Annual Report 2008 - Euler Hermes

Annual Report 2008
Euler Hermes helps companies manage their trade risks anywhere in the world.

Interview with Clemens von Weichs 3
Message from the Chairman of the Supervisory Board 4
Corporate governance 5
Key figures 2008 6
Highlights of 2008 8
Protecting companies’ business development 10
Ensuring efficient receivables management 12
with reliable risk analysis
Strengthening its positions to ensure healthy growth 16
Helping to develop international trade 18
A global organisation 20
Better serving clients by anticipating their needs 22
Generating sustainable performance 26
Developing talent to encourage performance 28
Contributing to sustainable development 30
A long-term relationship with clients 32
Consolidated balance sheet and consolidated income statement 34
Worldwide offices 36
€2,166.5
million
consolidated turnover

97.2 %
net combined ratio
6,182
employees worldwide
AA-
Standard & Poor’s rating
(July 2008)
€800
billion of business
transactions insured
The world’s leading credit insurer with 36% market
share, Euler Hermes helps businesses of all sizes
and in every industry sector to secure and optimise
their trade development. Euler Hermes’ primary
mission is to protect companies against the risk
of customer insolvency both in their domestic
and export markets.
Annual Report 2008
1

“We help our clients to weather
the crisis by guiding them toward
the soundest trading partners.”
2 Annual Report 2008
Clemens von Weichs
Chairman of the Group Management Board

What are your views about 2008?
Clemens von Weichs: The bursting of the real estate bubble in 2007
was the starting point of the downturn in the global economy. In
2008, this downturn became a crisis, first financial and then
economic. It is unprecedented in terms of scale and of the speed with
which it has spread to all economies and business sectors.
How has Euler Hermes performed in this environment?
C.v.W.: For many businesses, the present crisis has resulted in
liquidity problems and more difficulties in accessing credit. The
consequence is an increase in late payments, default rates and,
ultimately, business failures. The latter went up 25% in 2008 and will
continue to rise in 2009. The impact on our business has been
twofold. On the one hand, interest in securing trade and,
consequently, in credit insurance has grown. On the other hand,
losses have increased in terms of both frequency and monetary
amounts.
What measures have you taken in response to these
difficult conditions?
C.v.W.: From the second half of 2007, in view of the scale of the crisis
and the foreseeable consequences, the entire group developed action
plans enabling each subsidiary to adjust commercial and risk
underwriting policies at local level in a consistent manner. Given the
recessionary backdrop, it is necessary to reassess commercial and
country risk in order to protect our clients, control losses in our portfolio
and balance our commitments in the most exposed sectors. We now
communicate with our clients better and more frequently. With close to
€800 billion in insured business transactions, we work closely with our
clients, helping them to weather the crisis by guiding them toward the
soundest trading partners.
What are the key features of the group’s 2008 earnings?
C.v.W.: We ended 2008 with 3.2% growth in turnover to €2.2 billion.
However, net income after tax reflected the economic slowdown in
2008, declining by 79.5% to €83.6 million. It nonetheless remains
positive, enabling us to distribute a dividend of €1.50 per share to our
shareholders. Operating income declined by 70.8% to €168.5 million
while net investment income remained stable at €132.9 million.
Interview with Clemens von Weichs
The Chairman of the Group Management Board reviews 2008 and presents the outlook
for the Group in 2009.
It should be noted that our cost control plans proved effective and that
our business grew thanks to the turnover generated by services other
than credit insurance, such as trade debt collection and bonding.
How do you see 2008 from a qualitative point of view?
C.v.W.: Above and beyond the financial results, we have
strengthened relations with our clients, developed our business
activities further, increased our international presence and diversified
our distribution channels in order to reach our various client bases,
from small and medium businesses to multinational groups, in a
better way. At the beginning of 2008 we created the Euler Hermes
World Agency, a structure catering specifically to multinational
groups, which after just one year in operation has become a
benchmark player for brokers, agents and their clients.
What is the outlook for 2009? What strengths can you
draw on?
C.v.W.: The group has three levers for its future development. First
of all, we have adopted a disciplined approach to the economic
crisis. We immediately drew up action plans in the areas of
marketing and risk underwriting. By implementing our action plans
sensibly and communicating appropriately with our clients, we can
strengthen our position as the world leader in credit insurance. At
the same time, we are modernising our organisation to serve our
clients more efficiently and anticipate their needs. To this end, we
have been investing in customer-focused software tools and have
improved our internal procedures. These benefits are visible in
productivity gains and improved efficiency.
Finally, we are pursuing a sustainable growth strategy. In credit
insurance, we are extending our distribution capacity and investing
in developing markets. Major projects for 2009 include adding to
our debt collection services and developing our bonding business.
We believe these strategic initiatives will help to confirm our
position as the leading and most trusted provider of trade
receivable services worldwide. The key factors for achieving this
goal are the quality of our systems, our operating efficiency, the
personal approach we take with our clients, the determination
and expertise of our staff, the support of our main shareholder
Allianz/AGF and the resulting synergies of these efforts.
Annual Report 2008
3

Message from the Chairman of the Supervisory Board
Jean-Philippe Thierry
Chairman of the Supervisory Board
4 Annual Report 2008
The economic slowdown that has affected all the world’s economies
and the solvency problems encountered by a growing number of
financial players have added to uncertainty and triggered a temporary
loss of confidence in the world economic order that had existed until
late 2008.
Against this unprecedented backdrop, Euler Hermes has faced a
significant rise in claims, as well as a sharp deterioration in the financial
markets. The group has nonetheless rapidly taken appropriate
measures to limit the negative impact of the increase in business failures,
while at the same time continuing to develop its businesses. In
risk underwriting, appropriate action plans have been implemented
at each subsidiary to increase selectiveness, ensure close monitoring
of the most sensitive risks and reduce exposure to debtors in distressed
situations. At the commercial level, the action taken has
notably concerned rate increases in order to bring premium prices
into line with the deteriorated economic conditions. The full effects of
all these measures will be visible in 2009.
Although 2008 was unfavourable from an economic point of view,
Euler Hermes nonetheless managed to strengthen its position as the
global leader in trade receivables management with a 3.2% increase
in turnover.
Allianz/AGF will continue to support Euler Hermes in the strategic
development of its new debt collection business and in the consolidation
of its credit insurance division, notably by participating in the
creation of partnerships in new markets.
The Supervisory Board would like to thank all Euler Hermes’ staff for
their professionalism and dedication demonstrated during these difficult
times. We continue to encourage them in their efforts as we all
work together to achieve the group’s ambitious targets for 2009.

Clemens von Weichs, Michel Mollard, Michael Hörr, Nicolas Hein, Gerd-Uwe Baden (from left to right)
Corporate Governance
(at 1 January 2009)
Board of
Management
Clemens von Weichs
Chairman
Wilfried Verstraete
Chairman
(as of 1 April 2009)
Gerd-Uwe Baden
Board member
Nicolas Hein
Board member
Michael Hörr
Board member
Michel Mollard
Board member
Supervisory
Board
Jean-Philippe Thierry
Chairman, member
of the Management Board
of Allianz SE
François Thomazeau
Vice-Chairman,
General Manager of AGF
John Coomber
Director of SwissRe,
Executive Vice Chairman
of Pension Insurance Corp.
Charles de Croisset
Company Director
Robert Hudry
Company Director
Yves Mansion
Director and General
Manager of Société
Foncière Lyonnaise
Jean-Hervé Lorenzi
Chairman of the
Supervisory Board
of several entities
of Compagnie Edmond
de Rothschild
Management
of the main
subsidiaries
Belgium
Jean Luc Louis
France
Michel Mollard
Germany
Gerd-Uwe Baden
Italy
Michele Pignotti
Netherlands
Gerard van Kaathoven
Nordic countries
Lars Gustafsson
Poland
Krzysztof Chechlacz
United Kingdom
Fabrice Desnos
United States
Paul Overeem
Reinsurance
Benoît des Cressonnières
Euler Hermes World Agency
Roland van Malderghem
Management
of group
transversal
functions
Philippe Bastié
Credit Risk
Jean-François Decroocq
Risk Management
Benoît des Cressonnières
Reinsurance
Raphaële Hamel
Communications
Nicolas Hein
Finance, Accounting,
Investor Relations
Ralf Hillgner
Commercial and Marketing
Michael Hörr
Information Systems
and Technology
Eckhard Horst
Trade Receivable
Collections
Francis Lallemant
Audit
Jörg-Uwe Lerch
Strategy
Arnaud Roger
General Secretariat
Elizabeth Sfez
Human Resources
Annual Report 2008
5

2008 Financial Results
Key Figures 2008
2,000
1,500
1,000
500
400
350
300
250
200
150
100
50
0
0
2 ,166.5
2, 099.4
2,008.0
2, 011.8
2005 2006 2007 2008
286.1
326.1
2005 2006 2007 2008
6 Annual Report 2008
407.0
83.6
Consolidated turnover
in € million
Growth in turnover remained strong in
2008 given the difficult economic background.
Turnover came to € 2,166.5 million,
up by 3.2% (5.2% at constant consolidation
scope and exchange rates). In the Euro
zone and the United States turnover
growth slowed due to a contraction in
premiums linked to a drop in insured sales.
The trend remained very positive, on the
other hand, in the United Kingdom, Poland,
Scandinavia and the new markets, sustained
essentially by growth in demand.
Consolidated net income
in € million
The group’s net income came to €83.6
million, down by 79.5%. Earnings per share
amounted to €1.92.
500
400
300
200
100
0
6,000
5,000
4,000
3,000
2,000
1,000
0
489.9
446.6 340.1
318.2
128.4
149.8
577.7
392.5
185.2
2005 2006 2007 2008
5, 399
5 ,498
6 ,004
168.5
35.6
132.9
6 ,182
2005 2006 2007 2008

Operating income
in € million
■ Operating income before
net investment income
■ Net investment income
Euler Hermes’ operating income was
down by 70.8% to €168.5 million.
This is attributable to the strong
increase in claims in 2008.
Workforce
at 31 December 2008
In 2008, Euler Hermes’ workforce
slightly increased to 6,182 employees.
As an international, multicultural
group present in over 50 countries,
Euler Hermes’ performance is based
on the skills, diversity and commitment
of its employees, all sharing the same
values.
100
90
80
70
60
50
40
30
20
10
0
2,000
1,750
1,500
1,250
1,000
750
500
0
64.5
19.7
44.8
67.3
18.1
67.9
19.8
49.2 48.1
97.2
19.1
78.1
2005 2006 2007 2008
1,745.0
1,911.5
2,077.9
1,855.3
2005 2006 2007 2008
Net combined ratio
in %
■ Expense ratio
■ Loss ratio
The combined ratio went up by 29.3 points
to 97.2%. Trends in the loss and expense
ratios, the two components of the
combined ratio, contrasted sharply in 2008.
Whereas the net loss ratio deteriorated
significantly, rising to 78.1%, the expense
ratio continued to improve, down to 19.1%
from 19.8% in 2007, reflecting the group’s
strict control of costs.
Consolidated shareholders’
equity
in € million
The group’s shareholders’ equity came
to €1,855.3 million, corresponding to
a decrease of 10.7%. Return on equity
equalled 4.3%.
Annual Report 2008
7

Highlights of 2008
Partnership with HSBC
Euler Hermes has reached a
distribution agreement with the
HSBC banking group and launched
a pilot test in Mexico. Signed at the
beginning of 2008, this agreement
enables Euler Hermes to market its
products to Mexican SMEs – who are
not very familiar with credit insurance
– through the bank’s 1,000 branches.
The first year has been very successful
with this new distribution channel now
accounting for 9% of the subsidiary’s
turnover.
Protection against fraud:
a new product launched
in Belgium
Belgian companies can now protect
themselves against internal fraud
by subscribing to a Euler Hermes
Trust policy. Euler Hermes offers
clients a customised policy, assessing
the precise level of internal risk
through a combination of telephone
questionnaires and on-site meetings.
Based on a product developed by
Euler Hermes in Germany, Trust
illustrates the fruitful sharing of best
practices throughout the group.
8
Annual Report 2008
An innovative solution
for large companies
The group developed SmartLink,
an application designed to provide
more fluid access to information
and facilitate policy management
by interconnecting Euler Hermes’
information systems with those of
its clients. SmartLink is now available
to all the group’s clients worldwide,
regardless of where they are located.
In April, SmartLink was ranked as
Allianz group’s third best innovation.
Best export credit agency
in 2008
On 1 July, Euler Hermes was
named “Best export credit
agency in 2008”.
This award, created in 1999 by the
British magazine “Trade Finance”,
recognises excellence in export credit,
export insurance, project financing
and structured financing. This is the
fourth time Euler Hermes has won the
award – genuine proof of the group’s
constant performance.
An Internet partnership
to provide online credit
insurance
A growing number of SMEs are
looking for online credit insurance
solutions. In response to this demand,
Euler Hermes has launched an
innovative product “Insure your
receivable” in France in partnership
with societe.com. All the transactions,
from subscribing a policy to declaring
a payment default, are carried out via
the Internet. This particularly flexible
offer is easily accessible to businesses
that wish to insure an individual
transaction or invoice.
Highlights
Euler Hermes strengthened
its operations in Russia,
Romania and in the Gulf
region
Euler Hermes continues to develop
its business in growth markets
in response to strong demand for
credit insurance. Development
occurred in Russia, with the creation
of a fully-fledged subsidiary;
in Romania, with the opening a branch
office; and in the Gulf region, where
Euler Hermes concluded a partnership
with Qatar Insurance Company and its
subsidiaries in Oman and Kuwait.

The “businessable” campaign
was rolled out in airports
Euler Hermes’ international
advertising campaign was
extended to airports. In addition
to advertising through an already
broad range of media (press, Internet,
brochures, posters, etc.), the group
ran “businessable” advertisements
at eleven European airports; a prime
location for reaching clients who travel
frequently.
08
A subsidiary opened
in Colombia
Following Mexico, Brazil and
Argentina, Euler Hermes started
operations in Colombia in February.
This fourth Latin American subsidiary
puts the group in an even better
position to support its worldwide
clients’ business development
in this region.
Germany: one out of every
three SMEs is a victim
of internal fraud
In November, Euler Hermes in
Germany published the results of
an annual survey measuring the
impact of financial crimes on German
SMEs. The survey revealed that internal
offences (theft, fraud and swindling)
are more frequent than offences by
people from outside the company.
On average, one company out of three
falls victim to internal financial crimes
each year in Germany, generating total
losses of €4 billion.
Signature of the first
contracts under the French
top-up credit insurance
scheme
On 12 December 2008, Euler
Hermes in France signed the first
contracts under the French top-up
credit insurance scheme
(complément d’assurance-crédit
public – CAP) in the presence of
French Finance Minister Christine
Lagarde. This government scheme
to aid businesses during the crisis
enables them to double the cover
granted by credit insurers, thereby
increasing trade credit cover.
Annual Report 2008
9

Protecting
companies’ business
development
10 Annual Report 2008
Businesses place their trust
in the leading global credit insurer
to facilitate and secure their trade flows
and manage debtor risk. Euler Hermes
insures trade credit risk and provides
debt collection services as well as bonding
and guarantees.
Euler Hermes is the world’s leading credit insurer
with a 36% share of the market. Its 6,200 employees
in more than 50 countries assist companies of all
sizes and in every industry sector to develop their
business securely.
Global leader in credit insurance
Euler Hermes constantly diagnoses the financial situation
of more than 40 million businesses across the world.
Its 57,000 clients can use this information to develop their
business by verifying their trading partners’ reliability
beforehand. Euler Hermes’ analysis is not limited to
the solvency of each individual company. It also assesses
the overall economic and political risk. Euler Hermes
insures receivables both in domestic and export markets
and advises its clients so they can control credit risk
better in their daily operations. Euler Hermes’ analysis
provides businesses with the necessary information for
choosing sound trading partners and efficiently managing
debtor risk. With their trade receivables insured and
cash flow protected, companies can concentrate more
efficiently on their business activity.
In the event of non-payment, Euler Hermes, automatically
and as quickly as possible, proceeds with collection
of the trade receivable. If the receivable remains unpaid
due to the debtor’s insolvency, Euler Hermes indemni-

fies the policyholder. Euler Hermes’ know-how and its
comprehensive understanding of companies’ needs
from risk analysis through to indemnification make it
the expert in trade receivables management.
Additional services
Debt collection services, often included as part of the
credit insurance contract, can also be provided independently
and have constituted a separate business
line for the group since the end of 2008. Not only is
Euler Hermes the global leader in credit insurance, it
is also a major player in the collection of trade receivables.
The group handled 190,000 debt collections
in 2008.
International debt collection calls for multiple skills:
it requires a local presence and specific local
knowledge, notably legal, which not all collection
companies have. Entrusting this procedure to an
expert that can rapidly and efficiently activate all
the means for collecting the debt enables our
clients to preserve the quality of their customer
relationships.
Euler Hermes has also had an active bonding business
for more than 90 years. Its subsidiaries in Germany,
the United Kingdom, Italy, France and the
Nordic countries issue more than 150,000 domestic
and international performance bonds and
guarantees a year. This activity grew strongly in
2008. Increasingly, companies are required to have
performance bonds in order to win contracts and
access new markets, notably in the construction,
import/export and industrial sectors. A Euler Hermes
bond guarantees the proper performance of a contract,
thus providing security to the company’s trading
partners. The group is now the European leader in
bonding with more than €15 billion of commitments
in more than 130 countries.
In each of these three business lines – credit insurance,
debt collection and bonding – Euler Hermes
has the necessary financial strength to assist its
clients, a solidity reinforced by being a part of Europe’s
leading insurance group, Allianz. Euler Hermes’ performance
is reflected in an AA- rating from Standard
& Poor’s, which gives it an additional advantage over
competitors. Lastly, the group’s presence in more
than 50 countries gives it a precise knowledge of the
environment, practices and political, economic and
financial risk of its clients’ debtors in all parts of the
world.
F o c u s
150,000
bonds and guarantees issued
in 2008.
190,000
debt collections handled
in 2008.
Euler Hermes’ guarantee enables the construction
of a luxury cruise ships
The Meyer shipyard in Papenburg is one of Euler Hermes’ largest clients in Germany.
Euler Hermes recently issued a substantial guarantee of reimbursement of down
payments, thereby paving the way for building luxury cruise ships like the AIDAbella,
for the shipping company AIDA Cruises, which was able to make a down payment
for purchasing materials and equipment.
Annual Report 2008
11

Ensuring efficient
receivables
management
with reliable
risk analysis
12 Annual Report 2008
Euler Hermes has developed unique
know-how in trade risk management.
Its expertise and added value is based
on a detailed and constant analysis
of micro and macroeconomic trends
and local and sector-specific situations.
To enable it to respond rapidly (83% of credit limit
requests are processed within 48 hours) and appropriately
to clients’ credit limit requests for existing
and potential customers, Euler Hermes has developed
a unique risk analysis model used by all of its
1,000 credit analysts and risk underwriters throughout
the world.
A comprehensive, precise and global Risk
Business Model
Euler Hermes’ Risk Business Model is based on the
idea of proximity to the risk. The subsidiary located
closest to the business under review measures and
qualifies the risks based on accounting and financial
data, meetings with the management and informa-

tion confirmed by the company’s trading partners
and suppliers. For example, Euler Hermes’ Brazilian
subsidiary will take the final decision to cover a
transaction envisaged by a Canadian company with
a buyer located in São Paolo. This local assessment of
the business is the product of numerous converging
analyses that, starting with the global macroeconomic
situation, take into account every factor of
risk: country risk, sector risk and risks specific to the
company.
A risk underwriting policy adapted to global
economic conditions…
Euler Hermes’ economists constantly analyse the
global economic situation, fine-tuning on a daily
basis their assessment of potential risks according
to the economic conditions and outlook.
This macroeconomic analysis and the resulting
conclusions are published regularly and relayed by
the business and financial press. Its global approach
to risk means that Euler Hermes can react
instantly to any major economic ups or downs.
Throughout Euler Hermes the same analytical rules
and tools are used in order to define and simultaneously
implement throughout the world a risk underwriting
policy adapted to economic conditions.
Since 2007, a global risk action plan requires all the
group’s subsidiaries to prepare local programmes
F o c u s
Sharing knowledge
Euler Hermes’ publishes its research and analysis in numerous publications that
illustrate the group’s expertise:
• Economic Outlook: quarterly. Economic analysis and forecasts.
• Insolvency Outlook: half-yearly. Global survey of business failures.
• Global Sectors Outlook: half-yearly. Review and forecast for industry sectors.
• Country Risk Weekly Bulletin: weekly. Online publication of a summary of country risk
analyses for a selection of countries chosen according to specific political and economic
events.
• Country Risk Review: regular updates based on market trends.
Euler Hermes’ research is available to all on the corporate website www.eulerhermes.com
in the Economic Research section.
to be implemented if the claims experience deteriorates.
These allow a graded response according
to the severity of the slowdown in the country
concerned. •••
Annual Report 2008
13

Global Insolvency Index
base 100 = 1997
150_
120_
90_
60_
30_
Global Insolvency Index
United States
Eurozone
14 Annual Report 2008
Points of View
“Ensuring we make commercial decisions
with our customers’ interest in mind
is essential.”
“Our priority is to treat our clients on an individual
basis and adapt policy terms and conditions
to each specific situation. We also constantly need
to ensure the right balance between the group’s
marketing decisions and its risk underwriting
policies. It is essential
that decisions are both
balanced and collaborative
between risk and
commercial.”
Forecast
1995 1997 1999 2001 2003 2005 2007 2009
The Global Insolvency Index published by Euler Hermes since 1995
provides a view of the historical trends in business failures.
After falling in the period from 2003 to 2006, the index began
to rise again in 2007 (+5%) and experienced a very significant
acceleration in 2008 (+25%). This is the sharpest rise ever
recorded, reflecting the economic crisis that has simultaneously
affected Europe and the Americas, triggering a global economic
slowdown and a rise in business failures in almost all countries
and sectors.
Ralph Hillgner
Head of Commercial and Marketing
“Now more than ever, defining precise targets
and close collaboration between commercial
and risk underwriting teams are key factors
for success.”
“We need to analyse clients’ needs very carefully
in order to offer the best trade receivables
management service. This is a daily challenge
as we must at the same time manage our insurance
policies tightly, help our
clients to develop their
businesses safely while
protecting their and our
sustainable growth.”
Philippe Bastié
Head of Risk
…and to local situations
In recessionary conditions, the analysis of country risk
takes on added importance. Mature economies and
emerging countries are linked by growing trade flows
and the major economic and monetary regions have
become interdependent. In these conditions, the traditional
economic indicators (foreign exchange rates,
external trade balance, growth, currency reserves,
etc.) must be taken into account immediately. Other
equally important factors must also be analysed, such
as political stability, the solidity of the local stock markets
and foreign direct investment in the country.
These factors are analysed by a country risk committee
comprised of specialists and representatives
of the group’s different subsidiaries. Each country is
assigned a rating on a scale of AA to D according to
the risk represented. These assessments are published
in a weekly bulletin and any change in a country’s
risk instantly triggers an ad hoc review.
Sector analysis: measuring cross-sector risks
While it is essential to monitor macroeconomic indicators
and the local situation, it is equally necessary to
analyse in detail the trends and situation in various industry
sectors (automobile, energy, chemicals, retail,
telecommunications, etc.). Each sector reacts differently
to economic influences and trends.

Growth and concentration levels can be very different
from one sector to another. Euler Hermes’ sector
analysts examine trends in each sector, inform
the group’s international network and thus contribute
to the determination of the global risk
policy.
Analysis of individual business risk
Euler Hermes constantly monitors the situations of
40 million businesses worldwide. The final decision
with regard to the grade assigned to a business is
taken by the Euler Hermes subsidiary located closest
to the business in question, as it possesses all the
necessary elements for assessing the risk. Each business
is assigned a grade on a scale of 1 to 10. The
lower the grade is, the lower the risk of insolvency.
The grade takes into account the business’s financial
situation, sector risk and macroeconomic trends
and country risk. The grades are updated regularly
and can be accessed in real time by all Euler Hermes’
analysts thanks to a shared information system that
constitutes an unparalleled database in terms of
quality and density. The system was implemented
in Poland in April 2008 and is now accessible
throughout the Euler Hermes network. The database
also provides a real-time view of the frequency and
severity of business failures. The global economic
downturn has weakened businesses and the number
of late payments and bankruptcies is rising rapidly.
This tool enables Euler Hermes to be among the
first to detect these weaknesses and inform its
clients so that they can optimise their trade receivables
by adjusting their trade risk exposure.
F o c u s
The risk information
system was extended
to Poland in April 2008
and is now accessible
throughout the
Euler Hermes network.
Credit insurance and the liquidity crisis
Sudden changes in business trends, cash shortages and more difficult access
to bank credit are all factors that add to credit risk and put pressure on liquidity.
In 2008, against a background of economic uncertainty, 57,000 businesses placed
their trust in Euler Hermes to protect their trade receivables and cash flow.
Euler Hermes’ expert advice enables companies to choose their trading partners
in complete security.
Annual Report 2008
15

Strengthening its
positions to ensure
healthy growth
16 Annual Report 2008
Euler Hermes’ goal is to be the
most trusted global provider of trade
receivables management services.
The group draws on its global leadership
in credit insurance to strengthen all its
positions: business information, credit
insurance and debt collection.
Growth in the coming years will depend
on the quality of the services provided
to its clients, placed at the centre
of an ever more efficient organisation.
Euler Hermes has recorded robust growth throughout
the world since its creation in 2002 and now has
operations in more than 50 countries. Its 6,200 employees
handle 25,000 credit limit requests a day
covering more than €800 billion of transactions annually
for 57,000 clients. This development has been
underpinned by an organisation that constantly
seeks to achieve excellence, a tested methodology
and shared tools to provide its clients with the efficiency
they expect from a major international group.
Ongoing and healthy growth relies on several strategic
axes.
Strengthening its position
in credit insurance
The first pillar of Euler Hermes’ strategy is to
strengthen its position in the credit insurance market
for clients of any size, ranging from large multinational
groups to SMEs. To this end, the group is investing
in its product and service distribution channel:
it has created Euler Hermes World Agency to provide
a better service to multinational groups and has
developed new partnerships with banks to facilitate
access to credit insurance for SMEs. In 2008,
Euler Hermes signed a global cooperation agreement

with HSBC. At the same time, the group has continued
to expand internationally, particularly in new
growth markets.
Euler Hermes also continues to develop related activities,
such as third-party debt collection services.
Euler Hermes has more than 60 years of experience in
debt collection and added to its expertise in this area
with the acquisition of United Mercantile Agencies
(now known as Euler Hermes UMA) in the United
States (see box). The group’s debt collection activities
entered a new phase at the end of 2008 with the creation
of a separate debt collection division. This division
will enable it to respond better to its insured
clients’ needs and to address a new clientele of businesses
interested more specifically in debt collection
services. Euler Hermes has thus entered new market
segments while at the same time adding to its base
of prospects.
Improved operating efficiency
To improve efficiency, Euler Hermes has adopted a
new operating model that places the client firmly at
the centre of its organisation. This model enables the
group to adapt to market changes and optimise internal
operations and sets out the exact manner in
which the operating structures should interact,
underpinned by an efficient and rationalised information
system. The harmonisation of the IT environment
at an international level (risk assessment,
claims management and debt collection) is an essential
component of this model. Also, by harmonising
procedures, the new model improves human
resources management by facilitating mobility
within a given business line and between countries.
The overall objective is to create an organisation
capable of generating sustainable growth through
constantly increasing client satisfaction. Applied to
the entire group, the new model facilitates the sharing
and implementation of best practices at all entities,
resulting in an optimised and even more
efficient organisation.
F o c u s
American success story
25,000
credit limit requests
received each day.
€800 billion
of business transactions
insured by Euler Hermes
in 2008.
In 2007, Euler Hermes acquired the US company United Mercantile Agencies (UMA),
which specialised in the collection of trade receivables. This strategic move has
borne fruit. Despite the difficult economic environment, Euler Hermes UMA recorded
20% growth in turnover and 18% growth in earnings in 2008, just a year after joining
the group.
Annual Report 2008
17

Helping to develop
international trade
18 Annual Report 2008
Euler Hermes has operations in more than 50 countries,
which together represent the majority of world trade.
The group’s international strategy is based on accompanying
its clients’ business development in their domestic markets
and abroad.
Although the global crisis has also affected emerging
economies, Euler Hermes continues to pursue
its expansion in these countries, confident in their
ability to rebound in the longer term.
Latin America
Already present in Argentina, Brazil and Mexico,
Euler Hermes added to its Latin American presence
in 2008 with a new subsidiary in Colombia. With
these four subsidiaries, Euler Hermes now covers
Testimonial
“The team has since grown to 26 people, of 12 different
nationalities and speaking a total of 16 languages,
giving us a clear advantage for developing closer relations
with our clients.”
“We started out in Dubai in 2006 with a team of two people.
With operations in the United Arab Emirates, Saudi Arabia and
Bahrain, the team has since grown to 26 people, of 12 different
nationalities and speaking a total of 16 languages, giving us a
clear advantage for developing closer relations with our clients.
Our clients no longer see us merely as an
entity that insures their trade receivables
but as a genuine partner that can help
them identify sound buyers in a moving
market.”
Anil Berry
Regional General Manager, Gulf Cooperation Council

85% of the Latin American economy. In Mexico, it entered
into a partnership with HSBC to promote and
market Euler Hermes’ services to SMEs.
Asia
Euler Hermes strengthened its presence in China in
2007 by signing a cooperation agreement with Bank
of China Insurance in Beijing. It has since opened new
offices in Hong Kong and Shenzhen. Euler Hermes
Information Consulting Co. Ltd, based in Shanghai, is
responsible for risk assessment and underwriting
for China.
Eastern Europe
The group continues to expand in Eastern Europe.
Following on those opened in Hungary, Poland and
the Czech Republic, Euler Hermes set up a new
branch in Bucharest in Romania. In Russia, the collaboration
agreement entered into with Rosno (an
Allianz subsidiary) in 2004 was reinforced in 2008
with the creation of a joint subsidiary.
Middle East
After opening an office in Dubai in 2007 and concluding
partnerships in the United Arab Emirates,
Saudi Arabia and Bahrain, Euler Hermes strength-
F o c u s
Insuring trade with India
Along with China, India is one of the countries to have recorded the strongest rates of
growth in recent years. After several years of collaboration with the local Allianz
subsidiary (Bajaj Allianz General Insurance), Euler Hermes has now created its own entity
to accompany growing trade between the Indian sub-continent and the rest of the world.
ened its presence in the Gulf region by signing cooperation
and reinsurance agreements with Qatar
Insurance Company and its subsidiaries in Oman
and Kuwait. Local businesses can now draw on the
expertise of analysts familiar with the region’s economic
environment and culture.
With its entities in
Argentina, Brazil, Colombia
and Mexico, Euler Hermes
is present in the four countries
that represent 85% of the
Latin American economy.
Annual Report 2008
19

Euler Hermes’
international strategy
and development
on every continent since
the group’s creation
have given it a very
dense global network.
A global
organisation
Euler Hermes’ international
presence
The group in 2002
Euler Hermes’ international expansion
from 2002 to 2008
20 Annual Report 2008
More than a century in credit insurance at international level
The Euler Hermes group emerged from a
grouping of American (ACI, created in 1893),
German (Hermes Kreditversicherung, 1917),
British (Trade Indemnity, 1918), French (SFAC,
1927), Italian (SIAC, 1927), Belgian (COBAC,
1929) and Dutch (Royal Nederlandsche
Kredietverzekering, 1989) companies.
This international dimension has underpinned
Euler Hermes’ development over the past
20 years.
Since 2002 when it started operations in China
and Mexico, Euler Hermes’ international
expansion has accelerated in line with the pace
of globalisation:
■ In 2003, it opened its first office in Brazil;
■ 2004 was a year of expansion into
European markets: Finland, Greece,
Portugal and Morocco;

■ In 2005, following on Brazil and China, the
group extended its reach to Russia and India
as well as Turkey and the Baltic states;
■ In 2006, Euler Hermes continued to expand
in the Asia-Pacific region with the acquisition
of a company based in New Zealand and
Australia. In Ireland, Euler Hermes took over
Allianz’s credit insurance business;
■ In 2007, Euler Hermes opened offices
in Dubai and Argentina;
■ 2008, the group continued to strengthen
its presence in China and Russia. In the
Gulf region, it signed a new agreement
with a partner in Qatar. It opened a fourth
Latin American subsidiary in Colombia
and completed its Eastern European cover
with an office in Romania.
Annual Report 2008
21

Better serving
clients by anticipating
their needs
22 Annual Report 2008
Listening to and understanding clients
are fundamental qualities for anticipating
their needs and helping them develop
their businesses thanks to continually
enhanced expertise and customised
solutions.
When conditions are difficult and confidence is
lacking in turbulent markets, Euler Hermes’
clients rely on the group’s key strengths: information,
risk policy, commitment and efficiency.
Euler Hermes offers improved visibility in a turbulent
trading environment. This visibility is the
result of its capacity to anticipate and understand
the issues involved by listening to its clients and
contributing to their development on a daily
basis.
An organisation optimised
for and with its clients
Today, the group’s efficiency is designed for and with
its clients. Euler Hermes has integrated this concept
by placing the client at the centre of its strategy, constantly
adapting its organisation, processes and services.
Euler Hermes has taken an essential initiative
for change by revising its operating model to improve
the efficiency of its processes. The revised
model describes the required interaction at the op-

erating level between the different group entities.
The aim is to harmonise operating methods for all
entities by implementing shared tools and processes
resulting from best practices developed at local
levels.
Measuring client satisfaction
Client satisfaction is a key indicator for guiding
Euler Hermes’ strategy and constantly ensuring
that its organisation, products and services are in
correlation with clients’ needs and expectations. The
prime indicators of client satisfaction are loyalty and
the length of the relationship. 90% of Euler Hermes’
clients are long-standing clients, with the length of
the relationship averaging nine years, highlighting
their loyalty to the group, which helps them weather
economic ups and downs year after year. In France,
a specific software application handles client requests
and measures how rapidly they are dealt with
and whether policyholders’ deadlines are met. In six
months, 97.7% of requests were processed within
9 years
is the average length
of the client’s relationships,
highlighting the clients’ loyalty
to the group.
the proper timeframe and client satisfaction stands
at 98.5%. Other group entities have also introduced
specific programmes, such as “Clienting” in Germany
and “Customer First” in the United States, to
ensure that the client is constantly at the centre of
their operations. •••
Annual Report 2008
23

24 Annual Report 2008
57,000
clients worldwide.
In addition to its own
sales networks, the group
has developed numerous
partnerships at local levels.
••• Distribution channels adapted to each
client segment’s needs
Clients’ needs and habits differ according to their
size, country of origin and other criteria. Small and
Medium Enterprises (SME) in particular, usually not
very aware of credit insurance, are often attached
to a given distribution channel: brokers, agents,
banks, etc.
For this reason, in addition to its own sales networks,
the group has developed numerous partnerships at
local levels with independent brokers, retail banking
networks and insurance companies. Examples include
HSBC in Mexico (see box), Rabobank in the
Netherlands and Gruppo BPER and Unicredit Corporate
Banking in Italy.
In France, Euler Hermes’ partnership with web company
societe.com enables businesses, of any size, to
insure a receivable via the Internet.
A specific offer for multinational groups
Euler Hermes has created Euler Hermes World
Agency, an entity dedicated solely to multinational
groups. This structure provides them with a single
point of contact to facilitate the centralised management
of their trade receivables worldwide while
drawing on Euler Hermes’ local expertise and
“It is a genuine partnership.”
Client Testimonial
“We have worked with Euler Hermes since 1997. Apart from its
international presence, the expertise and service quality provided
by its staff were a key factor in our choice. Payment practices
and regulations vary from one country to another and it is
therefore essential to have reliable advice that takes into account
the payment delays and different steps to be taken in the case of
non-payment. Our sales departments have adopted Euler Hermes’
rules, which are rapidly updated if there are any changes.
It is a genuine partnership: we have common
interests and therefore seek the solutions
together, so that we can pursue our future
development.”
Ludo Onnink
Chief Financial Officer, Tommy Hilfiger Europe

A pilot partnership with HSBC in Mexico
F o c u s
A pilot partnership with HSBC in Mexico
In 2008, Euler Hermes and HSBC signed a partnership
agreement providing for an initial collaboration in Mexico.
HSBC Commercial Bank exclusively markets Euler Hermes
credit insurance products to its business customers.
This gives HSBC’s SME customers, previously not very familiar
with credit insurance, access to an efficient management of
business risks. HSBC markets Euler Hermes’ products through
operations. Euler Hermes World Agency offers four
products designed specifically for multinational
groups: credit insurance, protection against volatility
and loss of sales, risk sharing and reinsurance and
assignment of receivables. In its first 12 months of
operation, Euler Hermes World Agency has become
an internationally recognised credit insurance
partner.
sales and marketing units that coordinate a network of account
managers. For its part, Euler Hermes has put together a team
of credit analysts to provide support to the HSBC sales
representatives.
The first results are promising and the partners plan to extend
this initiative to other countries in which HSBC has a strong
presence.
The group has taken
an essential initiative
for change by revising its
operating model
to improve the efficiency
of its processes.
Annual Report 2008
25

Generating
sustainable
performance
26 Annual Report 2008
Involving group employees in coherent
and efficient actions to win clients’ trust
is the role of the leadership values
adopted by all staff.
Since 2003, Euler Hermes has focused on promoting
the five values that must guide the actions of
each employee to enable the group to achieve its
objectives, satisfy its clients and strengthen its foundations
a little more each day.
Align strategy and communication
By ensuring the coherence of its actions, strategy,
communications and commitments, Euler Hermes
offers clients and the business world in general a
clear and transparent view. The group’s staff can
therefore commit to assisting clients’ business
development and insuring their trade risk. The
transparency of Euler Hermes’ approach, its organisation,
the interaction between entities and its
methods and tools are further proof of coherency
and reliability.
Promote a high performance culture
Euler Hermes sees performance as the principal factor
of excellence and sustainable growth. Seeking to
achieve excellence is a constant motor for progress so as
to meet the challenges of economic globalisation.
All the group’s staff share and contribute to achieving
a same goal: being the preferred partner for trade

eceivables management worldwide. Each employee
has a role in achieving this goal. Euler Hermes promotes
initiative and encourages each employee to take a part
in achieving improved performances.
Focus on clients
The group has taken numerous steps to adapt its organisation
to its environment: information systems,
sharing of best practices, training, mobility, etc. All
of these initiatives place the client at the centre.
How can service be improved? How can clients’
needs be met? These are the questions that must
be asked each day so that the group’s strategy can
progress.
F o c u s
Develop employees
The employees, with their skills, knowledge and
commitment, are the group’s driving force. Euler Hermes
therefore provides ongoing training and encourages
mobility and diversity so as to create a climate
of excellence, trust and commitment to better serve
clients.
Build on mutual trust and feedback
The global leader in credit insurance must be a
trusted partner. To develop this trust and ensure
its lasting growth, Euler Hermes bases its relations
with all its staff and partners on the same basis of
mutual trust and commitment.
i2s, values in action
The i2s (Ideas to success) initiative is designed to encourage innovation for the benefit of clients
among all Euler Hermes’ staff. With this in mind, the 21 members of the group’s international
executive committee awarded the 2008 innovation prize to Grading IFRS 7, an idea developed by
Euler Hermes’ accounting department in France. This service is designed for listed companies and
their subsidiaries which must comply with the new international financial reporting standard IFRS 7,
by including an analysis of trade receivables in their activity report.
Annual Report 2008
27

Developing talent
to encourage performance
28 Annual Report 2008
The skills, know-how and daily commitment of Euler Hermes’
employees are the bases of the group’s performance. Its human
resources policy is designed to develop talent and encourage cultural
diversity to meet the challenges of a globalised economy.
The essence of the Euler Hermes group consists of
its 6,200 employees spread throughout more than
50 countries. Its staff work together on a daily basis to
help clients develop their businesses throughout the
world by insuring their trade risk. Each employee is part
of a network with correspondents everywhere in the
world so as to respond to the needs of local businesses.
The combined talents of all Euler Hermes staff are used
to achieve this goal.
“Diversity is a strength.”
An Expatriate’s Experience
“I joined Euler Hermes in London as a credit analyst in 1994 and
later moved up to the position of Risk Manager. In this capacity,
I had particular responsibility for monitoring the electronics
sector, which was booming, and then the bursting of the dot.com
bubble, while at the same time managing OPEX projects.
In 2007, I took over as Risk Manager for South-East Asia
and moved to Singapore, a truly multi-cultural city.
The working language is English, but for most of us this is not
our native language. I myself am French, and the team includes
eleven different nationalities.
This diversity is fascinating and is one
of Euler Hermes’ major strengths.”
Anne Simpson
Risk Manager, Singapore

A global training policy
Euler Hermes has built its reputation and position as
global leader on its professionalism and an experience
acquired over more than a century. All the
group’s employees share the same values, methods
and tools. It is essential to recruit the best talent and
integrate it into a strong corporate culture to ensure
consistency at group level and the same quality of
service throughout the world. The group’s credit analysts
attend seminars on Euler Hermes’ Risk Business
Model to learn to use the same methods and the single
global risk assessment system. This guarantees
consistency in the grading of companies and facilitates
mobility between the various group entities.
Other training is provided to respond to employees’
needs, such as the Management Development Seminar
for high-potential staff.
Encouraging diversity
Both at local and international levels, Euler Hermes’
success relies on the talent and cultural diversity of
its staff. Euler Hermes’ recruitment and career management
policies are designed to foster diversity so
as to gain a better understanding of the mechanisms
of world trade and provide businesses with
services adapted to their needs. Management considers
diversity to be a key factor of progress for its
organisation. For this reason it launched the Diversity
F o c u s
Operational Excellence
Operational Excellence (OPEX) is a programme used throughout the Allianz group
for managing change and optimising the quality of client-oriented processes. It offers
in-house training, constructed around actual projects, that enables employees to obtain
“blue belt” or “black belt” grades, like in judo. These employees learn how to master and
diffuse this method while achieving a concrete improvement in client services and
operating efficiency. For example, in the United Kingdom, the OPEX programme
optimised debt collection efficiency and improved internal recruitment procedures
thereby significantly reducing the expense linked to using external recruitment agencies.
project in 2008 to coordinate and harmonise human
resources policies at all group entities. This project
reflects its commitment to every type of diversity. It
is based on essential concepts such as gender balance
and equal treatment: access to employment
and training, pay, career progress, etc. Diversity
Awareness Workshops have been organised to
heighten managers’ awareness of these issues and
help them respond.
6,182
employees
worldwide
in 2008.
Annual Report 2008
29

30 Annual Report 2008
Testimonial
“Social responsibility is a long-term commitment.”
“We have worked for several years with Civita, an association
set up in 1987 to protect, enhance and promote Italy’s cultural
heritage. The last project we partnered in 2008 was to finance
the restoration of Caccia con il Coccodrillo, painted in the
18 th century by Tommaso Maria Conca. The painting was
subsequently exhibited at the Castel San Angelo National
Museum in Rome as part of an exhibition organised by Civita.”
Michele Pignotti
Chief Executive Officer of Euler Hermes SIAC, Italy
Contributing to sustainable
development
Euler Hermes contributes to sustainable and harmonious
development of the world economy by helping its clients build
and secure their business. Alongside its clients, the group’s
strategy is guided by its values and sense of corporate social
responsibility.
The group’s activities, by their nature, have very little
impact on the environment. The group’s commitment
to sustainable development is more particularly
reflected in its relations with partners and clients.
Insuring credit: a responsible act
Insurance plays a key role for business development
by reducing risk and limiting the consequences of
losses. As the global leader in credit insurance,
Euler Hermes thus contributes to the development

of human activity in an economic environment where
globalisation has multiplied the risks. In a variety of very
different economic environments, Euler Hermes helps
its clients manage their trade risk, consolidate their
growth and thus ensure their lasting future.
Acting in the best interests of all
In addition to the values that guide Euler Hermes’
strategy and the behaviour of its employees,
the group keeps a careful watch on legal and
regulatory changes in different countries.
Euler Hermes’ responsibility to all its stakeholders
is reflected in a corporate governance
model that complies with the most stringent requirements
in this area.
For this reason, Euler Hermes has introduced a
code of conduct based on Allianz group principles.
This code of conduct defines in detail the
rules to be applied by employees for conducting
their business and complies with UN indications
with regard to blacklisted zones and sectors.
The group’s reputation is key to its success.
Euler Hermes therefore urges its employees to
act responsibly both at personal level and as
representatives of the group.
F o c u s
Lorem ipsum dolor sit
amet, amLorem ipsum
American dolor sit associates amet, amet, take the initiative
consecteet, con-
Euler Hermes may have a relatively small environmental footprint but the group
sectetuer adipiscing
encourages social responsibility. In the United States, for example, a group of volunteer
employees set up a corporate philanthropy initiative, which for the past several years
has identified and implemented socially-responsible programmes such as sponsoring
support for the Johns Hopkins Children’s Center and the Habitat for Humanity NGO.
Additionally, in 2008, the US “Green Team” successfully promoted internal actions aimed
at environmental protection. Staff at Euler Hermes in the United States driving
fuel-efficient vehicles are now rewarded and the company made efforts to use
environmentally-friendly equipment and products.
Annual Report 2008
31

,000000
,777778
,555556
,333333
,111111
,888889
,666667
,444444
,222222
,000000
Euler Hermes Share
A long-term relationship
with clients
Euler Hermes share price relative to the SBF 120 index
from 1 January 2005 to 31 December 2008
200_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ --- _ _ EULER _ _ _ _ HERMES _ _ _ _
--- SBF 120 (FR)
180_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Dec. 2004 Dec. 2005 Dec. 2006 Dec. 2007 Dec. 2008
32 Annual Report 2008
The same transparency, rigour and ethics underpin
Euler Hermes' commitment to its shareholders. The
capital allocated to the group by its main shareholders,
AGF and Allianz, as well as by institutional investors
and the public, is a mark of their confidence
and a crucial resource for developing the group’s
business. Euler Hermes aims to ensure the long-term
profitability of its capital by targeting a return on
equity of at least 15% throughout the cycle. Similarly,
acquisition projects financed with equity must generate
a minimum return of 15%.
The Group Management Board and Supervisory
Board, and the various associated committees (audit
committee and remuneration and appointments
committee) ensure that this long-term profitability is
an integral part of group management’s targets.
Euler Hermes’ dividend policy is based on a minimum
payout ratio of 50% of net income, thus ensuring an
average yield of 4.06% over the past four years.
Share price performance
The share’s performance was strongly affected in 2008
by external factors as well as by factors specific to the
credit insurance activity.
2008 was characterised by a general distrust of the financial
sector. The solvency problems faced by some
players in the sector added to investors’ anxiety.
Euler Hermes was faced with a strong economic slowdown
in 2008 in all its main markets. The first regions to
be affected were the United States and Southern Europe,
reflected in a sharp rise in claims in the first quarter.
This deterioration spread to the United Kingdom in
the second quarter and then to Northern Europe in the
second half of 2008.
These difficult economic conditions have weighed on
the group’s profitability, with a significant fall in earnings
over all four quarters of 2008. This naturally has a strong
impact on the share price, particularly as growth forecasts
were revised downwards repeatedly, pushing
240 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
220_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
160_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
140_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
120_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
100_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
80_
60_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
40_
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ack to 2009 any possibility of economic recovery.
Euler Hermes’ share price therefore dropped from
€84.77 at 31 December 2007 to €35.07 at 31 December
2008. With the support of its majority shareholder
AGF, an Allianz company, and of its minority shareholders,
Euler Hermes has taken all the necessary
measures, in terms of both commercial strategy
and risk policies, to ensure the group’s long-term
profitability.
Shareholder structure
The number of Euler Hermes shares held by AGF
remained stable in 2008 at 30,744,048 corresponding
to 68.19% of the capital and 70.61% of the
voting rights at 31 December 2008. The public own
28.39% of the shares and 29.39% of the voting rights.
Euler Hermes holds 3.42% of the capital in treasury
stock.
Shareholder structure
At 31 December 2008
Public
28.39% 68.19%
Euler Hermes
3.42%
(treasury shares)
Allianz
AGF
100%
Euler Hermes share price performance
During 2007 and 2008 (Euronext TM Paris – Compartment A) ISIN code: FR0004254035
Total trading volume Share price
Month Number Capital High Low
of shares (in €) (in €) (in €)
January 2008 1,469,200 103,549,216 86.90 60.00
February 1,999,300 135,472,568 75.39 65.47
March 1,213,300 82,407,336 70.80 63.00
April 1,501,500 111,336,225 74.96 68.00
May 3,645,200 221,227,188 78.14 57.16
June 2,380,400 112,473,900 60.74 44.75
July 2,783,900 137,858,728 52.50 42.11
August 1,436,600 78,596,386 54.75 47.13
September 1,991,000 98,415,130 56.35 45.17
October 1,146,800 44,037,120 49.43 32.05
November 654,100 23,227,091 40.09 33.48
December 640,800 22,472,856 37.00 30.75
January 2007 1,062,344 120,716,911 121.90 110.00
February 1,121,139 113,379,088 119.40 104.41
March 1,408,517 112,637,041 108.51 100.30
April 800,798 120,241,512 114.35 106.01
May 1,210,648 114,221,102 117.00 107.08
June 1,133,502 111,710,040 111.99 103.89
July 1,442,736 115,289,502 113.80 103.89
August 1,929,509 109,570,054 110.00 98.00
September 1,453,775 99,064,534 103.61 90.12
October 1,458,092 98,029,705 99.47 89.30
November 1,562,703 91,563,961 93.29 78.95
December 998,919 89,530,740 86.00 80.05
Shareholder structure of Euler Hermes
At 31 December 2008
Shareholder Number % of Number %
of shares capital of voting of voting
rights rights
AGF IART 4 0.00% 4 0.00%
AGF Vie 3,879,818 8.61% 3,879,818 8.91%
AGF SA 5,442,444 12.07% 5,442 444 12.50%
AGF Holding 21,421,782 47.52% 21,421,782 49.20%
TOTAL AGF 30,744,048 68.19% 30,744,048 70.61%
Euler Hermes
(treasury shares)
1,540,644 3.42% 0 0.00%
Public 12,797,538 28.39% 12,797,538 29.39%
TOTAL 45,082,230 100.00% 43,541,586 100.00%
Annual Report 2008
33

Financial Statements - a Summary
Consolidated
balance sheet
At 31 December 2008
Assets
(€’000)
2008 2007
IFRS IFRS
Goodwill 102,678 115,577
Other intangible assets 83,235 58,278
Investments 2,759,422 3,101,290
Reinsurers’ share of technical reserves 417,978 365,455
Other assets 1,079,875 868,843
Cash 613,907 378,103
Total assets 5,057,095 4,887,546
Shareholders’ equity and liabilities
(€’000)
2008 2007
IFRS IFRS
Shareholders’ equity, group share 1,834,957 2,058,741
Minority interests 20,328 19,179
Total shareholders’ equity 1,855,285 2,077,920
Provisions for risks and charges 141,648 127,174
Gross non-life technical reserves 1,853,698 1,426,141
Borrowings 297,746 295,746
Deferred tax liabilities 354,367 365,948
Other liabilities 554,351 594,617
Total shareholders’ equity and liabilities 5,057,095 4,887,546
The consolidated financial statements, including the balance sheet, income statement and the notes
thereto, are shown in full in the reference document.
34 Annual Report 2008

Consolidated income
statement
At 31 December 2008
(in €’000)
2008 2007
IFRS IFRS
Earned premiums and fees 1,773,959 1,726,703
Premium-related revenues 392,492 372,745
Net investment income 132,940 185,159
Total income from ordinary activities 2,299,391 2,284,607
Insurance services expenses -1,307,430 -754,063
Management expenses -812,097 -821,743
Net outwards reinsurance expenses -11,364 -131,111
Ordinary operating income 168,500 577,690
Other operating income and expenses - 0
Operating income 168,500 577,690
Financing expenses -16,089 -12,918
Income from companies accounted for by the equity method 7,875 8,277
Corporation tax -72,196 -162,085
Consolidated net income 88,090 410,964
Including:
Net income, group share 83,592 406,958
Minority interests 4,498 4,006
Earnings per share (€) 1.92 9.33
Diluted earnings per share (€) 1.92 9.30
Annual Report 2008
35

Worldwide offices
Holding company: Euler Hermes SA – 1, rue Euler – 75008 Paris – France
Tel.: +33(0)1 40 70 50 50 – Fax: +33(0)1 40 70 50 17 – www.eulerhermes.com
Argentina
Euler Hermes Argentina S.A.
San Martín 550
C1004AAL Buenos Aires
Tel.: +54 11 4320 7177
Australia
Euler Hermes Trade Credit
Underwriting Agents Pty Ltd.
Level 9, Forecourt Building
2 Market Street
Sydney, NSW 2000
Tel.: +61 2 8258 5108
Austria
Prisma Kreditversicherungs-AG
Himmelpfortgasse 29
1010 Vienna
Tel.: + 43 5 01 02-0
Bahrain
See United Arab Emirates
Belgium
Euler Hermes Credit
Insurance Belgium S.A. (NV)
Rue Montoyer, 15
1000 Brussels
Tel.: +32 2 289 3111
Brazil
Euler Hermes Seguros
de Crédito S.A.
Alameda Santos, 2335 - cjs 51/52
Cerqueira César
01419-002
São Paulo
Tel.: +55 11 3065 2260
Canada
Euler Hermes Canada
CIBC Tower
1155 Rene-Levesque West
Blvd., Suite 1702 327
Montreal Quebec H3B
Tel.: +1 514 876 9656
China
Euler Hermes Information
Consulting (Shanghai) Co.,
Ltd. in Shanghai, PRC
Unit F, 8 th Floor, Mirae Asset Tower
166 Lujiazui Ring Road
Pudong
Shanghai 200120
Tel.: +81 21 5012 2220
Colombia
Euler Hermes Colombia
Carrera 13A No. 29-24
Torre Colseguros
Piso 8
ala Sur Bogota
Tel.: +57 1 560 0600
Czech Republic
Euler Hermes Čescob,
úvěrová pojišťovna, a.s.
Molákova 576/11
186 00 Prague 8
Tel.: +420 266 109 511
Denmark
Euler Hermes Kreditforsikring
Norden AB
Amerika Plads 19
2100 Copenhagen E
Tel.: +45 88 33 3388
36 Annual Report 2008
Estonia
Euler Hermes
Kreditversicherungs-AG
Eesti Filiaal
Prita tee 20, T-building
10127 Tallinn
Tel.: +372 602 8100
Finland
Euler Hermes Luottovakuutus
Itälahdenkatu 18 A
00210 Helsinki
Tel.: +358 10 850 8500
France
Euler Hermes SFAC
1, rue Euler
75008 Paris
Tel.: +33 1 4070 5050
Euler Hermes World Agency
8, rue Euler
75008 Paris
Tel.: +33 1 40 70 50 83
Germany
Euler Hermes
Kreditversicherungs-AG
Friedensallee 254
22763 Hamburg
Tel.: +49 40 8834 0
Federal Export Credit
Guarantees
Friedensallee 254
22763 Hamburg
Tel.: +49 40 8834 9192
Greece
Euler Hermes Emporiki SA
109-111 Messogion Ave.
Politia Business Center
Bldg. B
115 26 Athens
Tel.: +30 210 69 00 000
Hong Kong
Euler Hermes Credit
Underwriters (HK) Ltd
Suites 403-11, 4/F
Cityplaza 4
12 Taikoo Wan Road
Island East
Hong Kong
Tel.: +852 2867 0061
Hungary
Euler Hermes
Magyar Hitelbiztosító Zrt.
Kiscelli u. 104
1037 Budapest
Tel.: +36 1 453 9000
India
Euler Hermes Services
India Pvt. Ltd.
4 th Floor, Voltas House
23, J N Heredia Marg
Ballard Estate
Mumbai 400 001
Tel.: +91 22 6623 2525
Indonesia
PT Asuransi Allianz Utama
Indonesia
Summitmas II.Building, 9th floor
Jl. Jenderal Sudirman Kav 61-62
Jakarta 12190
Tel. +62 21 252 2470 ext.6100
Ireland
Euler Hermes Ireland
The Arch
Blackrock Business Park
Carysfort Avenue
Blackrock
Co. Dublin
Tel.: +353 1 200 0400
Israel
ICIC
2, Shenkar street
68010 Tel Aviv
Tel.: + 97 23 796 2444
Italy
Euler Hermes SIAC S.p.A.
Via Raffaello Matarazzo, 19
00139 Rome
Tel.: +39 06 8700 1
Kuwait
See United Arab Emirates
Japan
Euler Hermes
Kreditversicherungs-AG
Japan Branch Office
Kyobashi Nisshoku Bldg. 7F
8-7 Kyobashi, 1-chome
Chuo-Ku
Tokyo 104-0031
Tel.: +81 3 3538 5403
Latvia
Euler Hermes
Kreditversicherungs-AG
Latvijas Filiale
Cesu iela 31/8
LV-1012 Riga
Tel.: +371 67 895 677
Lithuania
Euler Hermes
Kreditversicherungs-AG
Lietuvos Filialas
Konstitucijos ave 7
20th Floor
09308 Vilnius
Tel.: +370 5 211 3366
Malaysia
See Singapore
Mexico
Euler Hermes Seguro
de Crédito S.A.
Blvd. Manuel Avila Camacho
#164, 8° piso
Col. Lomas de Barrilaco
Deleg. Miguel Hidalgo
Mexico DF CP 11010
Tel.: +52 55 5201 7900
Morocco
Euler Hermes Acmar
37, bd Abdelattif Ben
Kaddour
20100 Casablanca
Tel.: +212 5 22 79 03 30
The Netherlands
Euler Hermes
Kredietverzekering NV
NV Interpolis
Kredietverzekeringen
Pettelaarpark 20
5216 PD ’s-Hertogenbosch
Tel.: +31 73 688 9999
Euler Hermes Interborg NV
Atlas Office Center
Hoogoorddreef 5
Postbus 12473
1100 AL Amsterdam Z.O.
Tel.: +31 20 6 96 39 41
New Zealand
Euler Hermes Trade Credit
Limited
Level 1, 152 Fanshawe Street
Auckland 1010
Tel.: +649 354 2990
Norway
Euler Hermes
Kredittforsikring Norden AB
Holbergsgate 21
P.O. Box 6875
St. Olavs Plass
0130 Oslo
Tel.: +4723256000
Oman
See United Arab Emirates
Philippines
See Singapore
Poland
Euler Hermes Towarzystwo
Ubezpieczen S.A.
ul. Domaniewska 50 B
02-672 Warsaw
Tel.: +48 22 363 6363
Portugal
COSEC - Companhia de Seguro
de Créditos, S.A.
Av. da Republica, nº 58
1069-057 Lisbon
Tel.: +351 21 791 3700
Qatar
See United Arab Emirates
Romania
Euler Hermes Servicii
Financiare S.R.L.
Str. Petru Maior Nr.6
Sector 1
011264 Bucharest
Tel. : +40 21 302 0300
Russia
Euler Hermes Credit
Management OOO
Krymskiy Val, 3/2
Moscow, 119049
Tel.: +7 495 649 80 08
Saudi Arabia
See United Arab Emirates
Singapore
Euler Hermes
Kreditversicherungs-AG
Singapore Branch Office
3 Temasek Avenue
# 03-02 Centennial Tower
Singapore 039190
Tel.: +65 6297 8802
Slovakia
Euler Hermes Servis, s.r.o.
Plynárenská 1
82109 Bratislava
Tel.: +421 2 582 80 911
South Korea
Euler Hermes
Credit Underwriters (HK) Ltd.
Korea Liaison Office
Rm 1411, 14/F, Sayong
Platinum Bldg.
156, Cheokseon-dong,
Chongro-ku
Seoul 110-052
Tel.: +82 2 733 8813
Spain
Euler Hermes Crédito,
Sucursal en España de Euler
Hermes SFAC, S.A.
Paseo de la Castellana, 95
Planta 14
Edificio Torre Europa
28046 Madrid
Tel.: +34 91 417 77 67
Sweden
Euler Hermes Kreditförsäkring
Norden AB
Klara Norra Kyrkogata 29
P.O. Box 729
10134 Stockholm
Tel.: +46 8 555 136 00
Switzerland
Euler Hermes
Kreditversicherungs-AG
Euler Hermes Reinsurance
Tödistrasse 65
8002 Zürich
Tel.: +41 44 283 65 65
(Kreditversicherung)
Tel.: +41 44 283 65 85
(Reinsurance)
Taiwan
See Hong Kong
Thailand
Allianz C.P. General Insurance
Co., Ltd.
323 United Center Building
30th Floor
Silom Road
Bangrak, Bangkok 10500
Tel. +66 2638 9000
www.allianzcp.com
Turkey
Euler Hermes
Risk Yönetimi ve Danismanlik
Hizmetleri Limited Sirketi
Iz Plaza Giz, Ayazaga Yolu
No:4 Kat:14 Maslak
34398 Istanbul
Tel.: +90 212 290 7610
United Arab Emirates
Euler Hermes
c/o Alliance Insurance (PSC)
Warba Center 4th Floor
Office 405
PO Box 183957
Dubai
Tel.: +971 4 266 3083
United Kingdom
Euler Hermes UK plc
1 Canada Square
London E14 5DX
Tel.: +44 20 7512 9333
Euler Hermes Guarantee plc
Surety House
Lyons Crescent
Tonbridge
Kent TN9 1EN
Tel.: +4417 327703 11
United States
Euler Hermes ACI
800 Red Brook Boulevard
Owings Mills, MD 21117
Tel.: +1 410 753 0753
Vietnam
See Singapore

Publisher: Euler Hermes Group Communication – Design and production: 8628 – advertising campaign design (cover, back): Harrison & Wolf
Photography: Thierry Ledoux, Xavier Fouquet, Yves Denoyelle, Allianz, Euler Hermes.
This report has been printed on PEFC certified paper made from trees
grown in sustainably managed forests.

Euler Hermes
1, rue Euler – 75008 Paris – France
Tel. : + 33 (0)1 40 70 50 50 – Fax : + 33 (0)1 40 70 50 17
www.eulerhermes.com