In 2014, Barents Re continued to achieve strong premium growth and healthy underwriting results, adding further to the strength of its balance sheet. As always, we kept a tight control on operating expenses. The overall impact was evidenced by net profits of USD 34,000,000 and an increase in the Company’s capital to almost USD 350,000,000.
The successful execution of our expansion strategy with its focus on specialty lines of business, coupled with rigorous risk selection, and geographic diversification was key to our success. The Barents Re brand is now well known and respected in our target segments. Our entrepreneurial culture, combined with an experienced management team, allows us to identify and respond to opportunities and attract top quality personnel.
During 2014, we devoted considerable resources to enhancing our Enterprise Risk Management capabilities and developing a robust Economic Capital Model.
Much of Barents Re’s activity is focused on emerging markets, which continues to experience strong non life insurance premium growth fueled by economic fundamentals and compulsory insurance. While insurance penetration remains low in most emerging markets, it is on the rise and we expect to develop from that growth.