Annual report 2007 - Euler Hermes

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1893 ACI founded in the United States €2,099 million consolidated turnover in 2007 67.9% net combined ratio in 2007 6,004 employees worldwide AA- Standard & Poor’s rating (July 2007) €800 billion of business transactions insured 1917 1918 Creation of Hermes Kreditversicherung in Germany 2 – ANNUAL REPORT 2007 Key figures Trade Indemnity founded in the United Kingdom 1927 1929 1989 1992 1996 1998 Creation of SFAC in France and SIAC in Italy COBAC founded in Belgium 2,000 1,500 1,000 500 0 400 350 300 250 200 150 100 50 0 IFRS 1,864 1,879 94 1,770 2003 2004 2005 2006 2007 146.1 IFRS 243 25.7 217.3 Formation of the holding company Cie Financière SFAC. Creation of the Royal Nederlanske Kredietverzekering in the Netherlands 2,099.4 2,008 2,011.8 286.1 326.1 407 2003 2004 2005 2006 2007 First cooperation agreement between SFAC and Hermes Consolidated turnover In € million ■ Factoring ■ Credit insurance Euler Hermes recorded a 4.4% increase (5.6% at constant scope and exchange rates) in turnover in 2007. This was achieved thanks to dynamic growth of 5.3% in business transactions in its traditional markets and robust demand for credit insurance in emerging markets. Turnover in emerging markets grew by 9.4%. Consolidated net income In € million ■ Post-tax contribution from activities sold ■ Earnings excluding activities sold The positive trend in the combined ratio (67.9%) together with strong investment income contributed to the substantial 24.8% increase in net income, group share. AGF acquires majority in shareholding in Cie Financière SFAC, then re-named Euler. Allianz acquires majority shareholding of Hermes Allianz acquires the majority shareholding in AGF
500 400 300 200 100 0 6,000 5,000 4,000 3,000 2,000 1,000 0 1999 446.6 318.2 128.4 2005 2006 2007 6,071 489.9 340.1 149.8 5,372 International cooperation agreement between Euler and Hermes 577.7 392.5 185.2 5,399 2003 2004 2005 2006 2007 2000 “2007 was an excellent year, with strong earnings growth and the achievement of milestones in terms of the group’s continued business development throughout the world.” 5,498 Euler listed on the Paris stock exchange Operating income In € million ■ Operating income before net investment income ■ Net investment income The growth in operating income (17.9% in 2007) was far higher than that of turnover (4.4%). This very strong increase is largely due to the long-term policy implemented in recent years of gradually reducing the assignment of premiums to reinsurers. In 2007, the assignment rate was reduced by another 6.6%. Net premiums therefore increased by 14.2% and the technical result by 15.4%. 6,004 2002 Euler acquires Hermes Workforce At 31 December 2007 The 9.2% increase in the workforce in 2007 to 6,004 employees is due mainly to the group’s international growth. A multi-cultural international group, Euler Hermes integrates its staff around shared values while respecting local cultural differences. 2003 The group and all its subsidiaries adopt the name Euler Hermes 2004 100 90 80 70 60 50 40 30 20 10 0 78 33.9 44.1 IFRS 69.5 23.6 45.9 Sales of the 49.09% stake in Eurofactor to Crédit Agricole. Further global expansion, in Finland, Greece, Portugal and Morocco 64.5 19.7 44.8 2,000 1,500 1,000 0 1,049 2005 67.9 19.8 2003 2004 2005 2006 2007 500 67.3 18.1 49.2 48.1 IFRS 1,403 Further international expansion, in Russia, India, the Baltic States and Turkey Net combined ratio As a % of earned premiums, net of reinsurance ■ Expense ratio ■ Loss ratio The net combined ratio remained at a good level in 2007 (67.9%), in line with that of the previous year (67.3%). Both components of the combined ratio, i.e. the loss ratio and the expense ratio, performed reasonably in 2007, with a one point improvement in the loss ratio to 48.1% and a slight deterioration in the expense ratio, which rose from 18.1% to 19.8%. 1,745 2003 2004 2005 2006 2007 Clemens von Weichs Chairman of the Group Management Board 1,912 2006 2,077.9 Further international expansion, in Ireland, Australia and New Zealand Consolidated shareholders’ equity In € million Shareholders’ equity increased by 8.7% to €2,077.9 million in 2007. Return on equity reached 20.6%, higher than the group’s mediumterm target. 2007 New operations in Argentina and Dubai, partnerships with ICIC in Israel and BOCI in China. Acquisition of debt collection agencies UMA in the United States and R2C in Ireland ANNUAL REPORT 2007 – 3
Page 1 and 2: Annual report 2007 Euler Hermes: Bu
Page 3: The group’s operations span 51 co
Page 7 and 8: IN 2007, EULER HERMES ADOPTED A NEW
Page 9 and 10: Group Management Board (at 1 st Jan
Page 11 and 12: Dubai Ireland Acquisition of Resolv
Page 13 and 14: Euler Hermes helps the business dev
Page 15 and 16: POINT OF VIEW Jörg-Uwe Lerch Group
Page 17 and 18: 160,000 debt collections handled by
Page 19 and 20: A strategy centred on client satisf
Page 21 and 22: THREE QUESTIONS FOR Roland van Mald
Page 23 and 24: Microsoft International client HQ A
Page 25 and 26: From a solid base in Europe, Euler
Page 27 and 28: American credit insurance market is
Page 29 and 30: “IRP enables 80% of credit limit
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Page 33 and 34: means to remain the best risk exper
Page 35 and 36: the world. At the same time, the gr
Page 37 and 38: Consolidated income statement for t
Page 39 and 40: Publisher: Euler Hermes Group Commu

Annual report 2007 - Euler Hermes

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