The Hungarian branch of Atradius Credit Insurance insured supplier risks worth around HUF 400 billion (€1.48 billion) in 2009, with revenue from premiums totalling close to HUF 1.5 billion, branch manager Balázs Vanek said in Budapest on Wednesday.
The branch sustained losses in the past three years, but will work its losses off within two years, Vanek added.
The insurer takes over customer payment default risks from suppliers. The insurance premium is 0.5% of the amount of the claim. Due to the crisis, the client's self-finance contribution increased to 25%, though has now fallen back to 15%-20%.
The branch has 15,000 partner companies.
After the compensation has been paid, the partner's receivable is assigned to the insurer. Vanek said the ratio of successful collections is 50%-70%.
Atradius has been providing risk-management services to companies for more than 80 years, and now operates more than 90 offices in 40 countries. The Spanish Gropo Cyc owns 64.2% of the company, with the remaining shares held by Swiss Re, Deutsche Bank and Sal. Oppenheim. Atradius holds a 24% share of the global credit-insurance market.
Revenue from credit insurance premiums totaled €1.46 billion last year, down 10% from 2008. Losses declined to €113 million in 2009 from €193 million in 2008. (MTI-Econews)