Atradius Result for the Year up 19% in 2016

PR67705

AMSTERDAM, Mar. 7, 2017 /PRNewswire=KYODO JBN/ --

     Continued strong contributions across the Group

    Highlights:

- Total income increased by 3% (3.3% at constant foreign exchange rates)     

- Gross insurance result improved 15.5% to EUR 370.4 million     

- Investment result rose 24.9% to EUR 45.0 million     

- Net profit increased 18.8% to EUR 211.8 million     

- Shareholders' equity increased 8.4% to EUR 1,625.5 million

    Atradius' aim is to lead our customers into the future by strengthening

their credit and cash management to support growth of their businesses. We

continue investing in new technologies and taking advantage of opportunities in

the markets. Our strategy is anchored by our distribution network of brokers

and agents who deliver quality services that make a difference and where our

people and global footprint play a key role.

(Logo: http://photos.prnewswire.com/prnh/20150513/743985 )

    Isidoro Unda, Chairman of the Management Board of Atradius commented, "2016

was another strong year for Atradius. We were successful in making improvements

to our operations to the benefit of our cost structure and also enabling us to

further enhance our operational efficiency and effectiveness. Year after year

we are committed to delivering our customers and business partners quality

service, regularly updated buyer information, collections support and prompt

reimbursement of claims. This resulted in a very high customer retention rate

of 93%."

    Key figures (in EUR ,000):                  2016        2015  % change

    Insurance premium revenue              1,557,588   1,537,005      1.3%

    Service and other income                 203,079     180,754     12.4%

    Total revenue                          1,760,667   1,717,759      2.5%

    Gross claims and gross operating

    expenses                             (1,314,538) (1,337,813)     -1.7%

    Investment income                         44,968      36,016     24.9%

    Operating income before reinsurance      424,045     364,616     16.3%

    Reinsurance result                     (140,062)   (102,958)     36.0%

    Income tax expense                      (62,792)    (69,949)    -10.2%

    Result after tax                         211,772     178,221     18.8%

    Gross claims ratio

    (gross claims / total insurance

    revenue)                                  41.60%      43.50%     -4.4%

    Gross expense ratio

    (gross expenses / total insurance

    revenue)                                  36.40%      37.10%     -1.9%

    Gross combined ratio                      78.00%      80.60%     -3.2%

    Shareholders' equity                   1,625,470   1,500,249      8.3%

    Total Revenue Atradius' total revenue grew 2.5% to EUR 1,761 million in

2016 compared to EUR 1,718 million in 2015. At a constant exchange rate this

marked a 3.4% increase. Europe, Asia and Oceania showed encouraging revenue

growth, consistent with our expansion ambitions in these regions. The business

line for multinationals (Global), Bonding and Instalment Credit Protection

performed well delivering increased revenues.

    Claims Gross claims ended at EUR 701.1 million in 2016, down 2.9% from EUR

721.7 million in 2015 despite a steady inflow of medium sized claims influenced

by a weakened insolvency outlook in many markets. All Atradius business lines

contributed to the improvement.

    Expenses Gross insurance operating expenses decreased 0.4% to EUR 613.4

million in 2016 from EUR 616.1 million in 2015, with an improvement in the

expense ratio compared to 2015.

    Investment result The net investment result, including the share of income

of associated companies, ended at EUR 45.0 million, an increase of 24.9%

compared to 2015. The impact of the persistent low yield environment was

partially offset by increased dividend income and the revaluation of our

existing 45% stake in Graydon after the acquisition of the remaining 55%,

adding EUR 19.9 million of non-recurrent profit.

    Operating income before reinsurance Operating income before reinsurance

improved 16.3% to EUR 424.0 million from EUR 364.6 million in 2015.

    The positive developments in claims and expenses resulted in an excellent

gross combined ratio of 78.0% compared to 80.6% in 2015.

    Reinsurance result The Reinsurance result of EUR 140.1 million in 2016 was

36.0% lower than that of 2015 (EUR 103.0 million) largely due to lower claims

recoveries following the decrease in gross claims.

    Consolidated net income The result for the year after taxes of EUR 211.8

million marked an 18.8% increase over the 2015 result for the year of EUR 178.2

million. In addition to the improvement in the operating income with better

claims and expense ratios, there was a positive contribution from the service

segment.

    Solvency ratio Atradius consolidates with Grupo Catalana Occidente. The

overall Group, including Atradius,  has a very strong capital position with an

estimated coverage ratio to insurance risk of approximately 200% at 31 December

2016.

    Outlook There is a significant amount of uncertainty in 2017 for the

outlook of global and regional trade. The expected renegotiation of numerous

trade agreements across the world could potentially stall international trade

growth. A side effect of this could be an increase in payment defaults as trade

costs are expected to rise, putting pressure on some businesses to improve cash

management. This should also increase the need for information and collections

services to better monitor creditworthiness of buyers and collect overdue

debts.     Isidoro Unda concludes, "Every year businesses are challenged with

new potential hurdles to increasing profits and managing payment risks. At

Atradius, we have a strong corporate culture that is focused on ensuring we are

able to meet our customers' expanding needs for securing their receivables. We

do this by expanding our credit insurance, bonding, credit information and

collections capabilities into new markets, by constantly improving availability

of information about buyers and by innovating to deliver new services to our

customers."

About Atradius Atradius provides trade credit insurance, surety and collections

services worldwide through a strategic presence in more than 50 countries.

Atradius has access to credit information on over 200 million companies

worldwide. Its credit insurance, bonding and collections products help protect

companies throughout the world from payment risks associated with selling

products and services on trade credit. Atradius forms part of Grupo Catalana

Occidente (GCO.MC), one of the leading insurers in Spain and worldwide in

credit insurance.

For further information:     

Atradius Corporate Communications     

Christine Gerryn     

Tel.: +31-20-553-2047     

E-mail: christine.gerryn@atradius.com     

http://www.atradius.com

SOURCE: Atradius N.V.