Barents Reinsurance S.A. (Barents) acknowledges the Final Notice issued by the Prudential Regulation Authority (PRA) with respect to certain governance and reporting relating to its London branch (now in supervised run-off) that took place between July 2021 and October 2023. This was during the period of the Temporary Permissions Regime (TPR) that governed the immediate post-Brexit transition. The issues identified were primarily administrative and governance related, and did not impact the financial stability, underwriting, or day-to-day operations of the firm.
While in the TPR, Barents continued to deliver effective governance and oversight via its Luxembourg Executive Committee, but the PRA found that it did not establish and embed its UK based Management Committee early enough, as was required under TPR Third Country Branch rules. In addition, the firm misunderstood a new reporting obligation in April 2022, compounded by a reporting filed two weeks late in 2023. At the time, Barents implemented a comprehensive remediation program, known as Project Horizon, to enhance its governance and reporting processes, which completed in late 2023.
The firm is reassured that the PRA did “not consider that the breaches were deliberate or reckless”, and that, save for the failure to submit regulatory reports, the breaches identified by the PRA, “did not result in any crystallised risk during the Relevant Period”.
“We take our regulatory obligations seriously and are dedicated to upholding the highest standards,” said Barents Reinsurance S.A.’s spokesperson. “The steps we’ve taken, including Project Horizon, reinforce our operational resilience and ensure we continue to meet regulatory expectations.”
The firm remains a robust and stable reinsurer, with its London Branch in Supervised Run-Off since 2023. Barents Reinsurance S.A. continues to thrive from its Luxembourg base, delivering innovative reinsurance solutions globally. The actions taken in response to the PRA’s feedback further strengthen the firm’s foundation for future success.