Atradius Profit Before Tax EUR 156.2 Million on 3% Increase in Revenue
AMSTERDAM, March 12, 2013 /PRNewswire/ --
Atradius, a global leader in credit insurance, debt collection and bonding, today reported profit before tax of EUR 156.2 million for its 2012 financial year, on a 3% increase in revenue to EUR 1,601.6 million.
Financial highlights
- Profit before tax: EUR 156.2 million; Result for the year: EUR 117.3 million
- Total revenue up 3%
- Shareholders' equity grew to EUR 1,196.8 million from EUR 1,130.1 million in 2011
These results reflect Atradius' positive performance during a challenging economic period throughout Europe. Revenue has grown, not least because of Atradius' strong focus on customer service excellence.
Revenue growth particularly strong in Atradius' Global, Asia, Bonding and Collections businesses.
Overall insurance revenue improvements were led by an increase in insurable sales by existing customers, but were also positively influenced by an increase in new business. Together, Atradius' Global and Asia units represent 23% of total credit insurance revenue. Global revenue increased 8.1% and Asia revenue increased 18.6% in 2012. Insurance revenue grew by at least 5% in most regions, but in Spain and Portugal a planned reduction in revenues had a very positive impact on operating results. Bonding revenue grew by 10.1% to EUR 93.6 million following strong performance in most Atradius bonding markets.
Service income saw an 11.4% improvement in 2012 led by Atradius Collections, which produced an 11.1% increase in revenue due largely to a 15% increase in debt placements and higher claims inflows from insured business. Other service revenue grew by 13.0%. Atradius' reinsurance business saw a 2.1% increase in revenue, but a threefold increase in its pretax result.
Cover increasing and claims ratio remain under control
Despite unsteady global economic conditions, Atradius' gross claims ratio remained stable; registering a small increase to 51.2% from 49.7% in 2011. Coupled with a 4.4% increase in total potential exposure to EUR 468.4 billion, the company has been very successful in expanding the amount of coverage available to customers while maintaining responsible risk underwriting standards.
Isidoro Unda, Atradius' Chairman and CEO, commented: "2012 saw significant variations in economic conditions from country to country. With insolvency rates still growing in most of our markets, Atradius' extensive global presence enabled our customers to securely take advantage of sales opportunities across the world. Their trust in Atradius protection has been recognized with a high level of customer satisfaction."
Solid ratings highlight stable financial strength and consistent performance
Shareholders' equity grew by EUR 66.7 million to EUR 1,196.8 million in 2012, driven mainly by retained earnings. This improvement is mainly driven by net profit for the year, partially offset by a dividend payment. The company's solid performance has been recognised in the most recent ratings of A.M. Best 'A' (excellent) and Moody's 'A3', each highlighting the company's strong performance and good business prospects. Both ratings provide a clear assessment of the financial strength of Atradius and its operating entities.
Customer service excellence
Customer service has been and remains a major focus for Atradius. In 2012 a number of improvements to products and service were implemented to further increase customer satisfaction. One such improvement - online 'early cost assessment' - provides customers with advance notice of the likely contribution towards debt collection costs, which can help them manage their cash flow more efficiently.
The outlook for 2013
Isidoro Unda concluded: "Stress levels of economic conditions throughout our markets remain high with soft European economies driving uncertainty. We continue moving forward with our strategy of supporting our customers wherever they do business, benefitting from growing opportunities in emerging markets. Our aim, as always, is to provide our customers with the best quality services and the greatest value by supporting their expansion while protecting their receivables portfolio."
About Atradius
The Atradius Group provides trade credit insurance, surety and collections services worldwide. With a presence through 160 offices in 45 countries, it has a market share of approximately 31% of the global trade credit insurance market. 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.
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