(Adds share price and Banco do Brasil)
By Carolina Mandl and Tatiana Bautzer
SAO PAULO, July 19 (Reuters) - The Brazilian government and state-controlled insurance company BB Seguros raised 7.4 billion reais ($1.99 billion) in a share offering by reinsurer IRB Brasil Resseguros SA, the company said on Friday.
IRB's secondary share offering is part of a wider effort by President Jair Bolsonaro's government to unload state-owned assets.
The reinsurer set its price per share at 88 reais in a secondary share offering late on Thursday.
The offering price had a roughly 2% discount compared to the market close on Thursday, as the reinsurer has been under pressure after the government and BB Seguros, two of IRB's largest shareholders, announced a month ago their intention to sell.
Shares in IRB fell as much as 2.5% in early trading on Friday, hitting a near four-month low of 87.79 reais.
State-controlled lender Banco do Brasil SA, which indirectly controls BB Seguros, said the sale will add 1.6 billion reais to its profit in the third quarter.
The investment banking units of Banco do Brasil SA , Bank of America, Banco Bradesco SA , Caixa Economica Federal, Citigroup, Itau Unibanco Holding SA and UBS Group AG managed the offering.
The additional IRB shares will start trading on Sao Paulo's B3 SA stock exchange on July 22.
Following the share offering, private-sector lenders Banco Bradesco SA and Itau Unibanco Holding SA will remain as major IRB shareholders, with a 15.2% stake each. They are not allowed to sell their shares for the next six months.
Earlier this year, a government fund managed by state bank Caixa Economica Federal also sold its 8.9% stake in IRB in a share offering.
($1 = 3.7376 reais) (Reporting by Carolina Mandl and Tatiana Bautzer; editing by Jason Neely, Chizu Nomiyama and Susan Thomas)