Atradius Reports Results for 2007

Total income nears euro 1.4 billion, 56% rise in net profit

AMSTERDAM, Netherlands, April 10 /PRNewswire/ -- Atradius, a global leader
in trade credit insurance and collections, today reported a 56% increase in
net profit to euro 164.2 million in 2007 from euro 105.3 million in 2006. The
improvement was driven by a 6.7% increase in gross earned premium to euro
1,148.6 million from euro 1,076.5 million in 2006. Atradius significantly
improved its net insurance result and net profit from continuing operations
for the fifth consecutive year.
2007 results do not include the results of Credito y Caucion, which became
part of Atradius in early 2008.
Financial highlights

-- Net profit increased 56% to euro 164.2 million (2006: euro 105.3
million)
-- Gross earned premium grew 6.7% to euro 1,148.6 million (2006: euro
1076.5 million)
-- Service and other income increased 9.2% to euro 166.9 million (2006:
euro 152.9 million)
-- Net investment result increased 48.1% to euro 79.7 million (2006: euro
53.8 million)
-- Net claims ratio of 41.3%, improved from 45.8%
-- Gross expense ratio of 38.5%, improved from 39.0%
-- Net combined ratio of 79.2%, improved from 86.8%
-- Return on equity was 21.3% compared to 16.3% in 2006

Insurance segment
Gross insurance revenues grew 6.4% to euro 1,261.2 million reflecting
strong growth in trade credit insurance. Trade credit insurance grew 4.7% with
traditional trade credit insurance improving 2.5%, the Atradius Global product
offering to multinationals increasing 10.1% and special products revenue up
20.5%.
Bonding revenues were 7.7% lower as a result of portfolio optimization
focused on improving profitability.
Revenue from the assumed reinsurance business improved to euro 83.8
million from euro 50.0 million, primarily related to the implementation of new
accounting assumption in 2006 regarding the pattern of revenue recognition.
Apart from this the reinsurance business is developing steadily.
Installment credit protection revenues increased 7.3%.
The first indications of underwriting year 2007 reflect a deteriorating
risk environment. Nevertheless, the claims result improved compared to last
year due to releases in claims provisions related to previous underwriting
years.
Isidoro Unda, CEO of Atradius commented, "Our growth strategy revolves
around offering our customers products and services that are of value to them
and providing them with the highest quality customer service possible. Our
2007 performance clearly demonstrates that this strategy is delivering
results."
Service segment
Service revenue excluding information fees climbed 12.3% to euro 61.8
million. Collections, which accounts for the largest percentage of service
revenue, grew 18.1% benefiting from an up-graded value proposition to
customers following significant investments in people, IT and geographical
presence.
Unda continued, "Our customers do business globally. Ensuring that we can
support them wherever they do business is very important. We are committed to
providing the best service to our customers by building a global collections
network that can both support our trade credit insured customers and develop
business independently."
Markets
Regionally, Atradius experienced strong growth in almost all markets. The
Northern Europe region advanced well, led by an 8% increase in revenues in the
Netherlands. Rapid revenue growth of 26.5% throughout the majority of the
Central and Eastern Europe region offset lower revenue in Germany. In Southern
Europe, lower revenues in Italy, due to the restructuring of the bonding
portfolio there, were more than compensated for by growth in France, Belgium
and Spain, resulting in regional growth of 3.5%. The UK and Ireland improved
19.5%, led by growth in assumed reinsurance revenue and in trade credit
insurance revenue in Ireland. The NAFTA region saw a revenue decline in the
United States but strong growth in Mexico and Canada. Results in the NAFTA
region were also impacted by the weak US dollar. In Oceania and Asia, revenue
was 56.9% higher than in 2006. Expansion efforts in these markets have paved
the way for improved service to and revenue growth with existing customers in
other parts of the world that are doing business in Oceania and Asia.
Outlook
Atradius was not meaningfully impacted by the credit crisis in 2007 in
either its direct business or its investments. The financial credit crisis
however, is expected to have a significant impact on the global economy and is
likely to stimulate payment defaults and interest in trade credit insurance in
2008. We are already seeing signs of slowing economies in the United States
and Europe, however the overall tone suggests that most global economies will
continue to grow, but at a slower pace than in 2007.
Geographic expansion in 2007 into markets like Turkey and Singapore as
well as cooperation agreements in Russia and China will help spur growth for
Atradius. The addition of Credito y Caucion early in 2008 lifted Atradius'
worldwide market share to 31% and we expect its integration within the
Atradius Group will play a significant role by improving expansion
opportunities in South America and additional growth opportunities in Asia.
Atradius will continue to introduce relevant new products and build its global
presence in trade credit insurance and collections to maximize the value it
offers its customers.
Unda concluded, "We want to be the leading trade credit insurer wherever
we do business. To achieve this we will continue to pursue our strategy of
building our presence and capabilities in the markets our customers do
business in, introducing new products and services that meet the evolving
needs of our customers and by striving to provide best in class customer
service. As the risk environment deteriorates we are keeping a keen eye on
ensuring we continue to provide our customers with smart risk management
support that meets their business needs.
"For more information about our Financial Statements for the year 2007
(PDF) please go to http://www.atradius.com."
About Atradius (after combination of Atradius and CyC)
The Atradius Group provides trade credit insurance, surety and collections
services worldwide, and has a presence in 40 countries. Its products and
services aim to reduce its customers' exposure to buyers who fail to pay for
the products and services customers purchase. With total revenues of
approximately euro 1.8 billion and a 31% share of the global trade credit
insurance market, its products contribute to the growth of companies
throughout the world by protecting them from payment risks associated with
selling products and services on credit. With 160 offices, it has access to
credit information on 52 million companies worldwide and makes more than
22,000 trade credit limit decisions daily.
Further information:
Atradius Corporate Communications
Christine Gerryn
Tel.: +31 20 553 2260
E-mail: christine.gerryn@atradius.com
http://www.atradius.com

Kathy Farley
Tel.: +1 410 246 5584
Email: kathy.farley@atradius.com
http://www.atradius.us

SOURCE Atradius

Christine Gerryn, Atradius Corporate Communications, +31 20 553 2260,
christine.gerryn@atradius.com, or Kathy Farley, +1-410-246-5584,
kathy.farley@atradius.com, both of Atradius