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Euler Hermes successfully completed the simplification of its legal structure in Europe on January 1, 2012 |
| On January 1, 2012, the world leader in credit insurance successfully completed the simplification of its legal structure in Europe by grouping thirteen of its former subsidiaries into one insurance company, Euler Hermes Europe, located in Brussels
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| After the merger on December 31, 2011 of the thirteen entities into Euler Hermes Europe, this single and unique legal entity now operates in Belgium and through twelve insurance branches located in the following countries: Czech Republic, Denmark, Finland, Hungary, Italy, Netherlands, Norway, Romania, Slovakia, Sweden, UK and Ireland.
The transaction has been authorised by the National Bank of Belgium and the regulatory authorities in the countries concerned. It was approved by the Shareholders’ General Meetings of each of the entities merged and finally by Euler Hermes Europe on December 31, 2011.
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| 09.01.12 |
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Emerging markets are expected to see increased flows of vital imports/exports as a result of a new trade credit insurance policy |
| Emerging markets around the world are expected to see increased flows of vital imports and exports as a result of a new trade credit insurance policy brokered by Marsh for the International Finance Corporation (IFC), a member of the World Bank Group. Established more than 50 years ago, IFC is the world’s largest multilateral financier for private sector development in emerging markets
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| The new $532 million trade credit policy, underwritten by nine leading insurers, enables IFC to expand capacity under its Global Trade Finance Program (GTFP), which guarantees emerging market trade transactions.
The policy protects IFC against the risk of default by a local bank client and initially covers 50 local banks in 30 countries. This marks the first time that IFC has secured insurance to cover and expand its trade credit facilities.
Since its inception in 2005, the GTFP has issued more than 10,000 guarantees totaling $14.3 billion to banks on trade-related payment obligations. These guarantees enable the continued flow of trade credit in the world’s poorest countries at a time when imports are critical and exports can generate much-needed foreign exchange.
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| 25.11.11 |
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Trade credit insurers still approaching SMEs with caution |
| While trade credit insurers continue to do battle on pricing for large corporate accounts amid an influx of new players and additional capacity in the market, many are still exercising caution when evaluating proposals from small and medium-sized (SME) firms |
| In particular, many SMEs operating in the timber, construction and non-food retail sectors continue to be perceived as ‘high risk’ by trade credit insurers and are paying higher premiums as a result.
To assist SMEs in securing trade credit insurance and managing their trade credit risks more effectively, Marsh today announces its enhanced CoverCredit service. Developed with Coface in the UK, part of one of the world’s leading trade credit insurance groups, CoverCredit includes a comprehensive package of trade credit services, covering credit insurance, credit assessment and collections management.
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| Only available through Marsh, CoverCredit is designed for businesses with annual sales of up to £10 million, and provides protection against debtor non-payment and insolvency. Cover is provided for trade debtors in the European Union and other agreed countries, and relates to the sale of goods and services.
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| 03.10.11 |
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Coface reviews its business environment assessments
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| Despite a slowdown compared with 2010, Coface expects the steady pace of growth of emerging countries to continue, forecasting their economies to grow at 5.7%, in 2011 |
| This contrasts with its growth forecast to 1.8% for developed economies, for the same period. This buoyancy of emerging economies goes hand in hand with improvements in the business environment.
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| Therefore four years after launching its business environment assessment, Coface announces several upgrades in central Europe, Africa and Latin America. The uniqueness of the business environment assessment consists in the use of Coface's own payment records, thanks to its underwriting and debt collection expertise throughout its international network.
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| 26.07.11 |
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Three major trading risks identified at Coface 'Opportunities in Trade' Country Risk Conference |
| Against the recent backdrop of the most severe economic crisis of the past 60 years, Coface created this conference to help companies and their advisers be aware of both the opportunities and risks of trading at home and overseas
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| The Conference, held at Emirates Stadium, attracted over 260 delegates, making it the largest UK Coface Country Risk Conference to date.
Delegates heard five keynote speakers assess the economic developments of the past year and examine the main trends shaping the UK, European and world economies.
David Smith, Chief Economics Editor of The Sunday Times, analysed the broader world economic picture.
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| Dr Robin Niblett, Director at the international 'think-tank', Chatham House, looked at the challenges facing Europe and the Eurozone.
The UK economic picture was updated with the latest market data from Chris Williamson, Chief Economist at Markit, the publishers of the highly-regarded Purchasing Managers' Indices.
Coface's view on global trading risks was presented by Yves Zlotowski, Chief Economist, Coface Group.
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| 24.06.11 |
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Atradius Recommends 10-Point-plan for Exports to Russia |
| For many countries exports to Russia significantly increased in 2010 and made the world's biggest country after China one of the most important growth markets
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| However, trading with Russian customers also involves risks and peculiarities that exporters need to get acquainted with. And to help companies looking to trade with Russia, leading trade credit insurer Atradius has created a 10-point-plan that summarises the most important aspects for successful trade with this complex nation. "We see time and time again how tough many companies find it to navigate Russian trade," says Michael Karrenberg, Atradius Risk Services Director for Germany, Central and Eastern Europe. "But trade with Russia is not fundamentally different from supply relationships with other export markets. You just need to be aware of a few important differences."
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| Not going to court is one of the ten recommendations. This is because Russia has yet to sign treaties agreeing to the mutual enforcement of court judgments that extend to Western countries. So judicial proceedings mostly remain ineffective on both sides and can be a waste of time. As a result, it is a "must" for exporters to include an arbitration clause in their agreement. These are generally recognised by Russian courts.
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| 20.05.11 |
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The new risks of globalisation - A new approach to country risk, by Euler Hermes
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| Following a return to growth in 2010 driven by the emerging economies, 2011 will see a lower rate of growth for the global economy and, in particular, for the developed nations. In an economy that is highly globalised, financially unstable and exposed to major social and political risks at a local level, the interdependency of countries changes the nature of country risk and poses new problems for businesses |
| “The global economy has undergone three major changes that profoundly alter the nature of country risk. Firstly, increasing interdependency generates a greater cyclical risk. Secondly, unequal distribution of the fruits of growth creates new socio-political risks in certain countries, and lastly, the persistent global financial instability creates further volatility in the mature economies. The difficulties faced by one country have now become a problem for all, particularly in a global economy that is experiencing a slow down in growth”, summarised Wilfried Verstraete, Chairman of the Euler Hermes Group Management Board.
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| A new country-risk map:
Economic globalisation marks the end of a traditional approach to country risk, which is based on a purely structural analysis of the economic and political risks associated with transfers and convertibility. The process of globalisation has in fact seen both a frequent shifting of the borderlines between emerging and developed economies and a rise in economic and financial exchanges between these two categories of countries. This structural factor is itself accentuated by two additional factors: the economic and financial crisis and the heterogeneous nature of the recovery around the world, meaning that imbalances between economies are not being absorbed rapidly and are resulting in increasingly volatile risks.
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| “To be relevant, country risk analysis must now associate the traditional structural approach (assessment of the economic and political risk) with indicators of short-term vulnerability (financial and cyclical). This combination ultimately leads to the definition of four categories of country risk policy (weak, average, significant, and high)”, explains Karine Berger, Euler Hermes’ Head of Market Management and Strategic Marketing and Chief Economist.
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| 09.05.11 |
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Euler Hermes launches a credit insurance company in Turkey
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| After five years operations through its parent company Allianz, the world leading credit insurer has now obtained its licence to operate in the Turkish market as an insurance company |
| Euler Hermes and Allianz have been cooperating in Turkey since 2005. The opening of the Euler Hermes subsidiary in Turkey –Euler Hermes Sigorta- is a further step on the way to expand private credit insurance cover both for Turkish firms and for companies exporting to Turkey.
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| Euler Hermes Sigorta, located in Istanbul, will provide trade receivables management services to Turkish companies. It will support the safe development of their domestic and international sales to existing and new customers. The presence of local risk underwriters in Turkey will benefit Euler Hermes’ worldwide clients. “The opening of our new company in Turkey further shows that we are committed to being close to our customers and their business development,” said Euler Hermes’ CEO Wilfried Verstraete. |
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| Les mer |
| 14.03.11 |
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Self underwriting credit insurance policy
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| Self Underwriting Trade Credit Insurance - a new type of policy
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| Many articles in the press say that Credit Insurance to help trade and industry sell goods at home and abroad is not available, however, this is not the case. Trade Credit Insurance is available, it is just a case of knowing where to go to get the most appropriate policy.
Rycroft have access to a unique Credit Insurance policy which will allow policy holders to underwrite their own credit limits without reference to the insurer, giving them complete control.
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| Policy holders who can underwrite their own limits will much more greater control of who they deal with, to what amount, on what basis and especially when restrictions are not imposed by any insurer, as well as giving them a competitive edge. This is significantly important when bidding either for high value contracts, knowing that you can take on the contract in the knowledge that you are secure and that the company (not the insurer) controls what level of credit facilities are extended out to the buyer or for regular trade, again having the comfort to extend credit facilities to their full potential.
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| 04.03.11 |
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Euler Hermes’ 2010 results |
| Turnover: €2,148 million -
Net technical result: €349 million -
Ordinary operating income: €472 million -
Net income: €294 million |
| Turnover increased for the fourth consecutive quarter to €567 million showing a 4.6% growth towards Q3 2010 (€542 million). Q4 2010 turnover grew by 16% compared to Q4 2009, when turnover was at its lowest during the crisis. |
| For year 2010, turnover reached €2,147.7 million growing by 3% compared to 2009. 2010 net result amounts to €294 million. “Our strategy to put our policyholders at the centre of our business development shows results. |
| Euler Hermes’ customers enjoyed an increase in cover granted and the group benefited from a continuous topline recovery throughout 2010. As a consequence the Group posted a record in new business -€259 million- and customers’ retention grew from 82% to 85% in the credit insurance business. Improved loss ratio and solid financial result pushed the operating profit up from €84 million in 2009 to €472 million end of 2010”, stated Wilfried Verstraete, Euler Hermes Group CEO. |
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| Les mer - PRESS RELEASE |
| 22.02.11 |
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Coface announces a new trend in the worldwide country risk scene |
| On the occasion of its 15th Country Risk Conference, Coface is expecting a moderate slowdown of the global economy. Among the risks to be monitored are the continued tension with the sovereign risks in the euro zone and the financing of growth in the emerging countries |
| Coface indicates that it is now the time of converging risks between the advanced countries and the emerging countries who have seen their rating improve with the test of the crisis.
If when country rating was launched in 2001, Coface was following 130 countries, it is now rating 156 countries of which 28 are so-called advanced countries.
In 2011, a key issue for the country risk will be private debt monitoring and growth financing.
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| According to Coface's forecasts, worldwide growth should slow down in 2011 at 3.4% compared to 4% in 2010, under the combined effects of debt reduction in the private sector, the setting up of restrictive budget policies in Europe, the possible rise in raw materials and the expected slowing in worldwide trade. The advanced countries will show growth of 1.8% compared to 2.3% in 2010 and the euro zone will experience limited growth deceleration (1.4% compared to 1.7% in 2010). This moderated drop will have a negative impact on the average credit risk for companies but the impact will be highly contained as the growth differential between 2010 and 2011 is limited to 0.6 point of GDP.
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| 24.01.11 |
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Credit Insurer warns of difficult times ahead for travel industry |
| More than £500 million in credit limits, however, continue to be written
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| Smaller, ‘generalist’ travel operators or those that have either failed to differentiate their offer and/or have not yet embraced new technologies look set for a difficult 2011, a leading credit insurer has warned.
A difficult situation could be made more difficult still by the introduction of the increase in air passenger duty from November 1.
Yet despite a challenging economic environment, the industry has stood remarkably well, and substantial lines of cover continue to be written, according to Euler Hermes, the world’s largest credit insurer.
Dirk Kotze, Underwriting Manager for Euler Hermes, says that a combination of factors have conspired to make 2010 one of the most difficult periods yet for the UK travel industry: “The ongoing economic turmoil, volcanic disruptions, the World cup, sunny weather in the UK, industrial action in Europe, and concerns over further pressure on disposable income from the recently announced government spending cuts have all combined to create exceptionally tough market conditions for travel agents and tour operators in the UK,” he says.
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| 01.11.10 |
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Ex-Im Reinsures Credit Insurance to Small Business Exporters
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| A new program inaugurated by the Export-Import Bank (Ex-Im) will reinsure short-term export-credit insurance offered by private insurers to small businesses |
| The new product aims to help U.S. small businesses export more safely and more frequently by increasing their access to private short-term export credit insurance, which has been elusive since the 2008-2009 financial crisis. By mitigating the considerable risk that private credit insurers take on when working with a small business, Ex-Im hopes to drive these companies to expand their underwriting capacity for smaller customers.
"Small businesses are particularly dependent upon short-term insurance to export with confidence," said Ex-Im Chairman and President Fred Hochberg. "Ex-Im Bank's new product will enable insurers to continue providing coverage and help more U.S. small- and mid-sized companies export to more countries and create more jobs in America."
The reinsurance program will specifically allow participating insurers to originate and underwrite transactions that otherwise would be outside of their portfolios due to their credit-limit caps on certain foreign countries and riskier buyers. Atradius Trade Credit Insurance announced last week that it has already signed such a contract with Ex-Im.
The move aligns with President Barack Obama's National Export Initiative (NEI), which is aiming to double exports within the next five years. Ex-Im has also recently upped its efforts to reach small businesses, announcing that fiscal year 2010 had the bank issuing a record high $24.5 billion in loans, guarantees and insurance, $5 billion of which was for smaller firms.
To learn more about Ex-Im, visit their website at www.exim.gov.
Jacob Barron, NACM staff writer
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| 29.10.10 |
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Det europeiske handelskreditt-forsikrings-markedet svinger hjørne i 2010 |
| Ny forsikring kapasitet, økt konkurranse for virksomheten mellom selskapene og forbedret risikostyring har ført til en positiv utvikling for kjøpere av handel kredittforsikring over mesteparten av Europa i 2010 , etter to svært utfordrende år.
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| Ifølge Marsh siste data for 2010 , er handel kreditt forsikring priser reduksjon i Frankrike , Tyskland , Italia og Storbritannia , prisene er stabile eller opplever minimal økning i Belgia , Danmark , Portugal og Nederland , og lokaliserte øker blir registrert i Hellas , Portugal og Spania . Handel kreditt dekning er også stadig enklere å anskaffe , med forsikringsselskapene ikke lenger tar sektor i hele fulltegningsgaranti beslutninger .
Tim Smith , leder av Marsh 's Trade Credit praksis i Europa , kommenterte Midtøsten og Afrika ( EMEA ) , : " Handelen kredittforsikring markedet har blitt ombygd i 2010 med priser fallende eller stabilisere i de fleste viktige europeiske markeder. Etter nedgang og den utbredte kansellering av dekning i visse høyrisiko bransjer, er forsikringsselskapene nå skrive mer business og bestemme dekselet på et selskap -for - selskap basis.
"Som assurandører har utviklet mer sofistikerte risikovurdering teknikker , slik at bedriftene er mer villige til å dele finansiell informasjon og formalisere sin virksomhet rekkefølge politikk . Dette både for hjelpemidler forsikring anskaffelser og hjelper bedrifter få bedre betingelser .
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| 10.09.10 |
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Berne Union Upbeat on Global Trade, Credit Insurance |
| At the Berne Union Annual General Meeting in Seoul from 12 - 16 October, credit insurers and investment guarantors from all continents announced that they are witnessing the first signs of recovery from the global financial crisis, especially in Asia.
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| There is currently very strong worldwide demand for export credit and investment insurance as exporters and investors want protection in the current economic environment. Despite the rise in claims for non-payment by buyers in developed as well as developing markets, Berne Union members have continued providing high volumes of cover for international trade. In particular, cover for capital goods exports has increased by 8% compared to 2008. In some Asian markets, especially China, India and Korea, economic growth has bounced back and the number of insolvencies is no longer rising. In addition, liquidity costs for banks are decreasing, thus making imports cheaper for these countries.
ICIEC full member of the Berne Union
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) was confirmed as
a full member of the Berne Union.
ICIEC, based in Saudi Arabia, is a multilateral organisation representing 37 countries from North-Africa to South-East-Asia.
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| 14.07.10 |
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USA - Marsh Teams with FGI Risk Services to Deliver Enhanced Trade Credit Policy Management and Servicing Support |
| Marsh has signed a multi-year agreement with FGI Risk Services to deliver enhanced trade credit services to Marsh clients. Under an agreement with FGI, Marsh will license FGI Risk Services' TRUST policy management platform to provide policy management and servicing support for the trade credit insurance policies placed by Marsh for its clients.
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| The new policy management offering, called Marsh Trade Credit powered by FGI TRUST, is a web-based platform that combines Marsh's industry-leading trade credit specialists with the technology, processes and personnel of FGI Risk Services. The offering is designed to optimize services for trade credit insurance policies issued by Marsh to its clients. It also enables policy management support for advanced servicing functions, such as buyer credit limit requests and appeals, and may lower the operational costs for risk management organizations.
"The global financial crisis has highlighted the need for policyholders to proactively manage trade credit insurance policies," said Evan Freely, global leader of Marsh's Political Risk & Trade Credit Group. "Marsh's global network and trade credit expertise, combined with the unparalleled servicing platform of FGI Risk Services TRUST platform, allows us to better meet the coverage and servicing needs of our clients, and to expand into new areas. Through this offering, Marsh and FGI Risk Services are raising the bar for broker value-added services in the trade credit insurance marketplace."
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| Les mer |
| 21.06.10 |
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Trustful development of Trade Credit Insurance and Surety business in 2010 |
| The Trade Credit Insurance and Surety industry met for their 68th Annual General Meeting in Marseille (France) to discuss market and industry developments |
| During today’s press call on ‘Sovereign debt threatens economic recovery’, ICISA President Clemens von Weichs, the President-elect Joaquín de la Herrán and its Executive Director Robert Nijhout, discussed concerns raised during the meetings about the levels of government debt as this affects market trust.
Trade Credit Industry and Surety results:
“Insured exposure for Trade Credit Insurance is reported at 1.5 trillion Euros which is a decrease of 24% due to lower trade volumes”, said von Weichs. Premium in 2009 was 5.21 billion Euros with claims of 4.53 billion Euros. Trade Credit insurance premiums remained at 2008 levels as claims have stabilised at a ratio of 84%. “The average premium rate has increased reflecting a continued higher risk environment. These figures demonstrate the ability of Trade Credit Insurance to turn around a negative trend”, von Weichs added.
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| “Surety members of ICISA reported an amount of 1.3 billion of claims in 2009, an increase of some 68% compared to 2008. However, there is a wide difference between markets in Surety losses. Therefore this cannot be seen as a general trend for the Surety sector”, commented Nijhout. Surety premium income has gone up by 32% compared to 2008 to 1.7 billion Euros. Surety exposure over 2009 is 2.69 billion Euros which was an increase of 15% compared to 2008.
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| 21.06.10 |
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Perspektivene for norsk torskenæring |
| - sett i lys av de siste års markedsutvikling |
| Årsmøte Norges Råfisklag,
Tromsø 9. juni 2010
Tale/artikkel, 09.06.2010
Av: Fiskeri- og kystminister Lisbeth Berg-Hansen
Kjære alle sammen,
Først av alt vil jeg få takke for invitasjonen. Det er første gang jeg deltar på et årsmøte i et fiskesalgslag som statsråd, så jeg har virkelig sett fram til dette.
Jeg er bedt om å holde et innlegg om perspektivene for norsk torskenæring, sett i lys av de siste årenes markedsutvikling. Kort og greit kan vi si at mye er positivt i fiskerinæringa.
Vi har – i hovedsak – bærekraftige og godt forvaltede fiskebestander. Det er i seg selv langt på vei tilstrekkelig til å konkludere at ting ligger til rette for ei lys framtid.
Vi har i det alt vesentlige lønnsomme fiskebåtrederier, og kreative og levende kystsamfunn. Sjømateksporten har hatt en fantastisk utvikling, med kontinuerlig vekst de siste seks årene. Og utviklinga ser ut til å fortsette.
Samtidig har de siste årene bydd på store utfordringer. Selv om jeg nå mener det er tid for å løfte blikket og rette oppmerksomheten mot framtida, skal vi likevel dvele litt ved det året som vi nå har lagt bak oss.
Vi trenger å oppsummere det som skjedde og det som ble gjort.
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| Situasjonen 2009/vinteren 2010
Det har nå gått to vintersesonger siden finanskrisa slo innover oss. Selv om Norge som nasjon ikke ble særskilt hardt rammet, satte den likevel sine spor. Jeg vet at mange i fiskerinæringa, både på sjø og land, har kjent finanskrisa på kroppen de siste to vintrene. Dette har selvsagt vært tungt.
Det positive oppi det hele, er at de lave torskeprisene har fått mange flere europeere til å kjøpe norsk torsk. Vi får håpe de ble så fornøyd, at de fortsetter å spise torsk, også når torskeprisene forhåpentligvis stiger!
For jeg er sikker på at de gode tidene vil komme tilbake. Det er bare et spørsmål om tid.
Regjeringa tok en rekke initiativ for å bøte på den situasjonen som oppstod foran 2009-sesongen.
Tiltakene hadde som siktemål å legge til rette for en mest mulig normal gjennomføring av fisket, ved å støtte opp under fiskeindustriens evne til å kjøpe fisk. Det handlet om statlige tiltak som:
• en egen garantiordning for driftskreditt i 2009, med ramme på 97,5 mill. kroner.
• en egen likviditetslåneordning i 2009, med en ramme på 250 mill. kroner.
• garantiavtaler med fiskesalgslagene for 2009 og 2010, der for eksempel Norges Råfisklag har en egen garantiavtale med Innovasjon Norge med en ramme på 320 mill. kroner.
• Styrking av GIEK(Garanti-instituttet for eksportkreditt) Kredittforsikring sine rammer for å tilby eksportkreditt-forsikring.
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| Så styrket vi føringstilskuddet i 2009, og ga 6,5 million kroner til mottaksstasjoner. Formålet var også her å holde fisket i gang, både å lette omsetninga av fisk og sikre en god mottaksstruktur. For 2010 er det så langt gitt 33 mill. kroner i føringstilskudd.
I 2009 bidrog staten også med 25,5 mill. kroner til markedsføring. Sammen med ekstra midler fra blant annet Eksportutvalget for fisk og Norges Råfisklag, ga dette en samlet økt innsats på 43 mill. kroner.
Det vil jeg karakterisere som et godt utgangspunkt for markedsarbeidet i 2010.
For at Eksportutvalget kan holde oppe trøkket på markedsarbeidet, besluttet vi å øke markedsavgiften. Forslaget vil komme hele verdikjeden til gode, og jeg er glad for at fiskerorganisasjonene stod bak dette.
Vi samarbeidet tett med næringsorganisasjonene da tiltakene for å avhjelpe finanskrisa, ble utarbeidet. Derfor vil jeg svært gjerne benytte denne anledninga til å gi ros til Råfisklaget for den konstruktive rollen dere har spilt midt opp i alt dette.
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| 14.06.10 |
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Coface announces a positive result for all of its businesses in the 1st quarter |
| The turnaround in Coface''s accounts, which started in the 4th quarter of 2009, is confirmed in the 1st quarter of 2010 with:
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| * net income of €15m thanks to the Insurance line becoming profitable again;
* €401m in turnover driven by factoring, and on the recovery compared to the 4th quarter of 2009;
* reinforced financial solidity thanks to these positive results, an improvement in the risk profile and a €175m capital increase.
Return of profitability, net and operating
The first quarter of 2010 has a positive result: +€15m for consolidated net income (after +€3m in the fourth quarter of 2009), and +€24m for operating profit (after -€9m in the fourth quarter of 2009).
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| Operating profitability for credit insurance is now positive again (+€13m). That for Services and Factoring remains, as during the crisis, positive: €8m for Services and €3m for Factoring.
The turnaround in Credit insurance can be explained by the drop in the claims/premium ratio to 63% (compared to 98% in 2009). This ratio is the combination of the following hypotheses on the subscription years:
* 109% for 2008
* 77% for 2009
* and 58% for 2010.
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| Les mer |
| 25.05.10 |
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Trade Credit Insurer Optimistic After Economic Dip |
| After suffering the effects of the worst economic downturn in six decades, the trade credit insurance sector is seeing encouraging signs of increased interest in its products, according to one industry executive |
| "There have been a lot of comments about our products, our industry, mainly negative," said Fabrice Desnos, chief executive of the U.K. operations of credit insurer Euler Hermes, at the annual conference of the British Insurance Brokers Association. He said much of the criticism came from people who didn''t know much about the industry.
The economic crisis led to an increase in corporate insolvencies, Desnos said. There was talk that trade credit insurance had no future, but with inquiries now up, the market is showing itself to be very resilient, he said.
"Having seen, especially in the U.K, 10 years of very, very significant economic growth," Desnos said, the market saw a sudden drop in pricing. There is nothing worse for insurers than a one-in-60-year event, he said. On top of that, there was widespread denial outside of the industry about the extent of the economic crisis. He cited advice from a U.K. government minister that there was no problem. |
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| Les mer |
| 25.05.10 |
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The rise of the need for Trade Credit Insurance |
| Credit insurance is something of an unmentionable among UK companies, evidenced by the fact that few finance directors want to talk about it – only one of those Financial Director approached was willing to go on the record about it – and fewer admit to needing it. |
| Yet there are some 15,000 companies that hold credit insurance in the UK. After all, the last couple of years have proved boom time for anyone who could provide protection from their business partners not paying up or becoming insolvent.
Looked at objectively, the arguments for credit insurance are hard to argue with: lenders are happier to lend to businesses that can demonstrate adequate risk management, of which default and insolvency remains high on the agenda. And the insurer pays its client what its creditors owe when the insurance is triggered (within a range of limitations), meaning it lives to trade another day.
Where once, credit insurance was a ‘nice to have’ with little perceived payback, it is now the cornerstone of many accounts receivable policies. Insurers have seen a strong rise in demand. Credit insurance provider Atradius says it has underwritten in the region of £300bn in trade in the last year.
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| But credit insurers can only be as effective as the information they are given. The sector has had doubt cast over the efficacy of its product in the past, based on questions over the quality of the information it gathers, on the exposure its clients hold to debt risk. As demand has risen, holes in that information have been exposed that support the idea companies are embarrassed to admit they hold credit insurance – because they must admit to the state of their finances for cover to be effective.
“In many instances,” Atradius’s UK director Shaun Purrington recently told The Daily Telegraph, “the financials that you see at Companies House are not really worth the paper they are written on.” |
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| Les mer |
| 03.05.10 |
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Increased demand for Trade Credit Insurance |
| Cost of capital and tightened risk environment will continue to challenge the industry
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| Increased information sharing and transparency will be provided to customers.
Credit insurers lived up to their obligations during the financial crisis by insuring trade credit risks (+/- 20 million credit limits) and paying out claims at a ratio of around 84% in 2009 (pre-crisis +/- 40%). That was stated at today’s press call on “Trade Credit Insurance’s role in a fragile recovery from the financial-economic crisis” with ICISA’s President Clemens von Weichs and its Executive Director Robert Nijhout.
Both also emphasised that trade credit insurers demonstrated their ability to respond to the difficult economic situation. The cost of capital and a tightened risk environment in the crisis still challenges the industry, leading to higher premium rates and stricter conditions – a development that the experts expect to continue. Therefore, higher transparency about credit limit decisions and enhanced services in risk management consultancy for clients will be a strong focus in the future.
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| Increase in demand for Trade Credit Insurance
The financial-economic crisis has led to a significant increase in demand for Trade Credit Insurance cover. Banks and other trade financiers had to take measures during this crisis which resulted in increased pressure on supplier’s credit terms and led to high risk scenarios. Available capacity was not affected by the crisis, although pre-crisis terms are no longer available;
Von Weichs highlighted how trade credit insurers continued to support their customers during the crisis. “The industry’s involvement is illustrated by some 20 million running credit limits. Insured exposures are at EUR 1.8 trillion. These dropped by some 10% in 2009, in line with lower trade volumes. Claims shot up in 2008 and 2009, which resulted in a claims ratio before costs for the sector of around 84% for 2009, compared to pre-crisis loss ratio levels of around 40% - 60%”, Von Weichs confirmed.
Nijhout added: “With a high but stabilised claims ratio Trade Credit Insurance confirmed the industry’s ability to manage risk and their role in a difficult financial environment. The quality of credit limit management is appreciated by customers. They show today an even increased interest with regard to this consultancy and the management of credit risk through a credit insurance company.”
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| Les mer |
| 26.04.10 |
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Coface announces good turnover resistance, a turnaround in its profits and a new credit insurance approach |
| The years 2008 and 2009 will remain those of the fifth global credit crisis, the most serious since the Second World War. World growth went from 4.2% in 2007 to 2.1% in 2008 and then to -1.9% in 2009, for an unprecedented growth drop of 6 points |
| In this context, Cofaces business in 2009 was marked by: * An increase in turnover of 3.8%. * Profits that followed the three phases of the crisis: positive in the first three quarters of 2008, then posting losses in the next three quarters, finally showing solid improvement in the second half of 2009 with a positive profit in the fourth quarter of 2009. * Strong support from its shareholder: two capital increases that strengthened Cofaces financial solidity far beyond what it was before the crisis. |
| Solid turnover Coface turnover has resisted well. After growing by 5.6% in 2008, turnover continued to grow by +3.8% in 2009 and by +3.2% at constant structure and exchange rates, still driven by strong growth from non-European countries: +22.9% and +19.3% at constant structure and exchange rates. Insurance growth remains very strong at +4.3%. The scope effects account for the growth of Services as well as Factoring (the acquisition of the credit management firm TKB in the Netherlands and the integration of Factoring and Services activities in Poland in the consolidation perimeter). The decline of -1.2% in Services at constant structure mainly mirrors that of marketing information budget at a time of crisis. The decline of Factoring at constant structure (after it experienced a 26.3% average growth over the past 5 years) is a result of the toughened underwriting policy and the decrease in clients invoicing. |
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| www.creditman.biz |
| 09.03.10 |
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A “behind the scenes look” at Credit Insurance |
| - FCIB-conference |
| May 9-11, 2010 • Hotel Barbizon Palace • Amsterdam, The Netherlands.
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| Moderator: Andrew Child, Head of Global Trade Credit – UK, Aon Limited|Trade Credit, UK.
Panelists: Jane Johnson, Director, Special Products, Northern Europe and Asia Pacific , Atradius, UK.
Neil Ross, Senior Vice President, Trade Credit, Chartis Insurance UK Limited, UK.
James Daly, Commercial Director, Euler Hermes UK plc, UK.
2 senior representatives from Coface and ACE.
How are crucial business relationships managed between Vendor and Corporate if conflicts arise? Where do exporters go when credit insurance is refused or limits reduced or cancelled? How do these decisions impact upon the ability of a corporate to extend credit?
Join us in Amsterdam as we take a look behind the scenes at how policy and credit limit decisions are arrived at and how they affect the day to day lives of executives working within the credit risk cycle.
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| 22.02.10 |
| www.fcibglobal.com |
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Euler Hermes annual financial results 2009 |
| Turnover: 2,085.7 million, Technical result: -64.8 million, Operating income: 83.6 million, Net income: 19 million
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| In a still-difficult economic environment, in 2009 Euler Hermes achieved turnover of 2,085.7 million, down 3.7% from 2008. The end of the downturn combined with the effectiveness of the actions carried out enabled the group to achieve net income of 19.0 million, down 77.3%. (Paris, 17.02.2010)
The Group Management Board presented the consolidated results for 2009, as reviewed and audited by the Audit Committee, to the Euler Hermes Supervisory Board on February 17, 2010.
"The rise in claims resulting from the economic crisis is weighing on the Groups profitability and has led to a sharp fall in its technical result. However, thanks to the efforts made by all employees, its careful management of the crisis, its proactive approach with clients and higher financial income than in 2008, the group posted net income of 19.0 million in 2009, stated Wilfried Verstraete, Chairman of the Euler Hermes Group Management Board. |
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| 19.02.10 |
| www.creditman.biz |
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Atradius reinforces information exchange as way out of recession |
| Leading trade credit insurer Atradius has reinforced the need for a clear exchange of information between stakeholders to strengthen the UKs business economy and expedite recovery |
| The insurer has launched a new set of information sharing initiatives to help policyholders. These build upon last years industry-wide call for businesses to provide transparent, up-to-date trading information instead of trying to rely on historically filed accounts to inform their trade decisions.
Marc Henstridge, Head of risk services for Atradius UK and Ireland says,
The efforts of our underwriting teams in obtaining up-to-date information have had a dramatic impact in enabling Atradius to underwrite over 1 bn of additional cover in recent months, including both new credit limits and the reinstatement of formerly withdrawn cover. If we want to expedite economic recovery, all businesses need to build on upon this new, open culture to help facilitate trade.
As a further development to support this, Atradius has launched a dedicated mailbox, finance.update@atradius.com to make provision of information as simple and direct as possible. The mailbox enables businesses to submit their latest management accounts and other relevant information directly to underwriters by e-mail with a guaranteed outcome within 5 working days of submission of the information.
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| The second initiative is sector-led and builds upon the regular sector-specific reports already published by the insurer. The Atradius Trade Sector Webinar Series, will feature the latest information on key trade sectors, sharing views from an expert underwriting team and specially invited sector guests to ensure that policyholders can benefit from the best possible information to inform their decision making. These guest-hosted quarterly events will be broadcast online please contact pamela.james@atradius.com if you are interested in receiving an invitation.
Shaun Purrington, Regional Director of Atradius UK and Ireland says,
Atradius has always prided itself on an unrivalled, open, dialogue with customers using their information to supplement our own and obtain greater accuracy in our underwriting whilst reciprocating by providing top quality information to our policyholders to inform their own business decisions. We are continually seeking additional ways to help keep businesses safe, and these initiatives have been devised with precisely that in mind. |
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| 01.02.10 |
| www.creditman.biz |
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Coface sees the end of the global credit crisis |
| During its 14th Country Risk Conference, Coface announces some 20 upgrades in country ratings |
| The credit crisis, which will have lasted two years - as predicted at the conference held in January 2008 - has been of an unprecedented magnitude in the past 60 years. Since the second half of 2009, Coface has recorded a net reduction in payment defaults. Payment defaults, still up 19% in the 1st half of 2009, declined 40% in the 2nd half. Nevertheless, for 2010 Coface foresees a very soft recovery in developed countries, which is fragile due to the threat of various bubbles.
End of the first globalisation crisis
This credit crisis has lasted two years, like the previous crises, and as Coface predicted at the beginning of 2008 when it recorded the initial increase in companies payment defaults. But it has been the most violent credit crisis in the past 60 years: the world growth differential between the beginning and end of the crisis was 6.1 points, with strong geographic disparities, as Eastern Europe and Russia were affected the most (10.2 and 16.2 points respectively). Compared to previous crises, the magnitude of the shock is explained by the increasing globalisation of economies: a confidence shock spread everywhere following Lehman Brothers bankruptcy, with the fallout reaching both finance and industry, Europe and Asia. Even in countries not characterised by debt bubbles the record contraction in world trade had a brutal impact on companies.
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| 25.01.10 |
| www.creditman.biz |
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Darling needs to remedy the failure of the Credit Insurance scheme says Bibby Financial Services |
| Commenting on the pre-Budget Edward Rimmer, Bibby Financial Services chief executive, UK & Ireland, said:
By not penalising businesses and extending the 'Time to Pay' scheme in what is possibly the most important pre-Budget for the Chancellor, Darling has offered UK firms a lifeline out of the recession |
| "But, as a V-shaped recession continues to look unlikely, it is imperative for the Government to take further measures in the 2010 Budget to ensure businesses are given the best chance of recovery. Darling needs to remedy the failure of the Credit Insurance scheme, which saw less than 0.5 per cent of the fund being utilised in 2009; continue deferrals on the payment of corporation tax, and amend caps on claim levels within the continued EFG in order for more businesses to benefit from the fund and lenders to proactively offer these facilities. The proposed Capital Growth Fund should go some way to helping SMEs access funding in the short term, but the Government needs to put its weight behind it to make it a success.
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| 15.12.09 |
| www.creditman.biz |
