Interview with Gerardo Garcia – Barents RE CEO

Barents Re is a leading independent reinsurance company with a well established presence in Europe, Latin America, the Middle East and Asia. The company offers a wide range of niches and specialized reinsurance products to property and casualty insurers.

Gerardo Garcia – BarentsRE CEO

The European spoke with the CEO of Barents Re, Gerardo García, about the specialized areas of the company and their plans for the future.

Gerardo Garcia: We established Barents Re in 1996; Over the past two decades, we have built a reputation as one of the leading and specialized reinsurers that has consistently delivered strong financial results. We are underwriters first and foremost. Our business culture, together with an experienced management team, allows us to identify and respond quickly to opportunities. The experience of our specialized underwriting teams and their knowledge of our markets, products and clients allows us to offer innovative solutions. We offer tailored products and services individually tailored to the needs of our customers.

In addition, our reputation means that we attract high quality staff from all over the world. Our people are the core of our business; It is your knowledge and experience that allows us to make the right decisions for our clients and for our business. Of course, we manage and have access to a large amount of data and tools that help us in our decision-making processes. But it is the ability to accurately interpret such data that separates one reinsurer from another. It is precisely for this reason that we have recognized experts.

A direct consequence of our analytical and disciplined approach is our ability to provide substantial capacity for the long-term benefit of our clients. Our consistent financial strength was recognized by A.M. Best in November 2016 for the affirmation of the rating of stable outlook ‘A’ (Excellent) for Barents Re Reinsurance Company, Inc. and the allocation of the rating of stable outlook ‘A’ (Excellent) for our Luxembourg subsidiary, Barents Reinsurance SA. Our company based in Luxembourg is the vehicle to manage our international business. We were delighted with these qualifications as we considered that they were a justified validation of all our work to make our business the success it is today.

Tell us about your international development?

GG: I am especially proud of our expansion strategy with its focus on specialized business lines, which has been key to our progress. We are very clear that we only establish a presence where we believe there are opportunities to work with like-minded clients. We are now present in cities throughout Europe, such as London, Luxembourg, Madrid, Milan, Moscow, Paris, Rome – Latin America, the Middle East and Asia.

On a geographical basis, much of Barents Re’s activity focuses on emerging markets. This is part of our DNA. The growth of insurance premiums in many countries, driven by economic fundamentals, favorable demographics and the introduction or application of mandatory insurance, are very encouraging. While insurance penetration remains low in many countries, it is increasing and we expect Barents Re to benefit in the coming years.

What are your key business lines?

GG: Our vision is for Barents Re to become an integral part of the insurance value chain. We focus on being a niche player that offers specialized and personalized solutions to our clients. We do not participate in any type of business because the underwriting discipline is fundamental to our success. In the commercial aspect, we are especially strong in bonds, energy, renewable energy, construction and engineering, property, civil liability, financial lines, maritime cargo, contingency and entertainment, life and accidents and health. We are also a growing presence in the consumer field, participating in several affinity programs.

Highlight the value you give to innovation

GG: Normally, the reinsurance industry defines innovation in terms of design and pricing of insurance products. That is only the beginning for Barents Re. Innovation is integrated into our processes and is fundamental to our business model. It is the way we go to the market and it is an integral part of our clients’ experience. It is the way we are organized so that we can offer reinsurance solutions at the right price.

For us, innovation is as much a mentality as a process or procedure. The way we manage our bond portfolio after the 2008 financial crisis is an excellent example. As with all business lines, the guarantee bonds suffered a general decrease in the years immediately after the 2008 crisis, but while other competitors cut back, we continued doing business as usual, which resulted in an expansion of the relationships with customers and a volume of premiums for us. Barents Re did not change its appetite during the financial crisis, so, unlike others in the market, it maintained its consistent underwriting approach, pioneering innovative reinsurance solutions and forging partnerships in new territories.

Can you plan future plans for expansion and development?

GG: We seek to create value for our shareholders by investing in our business to create new customer segments, expanding geographically and innovating tailored products. As I mentioned, we only do business in countries where we feel very comfortable and have a niche product strategy that focuses on profitability and not market share.

We have plans to increase the number of underwriters we have, as well as the resources we have for loss prevention and claims management. In 2017, we expanded our product lines through the appointment of specialized and recognized underwriters to run our business and develop our portfolio in marine cargo, contingency and entertainment and renewable energy, which complements the Barents Re experience in the reinsurance business. of hydrocarbon energy that has gone from strength to strength in recent years.

In general, we are working to strengthen, develop and improve our main objectives in specific markets, so that we continue to provide superior service and financial results.