Ireland’s Central Bank has fined Dublin-based reinsurer Arch Reinsurance Europe €275,000 for committing breaches of the corporate governance code.
According to the regulatory body, Arch Re did not meet certain standards for its governance structures and internal controls. Its risk committee was found to be not effective enough by failing to oversee its subsidiary.
The reinsurer failed to document relevant internal roles and responsibilities for day-to-day risk management until 2014. There were also errors in the regulatory returns for 2012 and 2013, as well as inconsistencies with the firm’s investment portfolio risk policy. Finally, its board failed to monitor a trust agreement it had established.
Arch Re was founded in 2008 and has branches in Zurich
and London, as well as an underwriting office in Copenhagen. It provides various reinsurance products all over Europe.
Derville Rowland, director of enforcement of the Central Bank said that they found Arch Re had taken an “informal approach” to several of its corporate governance duties.
“This enforcement action provides a timely reminder to firms to satisfy themselves that they are in compliance with their corporate governance requirements and responsibilities and that any tasks assigned under the Corporate Governance Code to Board sub-committees are being discharged. Corporate governance risk remains on our agenda as a key enforcement priority across all sectors and firms. Where evidence of poor standards of corporate governance is found in firms, the Central Bank may take enforcement action,” Rowland added.