"We improved therefore our position in all of the key financial performance indicators. These were excellent results especially in light of the sluggish economic growth and political uncertainty in many of our markets, coupled with a competitive pricing environment for many of our core products," stated Gerardo GARCIA, President & CEO, in the annual report released by the company.
As a confirmation of the BARENTS Re's improving financial position, A.M. Best has upgraded in September 2015 its rating to 'A', with a Stable Outlook.
In December 2015 the reinsurer has obtained the regulatory approval from the Luxembourg insurance regulator to establish BARENTS Reinsurance S.A., a Luxembourg based subsidiary company aiming to become the reinsurer's vehicle to manage its international expansion.
As much of BARENTS Re's activity is focused on emerging markets, the growth in insurance premiums in many countries fueled by economic fundamentals, favorable demographics and the introduction or enforcement of compulsory insurance is very encouraging for its future development. While insurance penetration is still low in many emerging markets, it is however on the rise and BARENTS Re may benefit in the coming years.
Dmitry GARMASH, Ph.D., MBA, Head of Moscow Representative office of Barents Re, commented: "The 2015 results for Russia, the FSU and CEE territories, which are managed from our Moscow office with a focus on Property, Engineering and Energy, were solid and in line with the strategic plan adopted when the office was established in 2014.
"Despite the soft market environment and competitive pressures in both the primary insurance and reinsurance segments, we continued to penetrate the Russian, FSU and CEE territories and grew the GWP within these target territories along with maintaining a prudent underwriting approach and excellent loss ratio.
"The Russian, FSU and CEE territories remain an important part of Barents Re's wider international plans as we implement our strategy of achieving further profitable growth."
To resume the 2015 results, BARENTS Re achieved a GWP result of USD 220.5 million, maintaining a fairly even evolution as compared with 2014. Operating expenses reduced slightly compared to the previous year. The overall impact was evidenced by increased net profits of USD 34.8 million, retained earnings of USD 95.4 million and an increase in shareholders' equity to USD 382.1 million.
BARENTS Re is a leading independent reinsurance group. Established in 1996, the reinsurer has a well-established presence in Europe, the Middle East, Latin America, Asia and Africa. This translates into more than 600 reinsurance connections in 70 countries.
The company provides a wide range of niche and specialty reinsurance products to property and casualty insurers.