Credit Insurance premium revenue increased by 3.8% (5.3% at constant foreign exchange rates)
- Result for the year increases by 8.8% to EUR 202.7 million
- Combined ratio 79.2%
- Insurance and service result at EUR 268.3 million, up 3.2%
- Shareholders’ equity improved by an additional 3.9%
- Solid solvency ratio exceeds 200% (1)
- In 2018 Atradius’ Insurance Financial Strength Rating was upgraded to ‘A2’ (outlook stable) by Moody’s
- Retention rate further improved to 94%, validating commitment to excellence in quality of service
(1) Subject to finalisation of any audit procedures
Sales and profits: In 2018, Atradius insurance premium revenue increased 3.8%, from EUR 1,588.1 million to EUR 1,648.5 million, and profits 8.8%, from EUR 186.2 million to EUR 202.7 million. The company places a high emphasis on customer service and being available to the customer where needed. This focus has resulted in continuously high retention rates and strong growth in younger Atradius markets in the Asia & Oceania region.
Insurance revenue: Atradius’ insurance premium revenue grew 3.8% to EUR 1,648.5 million in 2018 from EUR 1,588.1 million in 2017 (5.3% at constant exchange rates). The improvement in credit insurance was stable and consistent in almost every region with the Northern and Central European regions, along with Asia, Oceania and the Global unit showing some of the strongest growth rates.
Claims: Atradius achieved a solid 43.7% claims ratio, paying out over EUR 834 million in claims to customers while consistently supporting them in a challenging risk environment.
Expenses: The expense ratio improved to 35.5% in 2018 from 35.7% in 2017. Effective cost controls and investments in technology that is increasing efficiency enabled Atradius to grow revenue more profitably.
Insurance and service result: The Atradius insurance and service result improved 3.2% to EUR 268.3 million from EUR 260.1 million in 2017.
Investment result: Atradius’ prudent investment portfolio contributed EUR 22.1 million, in a difficult environment with low or negative interest rates and volatile equity markets.
Economic growth rates in advanced markets are expected to decline in 2019 as trade measures and monetary tightening weigh on economic activity. The decline in insolvencies should end in 2019 and an increase in payment defaults is anticipated creating the backdrop for rising demand for Atradius products and services.
Source: Atradius Earnings Release