International trade credit insurer Euler Hermes turned in a strong performance in 2019, despite sluggish global economic growth.
According to a statement by the Allianz-backed firm, it experienced growth in all regions and lines of business last year. The company’s revenues reached €2.91 billion, up 7% at constant exchange rates, with North America and Asia-Pacific as the fastest growing regions. Net combined ratio improved by 1.2 percentage points to 79.9%, driven by better prior year development and a lower expense ratio. Operating profit reached a record-high in 2019 at €475 million, up 10% from the previous year. This made Euler Hermes one of the main profit contributors to Allianz’s P&C segment.
The increase in profit, Euler Hermes said, was mainly due to higher premiums and a better combined ratio, coupled with higher current investment income. Solvency II ratio for the company was at 159% at the end of 2019, improving by four percentage points from end-2018.
Furthermore, the company said that its strategy based on diversification in terms of products and geographies is paying off. For the second year in a row, Euler Hermes achieved the highest level of new business in its history, alongside an excellent retention rate of 91%.
“Asia-Pacific achieved very positive results in 2019 which is a strong testament to our customer-centric strategy,” said Holger Schaefer, Euler Hermes Asia-Pacific regional CEO. “I am very pleased that we are once again contributing to the group’s overall success. As envisaged, 2020 is filled with uncertainties and challenges for our customers. Together with our team, I am confident that we can navigate our customers through the volatile markets and grow profitably and sustainably together.”