The Bank of England's Prudential Regulation Authority (PRA) has fined Barents Reinsurance S.A., London Branch GBP 1,785,000 for failing to organise and control its affairs responsibly and effectively, alongside governance and regulatory reporting failings. The action is the first time the PRA has fined a firm operating purely as a reinsurer. The PRA found that between July 2021 and October 2023 Barents did not adequately prepare for the post-EU exit regulatory impact, did not implement certain Internal Audit recommendations in a timely way, lacked a system of governance proportionate to its operations, and had a business continuity plan that did not adequately account for its UK business. Weaknesses in reporting systems and structures also led to late submission of some required regulatory reports, resulting in breaches of Fundamental Rule 6, Conditions Governing Business Rules 2.3 and 2.6, and Reporting Rules 2.1 and 2.5. Cooperation and early admissions contributed to a 15% reduction in the penalty, and settlement produced a further 30% reduction, with the PRA noting the fine would otherwise have been GBP 2,550,000; Barents is in supervised run-off as of 31 October 2023 and is winding down its UK operations.
Bank of England 2025-07-28
Bank of England's Prudential Regulation Authority fines Barents Reinsurance London Branch GBP 1.785 million for governance and regulatory reporting failures
The Bank of England's Prudential Regulation Authority (PRA) fined Barents Reinsurance S.A., London Branch GBP 1,785,000 for governance and regulatory reporting failings, marking the first fine for a firm operating solely as a reinsurer. Barents failed to prepare for post-EU exit regulatory impacts and had inadequate governance and reporting systems, breaching several rules. Cooperation and early admissions reduced the penalty by 45%, with Barents now in supervised run-off, winding down its UK operations.