Atradius 2021 Annual Results

Atradius N.V. today announced a profit of EUR 240.2 million in 2021, increasing notably from EUR 44.2 million in 2020. While Covid-19 still remained an important factor, insurable business volumes increased and gross insurance revenue surpassed EUR 2 billion for the first time.

The overall result for the year shows great recovery following the highly adverse economic and trade environments of 2020 along with strong customer retention and continued demand for Atradius’ products and services. Major factors affecting the market included sharp increases in global commodity prices, vaccination campaigns, which have allowed a significant reopening of the economy, and implementation of new government restrictions due to surge in new Covid-19 cases.

While continuing to be steadfast and present for our customers and still pursuing our growth ambitions, Atradius was able to exceed pre-pandemic business performance.

Financial highlights

• Total revenue reached EUR 2.2 billion, with insurance revenue increasing by 10.0% and surpassing the EUR 2 billion milestone
• Result for the year of EUR 240.2 million.
• The gross combined ratio ended at 65.0%.
• Insurance and service result of EUR 302.5 million, increased by 282.0%
• Shareholders’ equity and subordinated debt position was further strengthened by 6.9%.
• Total Potential Exposure (TPE) increased by 17.5% (1) through demand for Atradius’ services and the company’s commitment to support its customers and their needs.
• Solid solvency ratio exceeds 200% (2)
• Customer retention of 92.9%, a reflection of Atradius’ dedication to its customers and continued pursuit of excellence even in the most challenging of times.

                ⁽¹⁾Including bonding and instalment credit protection exposure
            ⁽²⁾Subject to finalisation of any audit procedures.

Insurance revenue
Atradius’ insurance premium revenue increased by 10.0% to EUR 1,900.3 million in 2021 from EUR 1,727.4 million in 2020 (10.4% at constant exchange rates), reflecting an increase in insurable business volumes following the recovery of trade activity in most markets.

Claims
The claims ratio for 2021 decreased to 27.8%. Claims were moderate, more contained and less volatile, with lower insolvencies supported by the extension of fiscal measures in many countries and the continuation of insolvency law amendments.

Expenses
The expense ratio was 37.2%, 1.5 percentage points higher than 2020, as the company continues to invest in the strategic development of systems that innovate the way we work and enhance the experience of our customers and partners.

Insurance and service result
The Atradius insurance and service result increased 282.1% to EUR 302.5 million from EUR 79.2 million in 2020. It was mainly driven by higher revenue as a result of the recovery of insurable business and the moderate claims during the year.

Investment result
Atradius’ conservative investment portfolio contributed EUR 35.6 million, with notable contributions from our associated companies.

Result after tax
The result after tax increased by 444.0% to EUR 240.2 million from EUR 44.2 million thanks to the favourable economic performance and the strong demand for Atradius products and services.

Solvency ratio
Bolstered by profitable growth in the business, stable investment returns and prudent risk underwriting, the Atradius solvency ratio at the end of 2021 again exceeded 200% (1).

      ⁽¹⁾Subject to finalisation of any audit procedures.

Business Outlook
The emergence of new, more transmissible variants of Covid-19 and the rapid re-imposition of restrictions by governments in response continues to challenge the bumpy global economic recovery. Supply chain issues and transportation bottlenecks are increasingly straining manufacturing and distribution. Emerging markets, led by China, are forecast to grow 4.7%, with Latin America expected to grow slower as it struggles with low vaccination rates and supply bottlenecks. Advanced economies are projected to grow 4%, with price pressures increasingly straining the economic outlook in the Eurozone.