Line of Business Overviews
2021 was a challenging year, but the Barents Re Surety Bond team successfully navigated the challenges facing the sector arising from the continued impact of the Covid-19 pandemic. We focused on both ongoing projects and new opportunities.
Where infrastructure projects suffered delays, we supported our clients with the needed extensions, alongside governments and other public bodies who have shown a collaborative approach. These efforts proved to be a successful way forward. It also created goodwill for the future.
While our historically strong presence in Latin America continues, we have seen an increase in Surety Bond business opportunities in Africa, a region that we have been exploring with interest in recent years. Likewise, activity levels are up in the Middle East. Our approach has not changed: being cautious, focusing on countries with political stability and on construction and infrastructure projects financed by international banks or public bodies, venturing in these markets side by side with the most experienced construction companies.
In Europe, Italy and Spain continue to be our main markets. Our business focuses on the Construction & Engineering, and Renewable Energy sectors. We have a presence in both countries.
In 2021, we initiated a new operational structure in Spain by establishing an underwriting agency for the local market to provide the best service to our clients and brokers. The new entity, Barents MGA, will commence operations in 2022. It will have delegated authority from Eurioins Insurance JSC, supported by the full reinsurance capacity of Barents Re. This will allow us to issue local policies using paper with our own brand, which will be a real incentive for the insurance market, given the high credit quality of the Barents Re group.
Barents Re is a leading facultative Surety Bond reinsurer worldwide. We are happy to report that our brand recognition in the Surety Bonds business increases year after year, and we look forward to 2022 with confidence.
Spain Bonds Team
The Italian Surety Bond market grew further in 2021, reaching its highest premium levels in recent years.
Italy is the second most significant contributor to our Surety Bond business in Europe and is a target market for us, especially for public procurement law contract bonds, which represent almost 70% of total premiums in this segment.
Looking forward, we expect to expand our presence in the infrastructure, construction, and facility management sectors, seizing the opportunities arising from the anticipated investments arising from post-pandemic economic recovery programs.
Italy Bonds Team