Atradius N.V. Reports 18% Increase in Net Profits to EUR 134.5 Million
AMSTERDAM, March 10, 2014 /PRNewswire/ --
Atradius N.V., a global leader in credit insurance, debt collection and bonding, today reported total revenue of EUR 1,578.4 million resulting in net profit of EUR 134.5 million for its 2013 financial year; an increase of 18.4% compared to EUR 113.6 in 2012. Profit before tax of EUR 173.8 million grew 14.8% in 2013.
Highlights:
- Net profit: EUR 134.5 million, up 18.4%, with a major contribution from its Iberian region
- Combined ratio: 81.5%, improvement of 4.7 percentage points
- Insurance result: EUR 143 million, up 19.9%
- Shareholders' equity: EUR 1,286.9 million, up EUR 90.6 million
Atradius achieved good results in 2013, despite the ongoing challenging economic environment. The result for the year (net profit) of EUR 134.5 million was led by a 4.7 percentage point improvement in the gross combined ratio to 81.5%. This was due largely to a significant improvement in claims expenses, with a major contribution from the Iberian region, where prudent risk management reduced claims, returning the business to a positive gross insurance result. Shareholder's equity continues to increase and is now close to EUR 1.3 billion
Atradius' local credit insurance business performed particularly well in North America (revenue up by 15.7%), Asia (+6.5%), Central and Eastern Europe (+4.5%), and in its Global service to large multinationals (+5.2%). Its Special Products unit, which offers non-standard and single risk solutions, reported healthy growth of 13.3% in insurance revenue. In Spain, where the economy was weak in 2013, premiums remained under pressure, showing a decrease due to the reduction of customers' sales.
Other Atradius insurance products also achieved positive results. Bonding revenue rose by 4.3%, with notable growth in France and the Nordic countries. Revenue from instalment credit protection increased by 1.3%, while Atradius' reinsurance business reported robust organic growth from core strategic markets.
The Group's gross combined ratio improved to 81.5% from 86.2% with a significant improvement in its claims ratio in Spain. The company's focus on growth in markets important to its customers continues to result in a more diversified portfolio with both premium and cover levels growing in North America, South America, Asia and Central and Eastern Europe.
Atradius also expanded its geographical presence in 2013, opening new offices in the US, Canada, Turkey and Australia, and making additional investments in Dubai, Singapore and China, which are rapidly growing in importance as leading world commercial hubs.
Service income from Atradius' debt collection operations, its Spanish information service Iberinform, and export credit agency fees from the Dutch State, increased by 1.3% to EUR 60 million, with Atradius Collections achieving a 1% increase in revenue to EUR 43.8 million.
The net investment result, including share of income of associated companies, ended the year at EUR 35.1 million: a robust 15.6% increase on 2012.
The company's financial strength again improved with shareholders' equity up 7.6% to EUR 1,286.9 million. Over the past ten years Atradius' equity has more than doubled climbing from EUR 503.3 million in 2004.
Innovating to meet customer needs
In 2013 new products designed for small and medium sized enterprises were launched in the Netherlands, the Nordic region and Australia. In France a web application helps Atradius customers to optimise their credit management while, in Spain, enhancements have been made to CyCred: technology that points customers towards growth opportunities.
Stable credit ratings underline the company's financial strength and steady performance
Atradius' continued success is reflected in the strong ratings that it has received from leading credit rating agencies: 'A (Excellent), outlook stable' from A.M. Best, and 'A3, outlook stable' from Moody's.
The outlook for 2014
Isidoro Unda, Atradius' Chairman and CEO, commented: "2014 is shaping up to be a year of growth with economies in Western Europe expected to improve along with the continued growth of economies in the Americas, Asia-Pacific, Central and Eastern Europe, and Africa. The investments we are making in expanding our presence across the world can enable businesses to expand their sales in both their existing and in new markets. We have positioned Atradius to maximise potential growth opportunities for our current and for new customers and will continue to invest in new technologies that will give our customers valuable insights to aid their business strategies. We have to take forward the opportunity of being perceived as the preferred option for customers."
About Atradius
The Atradius Group provides trade credit insurance, surety and collections services worldwide and has a presence through more than 160 offices in 50 countries. Atradius has access to credit information on 100 million companies worldwide. Its products help protect companies throughout the world from payment risks associated with selling products and services on credit. Atradius is a company of Grupo Catalana Occidente, one of the leading Spanish insurance entities, listed at the Spanish market.
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