Trade credit insurance indemnifies export and domestic suppliers of goods and services against non-payment due to the insolvency of their buyers. It is commonly used to support the value of debtors as collateral for trade finance facilities, and Policy proceeds are frequently assigned to Banks. Euler Hermes is the largest credit insurance underwriter in the world with 34% market share. In 2005 the Group had a premium income of 2.008 Billion Euros. It has a local presence in over 50 countries and insures about 49,000 clients spread over the globe. Euler Hermes is AA- rated by Standard & Poor's.
The cover
protects profitability by covering losses
reinforces the realisable value of debtors
underpins cash-flow
Corporate insolvency remains largely unpredictable, and past payment performance is not a reliable guide to future performance. The intelligent solution for an increasing number of companies is to transfer their credit risk.
Note: Trade Credit insurance supports, but does not replace, internal credit management resources. Clients are required to maintain sound credit management practices.
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