Message from the president
2014 was another successful year for Barents Re, as we completed the fifth year of our 5-year global strategy. Our clear and consistent focus in implementing our strategy enabled us to overcome the challenges we faced in many of our markets. There was modest economic growth in Europe. Elsewhere, we saw continued economic and sometimes, political uncertainty.
Selective premium growth, strong underwriting results, low operating expenses and capital gains enabled us to generate in 2014, a net profit of USD 34.6 million, up from USD 30.9 million in 2013, thereby strengthening further our financial security. Additionally, in June, Barents Re obtained an additional USD 40 million capital infusion from a fund managed by BiscayneAmericas Advisers, to support its international expansion, especially in Europe.
During 2014, we made progress in a number of areas that we have identified as critical to our future success. This included taking steps to enhance our Enterprise Risk Management framework and our Compliance standards to international levels. Further progress was made in increasing our geographic footprint by the opening of a representative office in Moscow.
Our international operations, spearheaded by our Underwriting hubs in Europe, and MENA continue to develop satisfactorily. Furthering our Hub expansion we are currently in the process of opening offices in Luxemburg and Milan, increasing our overall participation in the Euro Zone. In LATAM we made further progress in deleveraging our balance sheet on the risk side. This is now at its lowest point in Barents Re’s history. Our international activity is making a meaningful contribution to Barents Re premium base and geographic mix of business. Barents Re is close to achieving its goal of becoming a leading international specialty and niche reinsurer.
Gerardo Garcia G.