Risk management is fundamental to Europa Re’s underwriting and business management processes. Controlled risk-taking requires a strong and independent risk management organization, as well as comprehensive risk management processes to identify, assess and control the company’s risk exposures. The company bases its risk management on the following guiding principles that are consistently applied across all risk classes.

• Controlled risk-taking enables the company to pursue sustainable value creation for its shareholders while operating within a clearly defined risk policy and risk control framework;

• Clearly defined authority and accountability allows to align incentives of its staff with company’s overall business objectives;

• Independent risk controlling conducted through dedicated staff with clearly defined risk management responsibilities, permits to regularly monitor and report on all risk-taking activities;

• Open risk culture encouraging risk transparency, knowledge sharing and responsiveness to change as an essential component of company’s risk control processes.