IRB-Brasil Re, the re-insurance monopoly, has received privatization approval from the Brazilian government.

Brazilian Finance Ministry was quoted by the Wall Street Journal as saying that, on a proposed capital increase, IRB’s shareholders will vote later marking the end of a restructuring program for the IRB.

The restructuring is intended to enhance efficiency for the company while ensuring its continued growth in the local re-insurance market, the finance ministry added.

Following the capital increase, the state-run bank Banco do Brasil SA (BBAS3.BR) and government, which currently holds 50% stake in IRB, will acquire a joint 48% stake in IRB.

In addition to Itau Unibanco SA (ITUB) with a 15% stake, Bradesco SA (BBD), Caixa Economica Federal will acquire a 20% and 3% stake in the company respectively.