Shaping tomorrow together
Annual Report Summary 2019
Atradius N.V.

This is Atradius
Atradius’ core principles are timeless. We arecommitted to providing leading credit insurance
and credit management products tailored to theindividual needs of our customers.

Shaping tomorrow together
Total Revenue

In EUR million

2019

2,012

2018

1,898

2017

1,837

2016

1,761

2015

The human touch is essential – building relationships
with a deep understanding of each customer’sbusiness and working together towards mutual
growth and prosperity.
As global business evolves in new and more digital
directions, we too need to transform and provide
innovative and efficient ways to bring our value
proposition to the market.
‘Shaping Tomorrow Together’ has been an important
call-to-action throughout Atradius in 2019,
determining the way we interact with each other,
our customers and partners. That’s why we focus on
the things that matter most to those customers andpartners, taking the time to listen to their views andinvesting in what will make a positive difference.

1,718

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

Net Investment Result

2,100

In EUR million

2019

26

2018

22

2017

25

2016

23

2015

36
0

5

10

15

20

25

30

35

40

Claims Ratio
2019

42.8%

2018

43.7%

2017

41.7%

2016

41.6%

2015

43.5%
20%

25%

30%

35%

40%

45%

50%

Our performance at a glance
Expense Ratio

Strong profit and growth across the Group• T otal revenue surpassed the EUR 2 billion
milestone.
• T he result for the year grew to EUR 227.7 million,
a 12.4% increase from 2018.
• I nsurance premium revenue increased 6.7% (6.1%
at constant foreign exchange rates) with favourable
portfolio development in most countries.
• A tradius achieved a claims ratio of 42.8%,
maintaining balanced risk acceptance while
continuing to provide comprehensive coverage to
our customers.
• T he expense ratio for the year was 35.9%, following
substantial investment in innovation andtechnological development.

2019

35.9%

2018

35.5%

2017

35.7%

2016

36.4%

2015

37.1%
35%

36%

37%

Result For The YearIn EUR million

2019

228

2018

203

2017

186

2016

212

2015

178
0

50

100

150

200

Equity
2019
1,821
1,753

2016

1,626

2015

1,500
0

500

1,000

1,500

2,000

The human touch
is essential• O ur shareholders’ equity and subordinated debt
position was further strengthened by 8.7%.

2

made impressive progress in 2019, particularly inthe areas of Big Data and AI, connectivity, platforms,
ecosystems and blockchain.

That’s why ‘Shaping Tomorrow Together’ has been an
important theme for us throughout 2019, and a callto-action for every employee to be actively involvedin our digital transformation. As a global businessactive across many locations and time zones,
our extensive investment in transformation andinnovation projects and partnerships is vital to theway we serve our customers. We want all our people
to be part of that journey: to understand the trends
that shape the future of our business. And we arehelping them adapt to new systems and to learn
about new technologies.

We maintain strong ratings from AM Best(A, excellent) and Moody’s (A2), both with a stable
outlook. These ratings show us to be a financiallystrong, geographically well-diversified company witha solid growth and risk profile. Indeed, our financial
strength rating has never been better, supported byour robust capitalisation, solid revenue growth andconsistently healthy profitability.
Our ambition, as ever, is to lead the way in standardsof excellence within our industry while continuing topursue growth in new markets. In 2020 our prudent
investment portfolio will remain in place, as will our
disciplined underwriting, excellent solvency position
and reinsurance programme, all of which help tomitigate potentially adverse eventualities.

2,009

2018

• A
 positive EUR 25.9m contribution to the result
for the year from our prudent investment portfolio
despite constrained interest rates.

250

In EUR million

2017• The gross combined ratio was 78.7%.

38%

The Atradius culture is paramount to the successof our business, providing the foundation for thequality of service we deliver to our customers.

2,500

At the same time, the transformation of Atradius’
core systems continue to make good progress. This
year, for instance, we celebrated the early successesof our new Credit Insurance systems. As with all ourtransformation projects, the key aim is to enhance
our value proposition, streamline our processes anddeliver the best digital experience for our employees,
customers and prospects. To this end we have also

With this combination of our values, commitment
to customers, human capital and investment intechnological systems, 2020 is set to be another yearof solid performance.

3

The global economic
environment in 2019

Upholding our values whileembracing change

Global growth decreased in 2019, with global
output expanding at a rate of just 2.6%, compared
to 3.2% in 2018.

For the first time in a decade, the number of company
insolvencies around the world rose. While this is
to be expected in a maturing business cycle, theglobal industrial downturn and US-China trade war
compounded the challenges that businesses face.
North America experienced the strongest rate ofinsolvency growth.

‘Shaping Tomorrow Together’ is a theme that sits wellrelationships with our suppliers, associates and thewith Atradius’ commitment to playing our part incommunities in which we operate.

While we continue to make a valuable contribution to

In the Eurozone, overall insolvencies decreased but the
picture was mixed. Germany saw a fall in insolvencies
despite weak manufacturing output, particularly inthe car industry. Southern Europe had another yearof strong economic performance, with insolvencies
declining in most countries, including Portugal andGreece. Insolvencies also fell in Italy, although inthe context of low economic growth and politicaluncertainty. There was however a rise in insolvencies
in several countries including Spain, where theincrease came despite another year of robust economic
growth. In Northern Europe, lower external demanddampened growth in the Netherlands and Belgium,causing insolvencies to rise.

Global Compact (UNGC) on human rights, labour

successful world trade and our customers’ prosperity,

conditions, the environment and anti-corruption.

Major economies saw a decline in growth. The
US experienced weaker business confidence, theunwinding of fiscal stimulus and an escalating
trade war with China, while weak exports kept
a lid on growth in the Eurozone. In addition,
production lines in the Eurozone car industry were
adjusting to comply with new emission standards.
Domestic demand remained fairly resilient as
employment expanded and low inflation provided
a boost to real incomes. The unemployment rate
looks to have bottomed out at around 7.4%.
Over the course of the year both the Federal
Reserve (Fed) and the European Central Bank
(ECB) took steps towards monetary loosening. As aresult, credit growth in the Eurozone continued torecover, with credit conditions broadly unchanged
over the year.

upholding human rights and safeguarding the future

As an essential aspect of our responsibility in helpingof the planet. As a responsible global company, weto secure growth opportunities for future generations

aim to manage the ethical, environmental and social

and to respect the planet we inhabit, we actively

risks of the way we do business.

support the ten principles of the United Nations

we are well aware of the importance of incorporating

Each year we report on the progress we are making.

environmental aspects in our value chain and to

This report is available on our Group website

acknowledge our responsibility on human rights

atradius.com.

across our operations. The same applies to our

The number of company insolvencies aroundthe world rose
Emerging market economies also experienced
weakening growth, with those in Asia feeling theimpact of China’s trade tensions with the US,
and a global decline in industrial output
affecting emerging markets in Eastern Europe
and Latin America.
In China, GDP growth slowed to 6.2%, with fiscal
stimuli initiated in the second half of 2018 only
partially compensating for weakening domestic
demand and export growth. In Latin America,
growth almost stalled, with Argentina still inrecession and Brazil seeing softening household
consumption, shrinking investments and the after
effects of a mining disaster. In Mexico, politicaluncertainty and tough trade relations with the
US led to slowing private consumption andweakening business sentiment, both of whichhampered growth.

US insolvencies rose due to the strong dollar andunwinding of pro-cyclical fiscal policy, compounded bytrade policy uncertainty. The UK too saw a sharp risein insolvencies as labour costs increased and business
confidence was rocked by Brexit-related uncertainty.
Several advanced markets in Asia-Pacific, notably
South Korea, Hong Kong and Singapore, felt thenegative impact from the US-China trade war.
Among major emerging economies, insolvencies
rose in Turkey and Brazil. Turkey’s economy cameto a near standstill with a loss of confidence inthe lira accompanied by a sharp contraction in
fixed investments. Brazil’s economic recovery washampered by low domestic demand and the impactof a mining disaster. While the picture for Russia wasmore benign, it too suffered from weakening consumer
demand, the depreciation of the rouble and a lowerthan-expected oil price.

45Serving you aroundthe world
EuropeAustria

ViennaBelgium

Namur, Antwerp

Bulgaria
Czech Republic

Sofia
PragueDenmark

Copenhagen, Århus

FinlandHelsinkiFranceParis , Bordeaux , Compiègne, Lille, Lyon, Marseille,
Strasbourg

Germany

Cologne , Berlin , Bielefeld, Bremen, Dortmund,Düsseldorf, Frankfurt, Freiburg, Hamburg, Hanover,
Kassel, Munich, Nuremberg, Stuttgart

GreeceAthensHungary

Budapest

Iceland

Reykjavik (1)IrelandDublinItaly

Rome, Milan

Luxembourg

Luxembourg

Netherlands

Amsterdam, Ommen

NorwayOslo

PolandWarsaw, Krakow, Poznan, Jelena Gora

Portugal

Lisbon, PortoRomania

Bucharest

RussiaMoscow

Slovakia

Bratislava

Spain

Madrid, Alcalá de Henares, Alicante, Barcelona, Bilbao, A
Coruña, Castellón, Girona, Las Palmas de Gran Canaria,
Málaga, Murcia, Oviedo, Pamplona, Seville, Tarragona,
Terrassa, Valencia, Valladolid, Zaragoza

SwedenStockholm

Switzerland

ZurichTurkeyIstanbul

United Kingdom

Cardiff, Belfast, Birmingham, London, Manchester

Middle East
IsraelTel Aviv (1)LebanonBeirut (1)Saudi Arabia

Riyadh (1)United ArabEmirates

Dubai (1)

Asia
China

Beijing, Guanzhou,
Nanjing, Shanghai (2)Americas
Argentina

Buenos Aires(1)

Hong Kong

Hong Kong

India

AfricaIndonesia

Mumbai, New Delhi,
Kolkata (2)Jakarta (2)

Japan

Tokyo

Malaysia

Kuala Lumpur (1)Kenya

Nairobi (1)MoroccoCasa Blanca (2)South Africa

Johannesburg (1)Tunisia

Tunis (1)BrazilSão Paulo

CanadaMississauga (Toronto), Pointe Claire (Montreal)

Chile

Santiago de Chile (1)Philippines

Manila (1)Collections

MexicoMexico City, Guadalajara, Monterrey

Singapore

Singapore

Information

Peru

Lima

South Korea

Seoul (2)USA altimore (Maryland), Indianapolis (Indiana),
B
Chicago (Illinois), Los Angeles (California), Morristown(New Jersey), New York (New York), Dallas (Texas)

TaiwanTaipei (1)Oceania

Thailand

Bangkok (2)AustraliaSydney, Adelaide, Brisbane, Melbourne, Perth

DSB

VietnamHanoi (1)New Zealand

AucklandReinsurance(1)

6

Credit Insurance(1)

 ssociated company, minorityAinterest or co-operationagreement with local partner(2)

 ervice establishment andS
co-operation agreement withlocal partner

Bonding
Instalment Credit

7

Products and services

Outlook for 2020

Tailor-made solutions for companies of all sizes Instalment Credit Protection: Risk protection
Atradius Credit Insurance protects against losses arising for instalment-based credit agreementsfrom non-payment for goods and services sold on credit.
Our credit insurance products are based on the ‘Modula’
concept: a catalogue of policy conditions aligned across
our worldwide operation that can combine flexibly tomeet each customer’s business needs.
For multinationals we offer a sophisticated credit
management solution: our Global policy. As amarket leader in this segment we have an excellent
understanding of the requirements of multinationals,
whether their credit management is centralised ordevolved locally. For medium-size and large companies
we offer cover solutions that can be adapted to fit allkinds of businesses, in any sector, doing businessdomestically or internationally. For SMEs our products,
again built on the ‘Modula’ principle, are simple tounderstand and administer.

Atradius Instalment Credit Protection (ICP) covers
short- and medium-term risks involved in instalmentbased credit agreements with private individuals
and businesses. It serves financial and corporate
policyholders in Belgium and Luxembourg. Covering
mainly consumer credit, leasing and renting risks, ourproduct range extends also to residential real estate
insurance products for co-ownerships and for rental
guarantees, private car leasing arrangements and theconstruction sector, to protect against payment default
by homeowners.

Debt Collection: Professional and reliable
collections backed by a global network

Atradius’ on-line tool ‘Atrium’ eases policy
administration for customers, while the additional credit
management service ‘Insights’ lets customers analyse
the risk in their portfolio.
While credit insurance normally covers a customer’s
whole turnover, we offer a range of structured credit
risk solutions designed for specific large and complex
transactions. These address a range of circumstances,from enhanced credit protection for single contracts or
buyers to pre-export finance, and can be combined tomeet multiple needs.

With a presence in 33 countries, Atradius Collections
helps businesses - both insured and uninsured collect domestic and international trade debts, while
maintaining sound business relationships with theirclients. Our strong reputation as a business-to-businessspecialist is built on our expertise, the strength of the
Atradius brand, and our fully integrated international
network of collectors, lawyers and insolvency
practitioners, as well as online capabilities.

Dutch State Business: The export credit
agency of the Netherlands
Atradius Dutch State Business (ADSB) is the export
credit agency of the Netherlands, working on behalf of
the Dutch state. To minimise the risks of non-payment
not covered by the private market, and to enable thefinancing of Dutch export, ADSB offers a wide range of
insurance and guarantee products to Dutch exportersof capital goods, internationally operating construction
companies, and their financiers or investors.

To accommodate the rise of digital trading, our Single
Transaction Credit Insurance product can be bought online at the same time that trading decisions arebeing taken.

Reinsurance: Specialised solutions for credit
and bonding
Atradius Reinsurance DAC (Atradius Re) is the leadingmonoline credit and bonding reinsurer, offering
reinsurance solutions for credit insurance and bonding
business of primary insurers around the globe.
Currently Atradius Re supports 126 clients in 61 countries.

Credit Information Services: Businessintelligence to support credit
management decisions
Atradius offers information services through Iberinformin Spain and Portugal, Graydon in the Netherlands,
Belgium and UK and Informes in Mexico. These provide
business intelligence solutions to help our customers
manage risk and make smart decisions in their credit
management, risk and compliance management
and marketing.

Bonding: Leading bond supplier in Europe
Present in 12 European countries, Atradius Bonding,an acknowledged leading bond supplier, serves anextensive portfolio of businesses in a wide range ofindustries, helping them secure their performance andsupport their business development.

8

In 2020 growth is likely to decelerate
further to 2.3%.

rise. However, easing monetary policy should provide
some support for economic growth and corporate
activity.

Continuing uncertainty concerning trade policies will
be compounded by the impact of the rapid spreadof the coronavirus, which is already affecting global
supply chains. Across emerging markets, growth isforecast to remain essentially the same as in 2019.
Latin America will continue to underperform but
growth is projected to strengthen, with expectationsof recovery in Brazil and Mexico. Argentina’s
economy is likely to contract again, but by less thanin 2019. Eastern Europe is forecast to extend its 2019
growth rate. A projected pick-up of growth in Russia
and Turkey will lift overall growth in the region,
although this will be undermined by lower growthin several other Eastern European countries. Asia
will show the highest growth rates, although thecoronavirus is exacerbating the underlying slowdown in Asia.

In the UK insolvencies are expected to rise again,
although the risk of a no-deal Brexit has reduced
now that the UK and the EU have reached awithdrawal agreement. However, uncertainty will
persist as the two parties begin to negotiate a future
trade agreement, clouding the outlook for growth.
Depending on the final outcome of negotiations, thenumber of UK business failures could be higher than
expected and this would impact other EU countries.

How does the outlook affect Atradius andour customers?
Overall, the picture for 2020 is one of moderating
global growth. Economic conditions are expected toremain challenging in view of trade policy tensions
and the potential impact of the coronavirus on supply
chains, both affecting trade and investment. However,
we expect relatively strong consumer spending tokeep a recession at bay.

Advanced markets are expected to see their growth
rates decline as trade measures and the effects of thecoronavirus detract from economic activity. Eurozone
growth will slow further in 2020 amid a challenging
external environment, while US growth is forecast tomoderate as fiscal policy shifts from expansionary
to broadly neutral. In line with this subdued growth,business failures in advanced markets are likely to

Balancing these factors to manage risk will be ademanding task. But, as always, we will use ourexpertise and the dedication of our people to workwith our customers to ‘shape tomorrow together’ andguide them toward profitable trade.

9Consolidated
financial statements
All amounts in thousands of Euro

Consolidated statement of financial position
AssetsConsolidated income statement
31.12.2019

31.12.2018

2019

2018

Intangible assets

257,701

253,297

Insurance premium revenue

1,759,523

1,648,527

Property, plant and equipment

210,051

132,317

Insurance premium ceded to reinsurers(685,288)(671,988)

Investment property

13,988

9,641

Net premium earned

1,074,235

976,539

Investments in associated companies

63,11063,428Service and other income

252,497249,517

Financial investments

2,589,165

2,328,948

Share of income/ (losses) of associated companies(1,093)

4,652

Reinsurance contracts

611,602597,716

Net income from investments

18,776

17,493

Deferred income tax assets

35,61537,271

Total income after reinsurance

1,344,415

1,248,201(775,244)

Current income tax assets

40,88948,935

Insurance claims and loss adjustment expenses(892,311)

Receivables

239,565

237,071

Insurance claims and loss adjustment expenses recovered from reinsurers

370,095

282,938

Accounts receivable on insurance and reinsurance business

192,782

180,503

Net insurance claims(522,216)(492,306)

Other accounts receivable

46,78356,568Net operating expenses

Other assets

601,443

570,315

Total expenses after reinsurance
Operating result before finance costs(479,103)(469,789)(1,001,319)(962,095)

343,096

286,106

Deferred acquisition costs

76,30071,743

Other assets and accruals

525,143

498,572

Finance income

2,629

5,858

Cash and cash equivalents

404,244446,357

Finance expenses(32,887)(14,599)

Total

5,067,373

4,725,296

EquityCapital and reserves attributable to the owners of the Company

2,008,726

Non-controlling interests
Total

1,821,405

Result for the year before tax

312,838

277,365

Income tax expense(85,130)(74,710)

Result for the year

227,708

202,655

202,638

Attributable to:-33

Owners of the Company

227,708

2,008,726

1,821,438

Non-controlling interests-

17

Total result for the year

227,708

202,655

Liabilities
Subordinated debt

323,982

323,790

Employee benefit liabilities

124,884

100,182

Insurance contracts

1,706,229

1,619,869

2,620

2,679

Deferred income tax liabilities

103,509

101,155

Current income tax liabilities

38,74747,992

Payables178,682

227,008

Accounts payable on insurance and reinsurance business

122,186

152,802

Provisions

Trade and other accounts payable

56,496

74,206

Other liabilities

579,994

480,847-336

3,058,647

2,903,858

Borrowings
Total

Consolidated statement of comprehensive income
Result for the year

5,067,373

4,725,296

2018
202,655

Other comprehensive income:Items that will not be reclassified to the income statement:
Effect of the asset ceiling on defined benefit pension plans

-

3,286

Actuarial gains/(losses) on defined benefit pension plans(21,023)(15,269)

Income tax relating to items that will not be reclassified

4,829

4,909

75,516(47,569)--

11,723(7,201)

Items that may be subsequently reclassified to the income statement:
Net fair value gains/(losses) on available-for-sale financial investments
Share of other comprehensive income of associated companies

Total equity and liabilities

2019
227,708

Exchange gains/(losses) on translating foreign operations and associatedcompanies
Income tax relating to items that may be reclassified(19,682)

11,248Other comprehensive income for the year, net of tax

51,363(50,596)

279,070

152,059

279,070

152,042

Total comprehensive income for the year
Attributable to:
The owners of the Company
Non-controlling interests
Total comprehensive income for the year

10

11

-

17

279,070

152,059This Annual Report Summary 2019 isderived from, and should be read in
conjunction with, the Atradius N.V. Annual
Report 2019. The Annual Report 2019 isavailable at www.atradius.com

Contact us
Atradius.com

Connect with Atradius on social media

atradius@atradius

atradius group

Atradius N.V.
David Ricardostraat 1– 1066 JS Amsterdam
Postbus 8982 – 1006 JD Amsterdam
The Netherlands
Tel.: +31 20 553 9111