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Credit Insurance

Euler Hermes 2015 first quarter results: A solid start to 2015

By CreditMan Tuesday, April 28, 2015

  • Revenues at €670 million, up 5.1% over Q1 2014 at actual exchange rates (+1.4% at constant exchange rates)
  • Operating income at €121 million, up 4.1%
  • Net income at €87 million, up 5.3%

“Euler Hermes begins the year on a positive note, with growth increasing over the last quarter of 2014 fueled by a record level of new production and the strengthening of non-euro currencies,” said Wilfried Verstraete, chairman of the Euler Hermes board of management. “Because the claims ratio remained healthy, operating income and net income grew in line with turnover. Despite the softening market, our range of geographic, products and distribution initiatives enabled us to capture profitable growth”.

Outlook

Low interest rates, low oil prices and the weak euro are positive factors for the Eurozone in particular. However the concrete translation in GDP growth and policyholder turnover is not visible yet and should materialize at best in the second semester of 2015.

Strong growth is still to be expected in non-mature markets, coming from increasing awareness of credit insurance and despite the slowdown expected in China, Russia and Brazil.

Insolvencies are expected to decrease globally by 2% in 2015, which will put additional pressure on prices. In this context, we will manage our risk underwriting stance to preserve the risk/price adequacy in both mature and non-mature markets.

Financial and regulated information are available on Euler Hermes’ website http://www.eulerhermes.com/finance/