Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 22nd of May 2019
March 9, 2009

Credit insurer Atradius posts record loss

by David Masters

Story link: Credit insurer Atradius posts record loss

Credit insurer Atradius posted its biggest ever yearly loss this week due to soaring payouts for customer claims.

The group reported a €193 million net loss for 2008, compared to a €163 million net profit in 2007.

The loss came despite a 40% increase in turnover from the takeover of Spanish credit insurer Crédito y Caución.

Combined ratio worsened to 129.7%, compared to 79.2% in 2007.

Chief executive Isidoro Unda anticipates a ‘challenging’ year ahead, but said that the company is better positioned that its rivals because it has withdrawn cover from riskier clients.

“We have had to increase prices and prudently manage our risk positions,” Isidoro said.

“We have stood beside our customers throughout this economic downturn despite the harsh business environment in some markets where we have a leading position.”

He added that the company is committed to supporting businesses in good and bad times.

“We have experienced many recessions over the years and we are managing this cycle by building a stronger company with a clear leadership in the global credit insurance market,” Isidoro said.

Atradius was criticised last year for pulling cover from suppliers to high street retailers, including Woolworths.

 

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