Atradius Collections launches the International Debt Collection Handbook in a renewed 2012 edition

 

Amsterdam, 16 April 2012 - Atradius Collections, the global expert in domestic and international debt collections, releases the 6th edition of the International Debt Collection Handbook in a fully reworked edition. With the addition of Russia and Norway this essential tool covers 33 different countries.

 

The new 2012 version has been restructured to provide information-seekers with more detailed information as well as easier navigation to finding crucial information on debt collections in the different countries. It is a key and well-received tool with information on a successful approach in handling foreign debts, especially targeting organisations which lack in-house resources in international collections or credit management.

"In the past year we have again seen levels of insolvencies peaking in many countries. Therefore, focusing on cash flow optimisation is crucial for businesses. Having knowledge of amicable collections as well as the country-specific legal phases surrounding collections is therefore vital for survival in these challenging times," says Rudi De Greve, Global Operations Manager at Atradius Collections, "Only with local expertise can you ensure the right approach. This is where the International Debt Collection Handbook contributes."

The International Debt Collection Handbook was originally created in 2009 and is constantly updated and expanded by collection experts to reflect changes in the markets. Taking a closer view on the country-specific debt collections procedures, it explains the diversity and complexity of country-specific B2B debt collection and gives insight over the different stages of amicable settlement, financial regulations around collections, legal proceedings and insolvency procedures. The handbook is exclusively written and reviewed by experts in country-specific debt collection procedures and legislation. Their expertise is based on years of experience and collecting internationally at Atradius Collections.

 

Download the full International Debt Collection Handbook

 

About Atradius Collections

Atradius Collections, a business unit of Atradius Group, provides efficient, quick and flexible solutions to collect domestic and international trade debts. With a global network of collections specialists, lawyers and insolvency practitioners worldwide, Atradius Collections serves over 15,000 customers handling on average 120,000 cases a year. Over 85 years of worldwide credit management industry experience uniquely position Atradius Collections as a global leader in business-to-business debt collections. Please visit www.atradiuscollections.com for more information.

 

For further information:

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Atradius net profit up 3.9%, to EUR 129.8 million, with a 3.5% increase in revenue

 

Amsterdam, 12 March 2012 - Atradius, a global leader in credit insurance, debt collection and bonding, today reported profit after tax of EUR 129.8 million for its 2011 financial year, on a 3.5% increase in revenue to EUR 1,553.8 million.

 

Financial highlights

• Profit after tax rose 3.9% to EUR 129.8 million from EUR 124.9 million in 2010
• Insurance revenues increased 3.8% to EUR 1,504.6 million from EUR 1,449.7 million in 2010
• Gross combined ratio of 84.9% compared to 74.0% in 2010
• Shareholders' equity grew 9.2% to EUR 1,130.1 million from 1,035.2 million in 2010
• Return on average shareholders' equity of 12.0%.

This result reflects Atradius' continued focus on customer service coupled with the general improvement in the global economy in the first half of the year. This has enabled Atradius customers to expand trade and increase sales, contributing to growth in the Group's credit insurance operation across most regions.

Atradius' Special Products unit, which as part of the Credit Insurance unit offers solutions other than standard whole turnover insurance, saw significant credit insurance revenue growth of 17%, to EUR 34.9 million.

Atradius' bonding service, offered in Italy, France, Spain and the Nordic countries, reported insurance revenue of EUR 84.5 million, with written premium - an indicator of revenue for future years - up by 12.1%.

Isidoro Unda, Atradius' Chairman and CEO, commented: "Despite the worsening economic trend in the second half of the year, notably the financial turmoil in the Eurozone, Atradius' unique quality proposition enabled us to expand cover maintaining profitability while protecting our clients from the trading risks they may have encountered."

 

Claims under control despite growing default risks - operating costs remain low

Expert risk underwriting, which contributed significantly to the 2011 result, enabled Atradius to continue to guide its customers away from credit sales to buyers representing high payment default risks and towards profitable trade.

The Atradius net claims ratio increased to 50.3% in 2011 compared to 44.6% in 2010. This increase is consistent with the growth in premiums (total potential exposure rose by 6.9% in 2011) and the weakening risk environment in the second half of the year. Insurance operating costs were kept on a tight rein (up by just 3.2% - lower than the 3.8% increase in insurance revenue), while the reinsurance result improved to a net expense of EUR 92.6 million in 2011 compared to EUR 244.1 million in 2010.

Atradius' service income, most of which (73%) is derived from its debt collection operations, was 6.1% lower as a result of the modest level of insured claims in 2011. However, this was offset somewhat by a 6.0% increase in revenue from non-insured debt collection.

The Atradius investment result rose 37.1% in 2011 - to EUR 31.1 million from EUR 22.7 million in 2010 - despite persistent low interest rates. This was in line with the company's investment strategy which is focused on capital preservation.

 

Atradius' 'Roadmap to Success'

At the beginning of 2011, Atradius introduced a new organisational model with the aim of driving further customer service improvements and operational efficiencies by delegating more executive powers to its regional teams across the globe. This initiative has empowered local staff who are close to the customer to ensure agents, brokers and customers receive high quality attention from Atradius by allowing products and services to be better aligned to the specific needs of different markets. The positive outcome can be seen in the high customer retention rate that Atradius has achieved throughout the year.

 

New products and alliances support customers' aspirations

While Atradius is widely acknowledged to be a market leader in its services to large multinational corporations, its remit is to support businesses of all sizes. Thus, in 2011 it introduced 'Modula First': an innovative credit insurance product designed for small and medium-sized enterprises (SMEs). While this product offers the comprehensive coverage typical of other Atradius insurance policies, its pricing and administration is greatly simplified, making it an attractive proposition to both SMEs and Atradius' distribution partners.

With a stated purpose of supporting clients in the regions in which they wish to trade, Atradius has a strong focus on the emerging markets of Asia that continue to grow in economic importance. Through its pan-Asian cooperation partnership with Tokio Marine Asia Pte Ltd, Atradius has further expanded its already extensive ability to offer credit management services throughout Asia.

 

The outlook for 2012 - increased demand for Atradius' services

In announcing Atradius' results, Isidoro Unda concluded: "Despite the persistent economic and political turmoil that characterised 2011, our clients have been able to benefit from their partnership with Atradius and the confidence we give them to trade safely. I am convinced that the value of our services will increase further, with little if any sign of a let-up in economic uncertainties. Customer service has always been our focus. The added impetus that has been given to this through our strengthened organisational model will continue to grow in 2012 and beyond."

Download the Atradius Annual Report 2011

 

About Atradius

The Atradius Group, a company of Grupo Catalana Occidente S.A., protects businesses against trade credit risks throughout the world with credit insurance, bonding, and collections services offered in 45 countries. Its products and services are designed to help reduce customers' exposure to buyers who are unable to pay for the products and services that they buy. With total revenue of EUR 1,554 million and a market share of approximately 31% of the global trade credit insurance market, Atradius' products contribute to the growth of companies throughout the world by protecting them from the payment risks associated with selling products and services on credit. With 160 offices, Atradius has access to credit information on more than 100 million companies worldwide and makes around twenty thousand trade credit limit decisions daily.

 

For further information:

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Atradius recommends 10 key principles for exporting to Turkey

 

• Credit insurer presents checklist for successful trade with Turkish customers

• Turkey grew faster than China in the first six months of 2011

 

Amsterdam, 7 February 2012 - In the first six months of 2011 the Turkish economy grew faster than that of China. However, along with the opportunities evident in trading with Turkey there are also risks that exporters need to take into consideration. International credit insurer Atradius has published a report highlighting 10 important principles that could improve a businesses chances of enjoying successful trade with Turkish companies.

"Turkey still suffers from a certain degree of currency instability and a rather high inflation rate. Additionally, there are signs that the market could overheat. These factors can affect the ability of Turkish customers to meet their payment obligations", says Andreas Tesch, Atradius Chief Market Officer. "Firmly intent on European integration, both commercially and legally, trade with Turkey does not differ substantially from supply relations to other export markets, but one should be aware of some differences."

 

Compete fairly

Irrespective of the governing law chosen by the parties, any supply agreement relating to supplies to Turkey is subject to mandatory Turkish competition rules. For example, supply agreements that are governed by foreign law and contain clauses on limitation of liability should be carefully assessed, as they may not be enforceable in Turkey - especially where a customer or third party has a significantly weaker bargaining position than the supplier.

 

Protect your intellectual property

Under Turkish intellectual property laws, the Turkish customs authorities may suspend customs clearance procedures at the request of any applicant if there is evidence of a breach of intellectual property rights. Only after 10 days, when the customs authorities have not been notified of the institution of legal proceedings or interim measures, the suspension of customs clearance will be lifted and the goods permitted to be cleared under the normal procedure.

 

Take advantage of free trade zones

There are a number of free trade zones in Turkey where many provisions relating to foreign trade do not apply provided that the goods are ultimately intended for a customer within that area. A number of previously existing tax advantages for customers in free trade zones were abolished at the end of 2008. However, there is still a range of legal advantages to Turkish partners. Suppliers should bear these legal aspects in mind when negotiating supply agreements to ensure that they receive a 'fair share' of the economic advantages available in Turkish free trade zones.

 

Understanding who you deal with before delivery

In any sales relationship it is important to verify the corporate authority of the trading partner before the first delivery takes place. However, the corporate authority of a Turkish legal entity must be established under Turkish law. To this end, the required documentation ranges from certified articles of association and certificates of activity issued by the relevant trade registry to several corporate approvals. If the exposure under the supply contract will amount to a significant sum, it may even be advisable to request a notarized board resolution approving the execution of the relevant supply contract or a capacity opinion issued by a reputable Turkish law firm.

 

However, even the successfully verified corporate authority is no guarantee that the buyer will be able to meet its payment obligations after having received the goods. "To protect against payment defaults, sufficient security should be agreed to with Turkish customers in advance", concluded Tesch. "Additional protection can be obtained through trade credit insurance that enables the exporter to focus greater emphasis on maximising the value of growth opportunities in Turkey."

 

Download the complete checklist

 

About Atradius

The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 60 million companies worldwide and makes more than 20,000 trade credit limit decisions daily. Its products help to protect companies throughout the world from payment default risks associated with selling products and services on credit.

 

For further information:

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Atradius believes Eurozone breakup unlikely

 

Amsterdam, 18 January 2012 - International credit insurer Atradius N.V. said in a recent economic report, 'Sticking Together - The Future of the Eurozone', that the consequences of a break-up of the Eurozone would be highly damaging for a country that leaves the euro as well for those that remain within the currency union. A breakup is therefore perceived to be highly unlikely. The costs of a breakup would include an exaggerated decline in GDP, currency devaluations, and inflation in any country that left the Euro. Due to the extensive economic and financial integration within the Eurozone, the impact on countries that remain in the currency union would be severe as well.

Imperative to the success of any plan to rebuild the strength of the Euro and the EMU is the effective address of the fundamental imbalances within the union. High debt levels, trade imbalances and the large differences in productivity growth need to be resolved. Various tools are being employed by the European leaders to address these issues, but the process will be gradual and painful, particularly for periphery member states that will be subject to austerity and reform measures.

Though the road ahead will have ample obstacles the financial implications of a Eurozone breakup would be worse. Atradius believes that the severe consequences of such an outcome provide significant incentive to support the 'sticking together' of the Eurozone.

John Lorié, Chief Economist of Atradius N.V. commented, "We believe that politicians will bring the crisis sufficiently under control in incremental, perhaps grudging, steps. Peripheral countries will put up with austerity and reform. The European Central Bank (ECB) will continue to add its weight by providing necessary  liquidity to the banking system. Consequently, tensions in the interbank market are expected to slowly recede and financial market conditions to stabilise. But a recession in the Eurozone, albeit mild, seems inevitable in 2012."

Read more about the 'Sticking Together - the Future of the Eurozone' report

 

About Atradius

The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 60 million companies worldwide and makes more than 20,000 trade credit limit decisions daily. Its products help to protect companies throughout the world from payment default risks associated with selling products and services on credit.

 

For further information:

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it