Annual report 2007 - Euler Hermes

Euler Hermes has a relationship of trust with its shareholders
based on dialogue, ethics and transparency.
DESERVING THE TRUST
PLACED IN US BY OUR SHAREHOLDERS
Euler Hermes has committed to its shareholders
with a constant focus on ethics and
transparency. The capital allocated to the
group by its main shareholder, Allianz, and
by the public is a precious resource that must
be developed and made profitable in a sustainable
manner. To this end, the Group Management
Board and the Supervisory Board and
its various related committees (Audit
Committee, Remuneration and Appointments
Committee, Finance Committee) set ambitious
objectives for the group and take full
responsibility for their strategic choices
focused on dynamic growth. Since the merger
of Euler and Hermes in 2002, the group has
consistently exceeded its growth targets. Its
listing on the stock market ensures a level of
transparency and visibility that benefits Euler
250
230
210
190
170
150
130
110
Euler Hermes share relative to the SBF 120 index
2005 to 2007
Hermes and helps promote credit insurance
among businesses and business managers
throughout the world.
Share price performance
The share’s performance in 2007 was
affected by investors’ distrust of financial
stocks in general. This distrust originated in
the US sub-prime mortgage crisis when
banks and financial institutions that had
issued complex instruments backed by
sub-prime mortgages were no longer able
to raise short term refinancing on the
market. At the same time as this liquidity
crisis, some banks and institutions were
confronted with solvency problems as they
were obliged to write down significant losses
resulting from sub-prime loans.
(base 100 at 1 January 2005)
- EULER HERMES
- SBF 120 (FR)
90
Dec. 04 Apr. 05 Aug. 05 Dec.05 Apr. 06 Aug. 06 Dec. 06 Apr. 07 Aug. 07 Dec. 07
32 – ANNUAL REPORT 2007
Although Euler Hermes is involved only in
insuring the successful outcome of trade
transactions and has no connection whatsoever
with insuring sub-prime mortgages,
the Euler Hermes share price was affected
throughout this period by the difficult macroeconomic
conditions and the growing uncertainty
hanging over future world economic
growth.
Euler Hermes’ share price therefore dropped
from €109.60 on 31 December 2006 to
€84.77 on 31 December 2007. The share
price nonetheless shows a rise of 67.2% over
the past three years. With the support of its
majority shareholder AGF, a member of the
Allianz group, and of its minority shareholders,
Euler Hermes will continue to develop its
insurance business and services throughout
Euler Hermes’ share price dropped from
€109.60 on 31 December 2006 to €84.77
on 31 December 2007. The share price
nonetheless shows a rise of 67.2% over
the past three years.