The Prudential Regulation Authority (PRA) said the UK branch of the Luxembourg based reinsurer failed ‘to organise and control its affairs responsibly and effectively, as well as governance and regulatory reporting failures’ after Brexit, when special EU passporting rules were in effect on a temporary basis.

This is the first time the PRA has fined a firm operating purely as a reinsurer.

Barents Reinsurance operated a branch in the UK and breached the passporting arrangements following the end of the Brexit transition period, the firm entered the temporary permissions regime (TPR) on 31 December 2020.