Key financial figures

Euler Hermes recorded a 4.4% increase (5.6% at constant scope and exchange rates) in turnover in 2007. This was achieved thanks to dynamic growth of 5.3% in business transactions in its traditional markets and robust demand for credit insurance in emerging markets.
Turnover in emerging markets grew by 9.4%.

The growth in operating income (17.9% in 2007) was far higher than that of turnover (4.4%). This very strong increase is largely due to the long-term policy implemented in recent years of gradually reducing the assignment of premiums to reinsurers. In 2007, the assignment rate was reduced by another 6.6%. Net premiums therefore increased by 14.2% and the technical result by 15.4%.

The positive trend in the combined ratio (67.9%) together with strong investment income contributed to the substantial 24.8% increase in net income, group share.

The net combined ratio remained at a good level in 2007 (67.9%), in line with that of the previous year (67.3%). Both components of the combined ratio, i.e. the loss ratio and the expense ratio, performed reasonably in 2007, with a one point improvement in the loss ratio to 48.1% and a slight deterioration in the expense ratio, which rose from 18.1% to 19.8%.