The Brazilian Supreme Federal Court (STF) has ruled in favor of the nation’s insurance and private pension sectors, granting significant tax relief by determining that the income generated by mandatory technical reserves is exempt from federal PIS and Cofins contributions. The decision, delivered this week, marks a major win for the industry and could cost the federal government up to R$5.3 billion in lost revenue over a five-year period, according to the 2026 Budget Guidelines Law (LDO).