RISK MANAGEMENT
Consistent Operating Performance.
In 2025, risk management remained an integral part of our strategic planning, capital allocation and decision-making processes. Barents Re focused on strengthening the identification, assessment, monitoring and reporting of material and emerging risks, supported by oversight from Senior Management and the Board of Directors.
During this year, we continued to assess our risk profile through the ORSA, risk register updates, risk appetite monitoring, stochastic and sensitivity analyses, quantitative stress testing, reverse stress testing and qualitative emerging-risk assessments.
We continued monitoring and controlling exposures related to our markets including underwriting, actuarial and reserving, retrocession, credit, investment, liquidity, operational, cybersecurity, regulatory and emerging risks which following the application of mitigating controls, no residual risks were classified above our risk appetite.
Capital adequacy remains robust throughout the period. Base projections and all modeled stress scenarios, including the reverse stress test, maintained PCR coverage above 100%. No modeled scenario required an additional capital injection, highlighting our continuous strong capital position.
Barents Res risk mitigation initiatives include enhanced accumulation monitoring, conservative reserving practices, asset-liability management, cybersecurity controls, data governance improvements and continued human oversight of technology-supported decisions.
Overall, we remain strongly capitalized and positioned to withstand severe but plausible events while continuing to manage our exposures within established risk appetite and tolerance thresholds.