or 4 years, good results. And also, we stepped down from properties, especially international property contracts that were detractors.
When compared to our local portfolios, it was preferable to give the insurance to someone in Brazil rather than to have underwriting abroad. Because they were so poor, so detractors that they were unknown, they were so negative that they offset the good results and the good loss ratios that we had in Brazil in terms of property. And then in our case, it's one area of specialty of IRB, and it could be much better.
So the work is surgical in terms of precision. Just to give you an idea, in this period of 6 months, between July 1 and January 1, we reviewed approximately 500 contracts, one by one. And those contracts have gone through a criteria. First of all, did they provide good margin? If they didn't have a good margin, they were blacklisted. Number two, if they provided good margin, does it pay the company's capital cost? Yes or no? Is the focus on the customer? Is it interesting for the company? Because I can't have just 1 business; I need to consider and to analyze all the businesses I have with that customer. If yes, it does, it pays, and so we retain in the portfolio. It doesn't pay, can we increase rates as we are in the hard market? As Isabel said very precisely, can we increase prices? And for us, this is no different. We worked to increase prices by 13%, 15%, so between 5% and 15% price increase in this period. So these are the key questions to be asked.
So what I can tell you for sure is the portfolio of the future will be better than our current portfolio. The current portfolio is way, way better than the portfolio that we had in the past. And once again, premium, premium revenues is not a guidance in the more developed markets anywhere in the world. But it is the recurrence of earned premiums a long time. And of course, we are going to have recurrent -- recurring earned premiums, we need to have good revenues. But the focus of the company can't be on just billing by billing, bringing contracts for the company as we can see with negative results.
[Interpreted] Carlos, there was a part of your question that we had a problem. We -- our Internet signal is kind of intermittent, but if I understood well, you said that in 2021, we would continue having the adjustments.
We need to make it clear that in terms of financial statements, regarding one-offs, we won't do that in 2021. We did this throughout the year of 2020, but we did that work during the year of 2020. But now we have a continue of the positive impact of our CFG strategy but not in other aspects related to our financial statements. I think that was cut because we had a drop on the Internet.
[Interpreted] I would like to ask a question about the life contract and the Chile contract of life insurance. You canceled it in 2020. So is it going to be excluded from your financials in 2021? Or does it have a longer tail?
[Interpreted] Just to make it clear. Any contract that you cancel, it has a tail. For life contracts that are -- this applies to Chile or any other market. What happens is that the only tail that remains for the future in a very, very short term, there is a tail of risks of death. Because there, we get a notice very shortly, 6 months, no more than that, in terms of death, there will be nothing that is significant in the future.
Now disability is slightly longer. So the advantage of disability is that compared to death it's much less in terms of quantity. So how does disability work? Our end customer, our end member, they go -- they have an insurance, life insurance, they go to the doctor. The doctor says that the person should go on a leave, a sick leave. And then they go back on month 2, 3, 4, until the doctor comes to the conclusion that person is disabled, can't go back to work. So meaning that, that disease or that accent -- or that accident, sorry, disabled that person permanently and the person becomes incapable of performing whatever they did before.
So this is related to the date when they went to the doctor rather than when the doctor defined the disability. So there are some disabilities that are going on that are being developed, but it takes a while. It takes a few months. So the tail is longer. But yes, there is a tail and that there may be some tail.
So I'm going to give the floor to Toneto.
[Interpreted] What Cassio said is absolutely right. Just a note, the IRB already estimates in its provisions in our financials, a quite reasonable estimate, so that we can assimilate the tail without any major impact in our financials. It's an estimate taking on, absorbing that tail. This is already booked in our financials.
So we have IBNR, and this is one of the highlights. So if you look, we have increased the IBNR, incurred but not reported, and this is important in our financials to assimilate possible future effects.
[Interpreted] Roberto Kurylenko, an individual investor will ask the next question.
[Interpreted] First, I'd like to congratulate you for complying to SUSEP. And also I'd like to mention that the return to the guidance will be very positive for the company in the future, so I was very happy to hear about that. I'd also like to congratulate you for your professionalism in conducting this matter. This goes to you, Cassio and your team and also the Investor Relations team. You dealt very well with all this turbulences we had in 2020, the COVID pandemic, the issues from previous administrations and so on. So everything that contributed to making this year into a very hard one and how professional you were in dealing with this problem with a lot of resilience. And now we can see the light at the end of the tunnel. We can see the results appearing.
And now I actually have 2 questions. The first is quite simple. I'd just like to get your view on how comfortable you feel about the new portfolio. And the second question, I know is a little complicated, but if you could give us a preview or an idea of what we can expect from January 2021, since you've already closed the numbers for that month.
[Interpreted] Thank you for your questions, Roberto. About January, you know that I can't give you any information. I'm sorry. Also, thank you very much about your -- for your words. We really do feel very grateful for people who understood the moment, who bought into our idea as a shareholder, as a debenture buyer, as a business partner, so everyone who bought into the idea behind the company and allowed us to have a deep clean for the company in such a short span of time. And we have to highlight that we work in an open sea to do this, right? So we did not get any push from anyone greater than what we received from people who had their interests in our hearts. So the only word we have is gratitude.
I have 2 competing feelings in me right now, so relief and gratitude. We're relieved by being compliant now. And all of the complications that could have happened if we had not resolved this issue and that includes individuals. So it does make us feel very relieved. It's that feeling of whew, I overcame a problem that I didn't even foresee; and also, gratitude, gratitude for people who supported us, who understood us. So as a shareholder, I'd like to thank you and all other shareholders who still believe in our company regardless of how many shares you own.
And I have to say, please continue believing in us. The company is recovering very clearly. And I'm absolutely sure that the future has a lot of space for us, a space in the sun, in Rio de Janeiro, right in front of the beach, that wonderful city of Rio de Janeiro.
So you had also asked if I'm comfortable with the run-on. With every day, and here I'm speaking as a regulator, every day, I feel more comfortable. The big challenge that we have is not trying to adjust more or less than what it will take for the company. So we have to calibrate our adjustments so that the company can continue progressing at a reasonable pace and also provide enough margin so that we can consistently pay for the company's costs and provide the spread that is expected in a company that is recovering.
So the main thing that the market will still value, and I think that this is going to happen in the future, is the effort we made in the beginning, right? Meaning reestablishing a company that is stronger than it was before, a company that's financially more robust with a much higher cash level. Our cash basically pays 2x the company's total shareholders' equity, right; 3x the regulatory equity, right; at least 5x the minimum capital requirement. In any part of the world, this would have already been captured. So when we talk about the share -- the price of the share and how we received up-pricing of 8x the shareholders' equity, it's the same market that punishes us now. And of course, there was, of course, the company, not me or this administration, but the company has to admit its own guilt, right? There were some problems in the previous management. And this is what led to the current crisis, but we're stepping out of it, and we have been stepping out of it for a long time. And the pessimism we see in part of our stakeholders and the capital market is, I know frustrating to you, and it's also frustrating to us. And whatever we can do to minimize these effects will be done, so much so that the company seems solid, and it already is. We've crossed this river, and I think we do deserve our place in the sun. Thank you.
[Interpreted] Our next question has been asked via webcast by Darlan Castilho Gomez, an individual investor. And he asks, "I'd like to know if there are still any other discontinued businesses that will impact the company's balance?"
[Interpreted] You had asked about skeletons. In the third quarter, we published the first balance, and we made it clear that there were no longer any skeletons. What happened with the December one-offs are not skeletons. They are conscious decisions by the management in conservative principles to not compromise the company's future results and to not leave anything in the balance that could have the possibility of becoming liquidity.
It's not that they are unlikely, but they're remote, right? And they are diluted over time. So according to our conservative accounting principles, following the best practices, which have been inspired by our regulatory framework in Brazil, following the best auditing practices and everything else, we decided to do what we believe to be right for the company. So there's nothing else that we can say.
As far as we know, as far as this company's management knows minimally, there are no skeletons regarding run-on and runoff. Whenever contracts are canceled, there's a runoff. Runoff in volumes, as I said, I think the main season was between -- for cancellations was between July 1, 2020, to January 1, 2021. This season corresponds to about 400 to 500 contracts that were reviewed in the company. And as Isabel said during her presentation, the contracts that we did not even renegotiate, the ones that we canceled immediately were placed in the runoff category. And the contracts that we decided to negotiate had an amazing efficiency of 87%. And the 13% we lost were offset with new accounts, which had already been raised in the standards of underwriting and results that the company expects.
So to answer your question, there is a run-off effect. And as I said, as time goes on, the run-on effects will replace the run-off effects so that run-off effects will sink to the bottom of the pool and then be purged. So I think that's the best way of imagining how it works and how we can answer your question. And I'd like to thank you for your question.
[Interpreted] We are now closing our questions-and-answer session. I would like to turn the conference over back to the company for their closing remarks. Please, you may go on.
[Interpreted] Well, before my final remarks, I would like to thank very, very much, everyone. And to say that everyone who have asked your questions and those who asked your questions on the website will have your questions answered by our Investor Relations team. So I would like to thank our international shareholders, there's a large number of you following us this morning here in Brazil listening to this conference call.
And I would like to confirm and emphasize that right now, our feeling is of relief, gratitude, satisfaction for the results that we have attained with the cleaning up of the economic financial situation of the company, the strengthening of the company's solvency and the regulatory compliance that we have attained, especially in terms of technical provisions and safety margins and additional liquidity margins of the company in a work that has been exceptional, and that was done in only 6 months.
So I would like to thank you all for participating, for joining us. And personally, I would like to use this opportunity to thank each and every one of my vice presidents who are here, President, and through them, the entire executive, managerial and operational staff of IRB for all the hard work at the company on these months and the very, very hard work that was done with all the ambiguity that we had to go through, that we are going through in the world with the COVID pandemic.
That being said, I would like to thank the Board of Directors, regulators, our suppliers, our shareholders especially for your resilience in sticking with us and following us. And I hope that, as I said, that better days will come consistently. And I would like to thank very -- especially our customers, my heartfelt thanks to our customers. We are proud and responsible for holding more than 30% of the Brazilian market and for holding something similar to that in the regional market. So this is because of the services, due to the trust of the technical staff that IRB inspires on the partners that have been with us for decades.
So my personal gratitude to all the group of investors of the company, major investors, medium investors and my love for the small investors and the -- we call small fish. And I hope that the management of this company in the future has good news to give to all of you. And I would like also to take the opportunity to apologize for anything.
[Interpreted] So the conference call for shareholders, investors and analysts of IRB has now ended. And we thank you all very much for your participation. Thank you for using Chorus Call Brazil and have a good day.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]