2018: Another year of solid figures for Atradius

Press release

Atradius year-end result climbs 8.8% to EUR 202.7 million, premium revenue rises 3.8%

  • Insurance premium revenue increased by 3.8% (5.3% at constant foreign exchange rates)

  • Result for the year increases by 8.8% to EUR 202.7 million

  • Combined ratio 79.2%

  • Insurance and service result at EUR 268.3 million, up 3.2%

  • Shareholders’ equity improved by an additional 3.9%

  • Solid solvency ratio exceeds 200% (1)

  • In 2018 Atradius’ Insurance Financial Strength Rating was upgraded to ‘A2’ (outlook stable) by Moody’s

  • Retention rate further improved to 94%, validating commitment to excellence in quality of service 

               (1) Subject to finalisation of any audit procedures

Isidoro Unda, CEO of Atradius commented; “Another year of solid figures are the result of a strong company culture, international expansion and the implementation of initiatives to increase efficiency, thus improving the quality of service we provide to our customers. With the global economic uncertainty, these improvements will put us in a better position to meet the widening needs of our growing customer base in the coming years and to continue to expand our business.”

Sales and profits
In 2018, Atradius insurance premium revenue increased 3.8%, from EUR 1,588.1 million to EUR 1,648.5 million, and profits 8.8%, from EUR 186.2 million to EUR 202.7 million. The company places a high emphasis on customer service and being available to the customer where needed. This focus has resulted in continuously high retention rates and strong growth in younger Atradius markets in the Asia & Oceania region.

 

P&L Information (EUR millions 2018 2017 % Change
Insurance Premium Revenue 1,648.5 1,588.1 3.8%
Total Revenues (Insurance & Services) 1,898.0 1,837.2 3.3%
Insurance and service result 268.3 260.1 3.2%
Result after tax 202.7 186.2 8.8%
Gross claims ratio (gross claims / insurance revenue) 43.7% 41.7%  
Gross expense ratio (gross expenses / insurance revenue) 35.5% 35.7%  
Gross combined ratio 79.2% 77.4%  
Balance Sheet Information (EUR millions)      
Total Assets 4,725.3 4,519.2 4.6%
Shareholders equity and subordinated debt position 2,145.3 2,076.8 3.3%

Insurance revenue
Atradius’ insurance premium revenue grew 3.8% to EUR 1,648.5 million in 2018 from EUR 1,588.1 million in 2017 (5.3% at constant exchange rates). The improvement in credit insurance was stable and consistent in almost every region with the Northern and Central European regions, along with Asia, Oceania and the Global unit showing some of the strongest growth rates.

Claims
Atradius achieved a solid 43.7% claims ratio, paying out over EUR 834 million in claims to customers while consistently supporting them in a challenging risk environment.

Expenses
The expense ratio improved to 35.5% in 2018 from 35.7% in 2017. Effective cost controls and investments in technology that is increasing efficiency enabled Atradius to grow revenue more profitably. 

Insurance and service result
The Atradius insurance and service result improved 3.2% to EUR 268.3 million from EUR 260.1 million in 2017.

Investment result
Atradius’ prudent investment portfolio contributed EUR 22.1 million, in a difficult environment with low or negative interest rates and volatile equity markets.

Result after tax
The result after tax increased 8.8% to EUR 202.7 million from EUR 186.2 million, reflecting the excellent insurance result for the year, driven by strong revenue growth, a solid claims ratio along with a further reduction in the expense ratio.

Solvency ratio
Bolstered by profitable growth in the business and stable investment returns, the Atradius solvency ratio at the end of 2018 again exceeded 200% (1).

      (1) Subject to finalisation of any audit procedures

Rating
In 2018, Atradius’ Insurance Financial Strength Rating was upgraded to ‘A2’ (outlook stable) by Moody’s. Atradius’ long-term issuer credit rating from AM Best has also been upgraded from ‘a’ to ‘a+’ with a stable outlook. Both ratings reflect Atradius’ sound financial situation and its leading position in the credit insurance industry.

Business Outlook
Economic growth rates in advanced markets are expected to decline in 2019 as trade measures and monetary tightening weigh on economic activity. The decline in insolvencies should end in 2019 and an increase in payment defaults is anticipated creating the backdrop for rising demand for Atradius products and services.

 

Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.