top of page
Risk Management

Barents Re Reinsurance Company, Inc. (Cayman Islands) and its affiliate, Barents Reinsurance S.A. (Luxembourg) maintain a strong regulatory system.

Barents Re Reinsurance Company, Inc.
Barents Reinsurance S.A.

Barents Re is exposed to a variety of risks through the normal course of its business. These risks need to be effectively managed to ensure they do not impact the ability to achieve business objectives. Effective risk management is thus critical to the success of Barents Re.

Barents Re’s objectives in managing risks include:

​

  • Informing management decision making, improving transparency and accountability for risk though the organization through detailed risk reporting and effective risk governance.

  • Identifying opportunities where risk levels can be increased, in line with the risk appetite, to maximize rewards.

  • Enabling the quantification of solvency capital required to cover material risks to which the business is exposed to.

  • Embedding risk awareness to foster a risk culture across the business.

  • Identification of emerging risks such that the business can take appropriate actions to effectively manage
    these.

To achieve these objectives, Barents Re operates a comprehensive risk management framework and system of internal control. Through these processes, the senior management are informed of the most significant risks exposed to the business on an ongoing basis. Additionally, Barents Re has in place a system of governance which provides a structure for effective risk management. This is referred to as the three lines of defense, and it provides a clearly defined structure and allocation of risk responsibilities across the business functions.

 Barents Reinsurance S.A. is regulated by the CAA in Luxembourg, and Barents Reinsurance S.A. (London Branch) is also regulated by the FCA / PRA in the United Kingdom.

Below are the significant risks to which the business is currently exposed. It should be noted that in addition to these, the business is also exposed to emerging risks and uncertainties (i.e., climate change) which could adversely impact the business.

​

  • Insurance risk

  • Credit risk

  • Market risk

  • Liquidity risk

  • Operational risk

​

These risks are assessed through various risk processes which include the ORSA, risk appetite monitoring, stress and scenario testing and risk and control assessments. These processes are reviewed on an ongoing basis to ensure they remain appropriate for the business and risk profile.

Continue to the next section:

Risk Strategy

Our risk strategy, which is derived from Barents RE’s Business Strategy and Shareholder’s objectives, defines how far to extend our risk tolerance and appetite. The risk strategy is approved by the Board of Directors, and discussed with both the Audit, Risk and Compliance Committee and the Board of Directors.

 

We establish our risk strategy by setting risk tolerances and limits for various risk criteria. These criteria are based on our available capital and liquidity, as well as our business strategy, providing a framework for all the organization.

​

Risk and control self-assessments are conducted at least annually across all business areas to identify and evaluate significant operational risks, including those related to cybersecurity and compliance. All the corresponding area’s controls to mitigate these significant risks are also analyzed and evaluated. Significant control deficiencies are responded with improvement measures and monitoring. The main findings from these assessments and monitoring activities are reported to the Audit, Risk and Compliance Committee and the Board of Directors.

Emerging Risk Monitoring

Barents Re continues to identify, treat and monitor the principal current and emerging risks which could have a significant impact on our business operations and the markets in which we operate and the actions needed to mitigate these risks.

Risk Management Tools

We have implemented several risk assessment techniques within our framework that enable the continuous evaluation of these factors and new ones that may impact our organization:

​

  • Emerging risks analysis

  • Risk Register

  • Own Risk and Solvency Assessment (ORSA)

  • Business Continuity Plan (BCP).

  • Risk Policy

bottom of page