Annual financial statements 2004 - Euler Hermes ...

eulerhermes

Annual financial statements 2004 - Euler Hermes ...

Annual financial statements and

business report

2004


CONTENTS

FOREWORD FROM THE BOARD OF MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

BUSINESS REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

The general economic situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The credit insurance market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Business development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Own underwriting business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Inwards reinsurance business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Non-technical account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Report on relations with affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Risk report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Risk control in the insurance business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Our staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

FEDERAL GOVERNMENT EXPORT CREDIT GUARANTEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Profit and loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

NOTES TO THE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Governing bodies of the company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Balance sheet/Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Balance sheet/Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Profit and loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

AUDITORS’ REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

REPORT OF THE SUPERVISORY BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

WHO TO SPEAK TO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Contents

3


FOREWORD FROM THE

BOARD OF MANAGEMENT

5


Introduction by the

Board of Management

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Lagebericht

A reliable partner in a global environment

Against the background of a persistently difficult economic situation, the year 2004 was all in all

an encouraging one for Euler Hermes Kreditversicherungs-AG.

Despite the continuing record levels of insolvencies in Germany the company achieved a very

good result, generating a net profit for the year of 21.5 million EUR. A decisive role here was played

by the fall in the loss ratio due to a general absence of major claims as well as the allocation to the

equalization reserve of a sum which was per balance some 27 million EUR lower than the previous

year, a result of non-recurring special influences. Premium income in direct insurance business rose

moderately by 2.6 per cent due to the difficult economic environment.

A gratifying aspect is the share of total turnover accounted for by foreign business, which continues

to grow. The excellent development in Central and Eastern Europe, in particular, should be mentioned

here. Cooperation agreements with partners in Russia, China and – as planned – in India will

reinforce this trend still further in the years to come.

This positive development should not close our eyes, however, to the fact that the efforts to

improve customer care launched with the Service Programme in 2004 will need to be continued into

the future. Strengthening existing customer relations and providing support for the acquisition of

new clients through an ongoing process of improvement in our service standards will be a main

thrust of our business policy in 2005 and the following years. This is especially true of the much

stronger customer focus we are striving for in claims handling as well as even greater transparency in

communicating our risk decisions. Even today, the principle of international presence and local risk

monitoring already guarantees that the entire credit know-how of all the companies in the group is

directly available to our clients.

In addition, our company is committed to maintaining the focus on profitability in policy conditions

and credit underwriting which will continue to make us able to stand by our policyholders as a

strong and reliable partner in the future.

Besides its business activities, the company put considerable efforts during 2004 into assuring

compliance with the duties resulting from the listing of Allianz on the New York Stock Exchange

based on the Sarbanes-Oxley Act (SOX). This will be an indispensable necessity in the coming years,

and Euler Hermes Kreditversicherungs-AG has already received the cachet “SOX-compliant” from the

external auditors and Allianz for 2004. This is a confirmation of the truth and fairness and security

controls in business processes which will need to be earned again each year in the interests of the

shareholders and the clients.


BUSINESS REPORT

2004

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THE GENERAL ECONOMIC ENVIRONMENT

The global economy experienced a strong upsurge in 2004. Output worldwide rose by some 5 per

cent and the volume of global trading flows far exceeded the average, expanding by some 9 per cent.

The principal driving forces in this upturn were, besides the USA, first and foremost the Asian

economies, especially China. Economic growth in Western Europe was comparatively low-key, while

the countries of Central and Eastern Europe boosted their economies to a high level. The average

figure for growth during the year, however, masks the fact that growth declined markedly as the year

went on, a development which can be attributed, apart from more stringent economic policies, above

all to the steep rise in oil prices.

After a phase of stagnation lasting three years, Germany posted a moderate level of economic

growth in 2004. Real GDP went up by 1.7 per cent. The overall economic picture, though, was still

one of instability and imbalance: the main influence on growth was the extremely energetic upswing

in exports during the first half of the year, while domestic demand stayed largely flat. The second

half, in contrast, was characterized by a dip in foreign demand and the beginnings of a recovery in

investment activity.

The international upturn is reflected in an easing of the situation in corporate insolvencies.

The robust upward trend of the preceding year in Western Europe slowed noticeably. The number of

corporate insolvencies in Germany declined slightly after the all-time high of 2003. This does not

mean that the tide has turned, however, since in our estimation the negative trend will probably

gather speed again in the course of 2005.

The upswing in the global economy is continuing. In view of the diminishing intensity of political

initiatives to boost economic growth, however, and the increased risks in the business environment,

a slowdown is becoming apparent. For Germany, against the background of the persistent structural

problems the country still has, expectations are all in all muted. Growth of between 1 and 2 per cent

is on the cards for 2005 and 2006.


THE CREDIT INSURANCE MARKET

The credit insurance market, both nationally and internationally, continues to be dominated by

Euler Hermes, Coface and Atradius. The fourth largest credit insurer, Crédito y Caución, increased its

stake in Atradius in 2004.

The overall claims situation in the German market has improved. Loss ratios – also due to

the absence of any major loss events – are once again down on the year before. This has enabled the

credit insurers to reduce their claims to a level where business is profitable again.

The growth rate in overall premium for commercial credit insurance has decreased over recent

years. This trend continued in 2004, rising by one to two per cent. Adjusted for inflation, overall

premium income thus remained stable. It is conspicuous that this has been accompanied by a drop

in the number of credit insurance policies.

Commercial credit insurance remains the focus of the credit insurers’ activities. Alongside this,

ancillary products such as debt collection, business information and rating are being expanded.

The credit insurance market is more and more characterized by the consolidation of business

areas to focus more intensively on core products. In line with this trend, AK Coface sold its fidelity

business. Atradius followed suit with the announcement that they would divest themselves of their

factoring and bonding operations in the near future.

Euler Hermes, too, sold its stake in Eurofactor, but in view of the market potential involved, is

continuing its fidelity and bonding activities.

Bonding and guarantee business is still dominated by the banks, only being offered by one or

two credit insurers, whereby not all our competitors are active on the international market.

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BUSINESS DEVELOPMENT

Gross premiums written by Euler Hermes Kreditversicherung were up over the preceding year by

11.3 million EUR, reaching 650.7 million EUR. This represents a rise of 1.8 per cent. In a difficult

economic environment, the acquisition of new policies was made even more difficult by the trend for

companies to insure their own risks. This was exacerbated by an intensified competitive situation

across the board.

In contrast to the year before, inwards reinsurance business rose to 80.9 million EUR gross in

2004, an increase of 2.0 per cent.

The gross loss ratio for the insurance year, calculated on the basis of earned premiums, dropped

by 19.4 percentage points to 55.3 per cent. For our own underwriting business this is 56.1 per cent

and in inwards reinsurance 49.9 per cent. The run-off results in our own underwriting business stood

at 178.7 million EUR gross and in inwards reinsurance 11.9 million EUR gross. The overall run-off

result was 71.7 million EUR. This positive development, bucking the trend of rising insolvencies in

Germany, is attributable to the determined implementation of a portfolio clean-up programme to

differentiate risk underwriting and stabilize profits.

After 66.0 million EUR in 2003, a further sum of 39.0 million EUR was transferred to the equalization

reserve in 2004. The cause for this is the good loss ratios, markedly lower than the average

over many years. In addition, the comparative values from previous years which underlie the calculation

of the amounts to be allocated to the equalization reserve were adjusted for non-recurring effects.

This resulted in a reduction in the sum allocated for own underwriting business by 3.4 million EUR,

while 69.1 million EUR less was allocated for inwards reinsurance. Overall, the net technical result is

therefore positive, in contrast to the previous year, coming in at 31.3 (2003: -39.4) million EUR.

The result from our capital investments (28.1 million EUR) and other non-technical business increase

this figure, so that pre-tax profits for 2004 stood at 70.0 (2003: 6.3) million EUR.

OWN UNDERWRITING BUSINESS

The gross premiums written by Euler Hermes Kreditversicherungs-AG from own underwriting

business went up by 1.7 per cent to 569.8 million EUR. Despite continuing sluggish demand for

cover, nearly every line of business was able to book increased turnover. Besides fidelity insurance

(+3.3 per cent), turnover growth in commercial credit insurance was also above average

(+1.9 per cent). Bonding and guarantees also made a significant contribution, posting revenues

of 67.9 million EUR.


One result of all the activities to promote service standards and portfolio profitability is the

sharp drop in the loss ratio for the underwriting year 2004. The gross loss ratio for the insurance

year improved year-on-year to 56.1 (2003: 78.3) per cent.

Commercial Credit Insurance

Commercial credit insurance accounted for 73.7 per cent of gross premiums written in our own

underwriting business, thus remaining the largest line of business done by Euler Hermes

Kreditversicherungs-AG. Gross premium income went up by 2 per cent to 420.4 million EUR

(2003: 412.1 million EUR). The volume of insured receivables dropped slightly to 111.4bn EUR

(2003:111.5bn EUR). 64 per cent of the cover given was for German risks (2003: 66 per cent).

Premium income from business with German policyholders rose by 1.9 per cent to reach

374.6 million EUR. The main reason for this is once again encouraging growth in new business.

Increased turnover made by our clients themselves also led to premium increases as the economy

got under way again, while higher premium rates also made a small contribution to the increase in

premium received. There was further gratifying growth in income from the special policy for SMEs,

which generated premium of 32.9 million EUR, up by 3.8 per cent

In our international business – with foreign policyholders – premium income stood at 45.8 million

EUR (2003: 44.5 million EUR). This pushed the share of foreign business as a proportion of overall

trade credit insurance business up slightly to 10.9 (2003: 10.8) per cent.

The gross loss ratio for the insurance year, calculated on earned premiums, is 58.3 per cent

(2003: 80.7). The run-off result stood at 146.3 million EUR gross. The stringent portfolio control programme

to increase profitability, which was continued in the year under review, once again operated

to full effect after the additional measures of previous years.

In the year under consideration the number of claims dropped by 22.9 per cent and at the same

time the payment per indemnified loss was also lower. Claims paid out fell overall by 46.3 per cent to

100.2 million EUR. The volume of major claims, too, went down from 40.0 to 38.9 million EUR.

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Consumer Credit Insurance

The market remains limited in scope due to mergers and the restrictive credit policy operated by

the banks when giving loans to private customers.

Despite this persistently difficult environment, gross premiums of 13.6 million EUR were written,

equalling the previous year’s figure. Consumer credit insurance is continuing to concentrate on

maintaining a profitable portfolio.

Bonding and Guarantees

The business year 2004 saw a drop in the premium income from bonding and guarantees by

-0.7 per cent to 67.9 million EUR. It should be mentioned in this context that we transferred our

bonding business with clients in Great Britain and the Irish Republic to our subsidiary EH Guarantee.

Turnover with German bondees rose by 11.2 per cent, while Kautionsversicherung-Dispo, a bonding

facility for small tradesmen marketed in cooperation with Allianz, achieved growth of 14.0 per cent.

We continue to support the Allianz companies virtually all over Europe in their bonding activities

as a Regional Underwriting Center. In addition to this we aim to strengthen the international dimension

of our own activities, particularly through our own Branch Office in Paris.

The total sum of commitments assumed by us stood at 9.5 billion EUR. 5.5 billion EUR of this is

accounted for by business with large and medium-sized German companies.

The gross loss ratio for the insurance year improved, going down from 69.6 per cent to 50.4 per

cent. The run-off result was 14.7 million EUR. This is due to the risk-orientated underwriting policy

which we shall continue to operate in future as well as to the absence of major claims.

Fidelity Insurance

Despite an environment in which rigorous cost-cutting programmes characterized economic

development across the board in every sector of business, fidelity insurance was still able to post an

increase in premium income in 2004. Gross premiums went up by 3.3 per cent from 66.1 million EUR

to 68.3 million EUR.

The globally rising incidence of in-company crime is bringing home to a steadily increasing

number of companies of all sizes and in all sectors that it is well worth their while to take out fidelity

insurance.


The first successes in acquiring new business in other European countries fell in this year.

In general, there is growing interest in our product abroad, in particular in Switzerland, Austria and

Italy. The stringent portfolio clean-up of loss-making policies and yet another year with only a low

number of major claims generated a gross loss ratio for the insurance year of 42.0 per cent. The

run-off result was 17.7 million EUR net.

INWARDS REINSURANCE BUSINESS

In our inwards reinsurance business we cover credit insurers, the majority of whom are – like

Euler Hermes Kreditversicherungs-AG itself – members of the International Credit Insurance and

Surety Association (ICISA). We reinsure exclusively credit, guarantee and fidelity risk with the same

standards we apply in our own underwriting business.

The majority of our ceding companies are group companies of Euler Hermes Kreditversicherung

and foreign business units of Allianz AG (72.6 per cent of premium underwritten in 2004), as well as

other companies (27.4 per cent premium underwritten in 2004).

Inwards reinsurance accounted for 12.4 per cent of Euler Hermes Kreditversicherung-AG’s premium

income gross, before outwards reinsurance and 17.7 per cent net, i.e. after deduction of the reinsurers’

share. The share of this generated by foreign business rose by 4.5 percentage points year-on-year to

74.5 per cent.

Gross premium income written increased by 1.6 million EUR to 80.9 million EUR in the year under

review after the equivalent figure of 79.3 million EUR one year earlier.

Credit insurance accounted for 52.8 million EUR of this, bonding and guarantees 26.1 million

EUR and fidelity 2.0 million EUR.

The gross loss ratio for the insurance year for inwards reinsurance calculated on earned premiums

went up by 0.6 per cent to 49.9 per cent. The run-off result was 11.9 million EUR gross.

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NON-TECHNICAL ACCOUNT

Capital investments

Euler Hermes Kreditversicherungs-AG invests mainly in fixed-interest European government and

bank bonds, i.e. securities with the best rating available.

The book value of our capital investments in the year under review (net of amounts due from

reinsurers) rose by c. 8.4 per cent to 731.6 million EUR. The main reason underlying this, besides

improved premium income, was the decline in claims payments.

Income generated from capital investments was 33.8 million EUR in the year under review.

Costs for asset management consist largely of depreciation on our own Head Office building and

administration expenses, and stood at 5.7 million EUR.

Capital gains were 28.1 million EUR.

Other results

The other results went up by 0.5 million EUR to 10.5 million EUR.

Pre-tax result

Together with the technical result, there was a pre-tax profit of 70.0 million EUR.

REPORT ON RELATIONS WITH AFFILIATED COMPANIES

The Board of Management of Euler Hermes Kreditversicherungs-AG has declared in conclusion in

its report drawn up in accordance with § 312 of the German Company Law that the company has

received appropriate consideration for each and every legal transaction in as far as it was aware of

all the circumstances pertaining at the time the legal transaction took place.


RISK REPORT

As a credit insurer, the management of risk in general and credit risk in particular is our core

competence. Risk management therefore constitutes an integral part of our business processes.

This involves the identification, quantification and control of risks.

Risk control in the insurance business

As a credit insurer, it is our business to safeguard companies from bad debt losses. We take over

the loss of income which occurs when a customer does not pay for goods or services supplied on

credit terms. The loss of individual clients or risks is therefore the central focus of our products and

our risk control systems. To manage this risk, we distinguish categories of risk within the overall risk

of Euler Hermes Kreditversicherungs-AG which we deal with by means of specific measures:

Actuarial risks are an inseparable part of technical insurance operations. They result from our

guarantee to pay any future loss, the volume of which must be calculated in advance.

• Premium shortfall risks are risks which arise out of an unexpected variance between the

actual volume of losses occurring and the insurance premiums fixed in advance. We manage

these risks by applying guidelines for the calculation of premium in policies and the assumption

of risks. This is complemented by reviews of risk categorization at an early stage preceding the

renewal of the policy. Risk management is organisationally separated from the contact with the

customer. It is this department which decides on the amount of cover to be underwritten and

which monitors on an ongoing basis the credit limits granted. Limits are set according to an

internal rating system. These ratings are immediately updated as soon as new information

becomes available on the individual risk companies. In addition, the compensatory effect of a

broad spread of potential client losses over different regions, market segments and business

associates contributes to a reduction of the risk. On top of this, premium shortfall risks are

limited by reinsurance constructions.

• Loss reserves must be set up for losses which are incurred, but not yet finally regulated.

By reserve risks we understand the risk of a variance of the actual claims payments in respect

of losses occurred from the loss reserves previously set up. We take account of the risks in

connection with this by means of a prudent claims reservation policy. In estimating the amounts

involved, we also draw here on our experience and on statistical methods. We additionally

reduce the risk by monitoring the development of these loss provisions constantly.

In addition we take account of actuarial risks by setting up equalization reserves. The purpose of

these is to balance out fluctuations in the incidence of claims.

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The credit and counterparty risk refers to the potential loss which may result from the default

of a business partner. “Default” means here that a contractual partner is unable or unwilling to fulfil

his contractual obligations. We limit our underwriting commitments in our insurance business by

ceding a part of the risk assumed to the international reinsurance market. Therefore the principal

danger from this risk for us is the risk that receivables remain unpaid, particularly those due from

reinsurers. In order to manage this credit risk we make use of extensive rating information. Our reinsurance

partners are selected after a stringent examination of their financial strength.

Market risks result from fluctuations in the value of the investment portfolio in connection with

changed market prices, e.g. in shares, interest and exchange rates. But the volatility of the market is

also relevant for the assessment of the risk. In order to control the market risks we carry out regular

stress tests and monitor the development of the investment portfolio on a regular basis. Market risks

from equity investments are taken account of by varying our equity holdings according to the risk

involved. Our intention here is above all to avoid any negative impact on the capitalization of our

technical insurance business.

Due to the special nature of credit insurance business, the market and credit risks from capital

investments constitute an elevated cumulative risk for us (the investment risk). We therefore reduce

these risks by not investing on principle in corporate bonds. On top of this, we ensure the minimization

of the credit risk in our investments by placing great value on selecting only debtors with adequate

financial strength. The economic soundness of the bond issuers is checked on an ongoing basis.

Liquidity risks refer to the risk that we will be unable to meet payment obligations due now or

later in full as and when they fall due. Liquidity risks are met by constantly monitoring cashflow.

And finally, operative risks arise due to inadequacies or mistakes in business processes, projects

or control systems, but may also be a result of technological defects or caused by employees,

organisational structures or external factors. We intend to limit operational risks on the one hand by

a wide range of technical and organisational measures. There is a “Business Continuity Plan” in

place to ensure the continuity of operations even after major disruptions.

As well as this, systems regulating access authority, audit and control processes reduce the operative

risks. Workflow is organized according to the principle of dual control to guarantee an acceptable

standard in internal processes. An early warning system is thus in place which also regularly

monitors during the year the risks arising out of our business processes as to the probability of their

occurring, their impact and countermeasures. The internal control system developed during the

successful implementation of the requirements of the Sarbanes-Oxley Act in 2004 is also effective in

dealing with operative risks.


Euler Hermes Kreditversicherungs-AG and its control system based on risk capital

The most important parameters within our risk control process are “Economic Value Added”

(EVA ® ) and risk capital.

Risk capital is required to cover unexpected losses. Internal mathematical models are used to

calculate the amount needed. These models are based on generally accepted methods of quantification

and form an element of our internal risk management across all divisions.

In our technical business we calculate the risk capital for premium shortfall risks and for reserve

risks as well as for credit and investment risks.

• The premium shortfall risks and reserve risks of the various lines of insurance business are

combined as actuarial risks. Reinsurance receives special consideration in this context.

• The credit risk in respect of amounts due from insurance business is primarily assessed

according to the financial strength or ratings of our reinsurance partners.

• The investment risk includes the market risk and the credit risk. We divide the market risk into

dividend-generating instruments, interest-bearing instruments and real estate. The credit and

counterparty risk as part of our investments differentiates according to the financial strength

or ratings of the debt securities.

In the business year just ended, together with other business units in the Euler Hermes Group,

we worked on a project to produce a comprehensive internal analysis of our credit insurance risks.

The purpose of this is to achieve an even more systematic evaluation of internal data using probability

models. These take account of the specific features of our credit insurance business as well as of

portfolio effects.

The breakdown of our risk capital at the end of the business year 2004 was as follows: the

actuarial risks accounted for 364.5 million Euros, a further 9.9 million Euros were allocated for the

credit and counterparty risk and 22.3 million Euros for the investment risk. These risks are taken

account of by a capitalization corresponding at least to an “A” rating according to Standard & Poor’s.

The capital adequacy level required from Euler Hermes Kreditversicherungs-AG by the regulatory

authorities is comfortably exceeded by the equity capitalization on our balance sheet.

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Risk monitoring by third parties

Regulatory authorities and rating agencies are additional instances. The regulators define the

minimum safeguards required. Rating agencies determine the balance between the risks run and the

safeguards put in place by a given company. Euler Hermes Kreditversicherungs-AG has been rated

“A+” and “A1” respectively by the international rating agencies Standard & Poor’s und Moody’s.

Our internal auditing department and external auditors monitor in turn the functioning of the risk

management system.


OUR STAFF

A variety of changes triggered by the integration process of the Euler Hermes Group as well as,

for example, in adapting to a new (international) legal framework face our staff with ever new

challenges. Their competence, willingness to learn, flexibility and commitment are more important

today than ever. We have high expectations of them, but offer in return opportunities for development.

As of the 31st December 2004, the German Euler Hermes Kreditversicherung Group had a total

of 2,125 employees. 1,222 of these were in the Head Office of Euler Hermes Kreditversicherungs-AG,

449 in the regional sales offices in Germany and a total of 454 in the subsidiaries Euler Hermes

Forderungsmanagement GmbH and Euler Hermes Risk Management GmbH & Co KG.

The share of women in the workforce (50.8 per cent) is almost equal to that of the men

(49.2 per cent). The average length of service was 12.7 years, the average age was about 41.7.

Up to December 2004 a total of 167 vacant positions were advertised, of which 77 were successfully

filled internally. The fluctuation rate is very low and stands at 2.9 per cent. Internal career paths and

opportunities for development are assessed and supported by measures including a potential

assessment programme and internal job advertisements.

In response to the results of the last customer satisfaction study, professional qualification programmes

for our staff in 2004 focussed on further deepening knowledge in specific professional

fields and on communicative competence. The emphasis in professional qualification was on themes

such as balance sheet analysis, insolvency law and general legal issues. For the first time employees

without a formal commercial qualification were offered a course leading to the standard qualification

for commercial office work in Germany, culminating in an examination at the Chamber of Industry

and Commerce.

An important role was played in the year just ended by the company’s apprenticeship programme

for training young people for future positions. Besides the programmes offered as a qualified

insurance clerk or in various IT fields, we also offered a qualification at degree level in business

administration on the German dual system, a type of sandwich course combining academic tuition

with work experience. In all, Euler Hermes Kreditversicherungs-AG offered 32 apprenticeships in the

past year.

Against the background of an ever more integrated international group, employees again took

advantage of the opportunities to work in other group companies in 2004. There is growing interest

in international assignments. The exchange of experience and ideas as well as training carried

out in other group companies are more and more proving a source of enrichment for many of our

employees. This process is supported by a comprehensive programme of language courses.

Business Report

19


Business Report

20

We would like to express our heartfelt thanks to all our staff for the work they did in the past

year. Their readiness to contribute actively to change processes is particularly deserving of praise.

This will remain a crucial challenge for us all in the future. Our thanks also go to the members of the

works council and the representatives of senior management for their pragmatic cooperation and the

atmosphere of trust in which it took place.

THE OUTLOOK

The gratifying results achieved in 2004 despite another economically difficult year justify

cautious optimism for 2005. The economic fundamentals have further stabilized over the course of

the year, but the economic forecasts for Europe and for Germany in particular remain low-key. The

possibility of further negative factors such as fluctuations in the oil price and the development of the

dollar cannot be excluded. As a result the insolvency figures are set to remain at a historically critical

level.

Euler Hermes Kreditversicherungs-AG must maintain its focus on profitability in policy conditions

and risk underwriting in 2005. A strict focus on creditworthiness in credit limit decisions is just as

important here as the renegotiation of conditions in loss-making policies. On the upside, clients with

policies which generate a profit will continue to participate in the benefits of a good claims situation.

On top of this the revolving service programme, too, will make sure that customer service at many

points of contact is improved.

Integration into the Euler Hermes Group is making good progress. 2005/2006 will see the

implementation of the group-wide software, replacing the operative programs now in use at

Euler Hermes Kreditversicherungs-AG. The major subsidiaries will also benefit in 2005 from the

experience gained in the successful implementation of the Sarbanes-Oxley controls in 2004.


FEDERAL GOVERNMENT

EXPORT CREDIT GUARANTEES

21


Federal Government

Export Credit

Guarantees

22

The Export Credit Guarantees of the Government of the Federal Republic of Germany are fully

integrated into the accounts of the Government and are not included in the annual financial statements

of Euler Hermes Kreditversicherungs-AG. The results of the scheme are published annually in

a separate report.

Income such as premiums, fees and monies recovered are transferred by us to the federal budget

accounts. All disbursements and costs incurred such as indemnification of claims and administrative

expenses are also paid out of federal funds. The consortium formed by Euler Hermes Kreditversicherungs-AG

and PwC Deutsche Revision Aktiengesellschaft Wirtschaftsprüfungsgesellschaft under

the Federal Government mandate is paid a fee for handling the scheme. A summary of the main

points of our activities in this field is given in the following.

The export credit guarantees of the Federal Republic of Germany posted a new record result in

2004 with a surplus of 878 million EUR, thus writing black figures for the sixth consecutive year.

Newly covered business, too, achieved its best result ever, 21.1 billion EUR. This is a rise of 31.8 per

cent over the previous year’s figure of 16.0 billion EUR.

Overall, cover was given for exports to 159 countries. The lion’s share of this (75.8 per cent) went

to developing countries, followed by Central and Eastern Europe with 16.7 per cent and the industrial

world, which accounted for 7.5 per cent of cover. The countries with the highest percentage of cover

were China, followed by Iran, Turkey, Russia and Brazil.

Short-term business with credit periods up to one year posted a rise of 22.6 per cent, while

extended-term guarantees, on the other hand, went up by 51.5 per cent. Short-term cover accounts

for 63.5 per cent of cover given, medium and long-term cover 36.5 per cent. Premiums and charges

received increased by 5.2 per cent to 472.9 million EUR. This lower increase in premium income in

comparison with the rise in new business is due to the influence of a number of extraordinary factors

in 2003, which caused the premium income in that year to rise very steeply.

Claims expenses increased by 8.7 per cent to 558 million EUR. Payments for political risk claims

went up from 109 million EUR to 125 million EUR, while commercial claims were up from 403 million

to 432 million EUR.

The Federal Government carried on an intensive dialogue with exporters with a view to further

expanding the cover instruments available and adapting them to the changing requirements of the

market. The options for improving the rating status of export credit cover as a refinancing instrument

and the promotion of exports of renewable energy technology were additional important issues

discussed.


There was a major improvement in the terms of cover for specific and revolving policies in shortterm

business, since protracted default has been included as an additional insured event since

November 2004 at no extra cost to the policyholder. Further improvements are the opening of credit

line cover for all commercial banks, the creation of cover options denominated in local currency and

the introduction of maximum liability cover for supplementary amounts invoiced in constructional

works contracts.

The background to the provision of short-term cover has changed as of 1st January 2005, from

which date the EU Commission has banned the granting of officially supported export credit cover for

exports on short financing terms to the EU and the core countries of the OECD. The Commission

proceeds on the assumption, following the accession of the ten new member countries to the EU on

1st May 2004, that short-term credit risks in these countries are marketable risks. For this reason,

the Federal Government has stopped offering short-term cover in this area as of 1st January 2005.

The only cover still permissible for exports to the accession countries is for small and medium-sized

enterprises under a wholeturnover policy light.

The number of newly concluded wholeturnover policies light continued to rise. Introduced at the

beginning of 2003, this special version of our normal wholeturnover policy for small and mediumsized

enterprises once again proved a great success. The special focus of the export credit guarantee

scheme on SMEs is shown by the fact that some three quarters of all applications for Federal

Government guarantees were made by SMEs with up to 499 employees.

The implementation in the export credit cover system of the principles for making an environmental

audit of projects agreed at OECD level on 1.1.2004 continues to ensure that the decisionmaking

process in such cases is fast and easy to handle. The transparency of the conditions of cover

and information concerning projects covered were improved by publishing them on the Internet.

Federal Government

Export Credit

Guarantees

23


ANNUAL FINANCIAL

STATEMENTS 2004

25


Annual Financial

Statements

BALANCE SHEET as at 31st December 2004

26

ASSETS in Notes under 31.12.2004 31.12.2003

EUR TEUR

A. Intangible assets 1 234,799 846

B. Investments

I. Land and buildings 2 45,624,695 48,319

II. Investments in group undertakings and participating interests 3 108,278,214 96,988

III. Other financial investments 4 577,652,839 529,121

IV. Deposits with ceding undertakings 5 10,931,308 14,181

742,487,056 688,609

C. Accounts receivable

I. Accounts receivable arising out of direct insurance business 6 27,129,635 38,509

of which from group undertakings:

of which from undertakings in which the

EUR .764,413 (2003 TEUR 1,168)

company has a participating interest: EUR 64 (2003 TEUR .–)

II. Accounts receivable arising out of reinsurance operations 7 18,639,364 26,465

of which from group undertakings: EUR 11,886,360 (2003 TEUR 9,336)

of which from undertakings in which the

company has a participating interest: EUR 2,526,669 (2003 TEUR .–)

III. Other accounts receivable 37,964,493 25,545

of which from group undertakings: EUR 15,319,229 (2003 TEUR 6,409)

of which from undertakings in which the

company has a participating interest: EUR 30,625 (2003 TEUR 33,419)

83,733,492 90,519

D. Other assets 8

I. Office equipment and stock 11,038,413 13,978

II. Cash at bank and in hand 9,728,957 17,076

III. Other 1,842,006 1,844

22,609,376 32,898

E. Deferred items

I. Accrued interest and rent 9,719,149 9,042

II. Other prepayments and accrued income 2,528,339 2,241

12,247,488 11,283

Total assets 861,312,211 824,155


LIABILITIES In Notes under 31.12.2004 31.12.2003

EUR TEUR

A. Capital and reserves

I. Subscribed capital 9 54,080,000 54,080

II. Capital reserve 10 40,059,719 40,060

III. Revenue reserves 11

1. Statutory reserves 231,359 231

2. Other 18,563,087 2,763

18,794,446 2,994

IV. Profit brought forward from the previous year 0 104

V. Surplus for the year 21,457,803 9,047

134,391,968 106,285

B. Special reserve according to § 6b EStG (IncomeTax Law) 10,102,506 10,103

C. Technical provisions

I. Provision for unearned premiums 12

1. Gross amount 76,716,298 71,032

2. Reinsurance amount 32,100,575 30,529

44,615,723 40,503

II. Provision for outstanding claims 13

1. Gross amount 644,218,783 778,524

2. Reinsurance amount 373,036,624 474,767

271,182,159 303,757

III. Provision for premium refund 14

1. Gross amount 18,331,625 13,893

2. Reinsurance amount 10,296,289 7,433

8,035,336 6,460

IV. Equalization reserve and similar reserves 15 244,065,000 205,047

V. Other technical provisions 16

1. Gross amount 6,706,644 9,638

2. Reinsurance amount 4,545,967 5,627

2,160,677 4,011

570,058,895 559,778

D. Other provisions 17 83,099,435 84,029

E. Other accounts payable 18

I. Accounts payable arising out of direct insurance business 7,525,031 9,221

of which to group undertakings: EUR .352,525 (2003 TEUR .855)

II. Accounts payable arising out of reinsurance operations 27,555,773 22,011

of which to group undertakings: EUR 10,793,690 (2003 TEUR 5,926)

III. Other liabilities 19 28,575,164 32,717

taxation: EUR 6,314,378 (2003 TEUR 5,908)

social security: EUR 2,190,781 (2003 TEUR 2,121)

to group undertakings:

to undertakings in which the company has

EUR 15,600,327 (2003 TEUR 15,701)

a participating interest: EUR 0 (2003 TEUR 83)

63,656,655 63,949

F. Deferred items

Deferred discounts 2,752 11

Total liabilities 861,312,211 824,155

Annual Financial

Statements

27


Annual Financial

Statements

28

PROFIT AND LOSS ACCOUNT for the year ended 31st December 2004

In Notes under 31.12.2004 31.12.2003

EUR TEUR

I. Technical account - general business

1. Earned premiums - net of reinsurance

a) Gross premiums written 20 650.747.244 639.456

b) Outward reinsurance premiums -393.980.708 -399.602

256.766.536 239.854

c) Change in the gross provision for unearned premiums -6.866.647 -4.808

d) Change in the provision for unearned premiums, reinsurers’ share 2.734.829 5.389

-4.131.818 581

252.634.718 240.435

2. Other technical income, net of reinsurance 578 1

3. Claims incurred, net of reinsurance

a) Claims paid

aa) Gross amount 20 -299.839.050 -368.074

bb) Reinsurers’ share 165.535.934 218.866

b) Change in the provision for claims

-134.303.116 -149.208

aa) Gross amount 134.091.671 74.886

bb) Reinsurers’ share -101.582.459 -60.990

32.509.212 13.896

-101.793.904 -135.312

4. Changes in other technical provisions, net of reinsurance 1.850.200 -1.865

5. Bonuses and rebates, net of reinsurance -15.473.925 -11.899

6. Net operating expenses 20 -66.869.281 -64.780

7. Subtotal 70.348.386 26.580

8. Change in the equalization reserve and similar reserves -39.006.557 -65.983

9. Balance on the technical account for general business 31.341.829 -39.402

II. Non-technical account

1. Investment income 21 33.831.922 47.522

2. Investment expenses and charges -5.704.689 -11.730

28.127.233 35.792

3. Other income 68.881.258 72.506

4. Other charges -58.384.906 -62.546

10.496.352 9.960

5. Profit or loss on ordinary activities before tax 69.965.414 6.349

6. Tax on profit or loss on ordinary activities -32.300.937 3.159

7. Other taxes -550.875 -461

-32.851.812 2.698

8. Profit on ordinary activities after tax 22 37.113.602 9.047


NOTES TO THE

FINANCIAL STATEMENTS

29


Notes to the

Financial Statements

Governing bodies of the company

Members of the Board of Management

Dr. Gerd-Uwe Baden

Ass. Jur.

Chairman

(from 1.6.2004)

Jochen Dümler

Diplom-Betriebswirt

Dr. Hans Janus

Ass. Jur.

Holger Jensen

Diplom-Betriebswirt

Juliane Kutter

Ass. Jur.

Dr. Robert Walter

Diplom-Kaufmann

(from 1.1.2005)

30

Members of the Supervisory Board

Dr. Reiner Hagemann

Chairman of the Board

of Management of

Allianz Versicherungs-AG; Chairman

Horst Meyer

Chairman of the General Works Council

of Euler Hermes Kreditversicherungs-AG

Deputy Chairman

Jörg Asmussen

Ministerialdirektor, Head of the Department

for International Finance and Currency Relations

in the Federal Ministry of Finance

Dr. Karl-Ernst Brauner

Ministerialdirigent, Head of the Department

for Foreign and European Policy

in the Federal Ministry of Economics and Labour

Dr. Jürgen Förterer

Chairman of the Board

of Management of R+V Versicherung AG

Hartmut Garz

Senior Executive of

Euler Hermes Kreditversicherungs-AG

Klaus Grupe

Chairman of the Works Council of

Euler Hermes Kreditversicherungs-AG

Dr. Rolf Kunisch

Chairman of the Board of Management of

Beiersdorf-AG


Dr. Peter Hauschild

Trade Union ver.di

Christine Herold

Member of the Works Council of

Euler Hermes Kreditversicherungs-AG

Clemens von Weichs

(Président du Directoire) Chairman of the Board

of Management of Euler Hermes S.A., Paris

(from 1.6.2004)

Aline Zieher

Trade Union ver.di

Members of the Advisory Board

Dr. Karl-Hermann Baumann

Chairman of the Supervisory Board of

Siemens Aktiengesellschaft, Munich

Dr. Dr. Peter Bettermann

Fully Liable Member

Freudenberg & Co., Weinheim

Dr. jur. Nikolaus von Bomhard

Member of the Board of Management of

Münchener Rückversicherungs-Gesellschaft,

Munich

Dr. Michael Frenzel

Chairman of the Board of

Management of TUI AG, Hanover

Dr. iur. Manfred Gentz

Member of the Board of Management

DaimlerChrysler AG, Stuttgart

(till 31.12.2004)

Hans-Olaf Henkel

President of the Wissenschaftsgemeinschaft

Gottfried Wilhelm Leibniz, Berlin

Dr. Edgar Jannott

Member of the Supervisory Board of

ERGO Versicherungsgruppe AG, Düsseldorf

Dr.-Ing. Hans-Peter Keitel

Chairman of the Board of

Management HOCHTIEF AG, Essen

Notes to the

Financial Statements

31


Notes to the

Financial Statements

Dr. Klaus Mangold

Executive Advisor to the Chairman of

DaimlerChrysler AG, Stuttgart

Bernhard Meyer

Chairman of the Board of Management

R+V Allgemeine Versicherung AG

(till 31.12.2004)

Claus Momburg

Member of the Board of Management of

IKB Deutsche Industriebank AG, Düsseldorf

(from 1.1.2005)

Klaus-Peter Müller

Speaker of the Board of

Management Commerzbank AG, Frankfurt

Hans W. Reich

Speaker of the Board of Management

Kreditanstalt für Wiederaufbau, Frankfurt

Dr. Erhard Schipporeit

Member of the Board of

Management E.ON AG, Düsseldorf

Helmut Schmidt

Chancellor of the Federal Republic of Germany

(retired) (Honorary member)

Jobst D. Siemer

Chairman of the Supervisory Board

ExxonMobil Central Europe Holding GmbH,

Hamburg

32

Michael Sommer

Chairman of the

Deutsche Gewerkschaftsbund, Berlin

Professor Dr. h.c. Lothar Späth

Prime Minister (retired)

Vice Chairman

Merrill Lynch Europe, Leonberg

Dr. Alexander von Tippelskirch

Speaker of the Board of Management

IKB Deutsche Industriebank AG

(till 31.12.2004)

Hans Wagener

Member of the Board of

Management PwC Deutsche Revision AG

Wirtschaftsprüfungsgesellschaft, Frankfurt

Dr. Herbert Walter

Speaker of the Board of

Management Dresdner Bank AG, Frankfurt

Otto Wolff von Amerongen

Chairman of the Management

Committee Otto Wolff Industrieberatung und

Beteiligungen GmbH, Cologne


The financial statements for the business year ending 31.12.2004 have been drawn up in accordance

with the stipulations of the German Commercial Code (HGB), the German Companies Law (AktG), the

Insurance Supervision Law (VAG) and the Insurance Companies Accounts Regulations (RechVersV) in the

versions currently in force.

BALANCE SHEET/ASSETS

Development of asset positions Carrying Addi- Reclas- Dispo- Write- Write- Carrying

A and B I. – III. values tions sifica sals ups downs values

in the business year 2004 from tions for the

previous business

year year

TEUR TEUR TEUR TEUR TEUR TEUR TEUR

A. Intangible assets

Other intangible assets 846 88 – 80 – 619 235

B I. Land and buildings 48,319 42 – 111 – 2,625 45,625

B II. Investments in group undertakings

and participating interests

1. Investments in group undertakings 93,278 15,000 – – – – 108,278

2. Loans to group undertakings

3. Loans to undertakings in which

the company has a participating

2,710 – – 2,710 – – 0

interest 1,000 331 – – – 1,331 0

4. Subtotal B II.

B III. Other financial investments

1. Shares and other variable-yield

96,988 15,331 – 2,710 – 1,331 108,278

securities and units in unit trusts

2. Debt securities and other fixed

138,476 31,131 – – 4,835 – 174,442

income securities

3. Other loans

167,724 65,869 46 54,380 148 12 179,395

a) registered debentures 165,847 49,113 – 10,113 – – 204,847

b) notes receivable and other loans 14,501 – – 1 – – 14,500

4. Deposits with credit institutions 42,573 – – 38,104 – – 4,469

5. Subtotal B III. 529,121 146,113 46 102,598 4,983 12 577,653

Total 675,274 161,574 46 105,499 4,983 4,587 731,791

Notes to the

Financial Statements

33


Notes to the

Financial Statements

INTANGIBLE ASSETS

CAPITAL INVESTMENTS

34

1 Other intangible assets are shown at acquisition cost less scheduled depreciation.

2 Land and buildings

Land and buildings are shown at acquisition or building costs less depreciation. The balance sheet

value of land and buildings occupied for our own activities is TEUR 42,583.

3 Shares in group undertakings

The shares in group undertakings, shown at acquisition cost, refer mostly to:

• our 100 per cent share in Euler Hermes Risk Management GmbH & Co. KG, Hamburg with an

ordinary share capital of TEUR 2,600 and total equity and reserves of TEUR 17,564.

The company’s net profit for the financial year 2004 is TEUR 8,805.

• our 100 per cent share in Euler Hermes Beteiligungen GmbH, Hamburg with an ordinary

share capital of TEUR 5,000 and total equity and reserves of TEUR 38,694. The net profit for the

business year 2004 is TEUR 11,684.

• our 100 per cent share in Euler Hermes Versicherungsbeteiligungen GmbH, Hamburg. This company

has an ordinary share capital of TEUR 11,100 and total equity and reserves of TEUR 84,525.

The net profit for the business year 2004 is TEUR 463.

Complete details pursuant to § 285 No. 11 HGB of companies in which we hold a direct or indirect

interest are contained in a special list which has been deposited with the commercial register of

Hamburg district court under § 287 of the German Commercial Code (HGB).

4 Other financial investments

Securities and fixed term deposits are valued at acquisition cost based on the lowest value principle.

Registered debentures, notes receivable and other loans are shown on principle at par. Discounts

and premium amounts are shown under deferred items on the assets or liabilities side and will be

reduced either by the linear or equity method according to the maturities.

5 Deposits with ceding undertakings

The deposits with ceding undertakings are the usual retentions of foreign insurers.

They are valued at acquisition cost.


ACCOUNTS

RECEIVABLE

OTHER ASSETS

DEFERRED ITEMS

Notes to the

Financial Statements

Calculation of current market value

The current market value of the capital investments shown in the balance sheet at acquisition costs

stood at TEUR 686,507 at the end of the business year. In the case of land and buildings this is the

capitalized value on the balance sheet date or, in the case of building work in progress, the book

value.

Other financial investments are on principle valued at their quoted stock exchange or book value

and, in the case of units in investment trusts, at bid value. In the case of shares in group undertakings

the acquisition cost was determined by the equity method.

6 Accounts receivable arising out of 2004 2003

own underwriting business from TEUR TEUR

1. Policyholders 26,525 36,451

2. Intermediaries 605 2,058

Accounts receivable arising out of own underwriting business

Accounts receivable arising out of own underwriting business refer mainly to outstanding premiums.

Amounts presumed irrecoverable have been fully written off. Specific value adjustments were made

for doubtful accounts. General credit risks have been taken account of in addition by a general charge

for bad and doubtful debts.

7 Accounts receivable arising out of reinsurance operations

Accounts receivable arising out of reinsurance operations are shown at acquisition value less necessary

value adjustments.

8 Office equipment is shown at acquisition cost less scheduled depreciation, on a straightline and

reducing balance basis. Low-value assets are fully written off in the year of acquisition. Other assets

are shown at acquisition cost.

Deferred items are shown at the lower of par less necessary value adjustments or realizable cash

value. TEUR 1,561 in premium on registered debentures is included under deferred items on the

assets side.

35


Notes to the

Financial Statements

CAPITAL AND

RESERVES

TECHNICAL

PROVISIONS

36

BALANCE SHEET/LIABILITIES

9 Subscribed capital

The share capital is unchanged at TEUR 54,080. It is divided into 2,080,000 registered shares

without par value. The share capital is fully paid-in.

10 Capital reserve

The capital reserve stands unchanged at TEUR 40,060.

11 Revenue reserves

An amount of TEUR 15,800 was transferred to the revenue reserves during the financial year.

12 Provision for unearned premiums

Unearned premium amounts are calculated using normal approximation methods according to the

Commercial Code and on the basis of the letter sent by the Federal Ministry of Finance to the finance

ministers of the federal states on 30.4.1974.

We calculate the amounts in our own underwriting business on the basis of individual policies with

the exception of Triptik Guarantee Insurance and Capital Goods Credit Insurance, in which fractional

or flat rate methods are used. In our Inwards Reinsurance business we determine the carrying

amounts according to flat rate methods on the basis of the information given to us by our ceding

companies. The reinsurers’ share is offset from the gross amounts.

Technical reserves All

insurance lines

2004 2003

TEUR TEUR

Technical reserves, gross

of which:

gross provision for

990,038 1,078,135

outstanding claims 644,218 778,524

equalization reserve and similar reserves 244,065 205,047


Notes to the

Financial Statements

13 Provision for outstanding claims

This provision in our own underwriting business is calculated as follows: claims provisions in Guarantee

Insurance, Guarantee Insurance "S", Commercial Credit Insurance, Export Credit Insurance,

Capital Goods Credit Insurance, Commercial Credit Insurance "S" and Fidelity Insurance are calculated

individually for all claims incurred but not yet settled at the closing date. In Commercial Credit

Insurance, Export Credit Insurance, Capital Goods Credit Insurance, Commercial Credit Insurance

"S", Fidelity Insurance, additional special provisions for estimated IBNR losses are set up.

The provisions in Triptik Guarantee Insurance and in Consumer Credit Insurance are calculated in

accordance with the tax audit or recent tax levies according to various comprehensive rate methods.

The recoveries expected from recourse agreements or realizable collaterals are calculated individually

in Guarantee and Guarantee Insurance "S" and are set off in Consumer Credit, Triptik and Fidelity

Insurance by a comprehensive rate method.

Claims adjustment costs are included in the provision for outstanding claims. These are calculated in

compliance with currently valid tax regulations.

In Inwards Reinsurance we set up claims reserves either on the basis of the information received

from the primary insurer or by making our own prudent estimate. The proportion to be borne by the

reinsurer in our ceded business is calculated in accordance with the provisions of the treaty with the

reinsurer in question. The gains for own account from claims run-off set against the previous year’s

provisions amount to some 24 per cent over all insurance lines.

Own underwriting business Inwards reinsurance

business

Total Credit Other

and guarantee (Fidelity)

2004 2003 2004 2003 2004 2003 2004 2003

TEUR TEUR TEUR TEUR TEUR TEUR TEUR TEUR

831,702 866,290 689,265 721,811 142,437 144,479 158,336 211,845

566,100 691,151 469,886 580,327 96,214 110,824 78,118 87,373

185,175 97,985 148,879 74,783 36,296 23,202 58,890 107,062

37


Notes to the

Financial Statements

OTHER

PROVISIONS

38

14 Provision for premium refund

In our own underwriting business this provision includes the anticipated unearned premium amounts

to be refunded in Commercial Credit Insurance, Export Credit Insurance, Commercial Credit Insurance

"S" and Fidelity Insurance. The provision is calculated from the amounts estimated on the basis of

deposit premiums already paid. The amount needed in Inwards Reinsurance is estimated in the same

way for the commercial credit insurance lines and for fidelity insurance.

15 Equalization reserve

The change in this reserve to balance variations in the annual amount of claims has been calculated

in accordance with the provisions of the Insurance Companies Accounts Regulations (RechVersV:

addendum to § 29). After consultation with the Federal Regulatory Authority for the Financial

Services Sector, adjustments for two special cases were made for the observation period. This led to

a reduction in the provision for credit insurance in our own underwriting business of TEUR 3,425 and

for inwards reinsurance (bonding) of TEUR 69,055.

16 Other technical provisions

The cancellation provision included in this item refers particularly to anticipated cancellations of premium

in Guarantee Insurance because the risks have ceased to exist.

17 Other provisions 2004 2003

TEUR TEUR

I. Provision for pensions and similar obligations 49,564 47,938

II. Provision for taxes 9,301 8,941

III. Other provisions 24,234 27,150

83,099 84,029

Provision for pensions and similar obligations

The provision for pensions and similar obligations, which are shown at the fractional values of commitments

in respect of current pension payments and pension entitlements, is based on an actuarial

expertise calculated according to the guideline tables for 1998 by Prof. Dr. Hauberk at an assumed

interest rate of 6 per cent.


OTHER

ACCOUNTS PAYABLE

OTHER LIABILITIES

VALUATION

OF LIABILITIES

CONVERSION OF

FOREIGN CURRENCY

COMMITMENTS

Other provisions

Other provisions were calculated on the basis of anticipated withdrawals for all foreseeable risks and

contingent liabilities. Other provisions include the following main items: holiday pay outstanding

TEUR 3,027; as yet unsettled invoices for supplies and services received TEUR 3,731; employees’

early retirement including part-time schemes TEUR 7,280; unsettled payments due to the company’s

employees TEUR 4,482; anniversaries TEUR 3,306.

19 Other liabilities

Other liabilities are primarily in respect of tax liabilities and intergroup transfers to our parent company.

The valuation of liabilities is based on the redemption amounts.

Notes to the

Financial Statements

18 Accounts payable arising out of own 2004 2003

underwriting business to TEUR TEUR

1. Policyholders 4,922 6,080

2. Intermediaries 2,603 3,141

All amounts are converted into EUR at the rate of exchange used on the day of the transaction.

Short-term accounts receivable and amounts payable in foreign currencies are converted at the mean

rate of exchange used on the balance sheet date observing the principles of prudent accounting.

As in previous years, the only guarantees we have given have been those issued in our commercial

guarantee and bonding business. These total TEUR 9,498,084. There was a joint and several liability

in respect of pension entitlements as per the balance sheet date of TEUR 503. There are no further

commitments beyond those shown on the balance sheet or explained in the annual report.

39


Notes to the

Financial Statements

40

20 PROFIT AND LOSS ACCOUNT All

insurance lines

Gross premiums written 1

of which own underwriting business

a) domestic

b) other EU countries and

other member states of the EEA

c) other countries

Gross premiums earned

Net premiums earned

Gross expenditure for claims

Gross expenditure for insurance operations

• for acquisition of policies

• for administration of policies

Outward reinsurance commission and

profit participation

Expenditure for insurance operations for own account

Reinsurance balance 2

Technical result, net of reinsurance

2004 2003

TEUR TEUR

1

Premiums earned in December are accounted for in the respective following period due to late

incoming data from policyholders

2

Earned retrocession premiums less reinsurers’ share of claims expenditure less reinsurers’ share

of expenditure for insurance operations = reinsurance balance

650,747

643,880

252,634

-165,747

-80,772

-103,061

-183,833

116,964

-66,869

-210,329

31,342

639,456

634,648

240,435

-293,188

-80,856

-108,257

-189,113

124,333

-64,780

-112,004

-39,403


Own underwriting business Inwards reinsurance

business

Total Credit Other

and guarantee (Fidelity)

2004 2003 2004 2003 2004 2003 2004 2003

TEUR TEUR TEUR TEUR TEUR TEUR TEUR TEUR

569,806 560,125 501,525 494,013 68,281 66,112 80,941 79,331

513,534

26,973

29,299

566,337

210,308

-138,931

-80,554

-74,659

-155,213

-198,562

-25,262

499,752

41,847

18,526

557,048

197,233

-260,013

-80,559

-77,229

-157,788

-109,886

-32,740

447,851

25,528

28,146

498,390

192,216

-128,072

-64,599

-68,684

-133,283

-172,341

-21,968

435,413

40,954

17,646

490,725

178,541

-231,353

-66,893

-71,437

-138,330

-95,165

-29,513

65,683

1,445

1,153

67,947

18,092

-10,859

-15,955

-5,975

-21,930

-26,221

-3,294

64,339

893

880

66,323

18,692

-28,660

-13,666

-5,792

-19,458

-14,721

-3,227

77,543

42,326

-26,816

-218

-28,402

-28,620

-11,767

56,604

Notes to the

Financial Statements

77,600

43,202

-33,175

-297

-31,028

-31,325

-2,118

-6,663

41


Notes to the

Financial Statements

OTHER FINANCIAL

LIABILITIES

42

Liabilities of this type exist only within the scope of our business activities.

21 Investment income/ 2004 2003

Expenditure for investments

1. Income from investments

a) Income from participations of which from group undertakings

TEUR TEUR

TEUR 0 (2003 TEUR 0)

b) Income from other investments

0 0

aa) Income from land and buildings 8,685 8,682

bb) Income from other investments 19,739 25,880

28,424 34,562

c) Income from additions 4,984 2,324

d) Realized gains from the sale of investments 424 7,670

e) Realized gains from the write-back of the special reserve under § 6 EStG 0 2,966

2. Expenditure for investments

a) Expenditure for asset management,

33,832 47,522

interest paid and other investment expenditure -1,388 -1,935

b) Write-downs on investments -3,970 -4,265

c) Realized losses from the sale of investments

d) Losses incurred under profit and loss transfer agreements

of which from group undertakings:

-344 -459

TEUR 3 (2003 TEUR 12) -3 -12

e) Transfer to special reserve under § 6 EStG 0 -5,059

-5,705 -11,730

28,127 35,792

Total emoluments of the Members of the Supervisory Board,

the Board of Management and the Advisory Board in accordance 2004

with § 285 of the German Commercial Code (HGB) TEUR

Supervisory Board 245

Board of Management

Former Members of the Board of Management

2,369

and their surviving dependants 807

Advisory Board 193

Provisions made for pension payments to former Members of the Board of Management and their

surviving dependants totalled TEUR 8,020 at 31.12.2004.


Financial

derivatives

Notes to the

Financial Statements

The personnel costs include the wages, salaries and similar remuneration as well as employer’s

contributions to social security for our employees working on the Federal Government Export Credit

Guarantee scheme, which have been reimbursed to us by the government.

As part of the risk provisioning to secure entitlements arising out of share incentive programmes

at Allianz AG a long call position was taken. The number of hedging instruments currently stands at

42,851 with differing maturities up to 2011. The book value of these, at TEUR 1,686, exceeds the

settling amount of TEUR 715, valued using the binomial method. These share option transactions are

shown under Position D.III as other assets.

Number of employees 2004 2003

(average over the year) male female total male female total

Full-time 821 576 1,397 829 576 1,405

Part-time 16 175 191 11 170 181

837 751 1,588 840 746 1,586

Trainees 14 15 29 17 14 31

Total 851 766 1,617 857 760 1,617

GROUP

AFFILIATION

Commissions and other payments to insurance 2004 2003

intermediaries, personnel costs

1. Commissions to insurance intermediaries pursuant

TEUR TEUR

to § 92 HGB for own underwriting business 38,542 43,261

2. Other payments to insurance intermediaries pursuant to § 92 HGB 105 43

3. Wages and salaries 94,811 87,931

4. Social security contributions and inancial support for employees 17,648 17,714

5. Expenditure for retirement pensions 6,975 7,188

Total expenditure 158,081 156,137

Change in the number of policies for own account* 31.12.2004 31.12.2003

Credit and guarantee 23,399 23,481

Fidelity 8,083 8,488

*number of policies at least one year old

Parent company of the Group which draws up consolidated accounts for the widest circle of companies

is Allianz Aktiengesellschaft, Munich. Euler Hermes is included in their consolidated balance

sheet as per 31.12.2004 and therefore is not required to draw up consolidated accounts of its own.

Allianz AG holds indirectly 100 per cent of the shares of Euler Hermes.

43


Notes to the

Financial Statements

MEMBERSHIP

IN OTHER

ORGANIZATIONS

ANNUAL RESULT

PROPOSED

DISTRIBUTION OF

PROFIT

44

The consolidated financial statements and business review of Allianz Aktiengesellschaft will be published

in their annual report and deposited after the Annual General Meeting with the Commercial

Register Munich. They can be viewed there or obtained on request from our company.

Parent company which draws up consolidated accounts for the smallest circle of companies is Euler

Hermes S.A., Paris.

We are a member of the Gesamtverband der Deutschen Versicherungswirtschaft e.V., Berlin, the

Arbeitgeberverband der Versicherungsunternehmen in Deutschland, Berlin, the International Credit

Insurance and Surety Association London, and of the International Union of Credit and Investment

Insurers (Berne Union), London.

Annual result 2004 2003

TEUR TEUR

Gross result from underwriting business

Changes in equalization reserve

70,348 26,580

and similar reserves -39,006 -65,983

Underwriting result 31,342 -39,403

Surplus from general business including Federal Government mandates 38,624 45,752

Surplus before tax 69,966 6,349

Taxes on income and revenue -32,301 3,159

Other taxes -551 -461

Surplus for the year 37,114 9,047

Profit brought forward from the previous year 144 104

Allocations to other revenue reserves 15,800 0

Net profit for the year 21,458 9,151

It is proposed to use this net in-come for the year

• to pay a dividend of EUR 10.29 on each share without par value of the share capital of

EUR 54,080,000. This amounts to a dividend payment of EUR 21,403,200.

• to carry forward the sum of EUR 54,603 to the new account.

Hamburg, 22. February 2005

Dr. Baden Jensen Dr. Janus

Dümler Kutter Dr. Walter


AUDITORS’

REPORT

45


Auditors’ Report

46

Auditors’ Report

We have audited the annual financial statements, together with the bookkeeping system, and the

management report of Euler Hermes Kreditversicherungs-Aktiengesellschaft for the business year

from 1st January to 31st December 2004. The maintenance of the books and records and the preparation

of the annual financial statements and management report in accordance with German commercial

law are the responsibility of the Company’s management. Our responsibility is to express an

opinion on the annual financial statements, together with the bookkeeping system, and the management

report based on our audit.

We conducted our audit of the annual financial statements in accordance with § 317 HGB

[“Handelsgesetzbuch: German Commercial Code”] and the German generally accepted standards for

the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [in Deutschland]

(IDW). Those standards require that we plan and perform the audit such that misstatements materially

affecting the presentation of the net assets, financial position and results of operations in the

annual financial statements in accordance with principles of proper accounting and in the management

report are detected with reasonable assurance. Knowledge of the business activities and the

economic and legal environment of the Company and evaluations of possible misstatements are taken

into account in the determination of audit procedures. The effectiveness of the internal control system

relating to the accounting system and the evidence supporting the disclosures in the books and

records, the annual financial statements and the management report are examined primarily on a

test basis within the framework of the audit. The audit includes assessing the accounting principles

used and significant estimates made by management, as well as evaluating the overall presentation

of the annual financial statements and management report. We believe that our audit provides a

reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion, the annual financial statements give a true and fair view of the net assets,

financial position and results of operations of the Company in accordance with the principles of proper

accounting. On the whole the management report provides a suitable understanding of the

Company’s position and suitably presents the risks of future development.

Hamburg, 22nd February 2005

KPMG Deutsche Treuhand-Gesellschaft

Aktiengesellschaft

Wirtschaftsprüfungsgesellschaft

Busch Renner

German Public Auditor German Public Auditor


REPORT OF THE

SUPERVISORY BOARD

47


REPORT OF THE

SUPERVISORY BOARD

48

REPORT OF THE SUPERVISORY BOARD

We were in contact with the Board of Management in a supervisory and advisory capacity as

required by law and by the Company statutes. The Supervisory Board was kept informed of the

situation of Euler Hermes Kreditversicherungs-AG by quarterly written reports. During the business

year under review the Board of Management reported additionally to us in two meetings on the

development and financial position of the company. Meetings of the Human Resources and Standing

Committees took place to prepare these meetings.

The Supervisory Board dealt with the competitive pressure on the credit insurance market, the

regional markets in Eastern Europe and Asia, as well as with the implementation of the business

model and major projects within the company. Discussion also took place concerning the progress of

business in the major German and international companies in which equity is held. The Chairman of

the Supervisory Board was kept informed on an ongoing basis of all important business occurrences

and decisions.

Whenever the approval of the Supervisory Board was required for decisions or measures of the

Board of Management, the Members of the Board and its Committees examined the proposals submitted

by the Board of Management either in written form in advance or verbally in its meetings and

passed its resolutions accordingly.

We have examined the annual financial statements of Euler Hermes Kreditversicherungs-AG for

the business year ended 31st December 2004, the business report and the proposal for the distribution

of the net profit for the year, and have found them to be in order.

KPMG Deutsche Treuhand-Gesellschaft carried out an audit of the accounting and the annual

financial statements of Euler Hermes Kreditversicherungs-AG and found them to be in accordance

with the legal requirements, as well as examining the business report which they considered to be

consistent with the financial statements. The report of the responsible senior auditor was discussed

at the meeting of the Supervisory Board on 27th April 2005 in his presence. The Supervisory Board

approves the result of this audit.

The Supervisory Board approved the annual accounts submitted by the Board of Management,

which are hereby adopted. We endorse the proposal made by the Board of Management for the

distribution of the net profit for the year.

We also examined the report on relations with affiliated companies prepared by the Board of

Management and the auditor’s report on this. The auditor gave the report on relations with affiliated

companies prepared by the Board of Management the following certificate: “After checking the

report in compliance with our obligations and reaching a conclusion we hereby confirm that


1. The report is factually correct,

2. the consideration paid by the Company in respect of the legal transactions listed in the report

was not excessive.”

We endorse this conclusion.

According to §§ 96, 101 Par. 1 German Company Law together with § 1 Par. 1, and § 7 Par. 1 No. 1

Codetermination Law, the Supervisory Board consists of six members each of the shareholders and

the employees. Mr. Jean Lanier, Chairman of the Board of Management of Euler Hermes S.A., Paris,

laid down his Supervisory Board mandate with effect from 1st June 2004). We would like to thank

him for the valuable work he performed. It was resolved at the Annual General Meeting on 26th April

2004 to appoint Clemens von Weichs to the Supervisory Board in his place following his election as

Chairman of Euler Hermes S.A. and his departure from the Board of Management of Euler Hermes

Kreditversicherungs-AG.

Dr. Gerd-Uwe Baden was elected to succeed Mr von Weichs as Chairman of the Board of Management

with effect from 1st June 2004 at the Supervisory Board meeting held on 26th April 2004.

In its meeting held on 15th November 2004, the Supervisory Board appointed Dr. Robert Walter,

CFO of Allianz pojist’ovna in the Czech Republic, as a full member of the Board of Management with

effect from 1st January 2005.

We would like to express our thanks to the employees, the staff representatives, the management

of the subsidiaries and the Board of Management of Euler Hermes Kreditversicherungs-AG for their

good work and commitment.

Hamburg, 27th April 2005

on behalf of the Supervisory Board

Dr. Reiner Hagemann

Chairman

REPORT OF THE

SUPERVISORY BOARD

49


WHO TO SPEAK TO

51


Who to speak to

WHO TO TALK TO AT EULER HERMES KREDITVERSICHERUNGS-AG

GERMANY

Head Office

Euler Hermes Kreditversicherungs-AG

22763 Hamburg

Friedensallee 254

Postal address

22746 Hamburg

Phone +49 (0) 40/88 34-0

Fax +49 (0) 40/88 34-77 44

www.eulerhermes.de

info.de@eulerhermes.com

REGIONAL SALES OFFICES AND

LOCAL BRANCH OFFICES

Regional Sales Office Berlin

An den Treptowers 3

12435 Berlin

Phone +49 (0) 30/20 28 43-00

Fax +49 (0) 30/20 28 43-01

nl.berlin@eulerhermes.com

Manfred Pietrowski, Regional Sales Manager

Local Branch Office Dresden

Riesaer Straße 5

01129 Dresden

Phone +49 (0) 3 51/8 53 77-0

Fax +49 (0) 3 51/8 53 77-10

gs.dresden@eulerhermes.com

Günter Sauer, Local Branch Office Manager

Local Branch Office Leipzig

Landsberger Straße 23

04157 Leipzig

Phone +49 (0) 3 41/9 08 23-0

Fax +49 (0) 3 41/9 08 23-10

gs.leipzig@eulerhermes.com

Dirk in der Beek, Local Branch Office Manager

52

Regional Sales Office Dortmund

WESTFALEN-CENTER

Lindemannstraße 79

44137 Dortmund

Phone +49 (0) 2 31/1 82 99-0

Fax +49 (0) 2 31/1 82 99-99

nl.dortmund@eulerhermes.com

Karl-Heinz Soetebier, Regional Sales Manager

Regional Sales Office Frankfurt

Große Gallusstraße 1-7

60311 Frankfurt

Phone +49 (0) 69/13 48-0

Fax +49 (0) 69/13 48-170

nl.frankfurt@eulerhermes.com

Hans-Joachim Schieffer, Regional Sales Manager

Local Branch Office Mannheim

Hauptstraße 161

68259 Mannheim

Phone +49 (0) 6 21/1 29 05-0

Fax +49 (0) 6 21/1 29 05-99

gs.mannheim@eulerhermes.com

Christian Müller, Local Branch Office Manager

Local Branch Office Saarbrücken

Bahnhofstraße 80

66111 Saarbrücken

Phone +49 (0) 6 81/3 89 96-0

Fax +49 (0) 6 81/3 89 96-99

gs.mannheim@eulerhermes.com

Christian Müller, Local Branch Office Manager


Regional Sales Office Hamburg

Straßenbahnring 11

20251 Hamburg

Phone +49 (0) 40/2 36 36-0

Fax +49 (0) 40/2 36 36-166

nl.hamburg@eulerhermes.com

Stefan Schiebeler, Regional Sales Manager

Local Branch Office Bremen

Martinistraße 34

28195 Bremen

Phone +49 (0) 4 21/1 65 97-0

Fax +49 (0) 4 21/1 65 97-49

gs.bremen@eulerhermes.com

Jörg Hofenbitzer, Local Branch Office Manager

Regional Sales Office Hanover

Georgstraße 36

30159 Hanover

Phone +49 (0) 5 11/3 64 01-0

Fax +49 (0) 5 11/3 64 01-70

nl.hannover@eulerhermes.com

Wolfgang Köplin, Regional Sales Manager

Local Branch Office Bielefeld

Zimmerstraße 8

33602 Bielefeld

Phone +49 (0) 5 21/9 64 56-0

Fax +49 (0) 5 21/9 64 56-50

gs.bielefeld@eulerhermes.com

Klaus Ostermann, Local Branch Office Manager

Regional Sales Office Cologne

Hohenzollernring 31-35

50672 Cologne

Phone +49 (0) 2 21/9 20 60-0

Fax +49 (0) 2 21/9 20 60-159

nl.koeln@eulerhermes.com

Othmar Dingarten, Regional Sales Manager

Local Branch Office Düsseldorf

Kanzlerstraße 4

40472 Düsseldorf

Phone +49 (0) 2 11/9 65 76-0

Fax +49 (0) 2 11/9 65 76-99

gs.duesseldorf@eulerhermes.com

Helmut Welter, Local Branch Office Manager

Regional Sales Office Munich

Ridlerstraße 35

80339 Munich

Phone +49 (0) 89/5 43 09-0

Fax +49 (0) 89/5 43 09-166

nl.muenchen@eulerhermes.com

Volker Schwinge, Regional Sales Manager

Local Branch Office Nuremberg

Spittlertorgraben 3

90429 Nuremberg

Phone +49 (0) 9 11/2 44 05-0

Fax +49 (0) 9 11/2 44 05-30

gs.nuernberg@eulerhermes.com

Jörn Volk, Local Branch Office Manager

Regional Sales Office Stuttgart

Löffelstraße 44

70597 Stuttgart

Phone +49 (0) 7 11/9 00 49-0

Fax +49 (0) 7 11/9 00 49-70

nl.stuttgart@eulerhermes.com

Klaus Rehder, Regional Sales Manager

Local Branch Office Freiburg

Rehlingstraße 6e

79100 Freiburg

Phone +49 (0) 7 61/4 00 79-0

Fax +49 (0) 7 61/4 00 79-50

gs.freiburg@eulerhermes.com

Marcus Sarafin, Local Branch Office Manager

Who to speak to

53


Who to speak to

EXPORT CREDIT GUARANTEES OF

THE FEDERAL GOVERNMENT OF GERMANY

Berlin Office

Friedrichstadt-Passagen

Quartier 205

Friedrichstraße 69

D-10117 Berlin

Phone +49 (0) 30/20 94-53 10

Fax +49 (0) 30/20 94-53 20

ag.anl.berlin@eulerhermes.com

Thomas Greuter, Director

AUSTRIA

Prisma Kreditversicherungs-AG

Heiligenstädter Straße 201

A-1190 Wien

Phone (+43 1) 3 79 00-0

Fax (+43 1) 3 79 00-2 08

office@prisma-kredit.com

Bettina Selden

Gert Schloßmacher

BELGIUM

Euler Hermes Kreditversicherungs-AG

Regional Sales Office Brussels

Rue du Commerce / Handelsstraat 39 – 41

B-1000 Bruxelles / Brussel

Phone (+32 2) 2 89 48 00

Fax (+32 2) 2 89 48 01

Kirsten Tosoni

54

CHINA

Euler Hermes Kreditversicherungs-AG

Hong Kong Branch Office

9/F One International Finance Centre

One Harbour View Street

RC-Central, Hong Kong

Phone (+852) 28 67 00 61

Fax (+852) 28 69 86 55

info.hk@eulerhermes.com

Henning Siess

Euler Hermes Kreditversicherungs-AG

Tianjin Representative Office

Room 905

Exchange Office Tower

189 Nanjing Road

He Ping District

RC-Tianjin 300050, P.R. China

Phone (+86 22) 83 19 12 36

Fax (+86 22) 83 19 12 37

tianjin@eulerhermes.com.cn

John Wang

CZECH REPUBLIC

Euler Hermes Cescob, úverová pojist’ovna, a.s.

Molákova 576/11

CZ-186 00 Prague 8

Phone (+420) 2 66 10 95 21

Fax (+420) 2 66 10 95 20

info.cz@eulerhermes.com

Julius Kudla


DENMARK

Euler Hermes Kreditforsikring Norden AB

Postboks 326

Nyropsgade 45, 5.

DK-1504 Kopenhagen V

Phone (+45) 88 33 33 88

Fax (+45) 88 33 33 89

info.dk@eulerhermes.com

Peter Hecht-Hansen

FINLAND

Euler Hermes Kreditförsäkring Norden AB

Finnish Credit Insurance Company

Itälahdenkatu 18 A

FIN-00210 Helsinki

Phone (+358 10) 8 50 85 00

Fax (+358 10) 8 50 85 11

office@fcic.com

Timo Nisumaa

FRANCE

Euler Hermes Kreditversicherungs-AG

Succursale en France

28, rue de Berri

F-75008 Paris

Phone (+33 1) 56 59 20 20

Fax (+33 1) 56 59 20 21

info.fr@eulerhermes.com

Kirsten Tosoni

HUNGARY

Euler Hermes Magyar Hitelbiztosító Rt.

Kiscelli u. 104

Post Box: 469

H-1037 Budapest

Phone (+36 1) 4 53 90 00

Fax (+36 1) 4 53 90 09

info.hu@eulerhermes.com

Hans-Peter Schöttler

JAPAN

Euler Hermes Kreditversicherungs-AG

Japan Branch Office

Kyobashi Nisshoku Bldg. 7F

8-7, Kyobashi 1-chome

J-Chou-ku, Tokyo 104-0031

Phone (+81) 3 35 38-54 03

Fax (+81) 3 35 38-53 95

von.seth@eulerhermes.co.jp

Frank von Seth

Euler Hermes Credit Services (Japan) Ltd.

Kyobashi Nisshoku Bldg. 7F

8-7, Kyobashi 1-chome

J-Chou-ku, Tokyo 104-0031

Phone (+81) 3 35 38-53 90

Fax (+81) 3 35 38-53 85

tanaka@eulerhermes.co.jp

Yutaka Tanaka

Who to speak to

55


Who to speak to

KOREA

Euler Hermes Credit Underwriters Hong Kong Ltd.

Liaison Office

Rm 1411, 14/F, Ssayong Platinum Bldg.

156, Cheokseon-dong, Chongro-ku

ROK-Seoul 110-052

South Korea

Phone (+82 2) 7 33 88 13

Fax (+82 2) 7 33 88 14

Andy Ryoo

LITHUANIA

Euler Hermes Kreditversicherungs-AG

Lietuvos Filialas

Konstitucijos pr. 7

LT-09308 Vilnius

Phone (+370 5) 2 11 33 66

Fax (+370 5) 2 72 77 75

baltic@eulerhermes.com

Frank Wille

UAB Euler Hermes Services Baltic

Konstitucijos pr. 7. 40/20th floor

LT-2001 Vilnius

Phone (+370 5) 2 11 33 66

Fax (+370 5) 2 72 77 75

frank.wille@eulerhermes.com

Frank Wille

56

NETHERLANDS

Euler Hermes Interborg N.V.

Hoogoorddreef 5

Postbus 12473

NL-1100 AL Amsterdam Z.O.

Phone (+31 20) 6 96 39 41

Fax (+31 20) 6 96 30 21

interborg@interborg.nl

Duco N. Brongersma

NORWAY

Euler Hermes Kredittforsikring Norden AB

Holbergsgate 21

P.O. box 6875 St. Olavs Plass

N-0130 Oslo

Phone (+47) 23 25 60 00

Fax (+47) 23 25 60 10

info.no@eulerhermes.com

Thor Bendik Weider

POLAND

Euler Hermes

Towarzystwo Ubezpieczeniowe S.A.

ul. Chocimska 17

PL-00-791 Warschau

Phone (+48 22) 3 85 46 55

Fax (+48 22) 3 85 46 99

info.pl@eulerhermes.com

Eckhard Horst


Euler Hermes

Zarzadzanie Ryzykiem Sp. z o.o.

ul. Chocimska 17

PL-00-791 Warschau

Phone (+48 22) 3 85 46 55

Fax (+48 22) 3 85 46 99

info.pl@eulerhermes.com

Eckhard Horst

Euler Hermes

Zarzadzanie Ryzykiem Sp. z o.o.

Oddzial Warszawa

ul. Chocimska 17

PL-00-791 Warschau

Phone (+48 22) 3 85 46 55

Fax (+48 22) 3 85 46 99

Bogdan Wiesiolek

Euler Hermes

Zarzadzanie Ryzykiem Sp. z o.o.

Oddzial Poznan

ul. Janickiego 20 B

PL-60-542 Poznan

Phone (+48 61) 6 63 19/35-37

Fax (+48 61) 6 63 19 40

Krzysztof Chechlacz

Euler Hermes

Anna Kozinska Kancelaria Prawna Sp. k.

ul. Chocimska 17

PL-00-791 Warschau

Phone (+48 22) 3 85 46 55

Fax (+48 22) 3 85 46 99

info.pl@eulerhermes.com

Eckhard Horst

Euler Hermes

Zarzadzanie Ryzykiem Sp. z o.o.

Oddzial Katowice

ul. Porcelanowa 8

PL-40-246 Katowice

Phone (+48 32) 7 30 33 04

Fax (+48 32) 7 30 33 10

Zbigniew Narajewski

ROMANIA

Euler Hermes Servicii Financiare S.R.L.

Str. Ion Slatineanu, nr. 5, sc. C. et 2, ap. 19

Sektor 1

RO-010601 Bukarest

Phone (+40 21) 2 11 39 37

Fax (+40 21) 2 11 39 67

cristina.rusuleanu@eulerhermes.com

Cristina Rusuleanu

SLOVAKIA

Euler Hermes Servis, s.r.o.

Plynárenská 1

SK-82109 Bratislava

Slovakia

Phone (+421 2) 58 28 09 11

Fax (+421 2) 58 28 09 99

helena.mudra@eulerhermes.com

Helena Múdra

Who to speak to

57


Who to speak to

SWEDEN

Euler Hermes Kreditförsäkring Norden AB

Klara Norra Kyrkogata 29

Box 729

S-10134 Stockholm

Phone (+46 8) 55 51 36 00

Fax (+46 8) 55 51 36 01

info.se@eulerhermes.com

Lars Gustafsson

Euler Hermes Kreditförsäkring Norden AB

World Trade Center

Mässans Gata 18

Box 5243

S-40224 Göteborg

Phone (+46 31) 83 69 29

Fax (+46 31) 18 32 93

SWITZERLAND

Euler Hermes Kreditversicherungs-AG

Regional Sales Office Zurich

Tödistrasse 65, PO Box

CH-8002 Zürich

Phone (+41 44) 2 83 65 65

Fax (+41 44) 2 83 65 66

info.ch@eulerhermes.com

Ludwig Mertes

Euler Hermes Assurance Crédit

Agency Lausanne

Avenue de Gratta-Paille 2

Case postale 476

CH-1000 Lausanne 30 Grey

Phone (+41 21) 6 43 74 20

Fax (+41 21) 6 43 72 10

christian.gabriel@eulerhermes.com

Christian Gabriel

58

UNITED KINGDOM

Euler Hermes Guarantee plc

Surety House

Lyons Crescent

Tonbridge

GB-Kent TN9 1EN

Phone (+44 1732) 77 03 11

Fax (+44 1732) 77 03 61

info@ehgplc.com

Harry Brown

Euler Hermes Guarantee plc

London Office

40, Queen Street

GB-London EC4R 1DD

Phone (+44 207) 9 29 19 19

Fax (+44 207) 9 29 03 75

info@ehgplc.com

Sean Higgins

Euler Hermes Guarantee plc

Manchester Office

Central Buildings

211, Deansgate

GB-Manchester M3 3NW

Phone (+44 161) 8 32 19 14

Fax (+44 161) 8 34 77 75

Trevor Johnes


Euler Hermes Kreditversicherungs-AG

Friedensallee 254, 22763 Hamburg

GERMANY

Phone +49 (0) 40/88 34-0

Fax +49 (0) 40/88 34-7744

info.de@eulerhermes.com

www.eulerhermes.de 01 7001 0405

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