Rethinking businessAnnual Report 2023 Atradius N.V.

Contents
Management report
This is Atradius........................................................................................................ 4
Rethinking business......................................................................................................... 4

Fastchangingrisk
landscape3

Our performance at a glance.......................................................................................... 5
Ten years in figures............................................................................................................ 6
A message from the Management Board.................................................................... 8
Business profile.........................................................................................................
Products and services..................................................................................................... 12
Global footprint................................................................................................................. 14
General Atradius Group organisation........................................................................ 16
Corporate governance ..............................................................................................
Report of the Supervisory Board................................................................................ 18

Adaptability:
the balance
between being
proactive andreactive

10

Shareholder structure.................................................................................................... 20
Building trust..................................................................................................................... 23
Company information ......................................................................................... 00
The global economic environment ........................................................................... 33
Empowering customers and continuity of trade ................................................. 39
Our people .......................................................................................................................... 45
Risk and capital – managing and adapting to changes...................................... 49
Environmental, social and governance ................................................................... 53

Creating
opportunities
fromchallenges

17

Financial statements ........................................... 59
Consolidated financial statements 2023 ................................................................ 59
Company financial statements 2023 ..................................................................... 185

Other information .................................................. 193
Statutory appropriation of result ..............................................................................194	Independent auditor’s report .....................................................................................196

Glossary ......................................................................... 203
2

We’rein thistogether32

Fast-changing risklandscapeHow to recognise risks without missing
the action? Advanced drones are entering
the logistics industry, as they can quickly
and accurately identify targeted locations.
Today, it is vital to be alert to the evolutionof any potential risk factors that could affectbusiness performance.

3

Atradius Management report | This is Atradius

Rethinking business
The global economic environment ischanging at an astounding rate.
Prior to the pandemic, crises were sporadic. When they occurred,businesses had time to digest, recalibrate and respond before thenext shock came along. In recent years events, crises and disruptions
are coming more frequently, with barely a moment to draw breath inbetween.
The fallout from COVID, geopolitical shifts, supply chain disruption,
friend-shoring, near-shoring, the rise in trade protectionism, the wars
in Ukraine and Gaza, climate change and energy transition risk, risingdebt and inflation, and disruptive AI. Each and every one has an impact
on the way that trade happens and forces businesses to react in order tosurvive.
In the face of so much change, it is easy to focus on the negative, but
this also creates the opportunity to “rethink business” in response to thechanging risk landscape. To see disruption as an opportunity to learn
and grow. This is not just true for Atradius, but all businesses. This issomething that we are doing, together with our customers.
We are proud to have nearly 100 years of experience in managing
risk and enabling trade. This longevity is evidence of the depth of ourexpertise and our reliability. Our performance in 2023 is proof that evenas change comes thicker and faster, we are able to tread the path between
risk and opportunity. 2023 has been a year where we have grown ourbusiness and demonstrated the value of the products we offer as a means
to navigate the rapidly evolving risk landscape.
Atradius is helping our customers to adapt and thrive by having deep
insight into the emerging trends and risks that are shaping the way trade
happens. We are helping our customers to embrace the changes and seize
the opportunities, so we can grow our businesses together.

4

Atradius Management report | This is Atradius

Our performanceat a glance
Robust growth during the mostchallenging of times•	The result for the year grew to EUR 379.1 million, a 15.2% increase compared
to 2022•	Total revenue reached EUR 2.5 billion, with insurance, service and otherincome increasing by 9.7%.
•	
Atradius gross claims ratio increased to 38.5% compared to 34.4% in 2022
•	The gross operating expense ratio for the year was 32.0%, resulting in a grosscombined ratio of 70.6%•	
A positive contribution of EUR 67.6 million came from our investment portfolio•	Solid Solvency II ratio has remained above 200% (1)•	Total Potential Exposure (TPE) increased by 3.2%•	
A customer retention of 94.9%, demonstrated unwavering customer confidencealong with steady demand for Atradius’ best-in-class service (1)(1)

Subject to finalisation of any audit procedures.

Management Board
David Capdevila, Chair
Andreas Tesch
Christian van Lint
Claus Gramlich-Eicher
Marc Henstridge

The Supervisory Board
Xavier Freixes, Chair
Hugo Serra
Désirée van Gorp
John Hourican
Carlos Halpern
José María Sunyer
Juan Ignacio Guerrero
Joaquín Guallar

Supervisory Board Committees
Audit Committee
Remuneration, Selection and Appointment Committee

5

Atradius Management report | This is Atradius

Ten years in figures
Financial information(in EUR million)

2023

2022

2021

2020

2019

2018

2017

2016 (1)

2015

2014

Insurance premium revenue

2,278.5

2,224.5

1,900.3

1,727.4

1,759.5

1,648.5

1,588.1

1,557.6

1,537.0

1,458.2

Service and other income

237.0

225.7

250.6

252.0

252.5

249.5

249.1

203.1

180.8

169.0

2,515.5

2,450.2

2,151.0

1,979.4

2,012.0

1,898.0

1,837.2

1,760.7

1,717.8

1,627.2

81.6

42.3

35.6

14.3

25.9

22.1

24.7

22.8

36.0

37.8

2,597.1

2,492.5

2,186.5

1,993.7

2,037.9

1,920.2

1,861.9

1,805.6

1,753.8

1,665.0

372.2

332.2

240.2

44.2

227.7

202.7

186.2

211.8

178.2

161.2

2,430.4

2,175.4

2,142.3

1,913.3

2,008.7

1,821.4

1,753.2

1,625.5

1,500.2

1,393.0

Total revenue
Net investment result (2)Total income
Result for the year
Balance sheet information(in EUR million)
EquityTotal assets

6,707.6

6,291.0

5,918.8

5,380.2

5,067.4

4,725.3

4,519.2

4,391.5

4,250.2

4,130.9

Insurance contracts

2,822.7

2,565.6

2,134.4

1,902.7

1,706.2

1,619.9

1,530.3

1,561.2

1,648.8

1,572.2

16.2%

15.4%

11.2%

2.3%

11.9%

11.3%

11.0%

13.6%

12.3%

12.0%

Outstanding ordinary shares(at year-end, in million)

79.1

79.1

79.1

79.1

79.1

79.1

79.1

79.1

79.1

79.1

Dividend paid (in EUR million)

193.2

164.6

91.0

102.9

91.8

83.9

76.7

71.2

64.9

53.8

Shareholders information
Return on equity (3)Technical ratios
Gross claims ratio (4)

39.4%

38.7%

27.8%

58.6%

42.8%

43.7%

41.7%

41.6%

43.5%

40.7%

Gross expense ratio

35.9%

33.8%

37.2%

35.7%

35.9%

35.5%

35.7%

36.4%

37.1%

36.6%

Gross combined ratio

75.2%

72.5%

65.0%

94.3%

78.7%

79.2%

77.4%

78.0%

80.6%

77.3%

Net claims ratio

42.4%

41.3%

37.3%

55.9%

43.3%

44.7%

41.4%

42.0%

42.0%

42.6%

Net expense ratio

32.9%

31.7%

35.9%

36.7%

30.0%

32.0%

34.2%

35.4%

35.9%

35.8%

Full-time equivalents(FTE), at year-end

3,409

3,310

3,497

3,503

3,531

3,545

3,596

3,586

3,161

3,139

Financial strength ratings
A.M. Best (5)A (Excellent), outlook stable

Moody’s

A1, outlook stable(6)	For the purposes of measuring performance, the management report will display amounts applying a similar
financial reporting basis as those applied by the Company in its management report in previous years, which
will differ from the financial statements 2023 that have been subject to the adoption of IFRS 17 and 9 as
further described in Note 2.2 of the financial statements. These differences in presentation are allowed by IFRS
8 Operating Segments as further explained in Note 2.8 of the financial statements.

(1)

	Net income from investments excluding extraordinary impact of associated companies (minus EUR 11.7 million
2017 impairment and EUR 22.2 million 2016 realised gains).

(2)

Return on equity is defined as the result for the year divided by the time weighted average shareholders’ equity.

(3)
(4)

	2019 Gross Claims Expenses and the Gross Claims Ratio shown in the management report exclude a single
large claim of 83.9m which was 100% reinsured and had zero impact on the net insurance result.

(5)	In 2023 A.M. Best reaffirmed the Financial Strength Rating of A (Excellent), outlook stable and the Long-TermIssuer Credit Ratings (Long-Term ICRs) of the Atradius rated entities as “a+”.

	In September 2023, Moody’s upgraded the financial strength rating of the Atradius rated entities from A2 to A1
and changed the outlook from positive to stable.

(6)6Atradius Management report | This is Atradius

A message from theManagement Board

Left to right: Christian van Lint, Andreas Tesch, David Capdevila, Claus Gramlich-Eicher, Marc Henstridge.

In spite of an unsettling and complex
global landscape, our company generated
strong results. The economic activity
across the world proved more resilient
than we expected.
Our Insurance Revenues reached EUR 2.3 billion, with strong customer retention
and increased level of insured business. Overall, Atradius produced a Result afterTax of EUR 379.1 million. With market conditions moving markedly in 2023,
we are proud of our company’s resilience and what our people across Atradius
have achieved both collectively and individually. By many measures, we ended
the year better than we started. Our record results for the 3rd year in a row, only7

Atradius Management report | This is Atradiusconfirm that adhering to our core strategy of helping our customers to adapt andthrive in a continuously challenging economic setting allows us to drive goodorganic growth and at the same time manage our risks properly.
Around the world, 2023 was another year of significant challenges. Fromdevastating natural disasters to the terrible wars in Ukraine and Gaza which are
undoubtedly the most important on the list. Our deepest sympathy is with all thepeople affected by the extreme human tragedy caused by the destruction andthe wars. These events have made us deeply aware of the growing geopoliticaluncertainty. This uncertainty is exacerbated further by the economic stressof higher food and energy prices, continued disruption in supply chains, andsticky high inflation coupled with elevated interest rates. Our response to these
economic challenges has been effective and timely. We have stopped all ourcommercial activities in Russia indefinitely and de-risked considerably ourportfolio in areas affected by the ongoing wars. We stabilised the level of our
exposure, while at the same time, maintaining its high quality across the board.
In Credit Insurance, we have prudently aligned our underwriting with the returnof insolvencies to pre-pandemic levels, and we remain focused on risk dynamics
based on deep market knowledge and understanding.
We have all been experiencing the severe consequences of global crises in the
recent years. They happen more frequently and their impact is far reaching,affecting our everyday lives in many different ways. Longer term challenges suchas climate change and energy transition risks are adding to the complexity of ourworld. In the background, relentless breakthroughs in technology such as cuttingedge computer chips, cloud services and Artificial Intelligence, are impacting
almost all industries, driving innovation, new business models and new ways ofworking. All these together impose a fast-paced change of the global economic
environment in a rate not seen before.
Indeed, we can only be certain of faster changes in the coming years. We see thisas a time to ‘rethink business’. We move forward not driven by the soft, hard or
negative market conditions at play, but instead by the possibilities, now and in the
future, created by this accelerated rate of change. We see in constant disruption
an opportunity to grow and learn as a response to the changing global landscape.
What rethinking business means in practice for us, is an uncompromising focus
on progressing our internal agenda and company initiatives. These are designed
to allow us to unlock the greatest possible value for our customers and our people,
embrace the changes and seize the opportunities. Our unique Atradius culture is
the great enabler that brings it all together for our company.
Our large, multi-year programmes together with separate innovation initiatives
cover key areas of our business in commercial and risk. Our agenda continues tobe dominated by the digital transformation programmes for our Credit Insurance
and Surety units. 2023 was a year of progress as we reached a key milestone
after a major release, which saw us shifting our core commercial credit insurance
operations across many of our offices to a single, state-of the art, in-house built
secure system. This new working environment offers unprecedented levels offunctionality and connectivity between our online systems that will allow us tomaximise the value of our products and services to all our customers, brokers andmarket partners.
Another area of progress was full compliance with the new IFRS 17 accounting
standard for insurance contracts which became effective for annual reporting
periods after 1 January 2023. New technology was needed in delivering the main
components of the programme, which now serves as the foundation to further
improve our data quality, management and governance.

8

Atradius Management report | This is AtradiusWith regards to sustainability, we carried out a Materiality Assessment which
identified and prioritised the sustainability aspects based on the impact they may
have on people, the environment and society in general, as well as the businessrisks and the opportunities they may generate. The outcome was integrated into
the new Sustainability Master Plan 2024-2026 which is structured into 10 strategiclines related to 4 pillars: Environmental Responsibility, Social Commitment, Good
Governance and Sustainable Business. Additionally, this year Atradius approved its
sustainability policy, the approach of which is in line with the public policy of ourshareholders, GCO.
In 2023, we demonstrated Atradius’ commitment to a global growth strategy by
the opening of our new office in Slovenia. whereas the international expansion of
Atradius Collections over the past year continued with the acquisition of the Pro
Kolekt Group, a market leader in Balkans region. These two growth initiatives
highlight our mission to support our customers wherever they trade in the world by
delivering local expertise in receivables management.
We mentioned our view of the key role we believe that technological advancements
play in the rate of change in the global environment. In this context, we consider
technology to be a key enabler of our growth ambitions. Atradius has been using
innovative tools, such as machine learning, already for the past ten years, whichhave significantly enhanced our analytical capabilities, particularly in risk.
We continue to monitor and test new developments in emerging technologies,
distributed tools and AI that we think have a strong business use case in key areas.
For 2024, we are on track with our strategic and financial targets. We have alreadyseen signs of a slowing growth trend during the second half of 2023, and we predict
global economic activity to slow to 1.9% this year, the weakest growth rate since
the global financial crisis - excluding the COVID driven downturn in 2020. We
expect weak GDP figures in several major economies such as the US and China.
We are also anticipating increased insolvency rates in most markets, the impactof which remains unclear within the short-term. Although the global economy isproving to be more resilient than expected, there are still considerable economic
and geopolitical risks that could potentially escalate and overturn any attemptedpredictions: a regional escalation of the war in Gaza, persistently high inflation in
major economies, or a possible further slowdown of growth in China. Uncertainty
will continue to be a defining feature of the global economy in 2024.  
Throughout these challenging past few years, we never stopped doing all thethings that define that unique trust that our customers and market partners put
in Atradius. We are growing our businesses together and we constantly seek tobecome better in what we do for our clients. Rethinking business will become ourlongstanding commitment for 2024 and the next few years. Together with ourmarket partners, we will focus on finding and developing new opportunities as theytake shape in a fast changing world.
Our people and our culture are at the heart of this process as they underpin the
success of our company in everything we do. We continue to invest in the futureof Atradius and our people, while allowing for moderate increases in our staff
headcount. We see plenty of challenges ahead, but we are moving forward withenergy, excitement and determination to deliver for our clients, our people andour communities.

The Atradius Management Board
David Capdevila, Chair
Andreas Tesch
Christian van Lint
Claus Gramlich-Eicher
Marc Henstridge

9Adaptability: thebalance between being
proactive and reactive
How can you harness new technologies
to upgrade business models? Striking abalance between being forward-looking
and responsive when addressing
evolving technological trends is achallenging task. Above all, it is about
being actively involved.

10

Atradius Management Report  |  Business profile Atradius N.V.

Products and services
Credit Insurance
A modular approach to ensure every policy is tailoredto the needs of the customer
Credit insurance provides protection against losses arising from non-payment
for goods and services sold on credit (whether this results from insolvency,
default, or political risk).
Our credit insurance products are based on a concept called ‘Modula’. Thisis a worldwide-aligned catalogue of modules (policy conditions), which canbe combined in a flexible way for each customer to meet the requirementsof their business. This means that every policy is tailored to the needs of thecustomer. These products are designed to provide protection for a customer’s
whole turnover.
We have solutions for all types of business: multinationals, medium-size andlarge companies and SMEs.
For multinationals, we offer a sophisticated and tailor-made credit
management solution in the form of our Global policy. As a longstanding
market leader and pioneer in this segment, Atradius Global has developed
an excellent understanding of the needs, structure and geographies ofmultinationals. The structure of our modular cover and service footprint is
uniquely designed to mirror the requirements of our customers, whether
they have centralised or local credit management. This customer-focused
approach is supported by dedicated Global Account Teams and Key AccountUnderwriters. Located around the world they allow us to provide extensive
cross-border customer service, consistent high-quality decision making andaccurately anticipate the needs and requirements of our Global customers.
For medium-size and large local companies we offer policies tailored to thecustomer’s needs using the Modula concept. In this way, cover can be adapted
to fit all kinds of businesses, in any sector, doing business domestically orinternationally.
For SMEs we have created a range of products built from the Modula concept
and packaged to make them easy to understand and simple to administer.
These are often tailored to specific markets or industries, such as Modula Firstin several European countries, Modula Kompakt in Germany, or Modula Smartin Italy. In Spain and Portugal, the Agile Policy breaks new ground in allowing
our agents to fully steer the underwriting process.
The benefit of purchasing credit insurance from Atradius comes from the
day-to-day credit management and risk assessment support that we provide
alongside our credit insurance policy. Each policy is supported by an accountmanager, credit limit underwriting and our online tools and services,which includes credit risk information and data on markets and businesses
throughout the world.

11

Atradius Management Report  |  Business profile Atradius N.V.

Our Account Managers provide an on-demand contact point to help customers
to navigate their policies and give credit management support.
Hundreds of experienced underwriters carry out credit limit underwriting
across the globe. They assess the risk of buyers and set safe trading limits.
They are based in the country of the buyer, so they bring local knowledge andlanguage skills to provide the best possible risk assessments.
Our online tools provide additional credit management support services
such as ‘Insights’ which provides portfolio risk analysis. ‘Atrium’ enables
customers to perform administrative tasks for their policy such as applying
for a credit limit or submitting a claim.
In addition to more traditional credit insurance, which covers a customer’s‘whole turnover’, we also offer a range of structured credit risk solutions for
specific large and complex transactions. These solutions address a range ofcircumstances, from enhanced credit protection for single contracts or buyers
to pre-export finance, which can be combined to meet multiple needs.  
With the rise of digital trading, we have also developed a single transaction
credit insurance product which can be digitally integrated with platforms sothat credit insurance can be purchased online, in the moment when trading
decisions are being taken.

Reinsurance
Specialised reinsurance solutions for credit andbonding insurance lines
Atradius, acting from the branch of ACyC Ireland, offers reinsurance solutions
for credit insurance and surety primary insurers around the globe. Our
dedicated team of underwriters supports over 123 clients in over 55 countries,
under the brand name Atradius Re. The unique capability of Atradius Re iscombining the Group’s skills in the primary underwriting of credit insurance
and bonding risks with our own distinctive approach and expertise instructuring reinsurance solutions.

Surety Bonds and Guarantees
Leading bond supplier in Europe
Present in 12 European countries, Atradius Surety serves a wide portfolio of
businesses of all sizes across different trade sectors. We help our customers
secure their performance and support their business development both
locally and internationally. Our customer support goes beyond the mererisks of coverage and protection against worst-case scenarios. We provide
tailor-made products and solutions that fit their needs and strategies. We
aim to be the first choice for companies that are subject to bond obligations.
Thanks to our long-standing Surety expertise, in-depth market knowledge
and international network we can meet customers’ large and complex needs
quickly and efficiently. Our diligent approach and strong business focus haveallowed us to grow steadily over the last decades and earn the trust of majororganisations, propelling us to become a leading Surety supplier in Europe.
In January 2024, Atradius renamed the Bonding Unit to Atradius Surety, as
Surety is a more widely recognised name for this product offering.

12Atradius Management Report  |  Business profile Atradius N.V.

Debt Collection
Professional and reliable collections backed by aglobal network
With worldwide expertise and staff in 40+ countries, Atradius Collections support
businesses - both those that are covered by credit insurance and those that are
not – to collect domestic and international trade receivables, whilst maintaining
sound business relationships with their clients. We have built a strong reputation
as a business-to-business credit management specialist, using the strength of
Atradius Credit insurance, combined with our own integrated international
network of collectors, lawyers and insolvency practitioners, in addition to ouronline capabilities. Since 2015, Atradius Collections has also offered a first-party
collections service, which allows customers to outsource their reminder process
immediately after the invoice due date. We have created a range of services forthe financial industry, including back-up servicing, cross-border collection,and invoice verification, allowing factoring companies and asset-based lenders
to investigate whether the business transactions or invoices from clients are
acknowledged by the buyer. In line with our overall mission and vision our
online platform also acts as an accounts receivable platform “Credit-IQ” for the
SME market.

Instalment Credit Protection
Risk protection for instalment-based credit agreements
Atradius Instalment Credit Protection (ICP) covers short-term and medium-termrisks mainly coming from instalment-based credit agreements with private
individuals and businesses. We offer our services to financial and corporate
policyholders in Belgium and Luxembourg. The main products that we offer
relate to consumer credit, leasing and renting risks. We have extended our
ICP product range to offer residential real estate insurance products for coownerships, as well as products for private-car leasing arrangements.

Dutch State Business
The export credit agency of the Netherlands
Atradius Dutch State Business (ADSB) is the official export credit agency (ECA)of the Netherlands acting on behalf and on the account of the Dutch Ministryof Finance and Ministry of Foreign Affairs. With a broad range of insurance
and guarantee products, ADSB enables exporters, construction companies, andbanks to finance their export transactions. Public export credit insurance offeredthrough ECA is always additional to the private market and is meant to support
the national export of capital goods. Overall, this mostly concerns higher value
export destined to emerging markets with longer credit periods (up to 20 years).

Credit Information Services
Business intelligence to support credit
management decisions
We offer information services through the following companies: Iberinformin Spain and Portugal, and Informes in Mexico. These companies support ourcustomers with business intelligence solutions to help them to manage risk andgrow their businesses by making smart decisions about credit management, risk
and compliance management and marketing. They also support us by providing
information to underwrite buyer risks for our core credit insurance business.

13

Atradius Management Report  |  Business profile Atradius N.V.

Global footprint
EuropeAustria

ViennaBelgium

Namur, Antwerp

Bosnia andHerzegovina
Bulgaria

Sofia

Croatia
Czech Republic

PragueDenmark

Copenhagen, Århus

FinlandHelsinkiFranceGreeceParis , Bordeaux , Compiègne, Lille, Lyon, Marseille,
Rennes, Strasbourg
Berlin, Bielefeld, Bremen, Dortmund, Frankfurt, Freiburg,
Hamburg, Hannover, Köln, München, Nürnberg, Stuttgart
AthensHungary

Budapest

Iceland

Reykjavik (1)IrelandDublinItaly

Rome, Milan

Luxembourg

Leudelange

Netherlands

Amsterdam, Ommen

Germany

North Macedonia
NorwayOslo

PolandWarsaw, Krakow, Poznan, Jelena Gora

Portugal

Lisbon, PortoRomania

Bucharest

SerbiaSlovakia

Bratislava

Slovenia

Ljubljana

Spain

SwedenMadrid, 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
Stockholm

Switzerland

ZurichTurkeyIstanbul

United Kingdom

Cardiff, Belfast, Birmingham, London, Manchester

Middle East
IsraelTel Aviv (1)Saudi Arabia

Riyadh (1)United ArabEmirates

Dubai (1)Asia

Americas
Argentina

Buenos Aires (1)BrazilSão Paulo

CanadaMississauga (Toronto), Pointe Claire (Montreal)

Chile

Santiago de Chile (1)MexicoMexico City, Guadalajara, Monterrey

Peru

Lima (1)USA tlanta (Georgia), Baltimore (Maryland), Chicago (Illinois),A
Los Angeles (California), Morristown (New Jersey),
New York (New York)

14

China

Guangzhou, Shanghai (1)Hong Kong

Hong Kong

India

Mumbai, New Delhi,
Kolkata (1)Indonesia

Jakarta (1)

Japan

Tokyo

Malaysia

Kuala Lumpur (1)Philippines

Manila (1)Singapore

Singapore

South Korea

Seoul (1)Credit Insurance

AfricaKenya

NairobiSouth Africa

Johannesburg (1)Tunisia

Tunis (1)Collections(1)

Collections, Pro Kolekt
Information

TaiwanTaipei (1)Oceania

Thailand

Bangkok (1)AustraliaSydney, Adelaide, Brisbane, Melbourne, Perth

DSB

VietnamHo Chi Minh CityNew Zealand

AucklandReinsurance(1)

Atradius offices

SuretyInstalment Credit

15

(1)

	Service establishment, minority interest
and/or cooperation agreement withlocal partner.

Atradius Management Report  |  Business profile Atradius N.V.

General AtradiusGroup organisation
General overview of the main holding andoperating companies as at 31 December 2023

Atradius Collections
Holding B.V.
The Netherlands
Operating companies
and branches:
MexicoAustralia
Netherlands
BelgiumNorth
Bosnia andMacedonia
Herzegovina
PolandBrazilPortugal
Bulgaria
Romania
CanadaSerbiaChina
Slovenia
Croatia
Czech Republic Spain
Singapore
Denmark
TurkeyFranceUnited Kingdom
Germany
United ArabHong Kong
Emirates
HungaryUSA
Ireland
Italy

Atradius N.V.
The Netherlands

Atradius Insurance
Holding N.V.
The Netherlands

Atradius Finance B.V.
The Netherlands

Atradius Crédito y
Caución S.A. de Seguros y
Reaseguros
Spain
Atradius Crédito y Caución
Seguradora S.A.
Brazil
Iberinform Internacional S.A.U.
Spain
Atradius Dutch StateBusiness N.V. The Netherlands

Branches:Japan
Australia
Luxembourg
Austria
Netherlands
Belgium
New Zealand
Bulgaria
NorwayCanadaCzech Republic Poland
Portugal
Denmark
Romania
FinlandSingapore
FranceSlovakia
Germany
Slovenia
GreeceSwedenHong Kong
Switzerland
Hungary
TurkeyIrelandUnited Kingdom
Italy

Atradius Trade Credit
Insurance, Inc. USA
Atradius Credit Insurance
Agency, Inc. USA
Atradius Information
Services B.V.
The Netherlands

Atradius Seguros
de Crédito S.A. Mexico
Operating companies& branches:
Belgium
China
Denmark
FranceGermany
India
Indonesia
IrelandItaly
Japan
Mexico16

NorwayRussiaSouth Korea
Spain
SwedenSwitzerland
TaiwanThailand
United Kingdom
Vietnam

Atradius Participations
Holding S.L.U.
Spain
Atradius
Participations

Creating opportunities
from challenges
Where are the opportunities? The
construction industry is unlocking
new ways to live with nature byusing innovative and green designs.
3D-printing may become a mass
production process for construction andencourage creativity and optimism.

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Report of theSupervisory Board
In an increasingly complex world,
Atradius has once again demonstrated
resilience and agility by achieving
excellent results
Against a backdrop of heightened geopolitical risks in 2023, ongoing wars in
Ukraine and Gaza together with devastating natural disasters - leading to an
unprecedented humanitarian crisis - global inflationary concerns, volatile
market conditions and more, Atradius delivered another year of outstanding
performance. Despite the challenges, our risk-taking process, the hard workand determination of our people across the globe, but also the resilience of the
global economy, allowed us to navigate a tumultuous and complex economic
environment that required agility and adaptability. Continued de-risking of theportfolio, expense management and careful selection of growth opportunities,
together with our distribution partners and customers, contributed to anotherrecord year in Atradius. Total revenue reached EUR 2.3 billion and a profit of EUR
379 million. Solvency was strengthened by an increase in the equity of 11.6% tomore than EUR 2.7 billion. With these exceptional results we are entering 2024
from a position of strength.
In the face of a fast-changing world, Atradius continued to pursue its strategy
of sustainable and profitable growth in the longer term. In 2023, key multiple
strategic projects were delivered, including the simplification of the European
underwriting entities implemented through the merger of Atradius Reinsurance
DAC into Atradius Crédito y Caución S.A. de Seguros y Reaseguros. Major systemreleases within our digital transformation and optimisation programme acrossall lines of business reaffirmed our commitment to continuous improvement andoperational excellence. Other important strategic priorities successfully executed
included the IFRS 17 implementation based on a robust new data management
system to ensure quality and enhanced governance.
With regard to corporate governance, the Supervisory Board continued toensure that Atradius runs its business and manages risk for stakeholders ina transparent and ethical way. In 2023, the full Supervisory Board convened
five times. We have two established Committees, the Audit Committee and theRemuneration, Selection and Appointment Committee that discuss specific issues
in depth and prepare items on which the full Supervisory Board makes decisions.
In 2023, the Audit Committee convened four times and the Remuneration,
Selection and Appointment Committee convened twice.
Key topics discussed during the 2023 Supervisory Board meetings include thereview of Atradius’ results and strategy, including areas such as the monitoring of
the consequences of geopolitical challenges, the developments on the commercial
area, the review and monitoring of the risk management framework, the review
of investment and rating aspects and the renewal of the reinsurance programme.

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We also received updates on compliance, IT security and key human resources
matters, and were informed on the main developments around the implementationof the IFRS 17 accounting standards and the large business transformation
programmes. In December 2023, we approved the Atradius budget for 2024. We
further dealt with the consideration and approval of recommendations made by the
Remuneration, Selection and Appointment Committee and, where applicable, theirsubmission to the shareholders for approval.
Key topics discussed during the 2023 Audit Committee meetings included the reviewof Atradius’ results and annual report, the external auditor’s reports and updates, theevolution and sufficiency of technical provisions, the internal audit reports and theinternal audit plan, the re-appointment of the external auditor and the review of theexternal auditor’s independence and non-audit services provided. These topics werediscussed in the presence of the external auditor, PricewaterhouseCoopers.
During 2023, the Remuneration, Selection and Appointment Committee discussed
the functioning of the members of the Management Board and the Supervisory
Board. This included an evaluation of the scope and composition of the Management
Board and the Supervisory Board, including the Supervisory Board profiles.
It also evaluated the result of the yearly self-assessments undertaken by theSupervisory Board. In addition, the Remuneration, Selection and Appointment
Committee reviewed the variable pay, targets and performance of the membersof the Management Board, the remuneration of the Supervisory Board, theupdates to the remuneration policy of Atradius, as well as gender diversity
topics. The Remuneration, Selection and Appointment Committee further maderecommendations on the re-appointments of members of the Supervisory Board.
As in previous years, both the Supervisory Board and the Management Board
participated in Atradius’ annual Permanent Education programme. In 2023, thisprogramme covered training in relation to ESG and the new IFRS 17 accounting
standards.
At the end of 2023, Bernd Hinrich Meyer stepped down after being a member of theSupervisory Board of Atradius N.V. and its predecessors for more than 20 years. We
wish to sincerely thank Bernd for his invaluable insight and commitment to Atradiusover the years. Furthermore, in December 2023, Xavier Freixes, Hugo Serra and Juan
Ignacio Guerrero were re-appointed as members of the Supervisory Board.
This Annual Report contains the financial statements for the financial year 2023,
audited by PricewaterhouseCoopers Accountants N.V., and has been presented to theSupervisory Board by the Management Board. The Supervisory Board has approved
the Annual Report and advised the General Meeting to adopt the financial statementsfor 2023.
We the members of the Supervisory Board would like to thank the Management
Board and the employees of Atradius for their dedication and ongoing commitment,
which has allowed Atradius to achieve outstanding results. We would also like tothank customers, brokers, agents and distribution partners for their continued trustin Atradius. Finally, we would like to note that we are confident that the Atradiusmanagement team, employees and stakeholders will contribute to a successful 2024.

The Supervisory Board
Xavier Freixes
Chair

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Shareholder structure
Atradius is part of GCO. It is theinternational brand of the credit
insurance business.
Shareholder structure of Atradius N.V. unchanged since 2011:

Shareholder structure of Atradius N.V.

Percentage ofShares

Grupo Catalana Occidente, S.A.

35.77%

Grupo Compañía Española de Crédito y Caución, S.L.

64.23%

Grupo Catalana Occidente, S.A.

73.84%

Consorcio de Compensación de Seguros

9.88%

Nacional de Reaseguros

7.78%

España, S.A. Compañía Nacional de Seguros

5.00%

Ges Seguros y Reaseguros

3.50%

Total

100.00%

GCO is the main shareholder with an economic stake of 83.2% (35.77%
directly and 47.43% indirectly through the holding company Grupo Compañía
Española de Crédito y Caución, S.L.).
The shares of GCO are listed on the Continuous Market of the Barcelona andMadrid stock exchanges as part of the IBEX Medium Cap Index. Currently,
33.53% of its capital is floating and the main shareholder is INOC, S.A., holding
62.03% of the capital of GCO.
Thanks to the stability of the results and the prudent investment policy, GCO
has a solid solvency position.

Key figures(EUR million)

2023

2022

Long-term capital market value

5,738.80

4,916.3

Equity5,170.40

4,374.0

Subordinated debt

156,2

191,3

Return on long-term capital

12.1%

12.9%

Funds under management

15,364.7

14,991.1

Total revenue

5,565.6

5,245.6

615,5

542,6

Consolidated result

20Atradius Management report | Corporate Governance Atradius N.V.

GCO
GCO is one of the leaders of the Spanish
insurance sector and in global credit
insurance. Founded more than 160 years
ago, it has experienced continuous growth,thanks to its capacity to adapt to change andremain loyal to its principles, which are truly
insurance oriented.
GCO is committed to the professional development of its employees and insurance
agents, its personalised customer service and thetrust its shareholders have in the organisation.

More than 14,500
Intermediaries

More than 1,450
branches

Presence inmore than 50
countries

More than
8,500 employees

More than€5,700 million
turnover

Strategic goal
To be leaders in the field of risk protection and long-term savings of families, aswell as that SMEs, and to be international leaders in commercial risk coverage.

Profitability
Recurrent and sustained profitability
based on technical and actuarial
rigour, investment diversification andprocesses that allow tight cost ratios andquality service.

GrowthDefining markets targeted by the group,
appropriate product and service development
and establishing suitable distribution
channels to reach the customer.

Solvency
Prioritise own resource generation and continued
growth in order to support the group’s expansion,
ensuring compliance with commitments andensuring appropriate shareholder returns.

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Traditional BusinessCharacteristics

Lines of Business

Focused on Spain

Multi-risk

Families and small and medium sizedcompanies

Automobile

Professional agency network

Other non-life

1,361 offices

Life and financial products
HealthFuneralCredit Insurance
Business

Service offered in more than 50 countries

Credit insurance

Business to business

SuretyAgents and brokers

Credit and bonding reinsurance
Debt collection
Instalment credit protection
Business information

Our Foundation, one of the most active foundations in Spain, was born under
the wing of GCO in 1998 with the purpose of channelling the sponsorshipand patronage activities that the insurance company had been carryingout throughout an entire century. Its original name —Fundación Catalana
Occidente —Fundación Jesús Serra, in 2006, as a tribute to the figure
Jesús Serra Santamans, founder of the company and firm defender, fromthe private sphere, of the humanitarian values and spirit in benefit of thecommunity. In 2024, the Foundation was renamed Fundación Occident.
In this new era, our Foundation, one of the foundations that promotes andfinances social projects in Spain, continues to follow the path of its founderand yearly promotes a large number of research and educational projects,
cultural activities, sport activities and solidarity initiatives, both organised by
the Foundation only and organised in collaboration with other institutions,with the aim of fostering GCO’s work and commitment towards society.

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Building trust
Atradius endorses the importance ofsound corporate governance. The key
elements of independence, accountability
and transparency create a relationshipof trust between Atradius and our
stakeholders, which include customers,
shareholders, employees, suppliers andthe general public.
Atradius N.V. is a limited liability company organised under the laws of theNetherlands, with a Management Board and a Supervisory Board. The Management
Board is responsible for achieving the Company’s objectives, strategy, policy andresults, and is guided by the interests of the Company and the business connectedwith it. The Supervisory Board supervises the Company’s general affairs andthe policy pursued by the Management Board, as well as the performance of the
management duties by the Management Board members, taking into account theinterests of the Company and the business connected with it.

The Management Board
Composition
The Management Board of Atradius N.V. currently consists of five members.
David Capdevila - Chair and Chief Executive Officer  (1966, Spanish nationality)
David Capdevila was appointed Chair of the Management Board and Chief
Executive Officer (CEO) of Atradius N.V. in January 2020.
David is responsible for Strategy and Corporate Development, Human Resources
and Facilities, Legal and Compliance, Internal Audit and corporate responsibility
within Atradius. He is also the General Manager of Atradius Crédito y Caución S.A.
de Seguros y Reaseguros and the Chair of Grupo Compañía Española de Crédito
y Caución, S.L. David joined Grupo Catalana Occidente in 1992 as Organisation
and Quality Director and, since then, has assumed various responsibilities within
Grupo Catalana Occidente S.A. and its entities. His previous roles include theposition of General Manager of Crédito y Caución (2006-2013) and Chief Market
Officer and member of the Management Board of Atradius N.V.(2008-2013).
Between 2016 and 2019 he was the CEO of Plus Ultra Seguros. David has a degreein Actuarial Economics from the University of Barcelona and an MBA from IESE
Business School in Barcelona.

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Andreas Tesch - Chief Market Officer(1969, German nationality)
Andreas Tesch was appointed Chief Market Officer (CMO) in November 2011.
Andreas is responsible for Credit Insurance, as well as Special Products, Dutch
State Business and Group Marketing and Communications. He is the Chair of
Atradius Trade Credit Insurance, Inc. and Atradius Participations Holding S.L.U,
a Board member of Atradius Dutch State Business N.V. , and a member of theSupervisory Board of Credit Guarantee Insurance Corporation Limited, amongst
others. He has also been President of the International Credit Insurance andSurety Association (ICISA). Andreas has worked for Atradius and its predecessor
companies since 2001. From January 2007 to October 2011, he was Director of
Global, Oceania and New Markets and, before that, Director of Risk Services forCentral and Eastern Europe. Prior to joining Atradius, he was a Director at Simon
Kucher & Partners, advising clients on strategy and mergers and acquisitions.
Andreas has a degree in Business Administration from the University of Cologne.
Christian van Lint - Chief Risk Officer(1960, Dutch nationality)
Christian van Lint was appointed Chief Risk Officer (CRO) in November 2012.
Christian is responsible for Group Risk Management, Group Buyer Underwriting,
Risk Services and Outward Reinsurance. He has worked for Atradius and its
predecessor companies since 1983. From February 2006 to November 2012,he was Director of Group Risk Management and, before that, Director of Risk
Services for the Netherlands and Nordics. He has held various positions in theareas of claims and recoveries, buyer underwriting, and special risk management.
Christian graduated in Business Administration and Economics in Utrecht.
Claus Gramlich-Eicher - Chief Financial Officer(1965, German nationality)
Claus Gramlich-Eicher was appointed Chief Financial Officer (CFO) in May 2013.
Claus is responsible for Group Finance, including Finance ProgrammeManagement, as well as Group Control, Corporate Finance & Tax, the Enterprise
Data Function (EDF) and ESG. He is also the Chair of Atradius Finance B.V. and amember of the board of Compañía de Seguros de Crédito Continental S.A., as well
as a member of the Advisory Board of Kemiex A.G. He has more than 30 years ofexperience in the financial services sector. Before joining Atradius, he worked for
Allianz in various senior financial and investment management roles in Germany,
Spain, Italy and the Czech Republic. He has also held non-executive Board
member positions in insurance, investment management and pension
fund management companies. Claus studied Economics and Business
Administration at the University of St. Gallen and ESADE in Barcelona andholds both a Master’s Degree from the University of St. Gallen and a CEMS
Master’s in International Management.
Marc Henstridge - Chief Insurance Operations Officer(1968, British nationality)
Marc Henstridge was appointed Chief Insurance Operations Officer (CIOO) in
January 2017.
Marc is responsible for Project and Process, IT Services (CIO and CTO roles),Bonding, Collections, Assumed Reinsurance, and Instalment Credit Protection. He
is a Board member of Atradius Collections Holding B.V. and Atradius Participations
Holding S.L.U. Marc has worked for Atradius and its predecessor companies since1997. Before his appointment as CIOO, he served as Director of Risk Services in
the UK and Ireland, and Special Products worldwide. Prior to joining Atradius, hespent 10 years at HSBC Corporate as an analyst in the retail and aerospace sectors.
Marc graduated in Business Studies from Oakwood College of H&FE in Kent.

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Role and procedures
The Management Board as a whole is responsible for the management andthe general affairs of Atradius and is supervised by the Supervisory Board.
The Management Board determines Atradius’ operational and financial
objectives, and the strategy designed to achieve them. It ensures Atradius has
an effective risk management system, internal control system and internal
audit function in place. It submits the annual business plan and budget of
Atradius to the Supervisory Board for approval. The Management Board
rules describe the allocation of duties and the decision-making process of theManagement Board.
The General Meeting has the authority to appoint the members of theManagement Board on the recommendation of the Remuneration, Selection
and Appointment Committee of the Supervisory Board. A Management Board
member may be suspended or dismissed by the General Meeting at any time.
The Management Board shall consist of at least three members. Management
Board members are appointed for an undefined term. In the event of avacancy, the management of Atradius N.V. will be conducted by the remaining
members or sole remaining member of the Management Board.
Remuneration
The Supervisory Board determines the remuneration and further
employment conditions of each member of the Management Board,
based on the recommendation of the Remuneration, Selection andAppointment Committee of the Supervisory Board and in accordance withthe remuneration policy adopted by the General Meeting. You can findinformation regarding the amount of remuneration received by Management
Board members in the explanatory notes to the consolidated financial
statements of the Annual Report 2023.
Conflict of interest
A member of the Management Board with a potential conflict of interest
with the Company will immediately report this to the Chair of theManagement Board, who will determine whether the reported case qualifies
as a conflict of interest. A member of the Management Board will notparticipate in any deliberations or decision-making of the Management Board
if that member has a direct or indirect personal interest that conflicts with
the interest of the Company or its business. In such a case, the other nonconflicted members of the Management Board will pass the resolution. If
all members of the Management Board are conflicted, then the Supervisory
Board will pass the resolution.

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The Supervisory Board
Composition
The Supervisory Board of Atradius N.V. currently consists of eight members.
Xavier Freixes - Chair(1969, Spanish nationality)
Xavier is Founder and Director of Ashtree Strategic Advisors Ltd and iscurrently the Chair of the Board of Atradius Crédito y Caución S.A. de Seguros
y Reaseguros and a Board member at Corporación Químico Farmacéutica
Esteve, S.A. Xavier started his career in 1995 as a practising lawyer at
Cuatrecasas in Barcelona, where he became a partner in 2005. He moved
to London in 2007 to become a Senior Mergers and Acquisitions Specialistat Deephaven Capital Management International Ltd, and later, Founding
Partner, General Counsel and Chief Executive Officer of Tyrus Capital S.A.M.
in Monaco. Former positions include General Counsel of the Barcelona Stock
Exchange and external consultant at Generalitat de Catalunya, lecturer at
the Universitat Pompeu Fabra and the ESADE Business School in Barcelona.
Xavier has a degree in Law from Universitat Autònoma in Barcelona
and a Master’s degree in Corporate Law from Universitat Pompeu Fabra
in Barcelona.
Hugo Serra(1975, Spanish nationality)
Hugo is currently Vice-Chair and CEO of GCO (Grupo Catalana Occidente,S.A.) and has been a member of the Board of Grupo Catalana Occidente, S.A.
and Occident GCO, S.A.U. de Seguros y Reaseguros since 2006. Other current
positions include, among others, Board member of Grupo Compañía Españolade Crédito y Caución, S.L., joint CEO of Co Sociedad de Gestión y Participación,
S.A., Chair of the Board of Grupo Catalana Occidente Gestión de Activos, S.A.,
SGIIC and Board member of Atradius Crédito y Caución S.A. de Seguros y
Reaseguros and INOC, S.A. He is also a trustee at Fundación Occident. Before
joining GCO, he held various responsible positions in multinationals in thefinancial sector.  Hugo has a BSBA from the University of Wales, a degreein Business Administration from the Polytechnic University of Catalonia inBarcelona, and an Executive MBA from IESE Business School in Barcelona.
Désirée van Gorp
(1965, Dutch nationality)
Désirée is full-time professor of International Business and chairing theInternational Advisory Board at Nyenrode Business University. She also
is visiting Professor at universities in Uruguay, China and Italy. Désirée isengaged in several (supervisory) boards among others for Atradius Crédito
y Caución S.A. de Seguros y Reaseguros, World Trade Organization’s Chairs
Programme, NBTC Holland Marketing, Foundation Young & Bold, Expert
Panel and (Chair) of early-stage funding initiative of start-ups for theregional development organization, Utrecht, the Netherlands. She also is
involved in the Women in Business Awards 2023 for the United Nations’World Investment Forum. In addition to research and education she advisesorganisations, profit and non-profit, regarding sustainable value chains,building ecosystems, innovation and digitalization while using the design
thinking method to enhance change in them. She obtained a master title inlaw at Leiden University; her PhD she defended at Nyenrode on the topic
of global sourcing, offshoring & outsourcing; and she is design thinking
educated at Stanford University.

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John Hourican(1970, Irish nationality)
John Hourican is currently CEO of NewDay Limited, a Board member of UK
Finance and Board member of Atradius Crédito y Caución S.A. de Seguros y
Reaseguros. He was Group Chief Executive Officer of Bank of Cyprus from2013 to 2019 and Chief Executive of The Royal Bank of Scotland Group’s(RBS) Investment Bank (Markets & International Banking) from 2008
to 2013. Between 2007 and 2008, he served on behalf of a consortium ofbanks (RBS, Fortis and Santander) as Chief Financial Officer and memberof the Management Board of ABN AMRO Group. He joined RBS in 1997 as
a leveraged finance banker. John held various senior positions in RBS’s
wholesale banking division, including on the division’s Board as FinanceDirector and Chief Operating Officer. He also ran the bank’s leveraged financebusiness in Europe and Asia. He started his career at Price Waterhouse, here
he held various Corporate Finance and Audit roles in Dublin, London andHong Kong. He is a Fellow of the Institute of Chartered Accountants in Ireland.
John graduated in Economics and Sociology from the National University of
Ireland and in Accounting from Dublin City University.
Carlos Halpern(1970, Spanish nationality)
Carlos has more than 20 years’ experience in the insurance and financial
sectors. He has been senior advisor with several consulting firms including
Roland Berger Strategy Consultants and has been involved in several digitaltransformation projects. He currently acts as Lecturer in Finance in several
business schools including IESE and ICADE. He is a Board member of Atradius
Crédito y Caución S.A. de Seguros y Reaseguros, Grupo Catalana Occidente,
S.A. and Grupo Compañía Española de Crédito y Caución, S.L. From 2004 until
2014 he held various senior positions with Liberbank, including leading amajor integration project, and several Board positions in different financial
companies. From 1996 until 2004, he worked at Europraxis Consulting where
he was involved in management consulting projects in several European
countries. Carlos has a Master’s degree in Business Administration from IESE
Business School and a Master’s Degree in Physics (Information Technology)
from the Complutense University of Madrid. He has also completed theAdvanced Management Program at Harvard Business School.
José María Sunyer(1969, Spanish nationality)
José María has 29 years’ experience in the insurance sector and is currently
Chair of Ges Seguros y Reaseguros, S.A. (formerly CEO from 2010 to 2018).
He is also Chair of Nacional de Reaseguros, S.A. and Vice-Chair of Almudena
Seguros, S.A. He is a Board member of Atradius Crédito y Caución S.A. de
Seguros y Reaseguros and of Corporación Europea de Inversiones, S.A., aswell as Asitur, S.A. Up until 2022 José María was a member of the Advisory
Board of ICEA (Spanish Institute for Cooperation and Investigation between
Insurance and Pension Fund Management Companies) and is currently
member of the Governing Board of UNESPA (Spanish Association of Insurance
and Reinsurance Institutions). In the past, he has been a Board memberof Audatex, Calculo, Gesnorte and Sersanet. José María has a degree in
Economics from Universidad Pontificia de Comillas in Madrid.

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Juan Ignacio Guerrero(1958, Spanish nationality)
Juan Ignacio has more than 35 years’ experience in the insurance sector. He
is currently Chair of the Audit Committee of Atradius N.V., Board member ofAtradius Crédito y Caución S.A. de Seguros y Reaseguros, a Board member of
Grupo Compañía Española de Crédito y Caución, S.L. as well as a Board member
at Domasa Inversiones, S.L. Between 2011 and 2023, Juan Ignacio was anindependent member of the Board of GCO (Grupo Catalana Occidente, S.A.),and between 1984 and 2006, he was Deputy Director General and later CEO
and Managing Director at Aresa, Seguros Generales, S.A., a Spanish insurancecompany. Former positions in the insurance sector include member of theGoverning Board of UNESPA (Spanish Association of Insurance and ReinsuranceInstitutions) between 1996 and 2006 and Vice-President of the Advisory
Committee on Health Insurance Companies of the Government of Catalonia
between 1985 and 2006. Juan Ignacio has a degree in Economics and BusinessStudies from the University of Barcelona. He is also qualified as an Insurance
Actuary and holds a Doctorate in Financial Mathematics and Actuarial Studies(pending reading of the doctoral thesis) from the same university, where he isalso a lecturer on a Master’s Degree course on Insurance Management.
Joaquín Guallar(1975, Spanish nationality)
Joaquín is currently a member of the Management Board (Comité de Dirección)of GCO (Grupo Catalana Occidente, S.A.), as well as Secretary Non-Director of theBoard of Directors of Grupo Catalana Occidente, S.A. Before joining GCO in 2013,
Joaquín was a Senior Associate at Cuatrecasas, the Spanish law firm that he hadjoined in 2001. Between 2008 and 2009 he was seconded to Cravath Swaine &Moore LLP in New York as a foreign associate lawyer. Other current positions
include, among others, Board member of Atradius Crédito y Caución S.A. de
Seguros y Reaseguros, Grupo Compañía Española de Crédito y Caución, S.L.,
Grupo Catalana Occidente Gestión de Activos S.A.U. SGIIC and Occident Inversions,
S.A. (Andorra) and Secretary Non-Director of the Board of Occident GCO , S.A.U.
de Seguros y Reaseguros. Joaquín has a degree in Economics from the Universityof Barcelona and a Law degree from Abat Oliba CEU (University of Barcelona),
as well as a Master’s degree in International Business Law at ESADE and a
Certificate of Research Sufficiency - Doctorate in International Studies from the
University of Barcelona. He has also taken the General Manager Program (PDG) at
IESE Business School in Barcelona.
Former member of the Supervisory Board (until 31 December 2023):
Bernd Hinrich Meyer.

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Role and procedures
The Supervisory Board supervises the Company’s general affairs andthe policy pursued by the Management Board. The responsibilities of theSupervisory Board include, among others, supervising, monitoring andadvising the Management Board on the Company’s strategy, performance andrisks inherent to its business activities, the design and effectiveness of theinternal risk management and control systems and the financial reporting
process. The Supervisory Board rules describe the decision-making process
and the composition of the committees of the Supervisory Board.
The General Meeting has the authority to appoint the members of theSupervisory Board on the recommendation of the Remuneration, Selection
and Appointment Committee of the Supervisory Board. A Supervisory Board
member may be suspended or dismissed by the General Meeting at any time.
The Supervisory Board shall consist of at least five members and each willserve a term of a maximum of four years from the date of appointment, after
which they will step down in accordance with the Board’s rotation scheme(outlined below).

Name

Position

Date of initial
appointment

Year of next
re-appointment

Xavier Freixes

Chair

01 September 20112027

Hugo Serra

Member

01 September 20112027

Désirée van Gorp

Member

16 May 2013

2025

John Hourican

Member01 June 2016

2024

Carlos Halpern

Member19 January 20172024

José María Sunyer

Member19 January 20172024

Juan Ignacio GuerreroMember

01 January 2022

2027

Joaquín Guallar

member

01 January 2023

2025

A resigning Supervisory Board member may be reappointed. A Supervisory
Board member will resign early in the event of inadequate performance or inother circumstances in which resignation is deemed necessary by the othermembers of the Supervisory Board.
The composition of the Supervisory Board
Members of the Supervisory Board are chosen so that their combined
experience, expertise and independence enable it to best carry out its
various responsibilities The current members of the Supervisory Board haveextensive experience in insurance and reinsurance, investment banking,strategic consulting and regulatory matters.

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Role of the Chair and the Company Secretary
The Chair of the Supervisory Board co-ordinates the decision making, draws
up the meeting agendas, and chairs both the Supervisory Board meetings andthe General Meetings of Shareholders. The Chair also ensures the adequate
performance of the Supervisory Board and its committees, including anannual evaluation of both the Management Board and the Supervisory Board,and acts on behalf of the Supervisory Board in serving as the principal contact
person for the Management Board. The Chair of the Supervisory Board is
assisted in their role by the Company Secretary.
Committees of the Supervisory Board
The committees of the Supervisory Board are set up to reflect both relevant
corporate standards and the specific interests of the business of Atradius. As
risk management is considered a key area of attention, the Supervisory Board
considers it important that this subject is discussed in the full Supervisory
Board, rather than in a specific risk committee.  

Audit Committee
The Audit Committee supports the Supervisory Board in fulfilling its
supervisory and monitoring duties for the assurance of the integrity of theCompany’s financial statements, the external auditor’s qualifications, andthe performance of internal and external auditors. The Audit Committee
independently and objectively monitors the financial reporting process
within Atradius and the system of internal controls. It also facilitates ongoing
communication between the external auditor, the Management Board, theinternal audit department and the Supervisory Board on issues concerning
the Company’s financial position and financial affairs. In 2023, the Audit
Committee met four times. The Audit Committee currently consists of Juan
Ignacio Guerrero (Chair), Xavier Freixes and Carlos Halpern.

Remuneration, Selection and Appointment
Committee
The Remuneration, Selection and Appointment Committee supports theSupervisory Board in fulfilling its duties concerning the appointment ofmembers of the Management Board and the Supervisory Board. It also
monitors and supervises the remuneration policy, the remuneration ofsenior management and other corporate governance matters. In 2023,
the Remuneration, Selection and Appointment Committee met twice. The
Committee currently consists of Hugo Serra (Chair), Xavier Freixes andJoaquín Guallar.
The General Meeting determines the remuneration of the members of theSupervisory Board based on the recommendation of the Remuneration,
Selection and Appointment Committee, and in accordance with the
remuneration policy adopted by the General Meeting. The expenses ofmembers of the Supervisory Board are reimbursed. You can find information
regarding the amount of remuneration received by Supervisory Board
members in the explanatory notes to the consolidated financial statements of
the Annual Report 2023.

30

Atradius Management report | Corporate Governance Atradius N.V.

Conflict of interest
A member of the Supervisory Board with a potential conflict of interest with
the Company will immediately report this to the Chair of the Supervisory
Board, who will determine whether the reported case qualifies as aconflict of interest. A Supervisory Board member will not participate inany deliberations or decision-making process of the Supervisory Board,
if that member has a direct or indirect personal interest that conflicts
with the interest of the Company or its business. In such a case, the othernon-conflicted Supervisory Board members will pass the resolution. If all
Supervisory Board members are conflicted as referred to above, then the
General Meeting will pass the resolution.

General Meeting
The General Meeting is the body of the Company formed by the shareholders
and other persons entitled to vote. The General Meeting can exercise its
rights at the General Meeting of Shareholders. The General Meeting is also
authorised to approve important decisions regarding the identity or characterof Atradius, as well as major acquisitions and divestments.

The internal and external auditor
Internal auditor
The internal auditor fulfils an important role in assessing and testing theinternal risk management and control system. The Director of Internal Audit
reports to the Chair of the Audit Committee and, with respect to day-to-day
activities, to the Chief Executive Officer of Atradius.
External auditor
The General Meeting appoints the external auditor on the recommendationof the Audit Committee of the Supervisory Board. The Audit Committee
evaluates the performance of the external auditor and also pre-approves thefees for audit services to be performed by the external auditor. The Audit
Committee ensures the external auditor is not appointed to render non-audit
services that are listed explicitly as prohibited services in the Atradius Policy
on Auditor Independence.
The General Meeting appointed PricewaterhouseCoopers Accountants N.V. as
the Company’s external auditor for the financial year 2023.

31

We’re in this
together
No one is alone. We explore, reflect,
re-explore, and thrive together. We havealready entered a whole new worldof business in the same boat, so let usnavigate our way out of the sometimes
rough seas with support from each other.

32

Atradius Management report | Business information

The global economic
environment
Slower growth ahead
Global economic growth slowed from 3.1% in 2022 to 2.5% in 2023 (against
1.5% forecasted for the year in 2022). Despite still presenting a decline, growth
was relatively strong at the start of the year. In May 2023 the World HealthOrganization announced that it no longer considered the COVID-19 pandemic a
global public health emergency. Supply chains, which the pandemic disrupted,
largely normalized. The energy shocks caused by the war in Ukraine reduced,
manifesting a lesser economic impact than was projected in 2022.
Nonetheless, anticipated headwinds began to mount as extra savings built
up during the pandemic began to decline, the initial growth stimulus fromthe reopening of the services sector diminished, and a sustained slowdown in
manufacturing occurred. Additionally, the war in Gaza emerged as a new risk,
with a potentially large impact on oil markets and the global economy if theconflict experiences a regional escalation.

Advanced markets
Across advanced markets, GDP growth slowed to 1.4% in 2023, from 2.6% in 2022.
Advanced economies continue to drive the decline in world GDP growth from2022 to 2023, with stronger services activity offset by weaker manufacturing.
Many governments kept supportive fiscal policies in 2023, because of theenergy crisis. Monetary policy, however, was tightened almost everywhere in
the advanced world to combat high inflation. In advanced markets, inflation
declined to an average 4.6% in 2023, mainly due to lower energy prices, with core
inflation (excluding energy and food) easing in the second half of the year.
Growth in the United States was better than expected at the beginning of2023, but GDP performance was worse in the second half of the year, as wage
growth slowed, savings accumulated during the pandemic began to run out,
and monetary policy kept interest rates high. The labour market remained
relatively tight in 2023, with an average unemployment rate of 3.7%. However,
unemployment started to increase in the second half of the year. The Federal
Reserve tightened the policy rate several times in 2023 and continued to shrink
the size of its balance sheet.
Growth in the eurozone was weak throughout 2023. The industrial sector was ina recession and services activity was not strong enough to offset manufacturing
weakness. High inflation was still weighing on consumers’ purchasing power
and negatively affecting sentiment among both households and businesses.
The European Central Bank tightened its policy rate in the first half of 2023 butpaused its hiking cycle in September, when inflation started to come down. The
ECB also continued to build down its balance sheet, as principal payments on
assets under the Asset Purchasing Programme were no longer reinvested.

33

Atradius Management report | Business information

Global economic growth
Real and expected GDP growth, percent change y-o-y
9
6
3
0
-3
-6

Advanced economies

Emerging markets

World
Source:Macrobond

Emerging markets
Growth in emerging market economies (EMEs) increased slightly from 3.7%
in 2022 to 4.0% in 2023. Growth was supported by China’s reopening fromthe COVID lockdowns in early 2023. The consumption recovery in emerging
markets, however, was slower than in advanced markets post-COVID, due toan earlier reopening in emerging economies, a lower availability of effective
vaccines and weaker safety nets. There are substantial differences between
EMEs. Emerging Asia was ahead of other regions due to China’s recovery postCOVID, while Latin America, which struggles with structural weaknesses andpolitical uncertainty, will lag behind other regions.
Growth in Emerging Asia improved in 2023, mostly driven by China, where
the growth rate changed from 3.0% in 2022 to 5.1% in 2023. China’s growth
was boosted in the first quarter following the end of COVID containment
measures, but consumption growth in the rest of the year disappointed, andspending remains below the pre-pandemic trend. The Chinese real estate
sector remains a weak spot, with poor housing activity indicators, and asteady stream of negative headlines about distressed property developers.
The economic recovery slowed for the second year in a row in Latin America,
but the slower GDP growth and lower inflation also paved the way for a looser
monetary policy. Brazil’s economy saw a flat development of GDP growth in2023 (3.0%) compared to 2022. GDP performance was surprisingly robust
coming out of the pandemic. Growth was underpinned by a record harvest in
Q1 of 2023. In Mexico, economic activity slowed to 3.0% in 2023, and its postpandemic recovery remains incomplete. Mexico’s exports declined in 2023,
as the economy was exposed to the global slowdown, and elevated inflation
weighed on private consumption growth.
In Eastern Europe, growth was more resilient in 2023 than expected one
year ago due to a stronger-than-expected GDP performance of the Russian
economy. In Turkey, there was a shift towards more orthodox economic
policymaking after the re-election of President Erdogan. The central bankrapidly tightened the monetary policy in response to rampant inflation, with
the interest rate rising to levels not seen in over 20 years. This, along with the
weak external environment and high inflation, weighed on Turkish growth.

34

Atradius Management report | Business information

Global commodity prices
Price index, 2010=100

160
120
80
40
0

2010

2012
Copper2014
Iron Ore

2016

2018

2020

Aluminium

2022

Brento il
Source: Macrobond, World Bank

Global insolvencies: adjusting back to
pre-pandemic levels
Insolvencies continued to increase in 2023, driven by normalisation after
the pandemic and the bankruptcies of zombie firms. The phasing out offiscal support measures and the lifting of temporary changes to insolvency
legislation pushed the insolvency level higher in most markets. The mean
insolvency level across countries is already above 2019, but countries are atdifferent stages of the adjustment process.
In the eurozone, relatively high increases of insolvencies were recorded in the
Netherlands, Italy and France, countries where the adjustment process was infull swing. However, there were also markets with a relatively small increase,such as Belgium and Austria, or even a decline, as happened in Spain. In thesemarkets, the insolvency level already increased to the normal level in 2022.
In the United States, there was a relatively high insolvency growth rate in
2023, as they were adjusting back to pre-pandemic levels. In the United
Kingdom, the increase of insolvencies was more contained, as the insolvency
level was already back at the pre-pandemic level at the start of the year. Dueto the phasing out of government support and the poor recovery since Brexit,
the strongest rise in insolvencies in the UK already occurred in 2022.​​

Macroeconomic o​utlook for 2024
We predict global economic activity to slow to 1.9% in 2024, the weakest
growth rate since the global financial crisis(excluding the COVID driven downturn in 2020). We expect weak GDP figuresin several major economies such as the US and China at the start of 2024,
followed by only a sluggish recovery.
Growth in advanced economies is projected to slow to 0.6%. Growth in the
key advanced markets – US, UK and eurozone – is expected to remain low
in 2024. Tight monetary and fiscal policy, as well as the depletion of excess
savings will weigh on the US economy. Eurozone GDP growth is expected
to remain flat (0.8%), mainly as a result of weak exports and inflation that
continues to weigh on private consumption. Governments in advanced
markets continue to provide fiscal support in 2024, though the fiscal positionis less expansionary than last year. Central banks are expected to continue

35

Atradius Management report | Business information

to keep the monetary policy relatively tight, despite the expectation that
inflation will continue to decline. Only when inflation has convincingly
returned to target, central banks are expected to loosen the monetary policy
somewhat. This could happen in 2024, but probably more likely in the second
half of the year.
For emerging markets, GDP growth is forecast to decline modestly in 2024.
Emerging Asia remains the fastest growing region in 2024 (4.6%). In China,
permanent scars from the protracted zero-COVID policy are weighing on
consumption and investment. The ongoing crisis in the property sector will
also continue to drag on the economy in 2024. In Eastern Europe, growthis likely to remain flat in 2024 compared to last year, but with divergences
between countries. The outlook for this region continues to be clouded by the
war in Ukraine. For Latin America, we foresee a slowdown of growth in 2024,
due to the weak external environment and the lagged effects of high inflationand monetary policy tightening.
For 2024, we are still predicting insolvency increases for the majority ofmarkets, but the percentage increase is generally lower than in 2023. The
picture across markets is more mixed than in 2023. Several markets are still
likely to see a substantial rise in insolvencies. In Italy, the Netherlands andthe United States, the adjustment process back to pre-pandemic levels started
in 2023 and we expect that this will continue into 2024. But there will also bemarkets with a negative expected insolvency growth in 2024 or
relatively contained increases, such as Finland, Austria, Belgium andthe United Kingdom.
While global economic activity has proven more resilient than expected,
there are still risks that could derail the global economy in 2024. Some ofthese risks are (geo)political, such as the war in Gaza that has the potential
to escalate regionally. Others are economic, such as the persistently highinflation that could trigger more central bank policy rate hikes, a possible
further slowdown of growth in China, or debt distress in emerging markets.
The current risk environment remains challenging, especially for companies
that are still recovering from the COVID-19 pandemic.

36

Atradius Management report | Business information

Empowering customers
and continuity of trade
P&L information (EUR thousands) (1)Insurance premium revenue
Information income
Gross insurance revenue

2023

2022

% change

2,278,520

2,224,480

2.4%

143,812

141,9221.3%

2,422,331

2,366,403

2.4%(953,395)(914,772)(4.2%)

Gross insurance operating expenses(868,668)(800,805)(8.5%)

Reinsurance result(212,501)(244,828)

13.2%

Insurance result

387,767)

405,998(4.5%)

Gross insurance claims and loss adjustment expenses

(2)

(2)

95,64586,24810.9%Service expenses(78,987)(77,405)(2/0%)

Service result

16,659

8,844

88.4%

Net investment result

81,59742,343

92.7%

Operating result before finance costs

486,023457,184

6.3%

Result for the year (after tax)

372,201

332,212

12.0%

3,409

3,310

(3.0%)

Service income

Employees (FTE)(1)

 or the purposes of measuring performance, the management report will display amounts applying a similar financial reporting basis as those applied by theF
Company in its management report in previous years, which will differ from the financial statements 2023 that have been subject to the adoption of IFRS 17
and 9 as further described in Note 2.2 of the financial statements. These differences in presentation are allowed by IFRS 8 Operating Segments as further
explained in Note 2.8 of the financial statements.

(2)

Overview includes inter-segment revenue and claims expenses

Gross
2023

Net
2022

2023

2022

Claims ratio

39.4%

38.7%

42.4%

41.3%

Expense ratio

35.9%

33.8%

32.9%

31.7%

Combined ratio

75.2%

72.5%

75.3%

73.1%

Revenue by business segment

7.4%

5.8%

3.8%

Credit Insurance (including ICP)
83.0%

Reinsurance
SuretyServices37

Atradius Management report | Business information

2023 proved to be another year of strong performance for Atradius, despite thecontinuous challenging and complex global economy. Following achievementof the EUR 2 billion revenue milestone in 2022, gross insurance revenue grewa further 3.1% at constant rates compared to last year. The global economy has
proven more resilient than expected and the overall volumes of insured business
continued to grow in most markets, although weaker than the rebound effect seenin late 2020 and 2021.
Insolvencies continued to progressively increase during 2023. This was an
anticipated normalisation following the conclusion of different government
support measures implemented during the pandemic, along with the overall
tightening of leading conditions. Some markets insolvencies appeared above
pre-pandemic levels, while others are still in the process of adjustment. Gross
claims expenses for the year were EUR 953.4 million, a 4.2% increase in absoluteterms, with a gross claims ratio of 39.4% (a 0.7%pt increase compared to 2022).
Despite the less than favourable economic outlook observed during 2023 andits implications for global trade, ranging from high food and energy prices, toelevated interest rates and geopolitical volatility in some markets, our Credit
Insurance business showed stable and consistent growth trends in most regions
across the Group. While Spain, our largest market, observed a slowdown incustomer sales, it still continued to grow moderately due to the volume of insured
turnover and a robust customer base thanks to excellent customer retention. Bothour Global unit and our local business in Asian markets where we continue topursue our growth ambition, continued to develop well throughout 2023. Our local
business in UK & Ireland, France and Netherlands saw a notably robust growthtrend throughout the year, contributing the most substantial revenue growthin absolute terms. Our Reinsurance, Surety and Instalment Credit Protection
businesses also developed well, showing stronger growth trends than in 2022.
Brokerage fees increased by 4.7% with a stable brokerage ratio of 12.9%, driven
by the overall growth in insured business across geographical regions andmarkets. Operating expenses rose by 8.5%, following the continued insurance
portfolio growth during the year, along with increased investment in the digitaltransformation programmes for the Credit Insurance and Surety business, aswell as developments required for compliance with the new IFRS 17 accounting
standard for insurance contracts. The gross combined ratio, while increasing
2.7%pts on 2022, ended at a healthy 75.2%. The reinsurance result in 2023 was
EUR 212.5 million (13.2% better than 2022) driven mainly by increased grossclaims volumes subsequently ceded to reinsurers along with higher reinsurance
commissions in the year. The overall net insurance result ended at EUR 387.8
million, a 4.5% decrease from 2022.
The result from our non-insurance services increased by EUR 7.8 million, driven
by the excellent performance from Collections (a service income increase of 30.5%
vs last year).
The net result from our investment portfolio was EUR 81.6 million above
the previous year by 92.7%. This positive performance was a result of strong
contributions from our associated companies, higher interest rates in ourinvestment portfolio and realised capital gains on the investment assets. The
financial income & expense result increased compared to the previous year,
benefitting from favourable variances in exchange rates and higher interest rates.  
Overall, the total result for the year reached EUR 372.2 million, in large partdue to organic growth and strong demand for Atradius’ products and services,
together with higher investment results. This is a product of our continued growthambition, excellent customer retention and the continued demand for Atradius’
products and services.

38

Atradius Management report | Business information

Credit Insurance including Instalment Credit Protection (ICP)(EUR thousands)
Insurance premium revenue

2023

2022

1,945,895

1,924,549

1.1%

Information income

143,812

141,922

1.3%

Insurance revenue

2,089,707

2,066,471

1.1%(848,975)(789,011)(7.6%)(716,139)(671,122)(6.7%)

Gross insurance claims and loss adjustment expenses
Gross insurance operating expenses

(1)

(1)

Result before reinsurance

524,593

606,339(13.5%)

Reinsurance result(184,794)(224,872)

17.8%

Result after reinsurance

339,799

381,468(10.9%)

40.6%

38.2%

(2.4% pts)

Total credit insurance and ICP gross claims ratio(1)

Overview includes inter-segment revenue and (claims) expenses.

Credit insurance & ICP revenue by region
10.8%

10.0%

18.6%

Spain & Portugal
Northern & Central Europe

6.8%Western Europe
Southern Europe
Asia
22.0%

31.7%

Americas2023 was an overall positive year for our credit insurance business withpositive growth trends across most of the group. Gross insurance revenue
grew moderately by 1.1% (1.9% at constant foreign exchange rates) while
claims expenses increased by 7.6% as claims entry progressively returned
to pre-pandemic levels, generating a result after reinsurance of EUR 339.8
million (10.9% lower than in 2022).
Keeping our customers at the very heart of everything we do along with ourunwavering commitment to excellence, 2023 proved to be another year of
exceptional customer satisfaction, visible in a customer retention rate of
94.9%. Our credit insurance portfolio continued to show growth across thegroup, with most markets reporting favourable development, and collectively
generating EUR 2,089.7 million in revenue, a 1.1% increase coming from 2022.
2022 had benefited from increased turnover, part of which was driven by
inflation and increased commodity prices. In 2023 underlying performance
was favourable and portfolios continued to develop well, however the impact
of increasing inflation and commodity prices did not provide additional
contributions to revenue growth as it did in 2022. Nonetheless almost every
one of our local credit insurance units proved resilient and grew versus
the previous year. Asia also maintained a moderate growth in 2023, as our
growth ambition in this region remains unabated. While our markets in North
America showed marginal growth during the year, France and Netherlands
showed strong and stable growth (10.1% and 7.3%, respectively), along with
the UK and Ireland (7.2%). The rest of our European markets also showed
positive development with the exception of our local markets in Italy and
the Nordic regions, which were unable to grow during the year under the39

Atradius Management report | Business information

strain of a challenging competitive environment. Spain, our largest market,
grew moderately during the year, despite subdued development of insured
turnover. Our Global unit showed moderate performance and growth during
the year, while maintaining excellent customer base retention thanks to
Global’s first class service.
The Group’s risk exposure for credit insurance (total potential exposure, or
TPE) increased by 3.2%, to EUR 876.7 billion at year-end 2023. This is due tothe moderate growth of insurable business volumes driven by new businessacquisition as well as increases in commodity prices and inflation. Europe
represents over 70% of total exposure, where Germany with 12.9% is thelargest market, followed by Spain with 10.9%.
The claims ratio for the year rose to 40.6%, which is 2.4% pts higher thanthe previous year with an increase in the overall number of claims. The
foreseen development of insolvencies following the phasing out of fiscal
support measures and temporary changes to insolvency legislation that were
implemented as economic support mechanisms during the COVID pandemic
have contributed to this increase, as a progressive return of claims entry to
pre-pandemic levels. Increases in overall claims inflow and claims expenses
were ultimately observed in a very generalised manner across all regions.
The reinsurance result for 2023 improved substantially. As claims inflow
increased progressively throughout the year, there was a corresponding
increase in claims ceded to reinsurers. Reinsurance commissions relating
to prior and more mature underwriting years also contributed to thisimprovement.
The technical result after reinsurance for our credit insurance & ICP businessdecreased by 10.9% compared to 2022, placing it at EUR 339.8 million mainly
due to higher claims costs and operating expenses.

40

Atradius Management report | Business information

Reinsurance(EUR thousands)

2023

2022

Insurance revenue

186,319

166,555

Gross insurance claims and loss adjustment expenses(82,877)(85,506)

3.1%

Gross insurance operating expenses(74,586)(64,254)(16.1%)

Result before reinsurance

28,857

16,797

71.8%

Reinsurance result(899)(3,851)

76.7%

Result after reinsurance

27,95812,945116.0%

Gross claims ratio

44.5%

51.3%

6.8%

Reinsurance revenue by region of cedent
10.2%

0.7%
35.0%

Europe19.2%

Asia & Oceania
Africa & Middle East
South America
North America
34.9%

Atradius Re is a unit that operates as a market reinsurer providing capacity toprimary insurance companies in credit insurance and surety.
Our reinsurance business currently supports business from 123 clients in over 55
countries, maintaining a balanced diversity within the portfolio. The underlying
business consists of 56% credit insurance and 44% bonding, based on premium
volume. A multilingual, highly trained and experienced international team, at
Atradius Re’s office in Dublin, Ireland, has underwritten the business.
We have long-standing relationships with our clients, 241 live contractual
agreements and we lead 35% of our treaties. In addition, we maintain close
contacts with specialist brokers. The quality of these client relationships isunderscored by our unique offering: combining the Group’s skills in the primary
underwriting of credit insurance and bonding risks with our own distinctive
approach and expertise in structuring reinsurance solutions. At Atradius Re, wealways strive to anticipate and respond to the specific and changing needs ofour customers.
Total reinsurance revenue, of EUR 166.6 million in 2022, increased to EUR 186.3
million, in 2023. This increase in revenue is due to a combination of new business,
mainly bonding, and increased business from existing cedants.
The claims ratio has decreased from 51.3% in 2022 to 44.5% in 2023, partially due
to the favourable developments in claims activity from prior underwriting periods.
Gross insurance operating expenses showed an increase from EUR 64.3 million
to EUR 74.6 million, mainly due to higher commissions payable as a result of
increased earned premium during the year, but also due to profit commissions
paid and sliding scale commission adjustments as a result of lower claims. The
gross insurance operating expenses ratio has increased from 38.6% to 40.0%.
The profitability during financial year 2023 was due to a combination of asignificant increase in revenue and positive development of claims in respect ofprior underwriting years.

41

11.9%

Atradius Management report | Business information

Surety(EUR thousands)

2023

2022

Insurance revenue

146,305

133,376

Gross insurance claims and loss adjustment expenses(21,543)(40,255)

46.5%

Gross insurance operating expenses(60,444)(50,116)(20.6%)

64,31843,004

49.6%(26,808)(16,106)(66.5%)

Result after reinsurance

37,51026,89739.5%

Gross claims ratio

14.7%

30.2%

15.5%

Result before reinsurance
Reinsurance result

Surety revenue by region
10.8%

2.3%

32.7%

26.7%

Italy
FranceNordic & Germany
Spain
Other
27.4%

Atradius Surety continues its profitable growth and in 2023 recorded arevenue of EUR 146.3 million (an increase of 9.7% compared to the previousyear). The increase in revenue is mainly thanks to new opportunities in
sectors different than the traditional construction industry (e.g. renewableenergy) and qualified new business.  
Despite the weaker economic outlook, geopolitical conflicts and spikes inenergy prices and inflation, claims remained moderately impacted andwell below the previous year. The claims ratio has significantly decreased
from 30.2% in 2022 to 14.7% in 2023, partially thanks to the favourable
developments in claims activity from prior underwriting periods.
Since the pandemic outbreak, in which the exposure dropped significantly,
we have been able to rebound and reach a new peak of EUR 30.2 billion(9.3% more than last year) with a better quality portfolio. This growth has
been achieved thanks to the smooth cooperation between the Business andFinancial Underwriting, which contributed to winning major deals andmitigating risks on more challenging cases.
While structural expenses continued to remain stable during 2023, total
operating expenses grew as the surety business increased investment indigital transformation programmes which aim to provide a modern state of
the art user journey and experience for both customers and partners.
Surety´s technical result has reached EUR 64.3 million (before reinsurance) ora gross margin of 44.0%.
Despite the economic uncertainties, Surety maintains its strong financial
position, solid growth and risk profile which we also aim to pursue in theyears to come.

42

9.7%

Atradius Management report | Business information

Services(EUR thousands)

2023

2022

Service income (1)95,64586,24810.9%Service expenses(78,987)(77,405)(2.0%)

Service result

16,659

8,844

88.4%

(1)

Overview includes intersegment revenues.

Service revenue
19.6%

Information
servicesC ollections & Other
80.4%

Our services segment comprises our debt collection operations, the Dutch
State Business and our information service businesses. It achieved an
excellent result in 2023, with an overall good performance throughout thedifferent services. Atradius Collections saw an excellent year of commercial
development, geographical expansion and revenue growth.

Debt Collection
Our collections services unit, Atradius Collections, helps our credit-insured
and non-insured customers recover domestic and international trade debts
while maintaining good business relationships with their clients. We havebuilt an enviable reputation, becoming the global trade invoice collector of
choice, leveraging the strength of our core credit insurance business with its
integrated international network. After opening new offices in Dubai andPortugal in recent years, Atradius Collections has expanded its internationalpresence into the Balkan region. The acquisition of the Pro Kolekt Group
enables us to provide local debt collection services to customers in Bulgaria,
Romania, Slovenia, Croatia, Serbia, Bosnia & Herzegovina and North
Macedonia. It supports our long-term goals, aligning our vision of delivering
local expertise in accounts receivable management across the globe.
We offer a single point of contact for all debt collection cases and worldwide
collections expertise ‘on the ground’ through a presence in 40 countries,
covering 96% of all countries worldwide through a global network ofcollectors, lawyers and insolvency practitioners.
The acquisition of the Pro Kolekt Group strengthens the Atradius credit
insurance offer in the Balkan region with local debt collection andinformation services, enabling Atradius to provide an end-to-end credit
management solution to our customers. Debt collection and credit insurancecomplement each other as they are counter-cyclical, with the collection
service picking up as the economy deteriorates. In contrast, credit insurance
prospers more in a benign environment.

43

Atradius Management report | Business information

The challenging economic climate continued during 2023, after many
governments halted COVID fiscal support packages, which resulted in an
increase of insolvencies globally. After two years of decline during the
pandemic years, in the majority of countries there is a significant increasein overdue accounts receivable and non-payments. The global economy isperforming better than expected at the start of the year however, the full
effect of monetary tightening on demand has been felt. High inflation levels
led to higher interest rates, thus affecting consumer and business confidence.  
Through a focus on product and risk diversification, Atradius Collections
has generated service revenues of EUR 63 million in 2023, representing an
increase of 28% compared to 2022. Our efforts in the preventive services
product(s) have proven viable and supported our growth. Our customers
are loyal and support our dedication to continuous improvement of service
delivery with an overall customer satisfaction score of 8 out of 10.
Atradius Collections continued its international expansion with theacquisition of Pro Kolekt, in line with our mission to support our customers
growth, wherever they trade in the world, by delivering local expertise inreceivables management.

Atradius Dutch State Business
The technical results for the account of the Dutch state were positive
throughout 2023 as Atradius Dutch State Business (ADSB) provided cover for
risks related to infrastructure projects, the export of capital goods, services tobuyers in countries outside the Netherlands, as well as cover for political risks
related to investments in other countries.
ADSB also continued to cover development-relevant investments and export
contracts in selected medium-income and lower-income countries, which
benefit (local) SMEs. We provide this service within the framework of the
Dutch Good Growth Fund.
The Dutch Trade and Investment Fund enables ADSB to provide cover oninvestments and export contracts up to EUR 5 million, for which financial
support by commercial banks is not available. By discounting bills of
exchange, ADSB can also finance these contracts.  

Information Services
Iberinform, our information service companies in Spain and Portugal,
continued to support our insurance business in the Iberian markets,demonstrating stable revenue performance.

44Atradius Management report | Business information

Our people
The world around us is changing at a
rapid rate.
Until now, Human Resources (HR) could perform the day-to-day activities in a
relatively stable environment, allowing us, together with the business, to work
gradually towards a future and slowly adapt to new requirements. Currently, an
impressive number of developments are emerging, affecting our future and thefoundation of our work.
Our employees are at the centre of our business. We have stood strong despitechange thanks to our employees’ expertise and reliability. Their resilience andcommitment to our company meant that we could see the challenges in 2023 asopportunities to gain experience and grow. As an employer, we aim to provide
a positive employee experience, focusing on keeping our people motivated andengaged. We believe in creating an environment where everyone feels included
and free to be themselves.
One of our main activities in 2023 was to start rethinking and adapting our
HR strategy to reflect the challenges of today – talented employees leaving thecompany, technological advancements, and sustainability. We needed to adapt
our HR strategy to our goals and therefore defined three strategic pillars to
improve today and prepare for tomorrow and the near future. We want to be
an attractive employer, enable our employees to reach their potential and be
resilient for the future, while we evolve our culture.

Attractive employer
As an answer to the basic needs of our company and employees, we want to be
an attractive employer, focusing on employee retention and attraction. We do
this by being the employer of choice for our (future) employees by providingthem with up-to-date and attractive employment conditions.
Attraction and retention of talent was a key strategic pillar in 2023 for Atradius.
We continuously attract the right employees, take care of a good onboarding,and implement the appropriate up-to-date conditions to be able to do so. By
optimising these core activities, we stay on top of the game and can meet theneeds of Atradius and our employees.
In 2023, we had a retention rate of 91%. This is higher than in 2022 where
this rate was 90%, further increasing our already high retention rate. Thus,
indicating that our efforts to attract and retain our employees and keepa positive work environment are on track. Our constant efforts towards
recruitment and onboarding are effective, suggesting our new hires are a good
fit for the company and they receive the support they seek.

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In line with our value of continuous improvement, in 2023, we continued
to improve our global online onboarding journey, which we launched in
February 2022. Moreover, France and The Netherlands have created their
online country onboarding process. More countries will follow next year.
Additionally, an online toolbox for managers was created to facilitate andstreamline the onboarding process internally. We piloted a Buddy Programmein three countries to help new hires adjust to their new work environment,
the company culture, and their specific goals. The aim in 2024 is to offer thisprogramme globally to all our new joiners worldwide.
In terms of attracting talent, we have the Employee Advocacy Programme – a
programme aimed at encouraging our employees to share Atradius content
on social media. It is currently used to share our vacancies on our employees’
network to increase the reach. We have also given special attention to making
our vacancies appear gender-neutral and have included an ‘equal opportunity
for all’ statement in our job postings. Additionally, our employer branding was
improved on all our career sites, enhancing the look and feel of our website,
including inspiring videos regarding the Atradius culture while promoting
the position.

Enabling employer
In HR, we ensure attractive conditions and aim to continuously provide our
employees with the right career and development opportunities. We focus on
the opportunities that fit with the changing context in which we operate. This
helps us become an enabling employer.
Having the opportunity to develop and being offered a clear career
perspective is particularly important to help our employees in the current
competitive business environment. The feeling of making progress intheir development and career highly contributes to the satisfaction of ouremployees.
At Atradius, we encourage employees to determine their own set of personalgoals and work on their development and career accordingly. As HR, together
with management, we do our utmost to support and facilitate this journey.
All employees receive annual appraisals and participate in either regular
one-to-one meetings with their manager or team meetings to review theirperformance. They can discuss the challenges they face and set new goals.
The results of our Employee Engagement Survey in 2022 showed that careerdevelopment and personal development were one of the few topics we scoredbelow the external benchmark. In May 2023, we conducted an Employee
Development Survey to gain a better understanding of the development needs
and learn from current experiences. Over 2300 employees participated in
the survey. The question “career development is important to me” scored 8.3
and the question “feedback from others is important to me when it comes tocareer development” scored 7.9. These results indicate that we all find careerdevelopment to be an especially important topic and both feedback andknowledge sharing are essential.
In recent years, we have continued to make important steps in facilitating
development. The Atradius Academy aims to make learning accessible
to all via various (virtual) learning and development opportunities suchas e-learning courses, webinars, classroom training and development
programmes designed in a hybrid fashion with both online and in-person
sessions. Additionally, all new employees must complete our suite ofcompliance courses.

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A key component of future-proofing Atradius and Shaping Tomorrow Together(our global initiative to prepare employees for digital change) is to stay up
to date with recent technologies and innovations. To facilitate this, we haveinvested in training and development courses on Office 365 tools and offeredvarious in-house webinars on the various internal IT systems and apps wedeveloped as part of the Digital Ambassador Programme. These webinars haveeach reached over eight hundred employees across our offices.  
The continuous increase in offerings from the Atradius Academy,complemented by local and unit-level training, ensures all our employees areoffered a large variety of learning opportunities per year. This year the averagelearning hours per employee was 20.3 hours (compared to 16.6 hours in 2022),with men (19.4 hours) and women (21.2 hours) spending a similar amount oftime developing themselves. Three years ago we set an internal target to ensureeach employee spends at least 20 hours on learning per year, which we have
now reached.

Sustainable employer
As a sustainable employer, we ensure the long-term well-being of ouremployees so that together we are fit for the future. We do this consideringsocietal and demographic changes.
Our employees’ well-being and vitality are of primary importance. We offer
various organisation-wide well-being and vitality initiatives to ensure our
employees take the time to focus on themselves and keep a positive work-lifebalance. We believe that continuous efforts to evolve our company culture havea positive impact on the mental health and well-being of our employees.
In 2023, we continued the third year of our Growth Programme with two
sessions: one on personal development and the other about feedback. Thisis part of our three-year programme where, in 2021, we focused on personal
well-being and the importance of having a good balance in a challenging
environment. In 2022, we focused on gaining an overview and focus andbuilding strong teams in the new hybrid-working world. Topics included
managing workload, goal setting and how to create a dream team. As the wellbeing of our employees is extremely important to us, well-being initiatives willcontinue next year.
In today’s world, the active engagement and acknowledgement of diversity,
equity, and inclusion (DEI) is essential. We have created a multi-year action
plan to obtain a more diverse workforce and an inclusive work environmentthat stimulates life-long learning, provides flexibility and is in line with thecompany’s ESG initiatives. The action plan addresses this topic in recruitment,
hiring, training, salary development and promotions.
One sub-action of the multi-year action plan is to offer an Unconscious Bias
in Recruitment course for all hiring managers. This course was created asa follow-up to last year’s webinar series on diversity and inclusion, raisingfurther awareness on the topic and including a guide on how to use more
inclusive language. We have also piloted a Female Sponsorship Programme tohelp improve female career progression and expand the talent pool available
for senior positions. As already mentioned, we have made our vacancies appear
gender-neutral and all postings include an ‘equal opportunity for all’ statement.
Efforts on this action plan will continue during the coming years in line with
our Sustainability Master Plan outlined in the ESG Chapter on page 53.

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Evolving our culture
To be an attractive, enabling, and sustainable employer, we find it especially
important to strengthen our culture. We do this via Evolve+, our multi-year
cultural programme. Since 2017, the Strike initiative has been taking place- a group-wide sales competition helping build and support our growing
competitive spirit and actively encouraging proactivity and agility. In May
2023, a winners’ event was hosted in Madrid to celebrate the Strike League
winning teams from 2022. The teams were recognised for their contribution,commitment, and dedication to the winning of new business, and thesignificant contribution they made to our Strike targets.
Another Evolve+ initiative is the Happy Holidays Video – a yearly Atradiusbranded Seasons Greetings video to share with customers and partners. The
video highlights our offices around the world to display our culture and bringforward our international community.
Atradius Cares, under the Evolve+ initiative, was introduced in 2017 toshare our resources charitably and give back to society. This applies to ourcommercial stakeholders, the wider community and the environment. Overthe past years, various events have been organised locally by our colleagues
around the world. Participating in these initiatives encourages team spirit
and reinforces positive and sustainable values while contributing positively
to society. It contributes to our direct community and environment, and it alsobroadens personal horizons. Detailed information can be found in the ESG
chapter on page 53.

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Risk and capital –managing and adapting
to changes
As a global insurance company, Atradius
is exposed to constantly evolving risks,
due to the nature of our business andthe continuously changing environment.
We mitigate these with a strong andadaptable approach to risk and capitalmanagement but at the same time
recognise they provide an opportunity
to learn and grow, to “rethink” ourapproach.
We group the main types of risk into four classes: insurance, financial,strategic, and operational. Insurance risk, or underwriting risk, is mainly
the risk of non-payment by a buyer, covered by a policy (credit insurance), or
the risk of non-performance towards a customer (bonding). Financial risksarise out of developments in the financial market and with counterparties including market risk, credit risk and liquidity risk. Strategic risks relate tochanges in the business environment. Operational risks are the risk of loss
arising from inadequate or failed internal processes, personnel, systems, orfrom external events.
This high-level categorisation is not exhaustive. We also focus on
Environmental, Social and Governance (commonly referred to as ESG)
risks that are described in more detail in the respective section of thisreport. Important concepts are sustainability, integrity, transparency, and a
responsible attitude to carrying out activities.
During 2023, Atradius addressed multiple developments in the global risklandscape combined with an increased focus on ESG issues.

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Risk management framework
The Boards of the Groups companies are ultimately responsible and accountable
for risk management and internal control within their respective companies.
The Management Board implements and oversees Atradius’ group-widerisk governance through the Risk Strategy Management Board (RSMB) andcommittees that support and report to the RSMB. These committees operate in
specific risk-related areas such as underwriting of buyer exposures, country risk,
provisioning, asset management and investments, reinsurance, quantitativemodelling, and approval of new products and transactions. In addition, ourpeople have well-defined authorities specifying the level of risk they are allowed
to accept. This framework ensures that we assume and manage risks in acontrolled way, in line with the risk appetite and risk profile of the company.
Risk appetite is the aggregate level of risk that Atradius is willing to assume andmanage within a determined period of time. We act to maintain and improve
our risk profile that is split into the specific risk categories of Underwriting Risk,
Financial Risk, Strategic Risk, and Operational Risk.
Atradius uses various operational tolerances and limits for different types ofrisk that are embedded in the Company through its risk governance structure.
These include:•	
Solvency Capital Requirement (SCR): SCR Ratio, SCR max, thresholds andrespective monitoring• Strategic asset allocation for investment assets• Limitations on exposure or cover terms for countries and industry sectors• Group and individual buyer exposure limits• Credit risk limits (e.g. for reinsurance, deposits)• Policy and risk underwriting authority levels.
For the description of the main risks and uncertainties, and how we manage
them, please refer to Note 4 of the consolidated financial statements.

Underwriting risk
In 2023, we maintained sufficient commercial and risk underwriting resources
to address the rapidly changing circumstances globally and particularly inthe countries and trade sectors where we provide services. We maintain andimprove the quality of our portfolio by our prudent and professional policy andbuyer underwriting. We measure and monitor our portfolio through a set ofrisk metrics such as: Country Ratings, Buyer Rating and Risk Acceptance. At thesame time, we communicated and explained our actions to our stakeholders(customers, brokers, reinsurers, regulators, shareholders and employees) toensure transparency and to steer the business.

Financial risk
We maintained a diversified portfolio of investments, closely monitored, andmanaged according to strategic asset allocation parameters. The investment
portfolio remained concentrated around high-quality fixed income assets,
without exposure towards structured investments or derivatives. We ensured
sufficient cash liquidity for any given circumstance by investing in liquid assets
and maintaining a short duration within the fixed income investment portfolioand supported this with a credit facility for the unlikely event of a liquidity
crunch. The impact of exchange rate fluctuations has been limited as revenue,50

Atradius Management report | Business information

expenses, assets, and liabilities within our non-Euro operations are generally
denominated in the same currencies.
Our credit risk, the risk of non-payment by banks, policyholders, orcounterparties, is low. This risk is limited and well spread; in addition, we
have reinsurance contracts with a panel of strong and well-rated reinsurers.

Strategic risk
Strategic risk arises from changes in the business environment and fromadverse business decisions, improper implementation of decisions, or lack of
responsiveness to changes in the business environment. It is the risk related
to strategic planning, market developments and reputation.
Atradius manages strategic risk exposures based on an evaluation of thelikelihood of the risk materialising and the impact should that event occur.
It includes those risks that senior management consider having the highest
overall magnitude.

Operational risk
In 2023, Atradius continued to successfully manage various types ofoperational risk. Inherent operational risks related to all activities undertaken
by Atradius are managed within our internal control system via policies,
procedures and periodic risk and assurance activities. These activities adapt
as new risks are identified or existing risks evolve. Notwithstanding theabove, there are risks identified that merit additional focus.
Evolving cyber threats were recognised, especially related to AI, phishing,ransomware, denial of service and fraud, which highlight the increasing
monetisation of cyber threat against financial services companies throughinsufficient technical controls and user error. Consequently, we haveincreased our cyber risk-management, as part of a Cyber Security Strategy,
to further improve governance, protection, resilience and vigilance acrossAtradius.
Other IT related risks are recognised but these are considered less material
and addressed by existing IT General controls. These deal with the inherent
IT risks faced by Atradius and cover topics including infrastructure,
configuration management, physical security, disaster recovery, data integrity
and service quality.
A team comprising employees from various locations across our company,
monitors the activity of customers and buyers to detect indications ofexternal fraud. Internal fraud is addressed through manual and automatedoperational controls.

Risk and capital
The relationship between risk and capital is fundamental, as taking risk
consumes capital. Strategic decisions are taken with the interdependence ofrisk and capital in mind.
These strategic decisions are substantially informed by the outcomes ofour bespoke economic capital model, which was developed in house. Thismodel contributes to a multitude of risk assessment and measurement
activities. It enhances our ability to manage and monitor risk levels within theorganisation through the allocation of risk-based capital.

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In 2023, the use of the internal model was important for the management of ourrisk profile given the model’s ability to react quickly to increasing number ofchanges in the portfolio and environment. In addition, the model continues to be
used to calculate regulatory capital requirements under Solvency II.

Atradius compliance framework
At Atradius, we believe that compliance with relevant laws, rules, and regulations,and maintaining a high standard of ethics and integrity, leads to lower operationalrisk and stable business processes. The Atradius Code of Conduct outlines thebasic corporate, legal, and ethical principles and guidelines that apply to all our
employees. The Code of Conduct also governs our operations and business conduct
towards customers, brokers and all parties involved in Atradius’ business. The
Atradius Speak-Up Procedure gives guidance on how to raise concerns regarding a
violation or breach of the Code of Conduct in a confidential manner. Atradius also
has several additional compliance policies to address specific areas, for example
the Policy on Customer Due Diligence and the Policy on Sanctions amongst others.
Atradius has a Data Protection Framework in place, which includes controls, policies,
and procedures to comply with the applicable data protection legislation. All thecompliance policies are available to employees and reviewed on a regular basis.
The compliance function supports the management of Atradius in meeting our
objective of being compliant with applicable laws, rules, and external and internal
regulations. The Group compliance function is responsible for the maintenanceand overall effectiveness of the compliance framework at Group level, whilst
local compliance functions monitor regulatory compliance developments at local
country level.

Capital management
We seek to maintain a strong capital position and well-capitalised operating entities
in line with our defined risk appetite. This helps to support the evolution of our
insurance business, to withstand financial stress in adverse business and financial
markets, to meet our financial obligations and, to create shareholder value.
Shareholders’ funds and Subordinated debt(1)We maintain a strong capital position, building further our capitalisation thanks
to high retained earnings in 2023. Shareholders’ funds at the end of 2023
amounted to EUR 2,784.7 million, an increase of 11.6% from EUR 2,495.2 million at
year-end 2022.
Subordinated debt at the end of 2023 amounted to EUR 250 million (nominal
amount), unchanged from year–end 2022. The EUR 250 million nominal amountrepresents subordinated notes listed on the Luxembourg Stock Exchange, which
qualify as Tier-2 basic own funds for Solvency II. The issuer Atradius Finance B.V.
has the option to redeem the notes in whole, but not in part, on the First Call Date
(23 September 2024) or on any Interest Payment Date thereafter. No decision has
been made yet to redeem the notes. For further details, please see Note 20 of theconsolidated financial statements of the Annual Report 2023.
Regulatory capitalAt the end of 2023, Atradius’ companies collectively held a solvency ratio above
200% (unaudited).
We apply a partial internal model (consisting of an internal model to measure
substantially all underwriting risk exposure and the regulatory standard formula
to measure other risk types) to calculate regulatory capital requirements under
Solvency II.
(1)

Amounts mentioned in this paragraph are based on Note 20 in the Financial statements

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Environmental, socialand governanceIn recent years, there has been aparadigm shift in how businesses
approach sustainability and ESG(environmental, social, governance).
The incorporation of environmental, social, and governance (ESG) factors
in a company’s business model, partially due to the growing pressure fromstakeholders and partially driven by looming regulatory initiatives, ischanging the perspectives of companies.
Rethinking business through an ESG lens involves considering not only
financial performance but also the contribution to environmental protection,social equity, and robust governance structures. This holistic approach aims tocreate long- term value and align business strategies with the UN Sustainable
Development Goals.
In recent years, Atradius has focused in developing Environmental, Social,and Governance (ESG) initiatives to reflect the company’s commitment tosustainability.

Good governanceAtradius aims to make sustainability central to their vision by anchoring it into
their purpose of managing risk and enabling trade.
In 2022, we created a dedicated ESG Committee chaired by our CFO Claus
Gramlich-Eicher. The Committee is composed of members of our leadershipteam from various business areas and group functions, and has been set up to
structure our various ESG initiatives.
In 2023, we also recruited a Head of ESG, who is responsible for promoting,
driving, and coordinating the ESG initiatives globally as well as for overseeing
the operational management of sustainability across our different international
businesses.
Additionally, this year Atradius approved its sustainability policy in line with
GCO’s public policy which defines the Atradius’ approach towards sustainability.
In addition, Atradius has a Human Rights statement with the aim of adapting itto the provisions of the United Nations’ Universal Declaration of Human Rights
and in accordance with the principles and values of the Group’s Code of conduct.

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We believe in a
future built uponsustainable global
trade with positive
outcomes forpeople and theplanet.

Atradius Management report | Business information

Sustainability Master Plan 2024-2026
In 2022, we formalised our sustainability ambitions based on three pillars People, Planet and Prosperity, which have guided our actions in the current year.
In 2023, together with GCO, we carried out a materiality assessment following
the new European Corporate Sustainability Reporting Directive (CSRD) approach.
The CSRD implies the incorporation of the double materiality approach, which
identifies and prioritises the sustainability aspects based on, (1) the impactthat Atradius’ activities have on the environment and its stakeholders (impact
materiality), and (2) the impact that the environment and its stakeholders
have on Atradius´ activities from a risk and opportunity perspective (financial
materiality).
The process included interviews with relevant functions of Atradius as wellas internal and external surveys, complemented by global peer, trend, andregulatory analyses.
The outcome was integrated into a new Sustainability Master Plan 2024-2026
which is structured into 10 strategic lines related to 4 pillars: Environmental
Responsibility, Social Commitment, Good Governance and Sustainable Business.
Promoting sustainability awareness
Atradius has developed several programmes including education sessions
for senior management to promote a culture of sustainability within theorganisation and ensure that employees are well-informed.
This started last year with the launch of our mandatory sustainability
e-learning on the Atradius Academy Learning Management System.
In 2023, we also launched the Sustainability SharePoint which contains
details about our own sustainability initiatives and general information on
ESG and sustainability.
International Commitments  
Atradius supports the ten principles of the United Nations Global Compact
on human rights, labour conditions, the environment and anti-corruption
and reports on this annually, via our parent company GCO. As part of GCO,
Atradius is also a signatory to the UNEP-FI Principles for Sustainable
Insurance and UNPRI Principles for Responsible Investment.
Recognitions
In 2023, Atradius was awarded the bronze medal from EcoVadis inrecognition of our sustainability that place us in the top 50% of companies
assessed by the provider of business sustainability ratings.
According to Moody’s, Atradius’ ESG Credit Impact Score is neutral-to-low(CIS-2), reflecting the limited credit impact of Environmental and Social risks
on the financial strength rating (‘A1’ outlook stable).

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Environmental responsibility
Atradius has a global presence operating in more than 50 countries through a
network of 98 offices varying in different sizes.
In most countries, Atradius leases offices either as a single tenant or rents
spaces within a multi-tenant building. We collaborate with the landlords tolower our carbon footprint and support our sustainability goals.
Atradius has developed Corporate Real Estate Standards (CRES), which
include ESG goals for energy saving measures and new procurement
procedures when sourcing for new office locations. Atradius has also
introduced hybrid working, reducing the amount of office square meters from102.629 square meter in 2019 to the 84.972 square meter in 2023 already, andin progress to future optimalisation.
Energy consumption and energy efficiency measures
Currently, 9 buildings where Atradius has offices hold sustainable building
certificates. When sourcing new office locations, our specifications always
include criteria to maximize sustainability, seeking certifications such as
ENERGY Star, BREEAM, and LEED.
In an effort to reduce energy consumption, Atradius is implementing various
energy efficiency measures. These include replacing existing lighting withmore energy-efficient and environmentally friendly LED bulbs, installing
motion-sensitive lighting systems, and adjusting lighting schedules to alignwith office hours. In 2023, the total electricity consumption reached 9.526.636
KWh, with around 40% sourced from renewable energy. In 27 offices, 100%of the electricity consumed is guaranteed to be of renewable origin. The
remaining energy consumption, generated by facilities through stationary
combustion, amounted to 548 tonnes of CO2.
Local actions have also been developed to promote sustainable practices, forexample in France an energy challenge was organised on each floor of thebuilding throughout 2022, with rewards distributed to the floor that had used
the lowest amount of energy in 2023.
Paper and waste
We have put measures in place to assess and minimize the resources wepurchase. This includes managing materials categorised as waste spills,
hazardous waste such as electronic batteries, PCs, and electronic printing
materials. We also responsibly dispose of old phones, laptops, screens, andother electronic devices. Through these initiatives, we aim to significantly
decrease the company’s environmental footprint.
Furthermore, we consider waste minimisation during office refurbishments,
reusing and recycling materials wherever possible.
In 2023, our paper usage resulted in emissions amounting to 44 tonnes of
CO2 and 23% is recycled paper. Furthermore, demonstrating our commitment
to sustainability, we set a target to source 100% of our paper from recycledmaterials in the coming years, ensuring they hold eco-certifications such as
the Forest Stewardship Council (FSC).

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TravelIn 2023, we revised our internal travel policy, incorporating new ESG
recommendations to encourage environmental consciousness and responsible
behaviour. The updated policy advises minimizing air travel, especially for
distances under 500 kilometres or travel times less than four hours. In the same
year, our business travel activities resulted in 3025 tonnes from air travel and 80
tonnes from train travel. Additionally, our company car fleet contributed to 1162
tonnes of CO2 emissions.
The Group Company lease car policy is expected to be published in early 2024with a more focus on ESG by limiting emissions to a maximum of 120 grams/km
and applying an incentive to hybrid and electric cars, 5% and 10% increase in thelease amount at the time of replacement, respectively.
In terms of commuting journeys, a sustainable mobility model will continue to bepromoted with the installation of electric car charging stations near the offices, like in
the UK, Denmark, Norway, Sweden, The Netherlands, Germany, Belgium, and France.
In addition, Atradius Belgium has undertaken initiatives to promote newalternative means of transportation, such as the inclusion in company benefits of
the reimbursement of bike sharing use in Antwerp or the free use of four electriccompany bikes as new ways of getting to work and reducing emissions.

Social commitments
At the close of 2023 Atradius’ workforce stands at 3499 employees, of which
49% are women.
Diversity, equality, and inclusion
Atradius promotes gender equality and diversity through the Code of Conduct
and the Human Resources Policy. In addition, we developed a Human Rights
statement in 2021.
In 2022, we designed a multi-year action plan to create a more diverse workforce
and inclusive work environment which among other initiatives included
targets to increase the presence of women in middle management as well as
the reduction of our gender gap. The actions will maintain continuity in our
Sustainability Master Plan for 2024-2026 with further development to be
implemented to comply with the EU Pay Transparency Directive.
In 2023, 33% of all managers (31% in 2022) and 25% (24% in 2022) of our senior
management were women (including our leadership team). As positions within senior
management become available, Atradius will continue to keep its culture of diversity at
the centre of hiring practices with increasing the number of women in senior positions.
As the women within Atradius are equally representative of the high calibre of humancapital within the company, we expect that within four years they shall represent atleast 22% of the Supervisory Board (11% in 2023), 17% of the Management Board (0% in2023) and 26% (25% in 2023) of our sub-top-level positions.
We continued to monitor the gender pay gap. Several factors come into play whenmeasuring pay gaps such as years of experience or the different average salary bycountry. In 2023, the pay gap calculated as average remuneration ratio Women/
Men was 0.93 in the category Senior Management (stable compared to 2022) and
0.82 in the category Middle Management (0.84 in 2022).
These actions were complemented by courses and webinars on inclusive
language, intercultural communication, and unconscious bias to raise further
awareness on the topic.
More information can be found in the HR section on page 45.

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We value therichness ofgenders, races,
cultures andpersonalities.

Atradius Management report | Business information

Employee well-being programme
Atradius is promoting new ways of working and is implementing measuresaiming at facilitating and improving people’s work-life balance.
In 2023, we continued the third year of the Growth Programme with two
sessions: one on personal development and the other on feedback.
Since July 2021 Atradius introduced a hybrid working model that combines
the advantages of working in the office and of working at home, allowing
employees to work 40% of the working week remotely. The model provides
a groupwide common framework, while also offering flexibility for local
adaptations linked to local legislation, Collective Labour Agreements, andcurrent local practices.
Contribution to local communities
In 2023 Atradius’ employees coordinated various local campaigns andactivities to support local causes through partnerships with local charities andemployee volunteer programmes.
HealthAtradius actively engages in charity races to raise funds and awareness fordisease prevention. For example, in 2023 Atradius Italy participated to “Racefor the Cure” a sporting event for women’s health that supports breast cancer
organisations and hospitals and Atradius France in “Les foulées de l’assurance”
for the prevention of cardiovascular diseases. Additionally, Atradius UK and
Ireland have supported the Alzheimer´s Society, the chosen charity of the year
via bake sales, charity events, and choir concerts throughout the year.
Finally, for the ninth consecutive year Atradius Amsterdam has taken part in
the Amsterdam City Swim, an event where swimmers raise money to help fundthe research into treatments for the ALS (Lou Gehrig’s disease).
Toy collection and donation were organized by the employees of AtradiusFrance to support the activities of Ti’Clown, an association that helps children
live better in hospital and regain their status as children despite their illness.
Environmental awarenessThrough the World Clean-up Day, Atradius volunteers participated in cleanup drives, collecting rubbish both on land and in the sea. In 2023, 140
colleagues from 17 different countries/regions participated in picking up 190
kilos of waste.
Atradius Belgium has launched a new trend of end-of-year gifts for its
employees and donated 5 trees for each colleague in the Atradius forest in
Evelette. A total of 1500 trees were planted in 2023.
We developed local actions to involve our customers in our sustainability
efforts; in 2023, Atradius Germany invited 15 customers to plant 4-meter-talltrees in Kevelaer, Germany, with their account managers.
For any registration on our platform view, a new tool offered to our customers
in Spain, Portugal, and Brazil, Atradius delivers water filters to the NGO The
Social Water, for the purification of polluted waters.
Solidarity and social inclusion
Atradius Vietnam donated used computers to Thien An Shelter (MATA), a social
protection institution established to help the visually impaired youth accesseducation and learn skills needed to integrate into the society.
Several countries such as Spain and the Netherlands have a long-standing
participation in donating to local food banks.

57

Atradius Management report | Business information

Sustainable business
Sustainable investment
Atradius has updated its Policy to include sustainable investment principles
in the management of its financial investments.
The policy includes the incorporation of ESG considerations into the analysis
and decision-making processes in terms of investment management:
Exclusion principles:  
Exclusion of companies in which part of their activity is carried out in certain
economic sectors, which are involved in controversial activities or in thosecompanies with a high ESG risk score , as measured by an external provider.
Integration principles:
Investment in projects aimed at the transition towards a low-carbon economy,
which is more resource-efficient and more sustainable, are progressively
increased and/or investments in projects aimed at achieving the social andenvironmental objectives, in line with the priorities set out in the Group’s
Sustainability Master Plan.
In 2023 we achieved the target of ensuring 10% of our investments were
sustainable or delivered sustainable impacts.
ESG Rating Pilot
In 2022, we conducted customer surveys and interviews to develop
a more accurate understanding of the customers’ needs in relation tosustainability and the role that we can have as a credit insurer. As a result,in 2023 we kicked-off several pilots. One in particular was focused on
developing in-house knowledge and insights of how ESG drivers and topics
translate themselves into credit risks, and to which degree companies’ ESG
performance is linked to their own creditworthiness. Once we have developed
this insight, we can support our customers to navigate through the ESG-linked
credit risks.
The pilots conducted also highlight that, considering the limited availabilityof ESG information, reports and scores in the market at the moment, it is safe
to say that we are at the beginning of this journey. Our expectation is that
more companies will start gathering data in 2024 already so they can publish
sustainability disclosures and reports as of 2025 following coming into effectof the CSRD for a number of companies, and the information will become
more readily available in a standardized and audited form, so we can build
reliable data models and insights.

58

Atradius | Company financial statements 2023 Atradius N.V.

Consolidated financial
statements 2023
Contents
Consolidated statement of financial position ....................................................................................................................................................60
Notes to the consolidated financial statements
1		General information .......................................................................................................................................................................................... 65
2 		Summary of significant accounting policies .............................................................................................................................................. 65
3 		Critical accounting estimates and judgements in applying accounting policies ............................................................................. 96
4 		Risk and capital management .....................................................................................................................................................................108
5 		Segment information...................................................................................................................................................................................... 129
6		Intangible assets ............................................................................................................................................................................................. 134
7 		Property, plant and equipment and Investment property .................................................................................................................. 135
8 		Subsidiaries ........................................................................................................................................................................................................ 135
9 		Investments in associated companies ....................................................................................................................................................... 135
10 		Financial investments .....................................................................................................................................................................................140
11 		Receivables ........................................................................................................................................................................................................ 141
12 		Deferred acquisition costs .............................................................................................................................................................................142
13 		Miscellaneous assets and accruals .............................................................................................................................................................144
14 		Cash and cash equivalents ............................................................................................................................................................................ 147
15 		Capital and reserves ........................................................................................................................................................................................150
16 		Subordinated debt ........................................................................................................................................................................................... 165
17 		Employee benefit assets and liabilities .....................................................................................................................................................16818 		Insurance contracts .........................................................................................................................................................................................168
19		Provisions ...........................................................................................................................................................................................................168
20		Deferred and current income tax ................................................................................................................................................................16921 		Payables .............................................................................................................................................................................................................. 170
22 		Other liabilities .................................................................................................................................................................................................. 175
23 		Net premium earned ........................................................................................................................................................................................17724 		Service and other income ...............................................................................................................................................................................17725 		Net income from investments ..................................................................................................................................................................... 178
26 		Insurance claims................................................................................................................................................................................................18027 		Net operating expenses .................................................................................................................................................................................18028 		Finance expenses ............................................................................................................................................................................................. 181
29 		Income tax ......................................................................................................................................................................................................... 18130 		Dividends per share ........................................................................................................................................................................................ 181
31 		Assets not freely disposable.......................................................................................................................................................................... 181
32 		Capital commitments and contingencies .......................................................................................................................................... 18233 		Held for sale ................................................................................................................................................................................................. 18234 		Personnel ...................................................................................................................................................................................................... 18235 		Related party transactions ...................................................................................................................................................................... 184
36 		Auditor fees................................................................................................................................................................................................... 184
37 		Events after the reporting period ......................................................................................................................................................... 184

59

All
All amounts
amounts inin thousands
thousands ofof Euro,Euro, unlessunless otherwise
otherwise statedstatedConsolidated statement offinancial position
As at December 31, 2023
AssetsNote

31/12/2023

31/12/2022

Assets held for sale32-

34,742

Cash and cash equivalents

6694,238

575,789

Receivables

7

124,381

96,638Other assets

8

191,481

164,083

Current income tax assets

986,01883,035

Deferred income tax assets

9

3,817

15,320Insurance contract assets

15776,751

739,636

Direct insurance contract assets

15

109,788

94,489

Reinsurance contract assets

16

654,132

634,015

Deferred acquisition costs

15

12,831

11,132

Investments in associates

12

88,81588,726

Financial investments

10

3,153,146

2,944,676

Investment properties

13

25,63325,947

Property, plant and equipment

13

190,223

180,880

Intangible assets

14

193,649

213,618

5,528,153

5,163,090

2,784,685

2,495,232

2,784,685

2,495,232

Total
EquityEquity attributable to owners

22

Total
Liabilities
Liabilities held for sale32-

21,851

Payables17

141,765

144,086

Other liabilities

18406,262

405,558

Current income tax liabilities

945,57873,194

Deferred income tax liabilities

9

122,755

84,178Insurance contract liabilities

15

1,722,984

1,626,324

Direct insurance contract liabilities

15

1,722,832

1,626,287

Reinsurance contract liabilities

16

152

37

Provisions

19

4,347

4,087

Subordinated debt

20

249,828

249,600

Employee benefit obligation

21

49,94958,979Total

2,743,468

2,667,858

Total equity and liabilities

5,528,153

5,163,090

60

Atradius
financialstatements
2023
Atradius
N.V. N.V.
Atradius || Company
Consolidated
financialstatements
2023
Atradius

Consolidated profit and loss
statement
for the year ended December 31, 2023
Note

2023

Insurance revenue

15.2

2,300,480

2,078,310

Insurance service expense27(1,623,291)(1,368,231)

Investment results

23(34,898)(17,126)

Net expenses from reinsurance contracts

16.3(261,067)(272,274)

381,224

420,679

Other income from ancillary insurance activities

24244,074

240,835

Net gains/(losses) on FVTPL
Net gains/(losses) on debt securities measured at FVOCI

25
25

20,16031,342(16,605)(9,575)

Other investment income

25

4,871

(244)

Net investment income

25

56,373(26,424)

Share of income/(losses) of associated companies

12

11,266

17,755

Insurance service result

Net insurance and investment result

2022

692,936

652,846

Other finance costs

26

1,323

1,481

Other operating expenses

27(200,431)(175,094)

493,828

479,233(119,061)(109,030)

374,766

370,203

4,314(41,102)379,081329,101

Owners of the Company

379,081329,100

Non-controlling interests--

Total result for the year

379,081329,100

Profit before income tax
Income tax expense

28

Profit for the year
Net result on held for sale operations

32

Result for the year
Attributable to:61All amounts in thousands of Euro,
Euro, unlessunless otherwise
otherwise statedstatedConsolidated statement ofcomprehensive income
for the year ended December 31, 2023
Not
Result for the year

2023

2022

379,081329,100-(2,977)

Other comprehensive income:Items that will not be reclassified to the profit and loss statement:
Revenue Reserve - Transition

22.6

Net gains/(losses) on investments measured at FVOCI

22.6

(37)

(6,292)

Actuarial gains/(losses) on defined benefit pension plans

22.5

11,10837,471

Income tax relating to items that will not be reclassified

22.5(3,031)(11,388)--

103,988(141,539)

45,505(8,738)-55(30,547)

59,508(23,455)

33,552Other comprehensive income for the year, net of tax

103,531(40,349)

Total comprehensive income for the year

482,612288,750

The owners of the Company

482,612288,750

Total comprehensive income for the year

482,612288,750

Items that may be subsequently reclassified to the profit and loss statement:
Net fair value gains/(losses) on available-for-sale financial investments
Net gains on investments measured at FVOCI reclassified to profit or loss ondilFinance expenses from insurance contracts issued
Indexation hyperinflation
Exchange gains/(losses) on translating foreign operations and associatedi
Income tax relating to items that may be reclassified

22.3
22.6

Attributable to:62

financial
statements
2023
Atradius
N.V. N.V.
Atradius | Company
Consolidated
financialstatements
2023
Atradius
Atradius | Consolidated financial statements 2023 Atradius N.V.

Consolidated
Consolidated
statement ofstatemchan
Consolidated statement of changes inequityt of equity
changes in equity
Atradius | Consolidated financial statements 2023 Atradius N.V.

forthetheyear
December31,
for2023
the year ended December 31, 2023
foryear
endedended
December31, 2023
Note
Balance at 1 January 2022

Attributable to the owners of the Company
Attributable to the owners of the Company
Attributab
Share
Share Revaluation
Currency
Pension
OCI Retained Result for the
Total
Total
Share
Share reserve
Revaluation
PensionShare
Share
OCI Revaluation-equityRetained RC
capital premium
reserve translation
Insurance Currency
earnings
year
reserve capital premium
reserve
Financereservetranslation
reserve
capital premium
Insurance
reserveearningstra
Expenses
Note
Note
79,122

639,228

IFRS9 & 17 transition
2.2.1
ers of the Company
BalanceJanuary2022
Balance
1 January
2022for the 79,122 639,228
ensionOCI- at 1 at
Retained
Result
Total
Dividends
29
eserveInsurance
earnings
year
IFRS9 & 17
transition
2.2.1
Total comprehensive income for the
Financeyear
Balance at 1 January 2022
Appropriation of prior year result
ExpensesDividends
29
Result for the year
5,082)
1,189,911
240,249
2,142,323
Other
income income for the
Totalcomprehensive
comprehensive
25,583- 79,122228,733
Balance
December 2022
639,228
year at 31264,653

5,082)
-

6,083
-

6,083
8,999)

8,999)
-

8,077
-

8,077
0,922)

25,583
1,454,564prior year
240,249
Appropriation
resultBalance
at 1 January of
2023(164,574)
Dividends
29Result for the year
Total comprehensive income for the
Other comprehensive income
year(8,738)231,034
88,851
Balance at
DecemberAppropriation
of31
prior
year result 2022
- for the240,249(240,249)
Resultyear

2,371,056

reserve (55,082)

110,854(61,503)(61,959)--

25,58349,351 at639,228
25,583 1,454,564
BalanceJanuary(55,082)
2022
79,122
110,854(61,959)
Total1(61,959)(164,574)
IFRS9equity-& 17 transition(61,503)
2.2.1(108,121)at639,228(8,738) (61,959)
231,034
Balance
79,122
1 59,642
January 26,083
202249,351
-

-

-

-

639,228

-

-

-

--

288,750-240,249

Dividends
292,142,323
Total
comprehensive
income forthe(108,121)
59,642
26,083(8,738)(9,215)
228,733(58,770)(2,317) (28,999)
16,845 1,521,025
year(108,121)
59,642

2,371,056
Appropriationof prior- (28,999)
year result(58,770)(2,317)
16,845(164,574)(164,574)- Result-for the year- -79,122

reserve

1,189,911
264,653

Other
comprehensive
income- 8,077(108,121)
78,909(28,923)
45,505
288,750
Balance
79,12231 December
2022(58,770)- at639,228- -1,521,025(193,160)-

59,642
329,063(2,317)329,100-

Other comprehensive income
329,100
Balance
1 January
Balanceat 31atDecember
2023 2023

78,909(28,923)
8,077
45,505(37)
329,100
329,100
79,122
1(31,240)January(20,922)
2023(58,770)(2,317)
79,122 639,228 Balance
20,138 at639,228
62,350 1,656,928(8,738)(40,349)(40,349)
Dividends (9,215)
29
Dividends
2916,845 1,521,025
329,100
2,495,232
2,495,232
Total comprehensive income for the
Total comprehensive income for theyear
year 78,909(28,923)
16,845
1,521,025
329,100
2,495,232
2,495,232
Appropriation of prior year result
Appropriationof prior
year result-- for(193,160)
Resultthe year
Other comprehensive income
45,505
329,063
49,981
Balance at
31 December 2023
329,100(329,100)
379,081-(193,160) Result(193,160)-for the yearOther comprehensive
income78,909482,612 Balance
482,61279,122at639,228
31 December 2023
20,138379,081

379,081

45,50562,350103,5312,784,685

103,5312,784,685(37)
1,656,928

379,08163(28,923)(31,240)

reserve
Finance240,249-

2,142,323
2,142,323
Expenses
228,733
228,733

240,249(55,082)
79,122 2,371,056
639,228 2,371,056- 110,854
1,189,911---(164,574)(164,574)

25,583-88,851
288,750
288,750(55,082)
79,122
639,228
25,583
1,454,564
49,351(240,249)
329,100--

329,100

26,083--

329,100(40,349)2,495,232-((164,574)-

329,100(40,349)(8,738)-2,495,232(108,121)
231,034

329,100 -- 2,495,232
- --

- -

(

(61,503)
264,653-2,495,232
240,249-(193,160) - (193,160)-- -26,083- 482,612(8,738)- 482,612(108,121)(9,215)49,981(28,999)
79,122 639,228
16,845
1,521,025(58,770)(329,100)
379,081

379,081

379,081

103,531103,531(28,999)
79,122 2,784,685
639,228
16,845
1,521,025(58,770)379,0812,784,685--- -(193,160)
-

8,077
-

45,505-78,909329,063--- -329,100
-

--

- -

- -

8,077
45,505(20,922)
79,122 639,228
62,35078,909(37)
1,656,928
20,138

(

(
(

All
Allamounts
amountsin
inthousands
thousandsof
ofEuro,Euro,unlessunlessotherwise
otherwisestatedstatedConsolidated statement ofcash flows
for the year ended December 31, 2023
Note

2023

2022

Operating activities
Insurance business

482,351

553,833(+) Cash received from insurance activities (Inflows):

2,862,435

2,610,139(-) Payments from insurance activities (Outflows):(2,380,085)(2,056,306)

Other business

66,29245,852(+) Cash received from other activities (Inflows):

224,315

251,635(-) Payments from other activities (Outflows):(158,022)(205,783)

Cash generated from operating activities

548,643599,685

Profit tax paidA) Net cash from operating activities(153,567)(136,319)

395,076

463,366

1,434,924

1,138,243

437

4,525

Investing activities
1. Cash received from investing activities (Inflows):
13
13(+) Property, plant and equipment(+) Investment property

-

401

2,659

15,180(+) Financial instruments

674,808

880,506(+) Investments in equity instruments

665,371

182,391(+) Intangible assets(+) Disposal of subsidiaries

6,002

-

(+) Interest received

63,89532,595

19,79919,58512(+) Dividends received(+) Other cash received in relation to investing activities

2. Payments from investments activities (Outflows):
13
13(-) Property, plant and equipment(-) Investment property

1,953

3,060

(1,505,616)(1,340,746)(34,371)(31,920)-

4,776(15,537)(6,406)(-) Financial instruments(708,744)(1,157,428)(-) Investments in equity instruments(743,349)(145,268)(-) Intangible assets(-) Other cash paid in relation to investing activities

B) Net cash from investing activities(3,615)(4,500)(70,692)(202,503)

Financing activities
1. Cash received from investing activities (Inflows):
2. Cash paid in investing activities (Outflows):
29(-) Dividends paid to shareholders(-) Interest paid(-) Subordinated liabilities

C) Net cash from financing activities
D) Effect of exchange rate changes
E) Net increase/(decrease) in cash and cash equivalents (A+B+C+D)
F) Cash and cash equivalents at beginning of the yearG) Cash and cash equivalents at end of year
Total variance

64

6

-

-

(216,125)(181,428)(193,159)(164,574)(23,195)(17,071)

228

217(216,125)(181,428)

10,192(3,039)118,450

76,396575,789

499,393694,239575,789

118,450

76,396

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Notes to the consolidated financial statements
1

General information

Atradius N.V. (‘the Company’), with its office at David Ricardostraat 1, 1066 JS, Amsterdam, the Netherlands, and its
subsidiaries (together referred to as ‘Atradius’) is a global credit insurer and aims to support its customers’ growth bystrengthening their credit and cash management through a wide range of credit insurance management products andservices. These services include credit insurance, surety, reinsurance, information services, collection services andinstalment credit protection. Atradius offers products and services from strategically located offices on six continents
and employed 3,525 people as at 31 December 2023 (2022: 3,426). The parent is Grupo Compañía Española de Crédito
y Caución, S.L., which owns 64.23% (equal to 2022) of the shares in Atradius N.V. The ultimate parent and the ultimate
controlling party of Atradius is Grupo Catalana Occidente, S.A., which holds 73.84% of the shares in Grupo Compañía
Española de Crédito y Caución, S.L. and 35.77% (equal to 2022) of the shares in Atradius N.V. The financial statementsof Atradius N.V. are consolidated within Grupo Catalana Occidente, S.A. (GCO), which is a listed company in Spain.
Atradius N.V. subsidiaries are subject to licensing requirements and supervision of their local regulators. Atradius
Crédito y Caución S.A. de Seguros y Reaseguros (ACyC) is the primary insurance company and is subject to thesupervision of the Spanish regulator, Directorate General of Insurance and Pension Funds (Dirección General de
Seguros y Fondos de Pensiones; hereinafter 'DGSFP').
The Atradius consolidated financial statements have been authorised for issue by the Management Board on 12 March2024 and have been reviewed by the Supervisory Board.

2

Summary of significant accounting policies 2023

The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all financial years presented, unless otherwise stated.

2.1

Basis of preparation

The Atradius consolidated financial statements are prepared in accordance with International Financial ReportingStandards (IFRS) as adopted by the European Union and also comply with Part 9 of Book 2 of the Dutch Civil Code. The
Atradius consolidated financial statements are prepared based on going concern.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Atradius accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements, are disclosed in Note 3.
The profit and loss statement of Atradius N.V. for 2023 is incorporated in the consolidated financial statements, whichallow for a presentation of a condensed company profit and loss statement in the company financial statements incompliance with Book 2, Article 402 of the Dutch Civil Code.
All amounts in the notes are shown in thousands of Euro (EUR), rounded to the nearest thousand, unless otherwise
stated.
Due to rounding, numbers presented throughout this, and other documents, may not add up precisely to the totals
provided.

2.2

New and revised standards

All changes in the accounting policies have been made in accordance with the transitional provisions in the respective
standards. All standards and amendments adopted by Atradius require retrospective application.

65

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

2.2.1

Standards, amendments and interpretations effective in 2023

The following relevant standards and amendments has been adopted in 2023 and has had a material effect on the
consolidated financial statements:---

IFRS 17 Insurance contracts (effective 1 January 2023), IFRS 17 Insurance contracts (issued on 18 May 2017);
including Amendments to IFRS 17 (issued on 25 June 2020) has been applied for annual reporting periods
starting on 1 January 2023 (date of first application). It is compulsory to include one-year of comparative
information. IFRS 17 Insurance contracts establishes principles for the recognition, measurement,
presentation and disclosures of insurance contracts within the scope of the standard. This standard
supersedes IFRS 4, which allows continued use of local accounting practices and has resulted in insurance
contracts being accounted for differently between jurisdictions and similar products. Unlike the above, theimplementation of IFRS 17 involves a consistent application on the accounting for all insurance contracts. A
major change compared with IFRS 4 is that estimated losses (onerousness) on a group of contracts that are
expected, but has not yet occurred, is considered to have occurred and has an impact in the accounts andaccounting. For all contracts that are not onerous at initial recognition, an entity shall recognise a profit
margin in the profit and loss account (called a contractual service margin or CSM) over the period in which
the entity performs the service. However, if at the time of initial recognition or during the period in which theentity performs the service, the contract becomes onerous, the entity shall recognise the loss in the profit andloss accounts immediately. Further reference is made to specific information included in Note 2.2.17 and Note
15 insurance contracts.
IFRS 9 Financial Instruments (effective 1 January 2018) replaces the existing guidance in IAS 39 Financial
Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification andmeasurement, impairment of financial instruments and the new general hedge accounting requirements; Werefer to Note 2.10 and note 10. Major changes compared to IAS 39 are: The classification categories forfinancial assets under IAS 39 of held to maturity, loans and receivables, fair value through profit or loss
(FVTPL), and available-for-sale determine their measurement. These are replaced in IFRS 9 with categories
that reflect the measurement, namely amortized cost, fair value through other comprehensive income(FVOCI) and FVTPL. IFRS 9 bases the classification of financial assets on the contractual cash flow
characteristics and the entity’s business model for managing the financial asset, whereas IAS 39 bases theclassification on specific definitions for each category. Overall, the IFRS 9 financial asset classification
requirements are considered more principle based than under IAS 39. A major change is that IFRS 9 applies asingle impairment model to all financial instruments subject to impairment testing while IAS 39 has different
models for different financial instruments. Impairment losses are recognized on initial recognition, and ateach subsequent reporting period, even if the loss has not yet been incurred. The impairment requirements
under IFRS 9 are significantly different from those under IAS 39. There are key differences between the twostandards : whereas the IAS 39 Incurred Loss Model Delays the recognition of credit losses until there is
objective evidence of impairment and only past events and current conditions are considered when
determining the amount of impairment, under IFRS 9 Expected credit losses (ECLs) are recognized at eachreporting period, even if no actual loss events have taken place. IFRS9 implementation has been postponed toalign it with IFRS 17.
Amendments to IFRS 17 Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative
Information. The amendment introduces the concept of classification overlay. The classification overlay
allowed Atradius to classify financial assets in the comparative period 2022 in a way that aligns with themanner in which Atradius reasonably expected those assets were classified on initial application of IFRS 9 as
per January 1, 2023. Financial instruments sold before January 1, 2023 were reported in accordance withIFRS 9, and IAS39 impairments were replaced by ECL.

The standard becomes effective in 2023 and, in line with IFRS, the comparative balances are adjusted and opening
balance as per 1 January 2022 was restated as a consequence. The impact of these changes on the balance sheet andprofit and loss statements are detailed in the tables below:

66

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Assets31/12/2021

Changes inmeasurement

IFRS 9 /17

31/12/2021
IAS39 / IFRS4

Receivables

187,101

187,506

374,607

Miscellaneous assets and accruals

144,329

431,456

575,785

Other assets 1)

924,508

77,575

1,002,082

8,503

67,71776,220Investments

3,079,701-

3,079,701

Insurance contract assets

548,097262,275

810,372

4,892,239

1,026,528

5,918,767

Tax assets

Total assets

31/12/2021
Restated

EquityChanges inmeasurement

IFRS 9 /17

31/12/2021
IAS39 / IFRS4Capital and reserves attributable to the equity holders of
the Company

2,371,056(228,733)

2,142,323

Total equity

2,371,056(228,733)

2,142,323

31/12/2021
Restated

Liabilities

Changes inmeasurement

IFRS 9 /17

31/12/2021
IAS39 / IFRS4

Payables695,752

555,199

1,250,951

Tax liabilities

141,676-

141,676

Insurance contract liabilities

1,434,372

700,062

2,134,434

Subordinated debt

249,383-

249,383

Total liabilities

2,521,183

1,255,261

3,776,444

1)

Includes: Property, plan and equipment; cash and cash equivalents, intangible assets

67All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated2022
Restated

Profit and loss

Changes inmeasurement

IFRS 9 /17

2022
IAS 39 / IFRS 4

Profit and loss technical accounts premium-

1,366,401

1,366,401

Profit and loss technical accounts claims-(620,803)(620,803)

Broker and reinsurance commissions-

24,931

24,931

IFRS17 insurance contracts result

420,679(420,679)-

Insurance result

420,679

334,722770,528

Profit and loss service and other income

240,835-

225,708

Operating expenses(175,094)(406,301)(581,395)

Investment income

64,083(204)

63,879Investment expenses(90,507)51,216(39,291)

Share of income from associated companies

17,755-17,755

Profit and loss investment income(8,670)51,01342,343

Other Finance income and expenses

1,482

(602)

880

Result for the year before tax

479,232(21,168)

458,064

Income tax(109,030)

4,811(104,220)

Net Result on discontinued operations(41,102)

19,469(21,633)

Total result for the year

329,100

3,111

332,212

The following relevant standards, amendments and interpretations have been adopted in 2023 and did not have amaterial effect on the consolidated financial statements:
Amendments to IAS 1 Presentation of Financials Statements and IFRS Practice statement 2: Disclosure ofaccounting policies and Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates andErrors: Definition of Accounting Estimates.. The Amendments revise IAS 1 to require entities to disclose theirmaterial accounting policy information rather than their significant accounting policies. To support thisamendment, the IASB also amended IFRS Practice Statement 2 Making Materiality Judgements to explain theapplication of the materiality concept to accounting policy disclosures. The Amendments also revise IAS 8 to
replace the definition of a change in accounting estimates with a definition of accounting estimates andprovide other clarifications to help entities distinguish accounting policies from accounting estimates. These
amendments do not have an impact on the consolidated financial statements;
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction. These amendments do not have an impact on the consolidated financial statements;
Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules (issued 23 May2023). The Amendments introduce:o A mandatory temporary exception to the accounting for deferred taxes arising from thejurisdictional implementation of the Pillar Two model rules;
o Disclosure requirements for affected entities to help users of the financial statements better
understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly
before its effective date; ando A mandatory temporary exception from the recognition and disclosure of deferred taxes arisingfrom implementation of the OECD’s Pillar Two Model Rules (Note 9).

2.2.2

Standards, amendments and interpretations not yet adopted

The following relevant standards and amendments are effective for annual periods beginning after 31 December 2023
and have not been early adopted by Atradius:--

Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback. The objective of the Amendments isto specify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy therequirements in IFRS 15 Revenue from Contracts with Customers to be accounted for as a sale. The
amendment does not have material impact on the consolidated financial statements;
Amendments to IAS 1 Presentation of Financials Statements: Non-current liabilities with covenants. This is to68Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

clarify how conditions with which an entity must comply within twelve months after the reporting period
affect the classification of a liability classification of liabilities as current or non-current. The amendments are
effective for reporting periods beginning on or after January 1, 2024. These amendments will not havematerial impact on the consolidated financial statements.
The European Union has not yet endorsed the following relevant standards and amendments and as such these havenot been adopted by Atradius:-

2.3

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier
Finance Arrangements (Issued on 25 May 2023). These amendments will not have material impact on the
consolidated financial statements.

Consolidation

All the entities that are consolidated have 31 December 2023 as year-end.
The following principles of consolidation and measurement are applied to the financial statements:

2.3.1

Subsidiaries

Subsidiaries are all entities over which Atradius has control. Atradius controls an entity when it is exposed to, or has
rights to variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to Atradius.
They are de-consolidated from the date on which control ceases.
Intragroup transactions, balances and unrealised gains on intragroup transactions are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
When Atradius loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any
related Non-controlling Interest (Minority-interest further referred to as ‘non-controlling interest’) and othercomponents of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former
subsidiary is measured at fair value when control is lost.

2.3.2

Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a businesscombination is measured at fair value, which is calculated as the sum of fair values of the assets (at the acquisitiondate) transferred to Atradius, liabilities incurred by Atradius to the former owners of the acquiree and the equity
interests issued by Atradius in exchange for control of the acquiree. Acquisition-related costs are generally recognisedin the profit and loss statement as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value atthe acquisition date, except that the deferred tax assets or liabilities and assets or liabilities related to employee
benefit arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee
Benefits respectively.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any)over the net amount of the identifiable assets acquired and the liabilities assumed. If the net amount of the identifiable
assets acquired and the liabilities assumed exceed the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree and the fair value of Atradius’ previously held equity interest in the acquiree (ifany), then the excess is recognised immediately in profit or loss as a bargain purchase.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of theentity’s net assets in the event of liquidation, may be initially measured either at fair value or at the non-controllinginterests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice ofmeasurement method is made on a transaction-by-transaction basis. Other types of non-controlling interests aremeasured at fair value or, when applicable, on the basis specified in another IFRS.
When the consideration transferred by Atradius in a business combination includes assets or liabilities resulting froma contingent consideration arrangement, the contingent consideration is measured at the fair value and included in
the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that69

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedqualify as measurement period adjustments, are adjusted retrospectively, with a corresponding adjustment togoodwill. Measurement period adjustments are adjustments that arise from additional information obtained during
the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstancesthat existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. A contingent
consideration that is classified as equity is not re-measured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Other contingent consideration that: (i) is within the scope of IFRS 9 shall bemeasured at fair value at each reporting date and changes in fair value shall be recognised in profit or loss inaccordance with IFRS 9. (ii) is not within the scope of IFRS 9 shall be measured at fair value at each reporting date andchanges in fair value shall be recognised in profit or loss.
When a business combination is achieved in stages, Atradius’ previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e., the date when Atradius obtains control) and the resulting gain or
loss, if any, is recognised in the profit and loss statement. Amounts arising from interests in the acquiree before theacquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss
where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, Atradius reports provisional amounts for the items for which the accounting is incomplete. Those
provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities arerecognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that,
if known, would have affected the amounts recognised at that date.

2.3.3

Associated companies

Associated companies are entities in which Atradius has significant influence, but not control or joint control, over thefinancial and operating policies, generally accompanying a shareholding of between 20% and 50% of the voting rights.
Interests in associates are initially recognised at cost, which includes positive goodwill arising on acquisition. Negative
goodwill is recognised in the profit and loss statement on the acquisition date. If associates are obtained in successive
share purchases, each significant transaction is accounted for separately.
Atradius’ share in its associated companies’ post-acquisition profits or losses is recognised in profit or loss, and its
share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income.
Unrealised gains on transactions between Atradius and its associated companies are eliminated to the extent of
Atradius’ interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence ofan impairment of the asset transferred. Associate’s accounting policies are changed where necessary to ensure
consistency with the policies adopted by Atradius.
Interests in companies in which Atradius does not exercise significant influence are accounted for at fair value, in
accordance with the accounting principles for available-for-sale investments.

2.4

Segment reporting

IFRS 8 requires operating segments to be identified on the basis on which the Management Board regularly reviews
components of Atradius in order to allocate resources to the segments and to assess their performance. Although theManagement Board reviews the Company's results in accordance with IFRS 17 in an aggregated level, operating
segments are reported in a manner consistent with the internal reporting provided to the Management Board, which isprepared in accordance with IFRS 4. Note that there are not budget/actuals made on IFRS 17 yet. For more information
related to segment reporting please see Note 5.

2.5

Foreign currencies

2.5.1

Functional and presentation currency

Items included in the financial statements of each of Atradius’ entities/branches are measured using the currency ofthe primary economic environment in which the entities/branches operate (the ‘functional currency’).

70Atradius
financialstatements
2023
Atradius
Atradius || Consolidated
Company financial
statements
2023
Atradius
N.V.N.V.

All amounts in the notes are shown in thousands of Euro (EUR).

2.5.2

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at thedates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions andfrom the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the profit and loss statement. A monetary item that forms part of a net investment in a foreign
operation for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, part of
the net investment in that foreign operation. In the consolidated financial statements, the related exchange gains andlosses on these monetary items are recognised in other comprehensive income.
Translation differences on non-monetary items, such as equities classified as available-for-sale financial investments,
are included in the revaluation reserve through other comprehensive income.

2.5.3

Atradius companies

The results and financial position of all Atradius entities that have a functional currency different from thepresentation currency are translated into the presentation currency as follows:--

assets and liabilities for each statement of financial position presented are translated at the closing exchange
rate at the date of that statement of financial position;
income and expenses for each profit and loss statement presented are translated at monthly averageexchange rates unless this average is not a reasonable approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income and expenses are translated at exchange rates atthe dates of the transactions; andall resulting exchange differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities and ofborrowings are taken to other comprehensive income. When a foreign operation is sold, such exchange differences arerecognised in the profit and loss statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as the foreign entity’s
assets and liabilities and are translated at the closing rate.
The exchange rates of the most relevant functional currencies for Atradius are presented below:
Currency

End rate

Average rate

GBP

USD

AUD

GBP

USD

AUD

At 31 December 2023

1.151

0.905

0.615

1.158

0.915

0.605

At 31 December 2022

1.127

0.938

0.637

1.156

0.964

0.648

2.6

Goodwill and other intangible assets

2.6.1

Goodwill

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any)over the net amount of the identifiable assets acquired and the liabilities assumed. If the net amount of the identifiable
assets acquired and the liabilities assumed exceed the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree and the fair value of Atradius’ previously held equity interest in the acquiree (ifany), then the excess is recognised immediately in profit or loss as a bargain purchase. Goodwill arising on an
acquisition of a business is carried at cost as established at the date of acquisition of the business (see Note 2.3.2) lessaccumulated impairment losses, if any. On disposal of a subsidiary, the attributable amount of goodwill is included in
the determination of the profit or loss on disposal.

71All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

For the purpose of impairment testing, goodwill is allocated to Atradius’ relevant cash-generating units. The cashgenerating units where goodwill is allocated are the lowest identifiable level possible. Cash-generating units to which
goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication thatthe unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of
the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit andthen to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An
impairment loss recognised for goodwill is not reversed in a subsequent period.
Goodwill on the acquisitions of associated companies is included as part of investments in associated companies.
For more information related to intangibles please see note 14.

2.6.2

SoftwareAcquired computer software licences are capitalised on the basis of costs incurred to acquire and to bring to use thespecific software. These assets are amortised on the basis of the expected useful life: which is between three and five
years. Computer software is stated at cost less accumulated amortisation and any accumulated impairment losses.
Development costs that are directly associated with the production of identifiable and unique software products
controlled by Atradius, and that will probably generate economic benefits exceeding costs beyond one year, arerecognised as intangible assets. Direct costs include the software development team’s employee costs and an
appropriate portion of relevant overhead. The research costs associated with developing identifiable and unique
software products as well as the costs of maintaining computer software programmes are recognised as an expense as
incurred. The computer software development costs recognised as assets are amortised using the straight-line
amortisation method over its estimated economic useful lives: in general, not exceeding a period of five years.
Majority of capitalised software developed for strategic business developments has an estimated useful life of 10
years.
Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic
benefits embedded in the specific assets to which it relates. All other expenditure is expensed as incurred.

2.6.3

Other intangible assets

Other intangible assets are recognised at fair value at the acquisition date. Amortisation charges are included in net
operating expenses and are calculated using the straight-line method over the expected life of the asset which isestimated to be between 5 and 15 years. Other intangible assets relate to agent networks, non-patented technology,
trade names and insurance.
For more information related to intangibles please see note 14.

2.7

Property, plant and equipment

Land and buildings comprise offices occupied by Atradius (‘property for own use’). Land and buildings are stated at
the cost of acquisition or construction, less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. For analysis of the residual value, the fair value is assessed based on active market prices, adjusted
if necessary, for any difference in the nature, location or condition. All other property, plant and equipment are statedat historical cost less accumulated depreciation and subsequent impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to Atradius and the cost of theitem can be reliably measured. All other repairs and maintenance are recognised as an expense in the profit and loss
statement during the financial period in which they are incurred.
Some of Atradius’ properties comprise a part that is held as investment property to earn rentals or for capital
appreciation and another part that is held for own use. If these parts could be sold separately or leased out separately
under a financial lease, Atradius accounts for the parts separately as investment property and property for own use,
respectively.
The depreciation period is based on the estimated economic useful life of the asset. Leasehold improvements are
depreciated over the shorter of the estimated useful life of the improvements and the respective lease terms. Land is
not depreciated. All other assets are depreciated using the straight-line depreciation method over the estimated72Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

economic useful lives: buildings over 50 years, fixtures and fittings over 3-10 years and information systems
hardware over 3-5 years.

2.7.1

Leased property, plant and equipment

At the inception of a contract, Atradius assesses whether it is a lease. A contract is a lease if it involves the use of an
identified asset and conveys the right to control the use of the asset for a period of time in exchange for consideration– i.e. Atradius has the rights to obtain substantially all of the economic benefits from using the asset, and direct the useof the asset.
As a lessee
A right of use (ROU) asset and a lease liability are recognised at the commencement date of the lease. The ROU asset isinitially measured at cost, which comprises the amount of the lease liability, any lease payments made at or before thecommencement date, any initial direct costs incurred and an estimate of the costs to remove the underlying asset or to
restore the site on which it is located, less any lease incentives received. The lease liability is initially measured at thepresent value of the lease payments to be paid, discounted using the interest rate implicit in the lease or, if that cannot
be readily determined, Atradius’s incremental borrowing rate. Atradius generally uses its incremental borrowing rate
as the discount rate that applies to the lease.
Subsequently, the ROU asset is depreciated using the straight-line depreciation method over the shorter of the asset’s
useful life and the lease term. The lease liability is subsequently measured at amortised cost using the effective
interest method. The depreciation expense on the ROU asset and the interest expense on the lease liability areseparately recognised in the profit and loss statement.
Atradius presents its ROU assets in ‘property plant and equipment’ and lease liabilities in ‘other liabilities’ in thestatement of financial position.
Atradius has elected not to recognise ROU assets and lease liabilities for short-term-leases that have a lease term of 12months or less and leases of low-value assets. The lease payments associated with these leases are recognised as an
expense on a straight-line basis in the profit and loss statement.
As a lessor
Atradius classifies all leases for which it is a lessor as operating leases, because none of these leases transfer
substantially all of the risks and rewards incidental to ownership of the underlying asset.
Lease payments from operating leases are recognised as income on a straight-line basis over the lease term and areincluded in ‘net investment income’.
Atradius presents its operational leases as a lessor in ‘investment property’ in the statement of financial position.

2.8

Investment property

Property held for long-term rental yields that is not occupied by one of the companies of Atradius is classified as
investment property.
Investment property comprises freehold land and buildings. It is stated at the cost of acquisition or construction, lessany subsequent accumulated depreciation and subsequent impairment losses. Buildings are depreciated using thestraight-line depreciation method over the estimated economic useful life of the property: 50 years.

2.9

Fair value measurements

For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree towhich the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
Level 1: Quoted prices in active markets. This category includes financial instruments for which the fair value isdetermined directly by reference to published quotes in an active market. A financial instrument is regarded as quoted
in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry73All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedgroup, pricing service or regulatory agency and those prices represent actual and regularly occurring market
transactions on an arm’s length basis;
Level 2: Valuation techniques based on observable market data. This category includes financial instruments forwhich the fair value is determined using a valuation technique (a valuation model), where inputs in the valuation
model are taken from an active market or are market observable. If certain inputs in the model are not market
observable, but all significant inputs are, the instrument is still classified in this category, provided that the impact of
those elements on the overall valuation is insignificant. Included in this category are items whose value is derived
from quoted prices of similar instruments, but for which the prices are (more than insignificantly) modified based onother market observable external data;
Level 3: Valuation techniques incorporating information other than observable market data. This category includes
financial investments for which the fair value is determined using a valuation technique for which a significant levelof the input is not supported by a current observable market transaction. This category also includes the financial
investments for which the fair value is based on broker quotes or pricing services. These valuations are for 100% of thefair value verified with an external independent valuation company.
The fair values of financial instruments traded in active markets are based on quoted market prices at the end of thereporting period. The quoted market price used for financial investments held by Atradius is the current bid price.
Transaction costs on initial recognition of financial investments are expensed as incurred.
The fair values of financial instruments in markets that are not active are determined using valuation techniques.
Atradius uses a variety of methods and assumptions that are based on market conditions existing at the end of thereporting period.
The fair values of property for own use and investment property are determined, every two years, by independent realestate valuators registered in the relevant countries and who have appropriate qualifications and experience in thevaluation of properties.
See Note 4.3.1.1 for further details regarding the determination of the fair value of financial investments.
Tangible and intangible assets are tested for impairment whenever there is any objective evidence or indication thatthese assets may be impaired. For the purpose of impairment testing, the recoverable amount (i.e. the higher of thefair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable
amount is determined for the CGU to which the asset belongs. Additionally the company reviews in the case of self
developed software if there are any objective reasons to impair the carrying value. This is based on progress of thedevelopment and considering time and money spent, budget and deliveries according to the milestones. If therecoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of theasset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable
amount is recognised as an impairment loss in profit or loss, unless the asset is carried at revalued amount, in whichcase, such impairment loss is treated as a revaluation decrease. Please refer to the paragraph “Property, plant andequipment” for the treatment of a revaluation decrease.

2.10

Financial instruments

2.10.1 Summary of measurement categories
Atradius classifies its financial assets into the following categories:

74

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Type of financial instrument

Classification

ReasonCash and cash equivalents

Amortised cost

SPPI, hold to collect business model

Fair value through OCISPPI, hold to collect and sell business model

Fair value through Profit and Loss

Mandatory, does not pass the SPPI test

Investment funds

Fair value through Profit and Loss

Designated upon initial recognition

Equity securities

Fair value through OCI

Designated upon initial recognition

Debt securities

2.10.2 Recognition and derecognition of financial instruments
All purchases and sales of financial instruments that require delivery within the time frame established by regulationor market convention (‘regular way’ purchases and sales) are recognised at trade date, i.e. the date that Atradius
commits to purchase or sell the asset. Loans and receivables are recognised and derecognised at settlement date, thedate Atradius receives or delivers the asset.
Financial instruments are derecognised when the rights to receive cash flows from the financial instruments have
expired or where Atradius has transferred substantially all the risks and rewards of ownership. If Atradius neithertransfers nor retains substantially all the risks and rewards of ownership of a financial instrument and does not retain
control over the instrument, it derecognises the financial instrument. In transfers where control over the asset isretained, Atradius continues to recognise the asset to the extent of its continuing involvement. The extent ofcontinuing involvement is determined by the extent to which Atradius is exposed to changes in the value of the asset.

2.10.3 Classification of financial instruments
The classification approach is based on two concepts: the entity’s business model and the characteristics of contractual
cash flows of assets and liabilities (represented by Solely Payments of Principal and Interest (SPPI)).
Atradius has assessed whether its financial assets are maintained to:---

Obtain contractual cash flows: The management of this type of business model aims to generate cash flows by
obtaining contractual payments over the life of the instrument. However, even if the objective of the businessmodel is to hold financial assets to collect contractual cash flows, the entity does not need to hold all
instruments until maturity. Thus, an entity’s business model may be to hold financial assets to collectcontractual cash flows even when sales of financial assets occur or are expected to occur in the future. Suchsales should be circumstantial, infrequent, of negligible value or consistent with the objective of the businessmodel.
Obtain contractual cash flows and sell such assets: The management of this type of business model aims bothat obtaining contractual cash flows and the sale of financial assets. There are several objectives that can beconsistent with this type of business model.
Sell the assets or manage their return through their fair value: The management of this type of businessmodel aims to evaluate it on a fair value basis. An entity focuses primarily on fair value information and usesthat information to assess asset performance and make decisions. For these portfolios, obtaining contractual
cash flows is only secondary to achieving the business model objective.

Based on defined business models and cash flow characteristics, Atradius classifies its debt instruments into threevaluation categories (i) amortised cost, (ii) fair value through other comprehensive income (equity) and (iii) fair value
through profit and loss.
i.

ii.

Debt instruments at amortised cost: the objective of its business model is to maintain thefinancial asset in order to collect contractual cash flows and, according to the terms of the contract,
cash flows are received on specific dates, which constitute only payments of principal plus intereston principal (SPPI). Interest, impairment and exchange differences are recorded in profit or loss.
Debt instruments at fair value through changes in other comprehensive income: the businessmodel aims both at obtaining contractual cash flows and selling them and, according to the terms of75

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedthe contract, cash flows are received on specific dates, which constitute only payments of principal
plus interest on principal. The impairment model is based on expected future credit losses. Expected
Credit Losses and exchange differences are recorded in profit or loss, as in the amortised cost model.
The remaining fair value changes are recorded in OCI. When the financial asset is derecognised, thecumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss.
iii.
Debt instruments at fair value through profit or loss: A financial asset shall be measured atfair value through profit or loss unless measured at amortised cost or at fair value through othercomprehensive income. This category includes debt instruments for which Atradius has determinedthat the SPPI ("solely payments of principal and interest") test is not met because of the existence ofcharacteristics such as, inter alia: (i) order of priority of payments; (ii) option to replace collateral;(iii) the option to replace or modify the terms of the instrument until it is converted into capital; (iv)
option to defer interest payments; (v) option to convert to interest-bearing bonds at any time or oneach interest payment date; (vi) the timing of interest settlement does not coincide with the time
horizon of the reference rate; (vii) possibility of indefinite maturity without compensation.
Atradius also classifies investment fund in the financial assets at fair value through profit or loss category, as thistypology of instruments does not meet the definition of equity instruments in accordance with IAS 32 and therefore
cannot be measured at fair value through changes in other comprehensive income and must be measured at fair value
through changes in profit or loss.
In addition, Atradius applies the irrevocable designation options in initial recognition regarding equity securities. An
equity instrument, provided it is not held for trading purposes, may be classified at fair value through changes in othercomprehensive income (equity). Movements in the carrying amount are taken through OCI. On disposal of the equity
instruments, the cumulative change in fair value is transferred to retained earnings and not recycled through profit
and loss. Atradius has assumed that equity securities represent investments that Atradius intends to maintain in thelong term for strategic purposes and it has designated these investments as "fair value through changes in othercomprehensive income". Dividends are taken through profit and loss.

2.10.4 Expected Credit Loss
An expected credit loss (ECL) is calculated for debt securities measured at FVOCI.
For financial assets measured at AC, ECL is not calculated given the liquidity of these assets.
Atradius assesses on a forward-looking basis the Expected Credit Loss (ECL) associated with its debt instrument assets
carried at FVOCI. At each reporting date, Atradius measures the value adjustment for expected credit losses at an
amount equal to the expected credit losses over the life of the asset or the expected credit losses over the next 12months; depending on whether the credit risk on that financial instrument has increased significantly since initialrecognition. The measurement of the ECL reflects:
a. an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes;b. the time value of money; andc. reasonable and supportable information that is available without undue cost or effort at the reporting date
about past events, current conditions and forecasts of future economic conditions.
A number of significant judgements are required in applying the accounting requirements for measuring
ECL, such as:
a.
b.
c.
d.

determining criteria for a significant increase in credit risk (SICR);
choosing appropriate models and assumptions for the measurement of the ECL;
establishing the number and relative weightings of forward-looking scenarios for each type of
product/market and the associated ECL; andestablishing groups of similar financial assets for the purposes of measuring the ECL.

The Company outlines a three-stage model for impairment, based on changes in credit quality since initial recognition,
as summarised below:-

A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1, and it has its
credit risk continuously monitored by the Company;
If a significant increase in credit risk (SICR) since initial recognition is identified, the financial instrument is
moved to Stage 2, but it is not yet deemed to be credit-impaired.
If the financial instrument is credit-impaired, the financial instrument is then moved to Stage 3.
Financial instruments in Stage 1 have their ECL measured at an amount equal to the portion of the lifetime76

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-

ECL that results from default events possible within the next 12 months. Instruments in Stage 2 or 3 havetheir ECL measured based on the ECL on a lifetime basis.
A pervasive concept in measuring the ECL in accordance with IFRS 9 is that it should consider forwardlooking information.
Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on
initial recognition. Their ECL is always measured on a lifetime basis (Stage 3).

The Company defines a financial instrument as in default, which is fully aligned with the definition of credit-impaired,when it meets one or more of the following criteria:
Quantitative criterion
The borrower is more than 90 days past due on its contractual payments.
Qualitative criterion
The borrower meets the unlikeliness to pay criterion, which indicates that the borrower is in significant financial
difficulty. These are instances where:-

The borrower is in long-term forbearance;
The borrower is insolvent;The borrower is in breach of (a) financial covenant(s);An active market for that financial asset has disappeared because of financial difficulties;
Concessions have been made by the lender relating to the borrower’s financial difficulties;
It is becoming probable that the borrower will enter bankruptcy; orFinancial assets are purchased or originated at a deep discount that reflects the incurred credit losses.

The criteria above have been applied to all financial instruments held by the Company and are consistent with thedefinition of default used for internal credit risk management purposes. The default definition has been appliedconsistently to model the probability of default (PD), exposure at default (EAD) and loss given default (LGD)
throughout the Group’s expected loss calculations.
An instrument is considered to no longer be in default (that is, to have cured) when it no longer meets any of thedefault criteria for a consecutive period of six months. This period of six months has been determined based on an
analysis that considers the likelihood of a financial instrument returning to default status after cure, using different
possible cure definitions.
Measuring EC L – Explanati on of in puts, a ssumptions a nd estimation techniques
The ECL is measured on either a 12-month (12M) or lifetime basis, depending on whether a SICR has occurred sinceinitial recognition or whether an asset is considered to be credit-impaired. The ECL is the discounted product of the PD,
EAD and LGD, defined as follows:
The PD represents the likelihood of a borrower defaulting on its financial obligation (according to thedefinition of default and credit-impaired assets above), either over the next 12 months (12M PD) or over theremaining lifetime (Lifetime PD) of the obligation.
The EAD is based on the amounts that the Company expects to be owed at the time of default, over the next 12months or over the remaining lifetime.
The LGD represents the Company’s expectation of the extent of loss on a defaulted exposure. The LGD varies
by type of borrower, type and seniority of claim, and availability of collateral or other credit support. The LGD
is expressed as a percentage loss per unit of exposure at the time of default (EAD). The LGD is calculated on a
12M or lifetime basis, where the 12M LGD is the percentage of loss expected to be made if the default occurs in
the next 12 months, and the lifetime LGD is the percentage of loss expected to be made if the default occurs
over the remaining expected lifetime of the loan.
The ECL is determined by projecting the PD, LGD and EAD for each future month and for each individual exposure orcollective segment. These three components are multiplied together and adjusted for the likelihood of survival (that is,
the exposure has not prepaid or defaulted in an earlier month). This effectively calculates an ECL for each futuremonth, which is then discounted back to the reporting date and summed. The discount rate used in the ECL calculationis the original EIR or an approximation thereof.
The Lifetime PD is developed by applying a maturity profile to the current 12M PD. The maturity profile looks at how

77All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stateddefaults develop on a financial instrument portfolio from the point of initial recognition throughout the lifetime of thefinancial instrument. The maturity profile is based on historical observed data, and it is assumed to be the same acrossall assets within a portfolio and credit grade band. This is supported by historical analysis.
Forward-looking economic information is also included in determining the 12M and Lifetime PD, EAD and LGD. Theseassumptions vary by product type.
The assumptions underlying the ECL calculation are monitored and reviewed on a quarterly basis.
There have been no significant changes in estimation techniques or significant assumptions made during thereporting period.
S i g n i f i c a n t i nc r e a s e i n c r e d i t r i s k
The Company considers a financial instrument to have experienced a SICR when one or more of the following
quantitative, qualitative or backstop criteria have been met:
Quantitative criteria
Thresholds have been established to determine whether the remaining Lifetime PD at the reporting date has increased
significantly compared to the residual Lifetime PD expected at the reporting date when the exposure was firstrecognised.
Qualitative criteria
For debt instruments securities, if the instrument meets one or more of the following criteria:
significant increase in credit spread;significant adverse changes in business, financial and/or economic conditions in which the borrower
operates;
actual or expected forbearance or restructuring;
actual or expected significant adverse change in operating results of the borrower; andsignificant change in collateral value (secured facilities only) that is expected to increase risk of default.
The assessment of a SICR incorporates forward-looking information and is performed at the borrower level and on aperiodic basis. The criteria used to identify a SICR are monitored and reviewed periodically for appropriateness by the
independent Credit Risk team.
Forward-l ook ing informati on incorpo rat ed in t he EC L model s
The assessment of a SICR and the calculation of the ECL both incorporate forward-looking information. The Company
has performed historical analysis and identified the key economic variables impacting credit risk and the ECL for eachportfolio.
Equity securities that are classified as fair value through OCI are not subject to impairment analysis.

2.11

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position only
when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis, or to realise the asset and settle the liability simultaneously.

2.12

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held on call with banks and other short-term highly liquid
investments with original maturities of three months or less that are subject to an insignificant risk of changes in theirfair value, and are used by Atradius in the management of its short-term commitments. Bank overdrafts that are
repayable on demand form an integral part of Atradius’ cash management and are included as a component of cash
and cash equivalents for cash flow purposes. In the statement of financial position, bank overdrafts that do not meetthe criteria for offsetting, are presented separately as liabilities under borrowings.

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Deposits pledged for regulatory and other purposes as well as cash held for investments are not available for use in
Atradius’ day-to-day operations and are therefore not included within cash and cash equivalents. These assets areincluded within financial investments.

2.13

Capital and reserves

2.13.1 Share capital
Share capital is the nominal value of issued shares. Incremental costs directly attributable to the issue of equity
instruments are shown in equity as a deduction from the proceeds, net of tax. Incremental costs directly attributable tothe issue of equity instruments as consideration for the acquisition of a business are included in the cost of acquisition.

2.13.2 Share premium reserve
Share premium reserve is the amount received by the Company in excess of the nominal value of the shares it has
issued.

2.13.3 Revaluation reserve
The revaluation reserve comprises the unrealised gains/losses of the debt securities and the equity securities that arevalued at FVOCI after the deduction of income tax, including the impairments on the debt securities that are accounted
as FVOCI. The revaluation reserve moves through the profit and loss statement when the impairments on assets at
FVOCI are recognized or the financial assets at FVOCI are sold.

2.13.4 Currency translation reserve
The net exchange difference, after the deduction of income tax that is recognised in the currency translation reserve ineach period represents the following:
a.

b.

c.

in respect of revenue, expenses and capital transactions, the difference between translating these items at
actual or average exchange rates and using the exchange rate at the end of the reporting period, which is thecase for recognised assets and liabilities;
in respect of the net assets at the beginning of the reporting period, the difference between translating these
items at the rate used at the end of the previous reporting period and using the rate at the end of the current
reporting period; andin respect of the net assets acquired during the reporting period, the difference between translating these
items at the rate at acquisition date and using the rate at the end of the current reporting period.

2.13.5 Pension reserve
The pension reserve relates to the various defined benefit schemes and consists of:a.

b.

actuarial gains and losses, after the deduction of income tax, that arise in calculating Atradius’ pension
obligations and fair value of the plan assets in respect of a defined benefit plan in the period in which theyoccur; andthe non-recognition of assets (‘asset ceiling’) that can occur when the plan assets are higher than the projected
benefit obligation and where Atradius cannot recover any surplus through refunds from the pension vehicle
due to solvency and/or control requirements.

2.13.6 Insurance finance expenses reserve
For all insurance contracts issued and reinsurance contracts held, the Company has chosen to disaggregate insurance
finance income or expenses between profit or loss and OCI. The amount included in profit or loss is determined by asystematic allocation of the expected total insurance finance income or expenses over the duration of the group ofcontracts. The systematic allocation is determined using the discount rates as determined on initial recognition of thegroup of contracts.
Amounts presented in OCI are accumulated in the insurance finance reserve. If the Group derecognises a contract as aresult of a transfer to a third party or a contract modification, then any remaining amounts of accumulated OCI for thecontract are reclassified to profit or loss as a reclassification adjustment.

79All amounts
amounts inin thousands
thousands ofof Euro,Euro, unlessunless otherwise
otherwise statedstatedAll

2.13.7 Retained earnings
Retained earnings are the accumulated amount of profits or losses at the end of the reporting period, which have notbeen distributed to shareholders.

2.13.8 Non-controlling interests
Non-controlling interests represent the proportion of shareholders’ equity and of total comprehensive income
attributable to minority shareholders.
Non-controlling interest are initially measured on the net fair value of the acquirer’s identifiable assets, liabilities andcontingent liabilities at the date of the acquisition. The calculation of the percentage attributable to the non-controllinginterest includes any equity interest not held indirectly through subsidiaries.
Non-controlling interest is presented within equity separately from the equity attributable to the equity holders of theCompany. Similarly, the statement of recognised income and expenses presents total income and expenses for theperiod showing separately the amounts attributed to the equity holders of the Company and non-controlling interests.

2.14

Subordinated debt

A subordinated debt is recognised initially at fair value, net of transaction costs incurred. A subordinated debt issubsequently stated at amortised cost. The difference between the proceeds (net of transaction costs) and theredemption value is recognised in the profit and loss statement over the fixed period of the debt during which theinterest is fixed using the effective interest method. Interest payable is reported under other liabilities.

2.15

Insurance contracts

2.15.1 Definition and classification
Insurance contracts are contracts under which the Company accepts significant insurance risk from a policyholder byagreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. In
making this assessment, all substantive rights and obligations, including those arising from law or regulation, areconsidered on a contract-by-contract basis. The Company uses judgement to assess whether a contract transfers
insurance risk.
Before the Company accounts for an insurance contract based on the guidance in IFRS 17, it analyses whether thecontract contains components that should be separated. IFRS 17 distinguishes three categories of components thathave to be accounted for separately:Cash flows relating to embedded derivatives that are required to be separated;
Cash flows relating to distinct investment components; andPromises to transfer distinct goods or distinct services other than insurance contract services.

The Company applies IFRS 17 to all remaining components of the contract. The Company does not have any contracts
that require further separation of insurance contracts.
The Company is not engaged in contracts that have a legal form of insurance but do not transfer significant insurance
risk and expose the Company to financial risk and investment contracts that contain DPF, whereby the investor has
the right and is expected to receive, as a supplement to the amount not subject to the Company’s discretion, potentiallysignificant additional benefits based on the return of specified pools of investment assets.
In the normal course of business, the Company uses reinsurance to mitigate its risk exposures. A reinsurance contract
transfers significant risk if it transfers substantially all of the insurance risk resulting from the insured portion of theunderlying insurance contracts, even if it does not expose the reinsurer to the possibility of a significant loss.
All references to insurance contracts in these consolidated financial statements apply to insurance contracts issued or
acquired, reinsurance contracts held unless specifically stated otherwise.
Measurement approaches

80Atradius
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2023
Atradius
Atradius || Consolidated
Company financial
statements
2023
Atradius
N.V.N.V.

The Company uses for all its products and markets-credit and surety products, and reinsurance held–one common
harmonised approach being the general measurement model (GMM). The Company has chosen this approach since allthese products have a significant portion of insurance contracts that have a coverage period longer than one year.
Additionally, the general measurement approach allows including changes in the estimation of cash flows that areimportant to deal with volatile economic environments. Atradius is exposed to these material expectation changes
with respect to future events as result from the changes in the credit quality of the credit exposures because of macroeconomic changes.
The main reinsurance treaties that are on a risk attaching basis do cover all insurance products. As such these treaties
all have a coverage period for more than one year (the coverage of the direct contracts plus one year) and are exposedto the same changes in estimates as the direct contracts.
Definition of i nsured event and coverag e period
The coverage period is defined as a period during which the entity provides insurance contract services. This period
includes the insurance contract services that relates to all fulfilment cash flows within the boundary of the insurance
contract. During the coverage period an insured event can happen.
The Company has defined the coverage period as the period during which the entity provides insurance contract
services, which in turn is the period during which insured events can take place. The insured event for credit
insurance, following the policy wording is the insolvency and/or protracted default of the buyer. As is common for theCredit Insurance market, Atradius policies do not recognise a protracted default, until the end of a waiting period. For
surety insurance, the coverage ends at the end of the (estimated) period that the bond will cover the insured events.
For assumed reinsurance business of credit and surety (“Assumed Reinsurance”), the end of the coverage perioddepends on the type of coverage provided under the reinsurance treaty. For losses occurring during cover, the end of
the coverage period is equal to the reinsurance treaty end date. For risks attaching cover, this is the maximum
duration of the underlying business (credit Insurance and/or surety) according to the treaty.

2.15.2 Level of aggregation
The Company has defined the units of account based on the combination of portfolio, year of issue and profitability, as
detailed below.
The Company manages insurance contracts issued by product lines within one operating segment, where each productline includes contracts that are subject to similar risks. All insurance contracts within a product line represent a
portfolio of contracts. Each portfolio is further disaggregated into groups of contracts that are issued within a calendar
year (annual cohorts) and are: (i) contracts that are onerous at initial recognition; (ii) contracts that at initialrecognition have no significant possibility of becoming onerous subsequently; or (iii) a group of remaining contracts.
These groups represent the level of aggregation at which insurance contracts are initially recognised and measured.
The allocation of contracts to a group after initial recognition is not subsequently reconsidered.
Local Credit Insurance business and Surety business is managed at country level. While Atradius manages Global
Credit Insurance, Special products, Instalment Credit Protection and Assumed Reinsurance at group level.
The Company monitors the profitability of contracts within portfolios and the likelihood of changes in insurance,
financial and other exposures resulting in these contracts becoming onerous at the level of the country or unit with noinformation available at a more granular level. The assessment of onerous at initial recognition is per portfolio
performed on each set of insurance contracts. Only in very exceptional circumstances the Company will for strategic
reasons issue contracts that are onerous at initial recognition. For Credit Insurance, the Company considers that
contracts should not be grouped as onerous at initial recognition, as contracts are managed together with contracts
that are yet to be recognised as result of the ability to dynamically underwrite these risks.
The Company uses significant judgement to determine at what level of granularity the Company has reasonable andsupportable information that is sufficient to conclude that all contracts within a set are sufficiently homogeneous andwill be allocated to the same group without performing an individual contract assessment.
The Company assumes that all groups have a significant chance of becoming onerous, due to potential large
expectation changes, except for Instalment Credit protection where the Company does not expect a significant chancethat the group becomes onerous.

81All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

The Company has extensively reviewed all facts and circumstances in all cases where one counterparty has multiple
insurance contracts. The Company has decided that some of these contracts cannot be measured independently.
Circumstances to come to this decision are items such as the existence of one master agreement, aggregated first loss,
aggregate buyer limits and bonus malus on the combined result of all insurance contracts.
Portfolios of reinsurance contracts held are assessed for aggregation and measurement separately from portfolios of
insurance contracts issued. Applying the grouping requirements to reinsurance contracts held, the Company
aggregates reinsurance contracts held issued within a calendar year (annual cohorts) into groups of: (i) contracts forwhich there is a net gain at initial recognition, if any; (ii) contracts for which, at initial recognition, there is no
significant possibility of a net gain arising subsequently; and (iii) remaining contracts in the portfolio, if any.
The Company has for their main reinsurance held contracts determined to split these in two portfolios, proportionaland non-proportional, which is consistent with how the assumed reinsurance is split into portfolios.
Transition approaches that were applied by Atradius on adoption of IFRS 17 with respect to contracts aggregation
requirements are included in Note 3.3.

2.15.3 Recognition, modification, derecognition of insurance contracts
The Company recognises groups of insurance contracts issued from the first of the following dates:-

At the beginning of the coverage period;
The date when the first payment of the policyholder is due; orWhen the Company determines that a group of contracts becomes onerous.

The Company in general recognises the insurance contract at the beginning of the coverage period unless groups of
insurance contracts are onerous once the contract is bound and if the bound date is prior to the coverage start date. For
standard credit insurance business, the existence of credit limits (coverage of insured sales) determines the existenceof the insurance contract, and not the policy itself.
Insurance contracts acquired in a business combination within the scope of IFRS 3 or a portfolio transfer are
accounted for as if they were entered into at the date of acquisition or transfer.
Reinsurance contracts held are recognised as follows:
a.
b.
c.
d.

A group of reinsurance contracts held that provide proportional coverage (quota share reinsurance) is
recognised at the later of:
The beginning of the coverage period of the group; andThe initial recognition of any underlying insurance contract;
All other groups of reinsurance contracts held are recognised from the beginning of the coverage period of thegroups of reinsurance contracts held; unless the Company entered into the reinsurance contract held at or
before the date when an onerous group of underlying contracts is recognised prior to the beginning of thecoverage period of the group of reinsurance contracts held, in which case the reinsurance contract held isrecognised at the same time as the group of underlying insurance contracts is recognised.

Only contracts that individually meet the recognition criteria by the end of the reporting period are included in thegroups. When contracts meet the recognition criteria in the groups after the reporting date, they are added to thegroups in the reporting period in which they meet the recognition criteria, subject to the annual cohorts restriction.
Composition of the groups is not reassessed in subsequent periods.
The Company derecognises an insurance contract when it is:a.
b.

Extinguished (that is, when the obligation specified in the insurance contract expires or is discharged orcancelled); or
The contract is modified and additional criteria discussed below are met.

When the Company modifies an insurance contract as a result of an agreement with the counterparties or due to achange in regulations, the Company treats changes in cash flows caused by the modification as changes in estimates ofthe fulfilment cash flow (FCF), unless the conditions for the derecognition of the original contract are met.

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Atradius | Consolidated financial statements 2023 Atradius N.V.

The Company derecognises the original contract and recognises the modified contract as a new insurance contract if
the modified terms had been included at contract inception and the Company would have concluded that the modified
contract: results in a different contract boundary; or belongs to a different group of contracts.
When an insurance contract is derecognised from a group of insurance contracts, the Company adjusts the FCF toeliminate the present value of future cash flows and risk adjustment for non-financial risk relating to the rights andobligations removed from the group and adjust the CSM and the number of coverage units for the expected remaining
insurance contract services, to reflect the number of coverage units removed.

2.15.4 Measurement
2.15.4.1 Fulfilment cash flows
Fulfilment cash flows (FCF) consist of a best estimate and a risk adjustment.
--

The estimate consists of estimates of the future cash flows within the contract boundary of the contracts that
the Company expects to collect from premiums and to pay out for claims, benefits and expenses, adjusted toreflect the timing and the uncertainty of those amounts. The estimate corresponds to a probability weighted
average of future outcomes, with prudent choices being made as to possible scenarios and likelihoods thereof.
The estimates are determined from the perspective of the Company, and consistent with observable market
prices for market variables where relevant. It considers circumstances as at measurement date in as far
relevant and known to the Company and reflect conditions existing at the measurement date.

An explicit risk adjustment for non-financial risk is estimated separately from the other estimates.
The estimates of future cash flows are adjusted using the current discount rates to reflect the time value of money andthe financial risks related to those cash flows, to the extent not included in the estimates of cash flows. The discountrates reflect the characteristics of the cash flows arising from the groups of insurance contracts, including timing,
currency and liquidity of cash flows. The determination of the discount rate that reflects the characteristics of the cash
flows and liquidity characteristics of the insurance contracts requires significant judgement and estimation. Refer tonote 2.2.3.1.
In the measurement of reinsurance contracts held, the probability-weighted estimates of the present value of future
cash flows include the potential credit losses and other disputes of the reinsurer to reflect the non-performance risk of
the reinsurer. The company has set the potential credit loss at zero based on the high-level quality of the reinsurance
panel.
Where appropriate and proportionate methodology and data exists, the Company estimates cash flows at the level ofgroup of contracts or lower. However, where estimate relate to more severe events, that do not occur at the level of thegroup of contracts and that occur with sufficient frequency to allow for robust modelling at that level of granularity
the Company models the estimates related to the possible events at a higher level, combining information frommultiple portfolios, and then allocating such estimates to Group level.
The Company uses consistent assumptions to measure the estimates of the present value of future cash flows for thegroup of reinsurance contracts held and such estimates for the groups of underlying insurance contracts.
Contract boundary
The Company uses the contract boundary to determine what cash flows should be considered in the measurement ofgroups of insurance contracts.
Cash flows are within the boundary of an insurance contract if they arise from the substantive rights and obligations
that exist during the period in which the policyholder is obligated to pay premiums, or the Company has a substantive
obligation to provide the policyholder with insurance contract services. A substantive obligation ends when:a.

the Company has the practical ability to reassess the risks of the particular policyholder and, as a result, canset a price level that fully reflects those risks;b. both of the following criteria are satisfied:i.
the Company has the practical ability to reassess the risks of the portfolio of insurance contracts that
contains the contract and, as a result can set a price that fully reflects the risk of that portfolio; andii.
the pricing of the premiums up to the date when risks are reassessed does not consider the risks that83All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedrelate to periods after the reassessment date.
The Company has defined the contract boundary for the different product lines as the end of the policy period except
for:
-

-

Credit Insurance if the group of contracts can withdraw the buyer limits and as such has unlimited reunderwrite ability. The Group has for practical purposes defined this at month end. The contract boundary isextended with the notice period that applies for withdrawal of the buyer limits.
Permanent bonds if the Group can cancel the bond, as at the end of the notice period. In as far as such period
limits the Company to withdraw earlier.

How the Company manages insurance risk is explained in note 4.2.1.
Cash flows outside the insurance contracts boundary relate to future insurance contracts and are recognised whenthose contracts meet the recognition criteria.
Atradius determines that the premiums receivable from the intermediary are future cash flows within the boundary of
an insurance contract. When the policyholder pays the premiums to the intermediary, Atradius continues to treat thepremiums receivable from the intermediary as future cash flows within the boundary of an insurance contract andincludes them in the measurement of a group of insurance contracts until recovered in cash.
Reinsurance
For groups of reinsurance contracts held, cash flows are within the contract boundary if they arise from substantive
rights and obligations of the Group that exist during the reporting period in which the Group is compelled to pay
amounts to the reinsurer or in which the Group has a substantive right to receive insurance contract services from thereinsurer.
The Company main proportional reinsurance agreements renew on an annual basis. Atradius treats these reinsurance
contracts as a series of annual contracts that cover underlying business that are based on risk attachment principles
attached to the agreement, instead of issued within a year. Estimates of future cash flows arising from all underlying
contracts issued and expected to be issued within the reinsurance contracts’ one-year boundary are included in themeasurement of the reinsurance contracts. Estimates of future cash flows arising from all underlying contracts issued
and expected to be issued within the reinsurance contracts boundary are included in the measurement of thereinsurance contracts.
The excess of loss reinsurance contract held provides coverage for claims incurred based on the attachment principle.
Thus, all cash flows arising from claims incurred and expected to be incurred based on the attachment principle areincluded in the measurement of the reinsurance contracts held. The main contracts do include mandatory
reinstatement reinsurance premiums. These are inside the contract boundary.
Any cash flow that is not directly attributable to a portfolio of insurance contracts, such as some product development
and training costs, are recognised in other operating expenses as incurred.
Insurance acquisition costs
The Company defines acquisition cash flows as cash flows that arise from costs of selling, underwriting and starting agroup of insurance contracts (issued or expected to be issued) and that are directly attributable to the portfolio of
insurance contracts to which the group belongs.
Insurance acquisition cash flows are allocated to groups of insurance contracts on a systematic and rational basis.
Insurance acquisition cash flows not directly attributable to a group of contracts but directly attributable to a portfolioof contracts are allocated to groups of contracts in the portfolio or expected to be in the portfolio.
The Company recognises an asset for directly attributable acquisition costs that relate to broker commissions. Thesebalances are directly linked to prepaid premium for which the premium is not yet part of a recognised group of
insurance contracts. There is no risk that these acquisition costs cannot be recovered since when the related insurance
contract never gets recognised, both the related prepaid premium and the broker commissions are refunded.

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Other pre-recognition cash flows within the contract boundary
Before a group of insurance contracts is recognised, the Company could recognise assets or liabilities for cash flows
related to a group of insurance contracts other than insurance acquisition cash flows, either because of the occurrenceof the cash flows or because of the requirements of another IFRS standard. Cash flows are related to the group of
insurance contracts if they would have been included in the FCF at initial recognition of the group if they had been
paid or received after that date. Such assets or liabilities (referred to as ‘other pre-recognition cash flows’) are includedin the carrying amount of the related portfolios of insurance contracts issued or in the carrying amount of theportfolios of reinsurance contracts held.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is applied to the present value of the estimated future cash flows. It reflects
the compensation that the Company requires for bearing the uncertainty about the amount and timing of the cash
flows from non-financial risk as the Company fulfils insurance contracts. The Company takes diversification benefits
into account.
For the calculation of the risk adjustment, the Company uses the Cost of Capital method. The Costs of Capital iscalibrated to the risk margin as used in the standard formula in Solvency II, where per product a factor is establishedthat captures the ratio of the risk adjustment to the expected claims cash flows. This factor is then used to derive therespective risk adjustment per contract.
For reinsurance contracts held, the risk adjustment for non-financial risk represents the amount of risk beingtransferred by the Group to the reinsurer. A factor is constructed from the claims cash flow weighted average of thedirect business being ceded.
Discount rate
The Company measures the value of money over time using discount rates that reflect the liquidity characteristics of
insurance contracts and the characteristics of cash flows, consistent with current market prices and excluding factors
influencing the market prices of the reference assets but not affecting the flows of insurance contracts. The discountrate is calculated using the "bottom-up" approach after the transition ("bottom-up") based on the risk-free curve,
mainly based on the curve published monthly by EIOPA (European Insurance and Occupational Pensions Authority)
and applying an illiquidity premium of zero.
2.15.4.2 Initial measurement
Contractual service margin
The contractual service margin (CSM) is a component of the carrying amount of the asset or liability for a group of
insurance contracts issued representing the unearned profit that the Company will recognise as it provides insurance
contract services in the future.
At initial recognition, the CSM is an amount that results in no income or expenses (unless a group of contracts isonerous or insurance revenue and insurance service expenses are recognised as in (d) below) arising from:
a.
b.
c.
d.

The initial recognition of the FCF;
Cash flows arising from the contracts in the group at that date;
The derecognition of any insurance acquisition cash flows asset; andThe derecognition of any other pre-recognition cash flows. Insurance revenue and insurance service
expenses are recognised immediately for any such assets derecognised.

When the above calculation results in a net outflow, the group of insurance contracts issued is onerous. A loss fromonerous insurance contracts is recognised in profit or loss immediately, with no CSM recognised on the balance sheeton initial recognition, and a loss component is established in the amount of loss recognised.
For groups of reinsurance contracts held, any net gain or loss at initial recognition is recognised as the CSM unless thenet cost of purchasing reinsurance relates to past events, in which case the Company recognises the net cost
immediately in profit or loss. For reinsurance contracts held, the CSM represents a deferred loss that the Company willrecognise as a reinsurance expense as it receives insurance contract services from the reinsurer in the future and is
calculated as the sum of:

85

All
unless otherwise
otherwise statedstatedAll amounts
amounts inin thousands
thousands ofof Euro,Euro, unless

a.
b.
c.
d.

The initial recognition of the FCF; andCash flows arising from the contracts in the group at that date;
The amount derecognised at the date of initial recognition of any asset or liability previously recognised for
cash flows related to the group of reinsurance contracts held (other pre-recognition cash flows); andAny income recognised in profit or loss when the entity recognises a loss on initial recognition of an onerous
group of underlying insurance contracts or on addition of onerous underlying insurance contracts to thatgroup.

A loss-recovery component is established or adjusted within the remaining coverage for reinsurance contracts held forthe amount of income recognised in (d) above. This amount is calculated by multiplying the loss recognised onunderlying insurance contracts by the percentage of claims on underlying insurance contracts that the Company
expects to recover from the reinsurance contracts held that are entered into before or at the same time as the loss isrecognised on the underlying insurance contracts.
When underlying insurance contracts are included in the same group with insurance contracts issued that are notreinsured, the Group applies a systematic and rational method of allocation to determine the portion of losses that
relates to underlying insurance contracts.
For insurance contracts acquired in a portfolio transfer or a business combination within the scope of IFRS 3, at initialrecognition, the CSM is an amount that results in no income or expenses arising from:a.
b.

The initial recognition of the FCF; andCash flows arising from the contracts in the group at that date, including the fair value of the groups ofcontracts acquired as at the acquisition date as a proxy of the premiums received.

No insurance contracts acquired were assessed as onerous at initial recognition. The Company did not acquire any
reinsurance contracts held.
Subsequent measurement
The carrying amount at the end of each reporting period of a group of insurance contracts issued is the sum of:a.

b.

The LRC, comprising:i.
The FCF related to future service allocated to the group at that date; andii.
The CSM of the group at that date; andThe liability for incurred losses (LIC), comprising the FCF related to past service allocated to the group at thereporting date.

The carrying amount at the end of each reporting period of a group of reinsurance contracts held is the sum of:a.

b.

The remaining coverage, comprising:i.
The FCF related to future service allocated to the group at that date; andii.
The CSM of the group at that date; andThe incurred claims, comprising the FCF related to past service allocated to the group at the reporting date.

Changes in fulfilment cash flows
The FCF are updated by the Company for current assumptions at the end of every reporting period, using the current
estimates of the amount, timing and uncertainty of future cash flows and of discount rates.
The way in which the changes in estimates of the FCF are treated depends on which estimate is being updated:a.
b.

Changes that relate to current or past service are recognised in profit or loss; andChanges that relate to future service are recognised by adjusting the CSM or the loss component within theliability for remaining coverage (LRC) as per the policy below.

The following adjustments relate to future service and thus adjust the CSM:
a.

Experience adjustments – arising from premiums received in the period that relate to future service andrelated cash flows;86Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

b.
c.

Changes in estimates of the present value of future cash flows in the LRC, except those described in thefollowing paragraph; andChanges in the risk adjustment for non-financial risk that relate to future service.

The adjustments above are measured using discount rates determined on initial recognition (the locked-in discountrates).
The following adjustments do not adjust the CSM:
a.
b.
c.
d.

Changes in the FCF for the effect of the time value of money and the effect of financial risk and changes
thereof;
Changes in the FCF relating to the LIC;
Experience adjustments – arising from premiums received in the period that do not relate to future service
and related cash flows, andExperience adjustments relating to insurance service expenses.

The Company does not have any products with complex guarantees and does not use derivatives as economic hedgesof the risks.
Changes to the contractual service margin
For insurance contracts issued, at the end of each reporting period the carrying amount of the CSM is adjusted by
the Company to reflect the effect of the following changes:
a.
b.
c.

d.
e.

The effect of any new contracts added to the group.
Interest accreted on the carrying amount of the CSM.
Changes in the FCF relating to future service are recognised by adjusting the CSM. Changes in the FCF arerecognised in the CSM to the extent that the CSM is available. When an increase in the FCF exceeds the
carrying amount of the CSM, the CSM is reduced to zero, the excess is recognised in insurance service
expenses and a loss component is recognised within the LRC. When the CSM is zero, changes in the FCF
adjust the loss component within the LRC with correspondence to insurance service expenses. The excess ofany decrease in the FCF over the loss component reduces the loss component to zero and reinstates the CSM.
The effect of any currency exchange differences.
The amount recognised as insurance revenue for insurance contract services provided during the period,
determined after all other adjustments above.

For reinsurance contracts held, at the end of each reporting period, the carrying amount of the CSM is adjusted by theCompany to reflect the effect of the following changes:
a.
b.
c.

d.
e.

f.
g.

The effect of any new contracts added to the group.
Interest accreted on the carrying amount of the CSM.
Income recognised in profit or loss when the entity recognises a loss on initial recognition of an onerous
group of underlying insurance contracts or on addition of onerous underlying insurance contracts to thatgroup. A loss recovery component is established or adjusted within the remaining coverage for reinsurance
contracts held for the amount of income recognised.
Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held.
Changes in the FCF, to the extent that the change relates to future service, unless the change results from achange in FCF allocated to a group of underlying insurance contracts that does not adjust the CSM for thegroup of underlying insurance contracts.
The effect of any currency exchange differences.
The amount recognised in profit or loss for insurance contract services received during the period,
determined after all other adjustments above.

Income referred to in (c) above is calculated by multiplying the loss recognised on underlying insurance contracts by
the percentage of claims on underlying insurance contracts that the Company expects to recover from the reinsurance
contract held that is entered into before or at the same time as the loss is recognised on the underlying insurance
contracts.
For the purposes of (c)–(e) above, when underlying insurance contracts are included in the same group with insurance
contracts issued that are not reinsured, Atradius applies a systematic and rational method of allocation to determine
the portion of losses that relates to underlying insurance contracts.

87All amounts
amounts inin thousands
thousands ofof Euro,Euro, unlessunless otherwise
otherwise statedstatedAll

Interest accretion on the CSM
Under the GMM, interest is accreted on the CSM using discount rates determined at initial recognition per individual
new business subgroup that are applied to nominal cash flows that do not vary based on the returns of underlying
items.
The CSM is adjusted for changes in the FCF, measured applying the discount rates as specified in the Changes infulfilment cash flows section above.
Release of the CSM to profit or loss
The amount of the CSM recognised in profit or loss for insurance contract services in the period is determined by theallocation of the CSM remaining at the end of the reporting period over the current and remaining expected coverage
period of the group of insurance contracts based on coverage units. We refer to the section 2.15.1 Definition of insured
event and coverage above.
The total number of coverage units in a group is the quantity of service provided by the contracts in the group over the
expected coverage period. The coverage units are determined at each reporting period-end prospectively byconsidering:
a.
b.
c.

The quantity of benefits provided by contracts in the group;
The expected coverage period of contracts in the group; andThe likelihood of insured events occurring, only to the extent that they affect the expected coverage period ofcontracts in the group.

The Company determines coverage units for all product lines based on the (expected exposure) of the insurance
contracts. The Company considers this exposure equal over time unless it is in the nature of the product that the
exposure decreases. In practice, this means that except for credit insurance and Assumed Surety contracts, the CSM isearned pro-rata over time. The Company has determined that, for the credit insurance contracts, the coverage units are
determined based on the estimated payment behaviour of companies in a B2B relation and for Assumed Surety
business, coverage units are determined considering the typical duration profile of bonds issued by the cedant, andissuance pattern over the duration of the underlying contract.
The Company reflects the time value of money in the allocation of the CSM to coverage units, using discount rates
determined at initial recognition that are applied to nominal cash flows that do not vary based on the returns ofunderlying items.
For reinsurance contracts held, the CSM is released to profit or loss as insurance contract services are received fromthe reinsurer in the period. Coverage units for the proportional reinsurance contracts held are based on the insurance
coverage provided by the reinsurer. The coverage period for these contracts is determined based on the coverage
period of all underlying contracts whose cash flows are included in the reinsurance contract boundary. Refer to theContract boundary section in note 2.15.4.1 above.
Onerous contracts – Loss component
When adjustments to the CSM exceed the amount of the CSM, the group of contracts becomes onerous and theCompany recognises the excess in insurance service expenses, and it records the excess as a loss component of the
LRC.
When a loss component exists, the Company allocates the following between the loss component and the remaining
component of the LRC for the respective group of contracts, based on the ratio of the loss component to the FCF
relating to the expected future cash outflows:
a.
b.
c.

Expected incurred claims and other directly attributable expenses for the period;
Changes in the risk adjustment for non-financial risk for the risk expired; andFinance income (expenses) from insurance contracts issued.

The amounts of loss component allocation in (a) and (b) above reduce the respective components of insurance revenue
and are reflected in insurance service expenses.

88

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Decreases in the FCF in subsequent periods reduce the remaining loss component and reinstate the CSM after the loss
component is reduced to zero. Increases in the FCF in subsequent periods increase the loss component.
Reinsurance contracts held – Loss-recovery component
A loss-recovery component is established or adjusted within the asset for remaining coverage for reinsurance
contracts held for the amount of income recognised in profit or loss when the Company recognises a loss on initialrecognition of an onerous group of underlying insurance contracts or on addition of onerous underlying insurance
contracts to that group.
Subsequently, the loss-recovery component is adjusted to reflect changes in the loss component of an onerous group ofunderlying insurance contracts discussed in the onerous contracts – Loss component section above. The loss-recovery
component is further adjusted, if required, to ensure that it does not exceed the portion of the carrying amount of theloss component of the onerous group of underlying insurance contracts that Atradius expects to recover from thegroup of reinsurance contracts held.
The loss-recovery component determines the amounts that are presented as a reduction of incurred claims recovery
from reinsurance contracts held and are consequently excluded from the reinsurance expenses determination.
2.15.4.3 Amounts recognised in comprehensive income
Insurance service result from insurance contracts issued
Insurance revenue
As the Company provides insurance contract services under the group of insurance contracts, it reduces the LRC andrecognises insurance revenue. The amount of insurance revenue recognised in the reporting period depicts thetransfer of promised services at an amount that reflects the portion of consideration that Atradius expects to beentitled to in exchange for those services.
The insurance revenue comprises the following:
1.
a.

b.

c.
d.
e.
2.

Amounts relating to the changes in the LRC:
Claims and other directly attributable expenses incurred in the period measured at the amounts expected at
the beginning of the period, excluding:i. Amounts allocated to the loss component;
ii. Insurance acquisition expenses; andiii. Amounts related to the risk adjustment for non-financial risk (see (b));
Changes in the risk adjustment for non-financial risk, excluding:i. Changes included in insurance finance income (expenses);ii. Changes that relate to future coverage (which adjust the CSM); andiii. Amounts allocated to the loss component;
Amounts of the CSM recognised for the services provided in the period;
Experience adjustments arising from premiums received in the period other than those that relate to futureservice; andOther amounts, including any other pre-recognition cash flows assets derecognised at the date of initialrecognition.
Insurance acquisition cash flows recovery is determined by allocating the portion of premiums related to therecovery of those cash flows based on the passage of time over the expected coverage of a group of contracts.

Insurance service expenses
Insurance service expenses include the following:
a.
b.
c.
d.
e.

Incurred claims, excluding investment components reduced by loss component allocations;
Other incurred directly attributable expenses, including amounts of any other pre-recognition cash flows
assets (other than insurance acquisition cash flows) derecognised at the date of initial recognition;
Insurance acquisition cash flows amortisation;
Changes that relate to past service – changes in the FCF relating to the LIC;
Changes that relate to future service – changes in the FCF that result in onerous contract losses or reversals of
those losses; and89

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedf.

Insurance acquisition cash flows assets impairment.

The amortisation of insurance acquisition cash flows is reflected in insurance service expenses in the same amount as
insurance acquisition cash flows recovery reflected within insurance revenue, as described above.
Other expenses not meeting the above categories are included in other operating expenses in the consolidated
statement of profit or loss.
Insurance service result from reinsurance contracts held
Net income (expenses) from reinsurance contracts held
The Company presents financial performance of groups of reinsurance contracts held on a net basis in net income(expenses) from reinsurance contracts held, comprising the following amounts:
a.
b.
c.
d.
e.

Reinsurance expenses;
Incurred claims recovery, excluding investment components reduced by loss-recovery component
allocations;
Other incurred directly attributable expenses;
Changes that relate to past service – changes in the FCF relating to incurred claims recovery;
Effect of changes in the risk of reinsurers’ non-performance; and amounts relating to accounting foronerous groups of underlying insurance contracts issued:i. Income on initial recognition of onerous underlying contracts;
ii. Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held;
andiii. Changes in the FCF of reinsurance contracts held from onerous underlying contracts.

Reinsurance expenses are recognised similarly to insurance revenue. The amount of reinsurance expenses recognisedin the reporting period depicts the transfer of received insurance contract services at an amount that reflects the
portion of ceding premiums that Atradius expects to pay in exchange for those services.
Reinsurance expenses comprise the following amounts relating to the changes in the remaining coverage:
a.

b.

c.
d.

Claims and other directly attributable expenses recovery in the period, measured at the amounts expected to
be incurred at the beginning of the period, excluding:i. Amounts allocated to the loss-recovery component;
ii. Repayments of investment components; andiii. Amounts related to the risk adjustment for non-financial risk (see (b))
Changes in the risk adjustment for non-financial risk, excluding:i. Changes included in finance income (expenses) from reinsurance contracts held;
ii. Changes that relate to future coverage (which adjust the CSM); andiii. Amounts allocated to the loss-recovery component.
Amounts of the CSM recognised for the services received in the period; andExperience adjustments – arising from premiums paid in the period other than those that relate to futureservice.

Ceding commissions that are not contingent on claims of the underlying contracts issued reduce ceding premiums andare accounted for as part of reinsurance expenses. Ceding commissions that are contingent on claims of theunderlying contracts issued reduce incurred claims recovery. It is on the top of the paragraph stated we present a net
amount.
Insurance finance income or expenses
Insurance finance income or expenses comprise the change in the carrying amount of the group of insurance
contracts arising from:a.
b.

The effect of the time value of money and changes in the time value of money; andThe effect of financial risk and changes in financial risk.

90

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

The main amounts within insurance finance income or expenses are:
a.
b.
c.

Interest accreted on the FCF and the CSM;
The effect of changes in interest rates and other financial assumptions; andForeign exchange differences.

The Company disaggregates changes in the risk adjustment for non-financial risk between insurance service result
and insurance finance income or expenses.
The groups of insurance contracts, including the CSM, that generate cash flows in a foreign currency are treated asmonetary items.

2.16

Provisions

Provisions for restructuring, onerous contracts and litigation are recognised when Atradius has a present legal orconstructive obligation as a result of past events, and it is more likely than not that an outflow of resources will be
required to settle the obligation and the amount has been reliably estimated.
Restructuring provisions include employees’ termination payments that are directly related to restructuring plans.
Provisions are not recognised for future operating losses. Where there are a number of similar obligations, thelikelihood that an outflow will be required in settlement is determined by considering the class of obligations as awhole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the sameclass of obligations may be small. Where the effect of the time value of money is material, the provision is measured as
the present value of the expenditure expected to be required to settle the obligation discounted using a pre-tax rate.

2.17

Employee benefits

2.17.1 Post-employment benefits
Atradius has a number of post-employment benefit plans. The obligations of these schemes are determined byperiodic actuarial calculations and are generally funded through payments to state plans, insurance companies ortrustee-administered funds. Atradius has both defined benefit plans and defined contribution plans.
Defined benefit plans
A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on
retirement, dependent on one or more factors such as age, years of service and compensation. In a defined benefit plan
Atradius may pay contributions into a separate entity or fund. Atradius, and in some cases the employees who areparticipating, fund a defined benefit plan and Atradius has a legal or constructive obligation to pay further
contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service
in the current and previous periods.
The amount recognised as a defined benefit liability is the net total of the present value of the defined benefit
obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (ifany) out of which the obligations are to be settled directly. The recognition of assets that arise by over-funding of thedefined benefit plan is limited to the ability to use the surplus to generate future benefits (the asset ceiling). The
defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The
present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using
interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid
and that have terms of maturity that approximate to the terms of the related pension liability.
Remeasurement of the net defined benefit liability, which comprises actuarial gains and losses, the return on plan
assets (excluding net interest that is calculated by applying the discount rate) and the effect of the asset ceiling (if any,excluding interest), is recognised immediately in other comprehensive income. Atradius determines the net interest
expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used tomeasure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability(asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result ofcontributions and benefit payments. Net interest expense and other expenses related to defined benefit plans arerecognised in the profit and loss statement.

91All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

The non-recognition of assets (‘asset ceiling’) can occur when the plan assets are higher than the projected benefit
obligation and Atradius cannot recover any surplus through refunds from the pension vehicle due to solvency and/or
control requirements.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised immediately in the profit and loss statement. Atradius
recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Defined benefit costs are categorised as follows:-

service cost (including current service cost, past service cost, as well as gains and losses on curtailments andsettlements);
administration expenses;
net interest expense or income; andremeasurement.

The first two components of defined benefit costs are presented in the profit and loss statement under net operating
expenses. The net interest is presented under finance expenses. Curtailment gains and losses are accounted for as past
service costs. Remeasurements are recognised in other comprehensive income.
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which Atradius pays fixed contributions into aseparate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does
not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.
For defined contribution plans, Atradius pays contributions to publicly or privately administered pension insurance
plans on a mandatory, contractual or voluntary basis. Atradius has no further payment obligations once thecontributions have been paid. The contributions are recognised as employee benefit expenses when they are due.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments
is available. The contributions to these plans are recognised as expenses in the profit and loss statement.

2.17.2 Other long-term employee benefits
Atradius has a number of other post-employment plans. The main plans are lump sum payment plans and prepension plans. A lump sum payment plan is a plan where the employees are entitled to a lump sum payment at thedate their employment is terminated. A pre-pension plan is a plan where the employees are entitled to receive
payments if they stop working before their actual retirement date.
Atradius’ obligation in respect of long-term service benefits, other than pension plans, is the amount of future benefit
that employees have earned in return for their service in the current and prior periods. The obligation is calculated
annually by independent actuaries using actuarial techniques.

2.17.3 Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an
employee accepts voluntary redundancy in exchange for these benefits. Atradius recognises termination benefits
when it is committed to either terminating the employment of current employees according to a detailed formal plan
without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage
voluntary redundancy. When termination benefits are related to an overall restructuring plan, the Atradius liability is
included as part of the provisions.

2.17.4 Profit sharing and bonus plans
Atradius recognises a liability and an expense for bonuses and profit sharing based on a formula that takes into
consideration, amongst other things, individual targets and the profit attributable to the owners of the Company.
Atradius recognises a liability where contractually obliged or where there is a past practice that has created aconstructive obligation.

92

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

2.18

Taxation

Income tax in the consolidated profit and loss statement for the year comprises current and deferred tax. Income tax isrecognised in the consolidated profit and loss statement except to the extent that it relates to items recognised in othercomprehensive income, in which case it is recognised in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or
substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous
years.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of thereporting period and are expected to apply when the related deferred income tax asset is realised or the deferredincome tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be used. Deferred tax assets and liabilities are offset when there is alegally enforceable right to set-off current tax assets against current tax liabilities and when they relate to income
taxes levied by the same tax authority and Atradius intends to settle its current tax assets and liabilities on a net basis.
If the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a businesscombination that at the time of the transaction affects neither the accounting nor the taxable profit or loss, it is notaccounted for.

2.19

Consolidated profit and loss statement

2.19.1 Income
Revenue comprises the fair value for services, net of value added tax, after eliminating revenue within Atradius. The
accounting principles regarding insurance revenue are included in Note 2.15.4.3.
Service and other income
Service income includes the income from:
‐

‐

‐
‐

‐

Credit information services, consisting of providing up-to-date credit information on buyers for which acustomer requires a credit limit application under the insurance policy. This performance obligation issatisfied over time during the policy period. Revenue is recognised based on the credit limit applications
requested by and invoiced to the customer, against fixed prices stated in the contract. If a contract includes a
separate charge for monitoring, this element is recognised evenly over time;
Debt collection services for debts owed to customers. The performance obligation is defined at the level of theindividual debts, placed under the contract. Revenue is recognised in line with the actual collected amounts,
based on fees specified in the debt collection agreements.
Business information and other service income.
Business information is provided online to customers on a subscription basis. Revenue is recognised evenly
over time based on the consideration in the contract, reflecting the constant effort required to acquire andprepare business information.
Atradius Dutch State Business (ADSB) is the official Export Credit Agency for The Netherlands and issues
export credit insurance policies and guarantees to Dutch businesses, on behalf of and for the risk of the Dutch
State. ADSB receives a service fee for managing the credit insurance facility, specified in the service contract.
This income is recognised evenly over time.

Share of income of associated companies
Associates are accounted for in the consolidated financial statements using the equity method. Under the equity
method the investor’s share of after-tax profits or losses of the associates is presented as a single line item in the profit
and loss statement.

93All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Net income from investments
Investment income comprises interest income on funds invested, dividend income, unrealised gains and losses on
debt securities FVTPL, realised gains and losses on the disposal of debt securities FVOCI and rental income frominvestment property that are recognised in the profit and loss statement. Interest income is recognised as it accrues in
the profit and loss statement, using the effective interest method. Dividend income is recognised in the profit and loss
statement on the date that Atradius’ right to receive payment is established, which in the case of quoted securities isthe ex-dividend date.
Investment expenses comprise impairment losses recognised on financial investments and investment property.
Realised gains or losses on investment property recognised in the profit and loss statement represent the difference
between the net disposal proceeds and the carrying amount of the property.

2.19.2 Expenses
Net operating expenses
Net operating expenses comprise administrative expenses and commissions. Total administrative expenses are
expenses associated with selling and administrative activities after reallocation of claims handling expenses toinsurance claims.
Finance income and expenses
Finance income consists of interest received on loans, receivables and cash and cash equivalents.
Finance expenses include interest, amortisation of discount on the subordinated debt, foreign exchange results andthe net interest on the net defined benefit liability (asset) related to defined benefit plans (see also Note 2.20). Foreign
currency gains and losses are reported on a net basis and consist of transaction and translation results.
Interest income and expenses are calculated using the effective interest rate method based on market rather than
nominal rates, at the date that the instrument is recognised initially or modified.

2.20

Consolidated statement of cash flows

The statement of cash flows is presented using the indirect method, whereby the result for the year before tax isadjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments, and items of income or expense associated with investing or financing cash flows.
Some of the terminology used in the statement of cash flows is explained as follows:
a.
b.
c.
d.

2.21

cash flows are inflows and outflows of cash and cash equivalents;
operating activities are the principal revenue-producing activities of Atradius and other activities that are notinvesting or financing activities;
investing activities are the acquisition and disposal of assets and other investments not included in cash
equivalents; andfinancing activities are activities that result in changes in the size and composition of the contributed equity
and borrowings of Atradius.

Hyperinflation accounting

IAS 29 requires the financial statements of entities operating in hyperinflationary economies to be adjusted to reflect
the changes in the general purchasing power of their functional currency. Thus, non-monetary assets and liabilities
that are not already expressed in terms of the measuring unit current at the period end date are restated to reflect thechange in the CPI. In the financial statements of Atradius, the restatement effects on equity items are included in othercomponents of comprehensive income, including the translation differences. The effect of inflation on monetary assets
and liabilities over the reporting period is included in the reporting period’s consolidated income as a loss on net
monetary position. The accumulated gains and losses on net monetary position for previous periods are included
within the retained earnings.

94

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

The presentation of the consolidated profit and loss statement of the reporting period is not restated as the effect of therestatement is not material. As stated in IAS 21 “The Effects of Changes in Foreign Exchange Rates”, financial
statements, including their profit and loss statements, are translated in Euros at the closing exchange rate to beincorporated in the financial statements of Atradius, and the comparative information is not restated.

2.22

Non-current assets (or disposal groups) held for sale and discontinued operations

Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying amountand fair value less costs to sell if their carrying amount is recovered principally through a sale transaction rather than
through continuing use. A discontinued operation is a component of an entity that either has been disposed of, or thatis classified as held for sale and (a) represents a separate major line of business or geographical area of operations; or(b) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of
operations; or (c) is a subsidiary acquired exclusively with a view to resale.
Intercompany transactions eliminations are performed against held for sale operations.

95All amounts in thousands of Euro, unless otherwise stated
All amounts
in thousandsof Euro,ofunlessstated stated
All amounts
in thousands
Euro,otherwise
unless otherwise

3 Criticalaccounting
estimates
andandjudgements
in applying
accounting
3 Criticalaccounting
estimates
judgements
in applying
accounting
policies
policies
Atradius
makesmakes
estimates
and assumptions
that affectthe reported
financialstatements(balance
sheet,sheet,profit profit
and loss
Atradius
estimates
and assumptions
that affectthe reported
financialstatements(balance
and lossand contingent
assetsassets
and liabilities).
Estimatesand judgements
are continually
evaluated.
TheseThese
are basedon onand contingent
and liabilities).
Estimatesand judgements
are continually
evaluated.
are basedhistoricalexperienceand otherincluding
expectationsof future
eventsevents
that arebelieved
to be reasonablehistoricalexperienceand factors,
other factors,
including
expectationsof futurethatare believed
to be reasonable
underunder
the circumstances.
The most
areas areas
for whichmanagement
is required
to makejudgements
and andthe circumstances.
The significant
most significant
for whichmanagement
is required
to makejudgements
estimatesthat affectreported
amounts
and disclosures
are detailed
below.below.
estimatesthat affectreported
amounts
and disclosures
are detailed

3.1

Financialinvestments
relatedestimatesand judgements
3.1
Financialinvestments
relatedestimatesand judgements

3.1.1 3.1.1
Classificationof financial
instruments
Classificationof financial
instruments
The Company
has madejudgements
in applying
the businessmodelmodel
criteria
to its portfolio
of debtofinstruments.
The The
The Company
has madejudgements
in applying
the businesscriteria
to its portfolio
debt instruments.
Company
does notconsiderapplying
the SPPI
to be anarea
significant
judgement
for itsfor
debtCompany
does
not consider
applying
thecriteria
SPPI criteria
to beanofareaof significant
judgement
itsinstrument
debt instrument
portfolio,
as it onlyin straightforward
basic lending
arrangements.
portfolio,
as itinvests
only invests
in straightforward
basic lending
arrangements.
For morerefer tonoteto2.1.
For information,
more information,refer
note 2.1.

3.1.2 3.1.2
Measurementof fairofvalue
Measurement
fair value
The Company
measuressome ofits financial
instruments
at fairat
value
for financial
reportingpurposes.
The fairvalue
The Company
measuressomeof its financial
instruments
fair value
for financial
reportingpurposes.
The
fair valueof financial
instrumentsthat arenottradedin an active
marketis determinedby using
valuationtechniques.
The Theof financial
instrumentsthatarenot tradedin an active
marketis determinedby using
valuationtechniques.
Company
uses its
judgement
to select
a varietyof methods
and makeassumptions
that aremainlybasedbasedon market
Company
uses
its judgement
to select
a varietyof methods
and makeassumptions
thatare mainly
on market
conditions
existing
at the atend
eachperiod.period.
WhenWhenmarketobservable
inputsinputs
are not
available(Level(Level
1 and 1 andconditions
existing
theofend
ofreporting
each reporting
marketobservablearenot available
some Level
2 securities),
the Company
engages
an external
independentvaluationcompany
to performthe valuation.
some Level
2 securities),
the Company
engages
an external
independentvaluationcompany
to performthe valuation.
Atradius
worksworks
togetherwith theexternal
independentvaluationcompany
to establish
the appropriate
valuation
Atradius
togetherwiththe external
independentvaluationcompany
to establish
the appropriate
valuationtechniques
and inputs
to the tomodel.
techniques
and inputs
the model.
The fairvaluescorrespondwith theprice,
at ourat
best
that would
be received
to sellto
ansell
asset
paid
The
fair values
correspondwiththe price,ourestimate,best estimate,that would
be received
an or
asset
ortopaid totransfera liability
in an orderlytransaction
betweenmarketparticipantsat the atmeasurement
date. Whenevertransfera liability
in an orderlytransaction
betweenmarketparticipants
the measurement
date. Wheneverpossible,the fairvaluesare basedon quoted
marketprices.prices.
If thereno quoted
marketprice available,
the Company
possible,thefair values
are basedon quoted
marketIf is
there
is no quoted
marketprice available,
the Company
uses valuation
techniques,
whichwhich
are basedon market
pricespricesof comparable
instruments,
or parametersfrom fromuses valuation
techniques,
are basedon marketof comparable
instruments,
or parameterscomparable
activeactive
markets(marketobservabledata). data).
If no observable
marketinputsinputs
are available,valuationmodelscomparable
markets(marketobservable
If no observable
marketare available,valuationmodelsare usedobservabledata). data).
TheseThesevaluationtechniques
are subjective
in natureand involve
variousare(non-market
used (non-market
observablevaluationtechniques
are subjective
in natureand involve
variousassumptions
about about
the relevant
pricingfactors.
Changesin these
could could
significantly
affect affectthe estimatedassumptions
the relevant
pricingfactors.
Changesin assumptions
these assumptions
significantly
the estimatedfair values.
Consequently,
the fairvaluespresented
may not
benot
indicativeof the ofnettherealisablevalue.value.
In addition,
the thefair values.
Consequently,
thefair values
presented
may
be indicative
net realisable
In addition,
calculationof the of
estimated
fair value
is basedon market
conditions
at a specificpoint intime
benot becalculation
the estimatedfair value
is basedon market
conditions
at a specific
point
inand
timemay
andnotmay
indicativeof futurefair values.
indicativeof futurefair values.
The fairvaluesare subject
to a control
framework
designedto ensurethat theyeitherdeterminedor validated
by a by aThefair values
are subject
to a control
framework
designedto ensurethatarethey
are either
determinedor validated
function
independentof the ofrisk
To thisToend,Company
establishes
the accounting
policiesand processes
function
independent
thetaker.
risk taker.
thistheend,
the Company
establishes
the accounting
policiesand processes
governingvaluationand isandresponsible
for ensuringthat thesewith allrelevant
accounting
pronouncements.
governingvaluationis responsible
for ensuringthat comply
these comply
with
all relevant
accounting
pronouncements.
WithinWithin
this governancestructure,
non-quoted
investments
or illiquid
investments
in which
the Company
invests
are arethis governancestructure,
non-quoted
investments
or illiquid
investments
in which
the Company
investsvaluedvaluedby an byexternal
independentvaluationcompanyor theorasset
of illiquid
investment
fund. Thean external
independentvaluationcompany
the manager
asset managerof illiquid
investment
fund.external
The external
independentvaluationcompany
uses its
own
valuationsystems
to valuethe securities
supportedby byindependentvaluationcompany
uses
itsproprietaryown proprietaryvaluationsystems
to valuethe securities
supported
economic
and market
assumptions
from financial
information
providers.
The valuations
are provided
on a monthly
economic
and market
assumptions
from financial
information
providers.
The valuations
are provided
on a monthly
basis andreviewed
and approvedby theby
Company.
basisareandare reviewed
and approved
the Company.
The fairvaluesof subordinateddebts,debts,
equal equal
their carrying
value,value,
are disclosed
in NoteSubordinateddebt. debt.
Thefair valuesof subordinatedtheir carrying
are disclosed
in20
Note
20 SubordinatedDebt andsecurities
Debtequity
and equity
securities
The fairvalue
of debtofandsecurities
is basedon quoted
marketprices,prices,wherewhereavailable.
For those
securities,
not notThe
fair value
debtequity
and equity
securities
is basedon quoted
marketavailable.
For those
securities,
actively
traded,fair values
are provided
by an byexternal
independentvaluationcompany
or by thefund’sasset asset
actively
traded,fair values
are provided
an external
independentvaluationcompanyor by
the fund’s
manager.
manager.

96

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Loans and short-term investments
For loans and other short-term investments, carrying amounts represent a reasonable estimate of their fair values.
Other financial assets
The carrying amount of other financial assets, including cash and cash equivalents, is not materially different to theirfair value, given their short-term nature.
Subordinated debt
The fair values of subordinated debts are based on binding quotes from independent brokers (see Note 20 for further
details).
Other financial liabilities and deposits received from reinsurers
The carrying amount of other financial liabilities and deposits received from reinsurers is not materially different totheir fair value, given their short-term nature.
Information about the valuation techniques and inputs used in determining the fair value of various instruments aredisclosed in Note 2.9.

3.1.3 Expected credit loss (ECL)
Accounting policies applicable to Expected Credit Loss (ECL) assessment are detailed in Note 2.10.4.
Amounts arising from expected credit loss
The following table explain the changes in the loss allowance for FVOCI debt securities between the beginning and theend of the annual period:

97All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated2023

Stage 1

Stage 2

Total

Debt securities:
Balance on 1 January

3,968

15,862

19,830

New financial assets

530

639

1,169

Provision (net) by change of stage

686

(686)

-

Changes in valuation

168

676

844

(2,464)(1,686)(4,150)(358)(14,649)(15,007)

2,530

156

2,686

Changes in PD
Sales/transfer of assets(1)

Balance at 31 December

2022Stage 1

Stage 2

Total

Debt securities:
Balance on 1 January

1,688

1,140

2,829

New financial assets

4,309

15,16919,478

230

6,063

6,293

(5)

68

63

Changes in PD

1,850

7,969

9,818

Sales/transfer of assets(4,104)(14,546)(18,651)

Balance at 31 December

3,968

15,862

19,830

Provision (net) by change of stage
Changes in valuation

1)

Movement in Stage 2 due to sale subsidiary in Russia.

The total market value for debt instruments designated at FVTPL is EUR 2.3 billion (2022: EUR 2.2 billion). The
increase in the fair value during the year is EUR 0.1 billion (2022: EUR - 0.3 billion).

3.2(Re-) Insurance related estimates

In accordance with the Company’s accounting policies, as described in the preceding paragraphs, it has been necessary
to make judgements, estimates and assumptions about the carrying value of assets and liabilities. The estimates andunderlying assumptions are reviewed on an ongoing basis.
The Company applies significant judgements associated with IFRS 17 in the following cases:
Determining the cash flows within the contract boundary
The measurement of a group of (re-)insurance contracts includes all future cash flows that arise within the contract
limit. In determining which cash flows fall within a contract boundary, the Company considers its substantive rights
and obligations arising from the terms of the contract as well as from the applicable law and regulations. Cash flows
are considered to be outside the contract limit if the Company has the practical ability to change the price of existing
contracts to reflect their revaluation risks and if the contract price for the hedge to the revaluation date considers only
the risks until that next reassessment date. The Company applies its judgement in assessing whether it has thepractical ability to set a price that fully reflects all contract or portfolio risks. The Company considers contractual, legal
and regulatory restrictions in making its assessment.
Level of granularity information
The Company uses judgement to determine at what level of granularity it has reasonable and supportable informationthat is sufficient to conclude that all contracts within a set are sufficiently homogeneous and will be allocated to thesame portfolio without performing an individual contract assessment.

98Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Assessment of directly attributable cash flows
The Company applies its judgement in assessing whether cash flows are directly attributable to a specific portfolio of
insurance contracts. Cash flows are included in the measurement of a portfolio of insurance contracts only if they are
directly attributable to the individual contracts of a group, the group itself or the portfolio to which the contract
belongs. In estimating fulfilment cash flows, the Company also allocates fixed and variable overheads directly
attributable to the performance of insurance contracts.
Assessment of whether the retrospective approach to the transition is impracticable
Atradius assessed all available information and determined that it would be impracticable to apply the full
retrospective approach of all group of contracts before 2021.

3.3

Methods used and judgements applied in determining the IFRS 17 transition amounts

The Company has adopted IFRS 17 retrospectively, applying alternative transition methods where the full
retrospective approach was impracticable. The Company applied the full retrospective approach to the insurance
contracts in force at the transition date (1 January 2022) that were issued less than one year prior to the transition
date. The Company applied the modified retrospective approach to the insurance contracts that were originated morethan one year prior to the transition date. However, on the annual cohorts that do relate to that period more than one
year prior to transition date and have a liability for remaining coverage (LRC), the Company applied the full
retrospective approach as per 1 January 2022.
The Company did not apply the fair value approach.
The transition approach was determined at the level of a group of insurance contracts and affected the approach forcalculating the CSM on initial adoption of IFRS 17:‐‐

Full retrospective approach – the CSM at initial recognition is based on initial assumptions when groups ofcontracts were recognised and rolled forward to the date of transition as if IFRS 17 had always been applied;andModified retrospective approach – the CSM at initial recognition is calculated based on assumptions attransition using some simplifications and taking into account the actual pre-transition fulfilment cash flows(FCF).

For credit insurance contracts issued, the Company has used the full retrospective approach for more than 90 % of theportfolios.
The Company has determined that it would be impracticable to apply the full retrospective approach where any of thefollowing conditions existed:-

The full retrospective application required assumptions that would have been made in an earlier period, forexample:The Company’s expectations on expected claims and recoveries would not have been possible to recreate
without the use of hindsight;
Difficulties in retrieving relevant reliable information existed where assumptions developed at the dateof initial recognition were not on an IFRS 17 basis (such as risk adjustment for non-financial risk or
expenses);
The older the contracts in force are, the Company did not have the ability to retrieve data from the past
on assumptions.

-

The full retrospective application required significant estimates of amounts, and it was impossible to distinguishobjectively between information about those estimates that provided evidence of circumstances that (i) existed on
the date at which those amounts were to be recognised, measured or disclosed; and (ii) would have been available
when the consolidated financial statements for that prior period were authorised for issue, and other information,for example:-

The Company had limited or no information required for the allocation of acquisition cash flows to
respective groups of insurance contracts issued or expected to be issued and other overhead expenses torespective groups under IFRS 17. Systems have not been tracking or allocating acquisition costs, because99All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated-previous accounting policies did not require this. In addition, the allocation of applicable overheads togroups of contracts could require information that has not historically been tracked/recorded.
The Company has not historically been accumulating information about the changes in estimates thatwould have been recognised in profit or loss for each accounting period, because they did not relate tofuture service, and the extent to which changes in the FCF would have been allocated to the loss
component.

The Company applied this modified retrospective approach for all the products except for the Credit Insurance
contracts mentioned above.
Full retrospective approach
The Company has determined that reasonable and supportable information was available for all contracts in force atthe transition date that were issued within one year prior to the transition date.
Accordingly, the Company has:
a.

b.
c.

identified, recognised and measured each group of insurance contracts and each insurance acquisition cash
flows asset in this category as if IFRS 17 had always been applied (except that a retrospective impairment test
has not been performed); andderecognised any existing balances that would not exist if IFRS 17 had always applied;
and recognised any resulting net difference in equity.

Modified retrospective approach
After making reasonable efforts to gather necessary historical information, the Company has determined that for
certain groups of contracts such information was not available or was not available in a form that would enable it to
be used without undue cost and effort. It was therefore impracticable to apply the full retrospective approach. The
Company applied significant judgement in determining the transition amounts under this approach.
Judgements in applying the modified retrospective approach
The Company has determined that transactional-level data and annual actuarial assumptions are available as far as
seven years prior to the IFRS 17 transition date and that it includes nearly 100% of all insurance contract data. The
Company applies the modified retrospective approach to all groups of contracts in force as at the transition date andthat originated within seven to one year prior to the transition date, where the full retrospective approach has notbeen applied because it was impracticable but the closest possible outcome could have been achieved using
reasonable and supportable information. The modified retrospective approach was applied as follows:
a.

b.

c.

Aggregation of contracts. Groups of contracts were divided into annual cohorts. Aggregation of insurance
contracts by expected profitability was assessed as at the transition date to the extent that reasonable andsupportable information was available to perform this assessment as at initial recognition. For thisassessment, the Company estimated the FCF at the initial recognition as described below. Further, toaggregate non-onerous insurance contracts issued into groups of contracts that had no significant possibilityof becoming onerous subsequently or groups of remaining contracts, the Company assessed the likelihood ofchanges in insurance, financial and other exposures on the FCF prospectively as at the transition date.
Similarly, to aggregate reinsurance contracts held in a net cost position into groups of contracts for which
there is no significant possibility of a net gain arising subsequently or groups of remaining contracts, theCompany assessed the likelihood of changes in insurance, financial and other exposures on the FCF
prospectively as at the transition date.
Future cash flows. To the extent that reasonable and supportable information was not available to estimate
future cash flows at initial recognition, future cash flows at the date of initial recognition of a group of
insurance contracts were estimated as the future cash flows at the transition date, adjusted by the actual cash
flows that have occurred between the transition (or earlier) date and the date of initial recognition. Actual
cash flows included cash flows from contracts derecognised before the transition date.
Risk adjustment for non-financial risk. Similar to the cash flow simplification above, the risk adjustment for
non-financial risk was estimated at the transition date by adjusting the risk adjustment for non-financial risk
at the transition date by the expected release of risk before the transition date. In estimating the release ofrisk, reference was made to the release of risk for similar insurance contracts that were issued at thetransition date.

100Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

d.

e.

f.

Discount rates. The Company did not apply the modification for discount rates determination as permitted byparagraph C13 of IFRS 17. The Company did apply the bottom-up approach. The bottom-up approach is basedon the Euro swap curve (after the entry into force of the single European currency).
Insurance acquisition cash flows assets. The Company did not recognise any insurance acquisition cash flows
assets for any insurance acquisition cash flows paid (or for which a liability has been recognised applying
another IFRS standard) before the transition date.
CSM, loss component and loss-recovery component. The Company has determined that it does not havereasonable and supportable information to determine the carrying value of the CSM, loss component or lossrecovery component prior to the transition date. Accordingly, the Company has determined the amounts at
transition, assuming that it had not prepared any interim reports prior to transition. For contracts measured
under the GMM, the CSM, loss component and loss-recovery component of the LRC at the transition date were
determined applying modifications in the FCF estimation, as described above. The CSM was reduced for the
allocation to profit or loss for services provided or received before the transition date, by comparing theremaining coverage units as at the transition date with the coverage units provided or received under thegroup of contracts before the transition date.
For insurance contracts issued, where the calculated CSM resulted in a loss component, the Company used thesystematic approach to determine amounts allocated to the loss component before the transition date.
For groups of reinsurance contracts held that provide coverage for onerous groups of underlying contracts inforce at the transition date that were in place by the time the underlying contracts were issued. Loss-recovery
components of the asset for remaining coverage were determined at the transition date by multiplying theloss components of the LRC for the respective groups of underlying insurance contracts by the percentage ofclaims for the group of underlying insurance contracts that the Company expects to recover from the group ofreinsurance contracts held.

101

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

3.4(Re-) Insurance related estimates and assumptions

This note provides an overview of items that are more likely to be materially adjusted due to changes in estimates andassumptions in subsequent periods. Detailed information about each of these estimates is included in the notes below,
together with information about the basis of calculation for each affected line item in the consolidated financial
statements.
In applying IFRS 17 measurement requirements, the following inputs and methods were used that include significant
estimates:
The present value of future cash flows is estimated using deterministic scenarios, except where stochastic modelling isused to measure financial guarantees.
The assumptions used in the deterministic scenarios are derived to approximate the probability-weighted mean of afull range of scenarios.
In addition to contributions from standard components of Atradius reserving methodologies, an Event Based
Provision has been estimated specific to the potential impact derived from the war in Ukraine. This provision is for
those risks considered to not be fully covered by the standard methodologies.
As a result of the reviewed assessment performed, a EUR 122 million provision gross of reinsurance (EUR 92.3 million
net of reinsurance) is held for claims already incurred. This compares to EUR 140 million provision gross ofreinsurance (EUR 98.4 million net of reinsurance) as per 2022 closing.
For the sensitivities with regards to the assumptions made that have the most significant impact on measurement
under IFRS 17, refer to note 3.5.

3.4.1 Factors affecting the frequency and severity of claims
The frequency and severity of claims is affected by several factors. These include all factors that affect credit risk ingeneral, including the state of the economy, that varies by country and sector. For trade credit risk, the behaviour ofcustomers also affects the frequency and severity of claims, for instance through risks inherent to their businessactivities and their risk management practices. Specific events (e.g. natural disasters) or structural changes in theeconomy (e.g. easier access to developed markets for producers in low cost countries), may impact the frequency andseverity of claims. What specific events or structural changes are relevant in this respect will vary over time. In
addition, the political risk cover that The Company provides has its own dynamics of frequency and severity of claims.
During 2023, slowing economic growth and the normalisation of insolvency rates to pre-COVID levels affected thefrequency and severity of claims.
The war in Ukraine continues to impact the global economy, especially energy prices. Most trade sectors, aredependent on energy and have continued to see higher prices for longer during 2023. Therefore, world-trade is being
affected by such inflation and stress. This in turn impacts uncertainty related to the frequency and severity of claims.
In response, most central banks continued to raise the interest rates until pausing in 2023 Q3. Banks and othersuppliers of credit have tightened their lending conditions. Further adding to the uncertainty in frequency andseverity, also affecting recoveries.
All the factors above, lead to an increased potential for adverse development on the technical provisions in the coming
months because of increase in frequency, severity and insolvency rates.
The surety business usually only incurs irrecoverable losses when, after a bond call, any payments to beneficiaries
recourse to the surety customer or if its guarantors fail. This is typically due to either the insolvency or bankruptcy ofthe surety customer. Thus, in the end, the frequency and severity of claims is affected by similar factors as thoseaffecting credit insurance.
All forms of credit insurance and surety bear the risk that changes in legislation, in particular of insolvency law, may
affect the amount and timing of claims payments or recoveries.

102

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

The Company’s business processes are designed to effectively manage the impact of the many risk factors that affectthe frequency and severity of claims. These business processes are continuously adapted to respond to The Company
view of these risk factors in the context of its overall business strategy.

3.4.2 Sources of uncertainty in the estimation of future claims payments
The sources of uncertainty in the estimation of future claims payments include, but are not limited to, all the factorsthat affect the frequency and severity of claims in general, as described in epigraph 3.4.1.
Estimates for future claims payments are made through a combination of case-by-case estimates and statisticalestimates. Provisions for reported claims are set on a case-by-case basis, taking into account statistical estimates for
expected recoveries and statistical estimates of claims incurred to payment ratios. The estimates for future claims
payments are produced per period during which policyholders brought risk under the contract boundary of the policy(e.g. the period in which the insured shipment has taken place). Large cases are provisioned separately, at expectedloss.
In the case of traditional credit insurance, the main sources of uncertainty for estimates of future claims payments
include:-the amounts that will be paid out as a percentage of the claim amount;the speed with which customers submit claims, as measured from the moment that the insured shipment took
place, the expected average claims payment and the expected percentage of cases that do not lead to a payment;
the expected number of claims for risks taken on during the most recent months since very few claims will havebeen reported for the most recent four to six months (depending on the main unit);
the inflow by number and size of large case; andthe estimation of the expected recovery percentages.

Estimates for future claims payments for surety have a greater uncertainty than estimates for future claims payments
for credit insurance. Surety is a ‘longer tail’ business; i.e., the time between issuance of the bond and receipt of thebond call tends to be much longer than that of traditional short-term credit insurance. For example, most credit
insurance covers credit periods up to 180 days, while around half the number of bonds written has tenors of over two
and a half years. After receipt of a bond call, it usually takes longer to settle the claim and litigation is not uncommon,
either following the bond call or when trying to realise recoveries. Especially in Italy, litigation tends to be a lengthy
process. Outcomes of litigation cannot be predicted with certainty. For surety, the provisions set on a case-by-casebasis are based on the amount called minus an amount to account for expected recoveries based on historicexperience or case specific information. The case by case and business oriented evaluation is integrated with astatistical and actuarial model. This model based on the exposure of active bonds applies probability of defaults andloss given default.

3.4.3 Discount rates
The Company measures the value of money over time using discount rates that reflect the liquidity characteristics of
insurance contracts and the characteristics of cash flows, consistent with current market prices and excluding factors
influencing the market prices of the reference assets but not affecting the flows of insurance contracts. The discountrate is calculated by the "bottom-up" approach after the transition ("bottom-up") based on the risk-free curve, mainly
based on the curve published monthly by EIOPA (European Insurance and Occupational Pensions Authority) andapplying an illiquidity premium of zero.
The observable market information is available for up to 20 years. For the unobservable period, the yield curve wasinterpolated between an ultimate rate and the last observable point using the Smith-Wilson method.

103

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

The yield curves that are used to discount the estimates of future cash flows are as follows:
2023

2022

Currency

1 year

5 years

10 years

20 years

1 year

5 years

10 years

20 years

EUR

3.19%

2.79%

2.86%

2.83%

3.18%

3.13%

3.09%

2.77%

AUD

4.43%

4.54%

4.87%

4.94%

3.98%

4.17%

4.51%

4.46%

GBP

4.74%

4.06%

3.99%

4.03%

4.46%

4.06%

3.71%

3.54%

USD

4.50%

3.97%

3.99%

3.99%

5.07%

3.95%

3.75%

3.63%

3.4.4 Estimates of future cash flows to fulfil insurance contracts
Included in the measurement of each group of contracts within the scope of IFRS 17 are all of the future cash flows
within the boundary of each group of contracts. The estimates of these future cash flows are based on probabilityweighted expected future cash flows. The Company estimates which cash flows are expected as at the valuation date.
In making these expectations, the Company uses information about past events, current conditions and forecasts offuture conditions. The Company’s estimate of future cash flows is the average of a range of scenarios that reflect thefull range of possible outcomes. The estimated future cash flows are calculated using a deterministic scenario
representing the probability-weighted average of a range of scenarios.
Where estimates of expenses-related cash flows are determined at the relevant level, these are allocated to contracts
on a systematic basis, such as activity-based costing method. The Company has determined that this method results ina systematic and rational allocation. Similar methods are consistently applied to allocate expenses of a similar nature.
Expenses of an administrative policy maintenance nature are allocated to contracts based on premiums of contracts inforce within groups.
Indirect acquisition cash flows are allocated to contracts based on, for example, gross invoiced premiums . Thisimplies an allocation of acquisition cash flows among existing groups of insurance contracts.
Claims handling expenses are allocated based on the outstanding amount observed for each claim at each valuation
date.
Uncertainty in the estimation of future claims payments arises primarily from the frequency and severity of claims
and uncertainties regarding future inflation rates leading to claims and claims-handling expenses growth. Atradius iscapturing, within the future cash-flows estimates, the higher uncertainty for most recent months of risk.
Assumptions used to develop estimates about future cash flows are reassessed on quarterly bases and adjusted whererequired.

3.4.5 Expenses
The Company projects estimates of future expenses relating to fulfilment of contracts within the scope of IFRS 17 using
expected expense levels. Expenses comprise expenses directly attributable to contracts, including an allocation of
fixed and variable overheads.
Possible increases in expense assumptions increase estimates of future cash outflows and thus decrease the CSM
within the LRC for contracts measured under the GMM.

3.4.6 Methods used to measure credit insurance and surety contracts
The Company estimates insurance liabilities in relation to all bounded contracts. Estimates are performed on risk
attaching period (e.g. months for Short term – Credit Insurance), with further allocation to contracts in proportion to
the loss estimation volume measure (depending on the model).
Judgement is involved in assessing the most appropriate technique to estimate insurance liabilities for the expected
losses from claims.

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Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

The most methods employed to estimate claims are the chain-ladder,the Bornhuetter-Ferguson and PD - LGD
methods, which are the industry standards for this type of claims.
The Company has not changed the methods used to estimate claims.
In its claims assessments, the Company uses internal and market data. Internal data is derived mostly from theCompany’s claims reports. This information is used to develop scenarios related to the latency of claims that are used
for the projections of the ultimate number of claims.

3.4.7 Methods used to measure the risk adjustment for non-financial risk
The risk adjustment for non-financial risk is the compensation that is required for bearing the uncertainty about theamount and timing of cash flows that arises from non-financial risk as the insurance contract is fulfilled. Because therisk adjustment represents compensation for uncertainty, estimates are made on the degree of diversification benefits
and expected favourable and unfavourable outcomes in a way that reflects the Company’s degree of risk aversion. The
Company estimates an adjustment for non-financial risk separately from all other estimates..
The risk adjustment is calculated at the Company Group level and then allocated down to each group of contracts inaccordance with their risk profiles. The cost of capital method was used to derive the overall risk adjustment for nonfinancial risk.
In the cost of capital method, the risk adjustment is determined by applying a cost rate to the present value of
projected capital requirement relating to non-financial risk. The cost rate is set at 6% per annum, representing thereturn required to compensate for the exposure to non-financial risk. The capital requirement is determined at a 99.5%
confidence level, and it is projected in line with the run-off of the business. The diversification benefit is included toreflect the diversification in contracts sold across geographies, because this reflects the compensation that the entity
requires.
The resulting amount of the calculated risk adjustment corresponds to the confidence level of 74% (2022: 77%).
The methods and assumptions used to determine the risk adjustment for non-financial risk were not changed in 2023
and 2022.

3.5

Sensitivity analysis

The following tables present information on how reasonably possible changes in assumptions with regard tounderwriting risk variables and discount rates impact insurance liabilities and profit or loss and equity before andafter risk mitigation by reinsurance contracts held. The analysis is based on a change in an assumption while holding
all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions might becorrelated.
The risks associated with credit insurance and surety are subject to several factors that are not particularly open toquantitative sensitivity analysis. This section describes the quantitative sensitivity analysis that is feasible.
The Company has defined the following three sensitivity assessments:
Uplift shock on discounting rates (+50 basic points).
Down lift shock on discounting rates (-50 basic points).
Deterioration in underwriting risk: All expected cashflows related to all estimated claims are increased by 10%.
Where all amounts imply indemnities, recoveries and claim handling expenses. This is applied irrespective of
product, model and type of claims’ related cashflows.

105All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated2023(EUR Million)
Discounting
Insurance
Contracts

FCF

CSM

LC

LRC

1,227

218

200

Total
-

Impact
FCF

CSM

LC

LRC

Total

CSM

P&L

OCI

1,446

+50bps

(4)

-

(4)

218

-

5

- 50bps

4

-

1

-

4

218

-

(5)

+ 50bps

3

-

-

-

3

(30)

-

(3)

- 50bps

(3)

-

-

-

(3)

(30)

-

3

Total

CSM

P&L

OCI

Reinsurance
Contracts

Underwriting
Risk - claims
increase by 10%
Insurance
Contracts
Reinsurance
Contracts

(483)

(30)

3

(74)

Insurance
Contracts

(1)

(513)

Impact
FCF

CSM

LC

LRC

Total
FCF

CSM

LC

LRC

1,227

218

200

-

1,446

124

(22)

61

-

102

196

(170)

(164)

(483)

(30)

3

(74)

(513)

(68)

12

0

(33)

(55)

(17)

88

88

CSM

LC

LRC

CSM

P&L

OCI

2022

(EUR Million)
Discounting

-

FCF

CSM

LC

LRC

Total

1,131

229

216

-

1,360

ImpactFCF

Total+ 50bps

2

1

(3)

-

3

229

1

1

- 50bps

(2)

(1)

3

-

(3)

228

(1)

(1)

+ 50bps

(0)

(1)

-

2

(1)

(24)

(2)

(1)

- 50bps

0

1

-

(2)

1

(22)

2

1

Total

CSM

P&L

OCI

Reinsurance
Contracts

Underwriting
Risk - claims
increase by 10%
Insurance
contracts
Reinsurance
contracts

3.6

(431)

(23)

1

(112)

(454)

Impact
FCF

CSM

LC

LRC

Total
FCF

CSM

LC

LRC

1,131

229

216

-

1,360

112

(21)

56

-

91

208

(149)

(148)

(431)

(23)

1

(112)

(454)

(62)

12

-

(35)

(50)

(11)

86

86

Estimated impairment of goodwill

In accordance with its accounting policy, the Company annually tests whether goodwill of subsidiaries and associatedcompanies has suffered any impairment. The recoverable amounts of cash-generating units have been determinedbased on value in use calculations. These calculations require the use of estimates.
In order to test the value in use against the recognised goodwill, the Company has stress-tested the main assumptions(discount rate, combined ratio and Capital Requirement ratio) which have been applied when determining the value in
use for the related cash-generating units.
The discount rate used varies depending on the location and industry of the company to analyse, using customised
Risk-Free Rates, Market Betas and Country Risk Premiums. The terminal value is calculated based on the dividend106

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

flow/free cash flow of the normalised period through a perpetuity, which applies a long-term growth rate of 2% for
CGUs excluding ACYC CGU (2022: 2%) and a 3% for associated companies (2022: 3%).
The projection period is 10 years, where the first 1-4 year projections are based on financial budgets and/or forecasts.
In the budgets and forecasts, the impact of the changed macroeconomic situation is taken into account. The remaining
years are estimated using ratios and growth rates that converge towards their normalised term value.
For further details see Note 14.

3.7

Pension and post-retirement benefits

The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis
using a number of assumptions. The main assumptions used in determining the net cost (income) for pensions
includes the discount rate and the inflation rate. Any change in these assumptions will impact the carrying amount ofpension obligations.
The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be
used to determine the present value of estimated future cash outflows expected to be required to settle the pension
obligations. In determining the appropriate discount rate, the Company considers the interest rates of high-quality
corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms tomaturity approximating the terms of the related pension obligation. Other key assumptions for pension obligations
are based in part on current market conditions.
Additional information, including a sensitivity analysis for the main (actuarial) assumptions, is disclosed in Note 21.

107All amounts in thousands of Euro, unless otherwise stated

All amounts in thousands of Euro, unless otherwise stated

4

Risk and capital management

4.1

Risk management

As a global insurance provider, Atradius recognises the importance of risk management. Atradius maintains a solidrisk management system comprising a risk strategy aligned to the business plan and supported by a mature
governance structure, clear policies and procedures and an associated internal control system. Atradius continues torefine its risk management capabilities to reflect the ever changing threat landscape.
The relationship between risk and capital is fundamental for Atradius. Understanding how risk-taking consumes
capital allows management to steer Atradius and take strategic decisions with the interdependence of risk and capitalin mind. These decisions are substantially informed by the outcomes of Atradius’ economic capital model. This
internally developed model, which has received supervisory approval for use in calculating regulatory capitalrequirements, contributes to a multitude of risk assessment activities, as well as risk profile measurement, andenhances Atradius’ ability to monitor and manage risk levels within the organisation through the allocation of riskbased capital and the definition of an appropriate risk appetite.

4.1.1 The risk landscapeThe state of the global economy greatly influences the risks that Atradius faces. Economic deterioration may result inincreased insolvencies thereby causing more frequent and severe claims expenses. The return on our investment may
also deteriorate and defaults on our holdings of debt instruments may occur. A severe deterioration of all the abovementioned may affect the credit rating of Atradius. A downgrade of our credit rating could have a negative impact on
the number of customer policies held by Atradius and thereby lower revenues. Understanding of this landscape,anticipating developments and preparing mitigating actions is a key expertise of Atradius.
In addition to the risks arising from direct credit insurance policies, reinsurance, and surety, which we refer to as
underwriting risk, Atradius’ risk landscape contains other types of risk. Atradius faces market risk related primarily to
our assets, credit risk from reinsurers and third-party receivables, and operational risks such as cyber risk, legal risks,
process execution risks and those relating to our personnel. In addition, strategic risks exist, such as the rapidlychanging technological environment, possible adverse impacts from geopolitical conflict, and uncertainty around thebreakup of supranational entities. Atradius has structures, systems and processes in place to identify, evaluate,
monitor, and respond to internal and external sources of material risk in the landscape.
During 2023 we have seen the direct and indirect impact of the war in Ukraine persist (including the effects ofgovernment-imposed sanctions) and most recently the war in Gaza. These and other lesser reported conflicts haveresulted in among others, interest rate hikes, inflation, and increasing energy costs.
These continue to affect global trade as well as national economies in differing magnitudes due to the unpredictableend evolving direction of the conflict.
As in previous stressful periods, we analysed the nature and sources of the risks across geographies and industry
sectors, as well as the interaction of the factors that ultimately affect the resilience of our customers and their buyers.
We used our extensive knowledge base and forward-looking tools, models and analysis on a continuous basis in
portfolio management, underwriting decisions and policy structure to ensure the continued quality of our risk
portfolio.
In relation to climate-related risks - more frequent and severe weather events are damaging infrastructure anddisrupting supply chains. Transition to a lower carbon economy is bringing new policies, regulations and changes tomarket dynamics. There is a risk that such changes, or proposed speed of their implementation, could have a negative
impact on Atradius by affecting our operations and/or our customers and their buyers. Focus on carbon footprint /CO2 emissions may require manufacturers to either adapt or ultimately go out of business, in turn having a knock-on
effect on their suppliers. Doing business in certain trade sectors may become undesirable and attract negative
publicity. At the same time, interest in climate change / ethical practices, such as ESG (Environmental, Social &Governance) and CSR (Corporate Social Responsibility) considerations, may create opportunities to enhance Atradius
offerings. Developments are monitored and discussed in various forums within Atradius.
In summary, Atradius has taken the appropriate steps to manage the rapidly changing risk landscape.

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Atradius | Consolidated financial statements 2023 Atradius N.V.

4.1.2 The risk management and internal control framework
The boards of the group companies have ultimate responsibility and accountability for risk management and internal
control within their respective companies. Atradius N.V.’s Management Board implements and oversees Atradius’
group-wide risk governance through the Risk Strategy Management Board (RSMB). The RSMB consists of all membersof the Management Board, as well as the Directors of Group Risk Management, Strategy and Corporate Development
and Finance.
The RSMB’s responsibilities include the development and maintenance of the framework to manage risk and ongoingoversight of the most material risks. The RSMB sets the Group’s risk appetite and establishes the internal risk
management framework by approving risk policies, risk boundaries, and by prescribing risk mitigation activities. In
addition, the RSMB ensures that there are processes and systems to review the effectiveness of risk management andthe internal control system.
The Supervisory Board is responsible for overseeing that the Management Board implements a suitable risk
management and internal control system. In this respect, the Management Board periodically presents results,
developments and plans to the Supervisory Board and relevant committees thereof. One of these committees, theAudit Committee, supervises monitors and advises the Management Board on the effectiveness of internal risk
management and control systems. The Audit Committee is assisted in this role by Internal Audit, which carries out
both regular and ad-hoc reviews of risk management controls and procedures.
Atradius’ risk management policies are established to formalise the identification and analysis of risks faced by
Atradius, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and Atradius’ activities. Throughits training, management standards and procedures, Atradius maintains a disciplined and constructive control
environment in which all employees understand their roles and responsibilities.
Central to Atradius’ system of governance is the Atradius risk governance structure. The risk governance structure
comprises a framework of committees, which support the RSMB in specific areas of risk.
By applying the Atradius risk governance structure, Atradius is able to:-Communicate risk-related norms and values across the organisation;
Provide clarity over the various responsibilities and accountabilities in the management of risk;
Manage the Group’s risk profile and development of the business over time;
Ensure that Atradius adheres to an approved risk appetite;
Ensure appropriate ownership of decisions; andProvide the Management Board with clear insight into decision-making and risk-management processes.

To achieve reliability over financial information and solvency reporting, the following controls are implemented andtested quarterly:-

Key controls required to manage the risk of a material error in financial and non-financial reporting; andEntity-level controls that detect material misstatement due to failures in controls that operate across andthroughout the business.

4.1.3 Risk classification
Atradius classifies its main risk types as insurance, financial and operational. Insurance risks are the risks of financial
loss as a direct result of providing insurance; these arise predominantly from the risk of default-related non-payment
by a buyer covered by a policy (credit insurance), the risk of non-performance by a customer (Surety), or cededbusiness through Atradius’ reinsurance arm. Financial risks include market risk, counterparty credit risk and liquidity
risk. Operational risks arise from inadequate or failed internal processes, people, systems, or from external events.
Atradius also maintains a category for strategic risks, as mentioned in Section 4.1.1 above.
Environmental, Social and Governance (ESG) refers to the three central factors in measuring the sustainability andsocietal impact of an investment in a company or business:-

Environmental concerns: The threat of climate change and depletion of natural resources. The main question
becomes the sustainability of products, services and therefore companies.

109

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated-Social concerns: How the company affects the wider social environment. This includes diversity, human rights, andconsumer protection.
Corporate governance concerns: The rights and responsibilities of the management of a company.

Atradius implicitly considers ESG risks within Insurance, Financial and Operational risk as well as within Strategic
Risk assessments.

4.2

Insurance risk

4.2.1 Insurance products, their characteristics, sensitivity to insurance risk, risk mitigation and controls
Atradius operates with two main direct insurance product lines: credit insurance and surety. In addition, Atradius
writes both credit and surety business as a reinsurer. Credit insurance can be divided into three subcategories:
traditional credit insurance, instalment credit protection and special products. Each of these sub-categories has
particular risk characteristics.
The starting point for the management of insurance risk is that all staff have well-defined authorities specifying thelevel of risk they can accept. Furthermore, Atradius’ reinsurance structure imposes checks on the largest exposures.
Exposures beyond a certain threshold are subject to special acceptance by our leading reinsurers.
Traditional credit insurance and special products
In traditional credit insurance, Atradius insures its customers against the risk of non-payment of trade receivables.
The causes of loss covered differ by policy and usually include all forms of legal insolvency and protracted default.
Policies can also cover so-called ‘political’ causes of loss, that include the risk of non-payment due to payment transfer
problems, cancellation of export/import licences and contract frustration. Traditional credit insurance does not covernon-payment of trade receivables due to commercial disputes. Each policy stipulates a maximum credit period thatthe policyholder can offer to its buyers without prior approval from Atradius. ‘Buyers’ are the customers of Atradius’
insured customers, i.e., the parties that Atradius insures trade credit risk on. To mitigate the risk of adverse selection,
the traditional credit insurance products of Atradius usually cover the policyholder’s entire portfolio of buyers.
For traditional credit insurance, there are two underwriting processes: policy underwriting and buyer underwriting.
Policy underwriting is the process by which Atradius decides which companies to accept as policyholders and theterms and conditions of cover that are offered to those policyholders. Buyer underwriting is the process by which
Atradius sets a risk capacity for each buyer and issues credit limits for buyers under existing policies. Policy
underwriting and buyer underwriting are carried out by Commercial and Risk Services units respectively.
Policies are issued for a fixed period: usually no longer than two years with a break clause after one year. Within
traditional credit insurance, customers retain some of the risk for their own account to protect Atradius from the riskof moral hazard. That self-retention can take the form, for example, of an uninsured percentage, a deductible on eachclaim, an aggregate first loss amount or a combination of these. All policies stipulate Atradius’ maximum liability. A
customer is covered for the credit risk on a buyer after a credit limit on the buyer has been established. Most policies
allow customers to establish credit limits themselves for smaller amounts, under strict conditions specified in thepolicy. For larger amounts Atradius must issue credit limit decisions. Credit limits are an important risk management
instrument for Atradius as they are the key control of the amount that Atradius would have to pay to a customer in theevent of a claim. Atradius usually has the right to reduce or withdraw the credit limit on a buyer at any time if
circumstances demand. Credit limits may be subject to specific conditions and Atradius can also set conditions forcover on a country or withdraw cover on a country altogether. These tools are important to manage insurance risk
exposure in a dynamic way.
Staff in Commercial units have well-defined authorities specifying who can underwrite which policies. Policies
typically require the approval of two people and conditions become stricter as the maximum liability under a policy
becomes larger, with the largest policies needing sign-off by both the Director of a Commercial unit and the
responsible Management Board member. The pricing of credit insurance policies (new, amended and renewed), is also
subject to governance and the models and methodologies used to establish a technical price require the approval of the
Quantitative Model Committee, a committee responsible for approving the quantitative models used within Atradius.
Underwriters in Risk Services have well-defined authorities specifying the level of decisions that an underwriter cantake for the approval of credit limit on and capacity in the system on a buyer. As credit limit amounts grow, decisions
require the approval of one or more co-signatories of increasing seniority. The largest credit limit amounts require the110Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

approval of the Atradius credit committee with the appropriate authority level and, in exceptional cases, the approvalof the (leaders of the) reinsurance panel.
The special products business offers a range of bespoke policies to insure against various credit and political risks.
This product line includes policies that cover single transactions, single trade relationships and multi-buyer excess ofloss. A distinguishing feature of special products policies is that, unlike traditional credit insurance, credit limits
typically cannot be readily withdrawn. To mitigate this the conditions of special products policies place a greater onus
on risk monitoring and due diligence on the insured than traditional credit insurance.
All policies are bound within clearly defined authorities issued to the policy underwriters who report ultimately to theChief Market Officer. All buyer risk is signed off by dedicated Risk Services teams, who report ultimately to the Chief
Risk Officer. In addition, a dedicated risk management team with a functional reporting line to the Director of Group
Risk Management ensures adherence to the risk governance model, monitors the portfolio risk and ensurescompliance with the terms of the reinsurance treaties.
SuretyAtradius issues surety bonds for customers in European countries including Italy, France, Spain, Portugal, Germany,
the Nordic and the Benelux countries. Surety bonds insure beneficiaries against the risk of our customer not meetingits contractual, legal, or tax obligations. Beneficiaries include national, regional, local governments and tax authorities
as well as companies.
While a customer may fail to meet its obligations either because it is unable to perform to an agreed or required levelor because it is insolvent, there is also the risk that the customer may intentionally fail to meet its obligations.
Therefore, our assessment of both the customer’s financial strength and its ability to perform play an important part in
the underwriting process. Unlike traditional credit insurance, exposure related to surety bonds issued cannot be
unilaterally reduced or withdrawn by Atradius.
When a surety bond is called by the beneficiary, Atradius mediates to resolve conflicts by working with both thecustomer and the beneficiary. If, as a result of non-performance, a payment is made by Atradius to the beneficiary,
recovery action is taken against the customer who remains ultimately liable. If Atradius does incur an irrecoverable
loss it is almost always because of the customer’s financial distress, making the trigger for loss like that of traditional
credit insurance.
The spread of customers over industry sectors varies by country as a result of differing legal and market
environments. The type of surety bonds issued include bid bonds, performance bonds, maintenance bonds, advancepayment bonds and various types of administrative bonds. These are issued with tenors ranging from a few weeks toyears, but only rarely in excess of five years.
All Surety facilities and individual surety bonds are underwritten by technical underwriters who are part of theCommercial Surety units. Technical underwriters assess the risk of non-performance as well as Surety wordings andother relevant technical aspects. Financial underwriters, who are not part of the Commercial units, focus on the credit
risk-related aspects of customers; they must approve the acceptance of facilities and individual bonds over certain
thresholds. Financial Underwriting decisions are taken in line with a well-defined authorities specifying the level ofdecisions that an underwriter can make. The largest amounts require the approval of Atradius credit committees(Local or Group) with the appropriate authority level.
Other products
Assumed Reinsurance
Atradius provides, through its ACyC Irish branch, reinsurance capacity to primary insurance companies from both thedeveloped and developing credit insurance and surety markets. It currently assumes business from over 55 countries
worldwide, maintaining a balanced diversity within the portfolio from each continent. The underlying business consistsof approximately 56% credit insurance and 44% Surety, based on premium volume.
Assumed reinsurance underwriting guidelines and risk boundaries define the kind of assumed reinsurance isauthorised to write, with specific guidelines for type of product, capacity limit, exposure, term and diversity of theunderlying insurance ceded. Particular attention is given to ensuring the diversity of business from third party clientsand the level of exposure to any one country, company, or market is managed within agreed underwriting limits andcapacity.

111

All amounts
amounts inin thousands
thousands ofof Euro,Euro, unlessunless otherwise
otherwise statedstatedAll

All assumed reinsurance business is regularly reviewed with respect to past underwriting years’ performance,
triangulation development, individual buyer exposure development, aggregate total potential exposure managementof economic capital requirements and market and country exposure. Risk and policy limit setting is monitored toensure credit quality and compliance of the underlying insurance products to the terms of the reinsurance
programme.
Instalment Credit Protection (ICP)The ICP product line covers the medium- and long-term risks that financial and corporate policyholders face in theirmultiple instalment agreements with private individuals and businesses, and is available in Belgium andLuxembourg.
Policy underwriting is performed within the Commercial ICP units. Policies are generally issued for a fixed periodwith automatic renewal. The indemnification rate can be up to 100% but is usually lower and recoveries are for the
benefit of Atradius.
Risk underwriting is performed by the risk underwriting teams. Authorities are granted to underwriters according totheir seniority and expertise. Cases are escalated according to pre-determined thresholds to the local ICP credit
committees, then to the ICP credit committee and finally to the Management Board member responsible for ICP.

4.2.2 Insurance risk management tools
Atradius monitors its exposure across various dimensions such as counterparty, industry sector and geographic
location. We maintain records of all credit insurance policies, credit limits and buyers in our integrated systems. Thesesystems enable Atradius to set specific limits by buyer or buyer group. Management information derived from thesesystems allow Atradius to monitor aggregate exposure by country, customer, industry sector and other dimensions.
In addition to customer and buyer-specific decision tools, we use several instruments to analyse and manage theCompany’s insurance risk profile on both a retrospective, current and forward-looking basis. These includes:-

Economic capital model – a best practice risk measurement tool;
Risk dashboards and tools to drill down to underlying details of parts of the portfolio;
Predictive analysis of indicators such as shipments, claims and premiums;
Models of probabilities of default and loss-given-default.

These tools ensure that Atradius manages its risk profile within a regularly reviewed and approved risk management
framework.
All buyers with significant exposure are reviewed at least annually. Depending on the credit worthiness of a buyer,
reviews may be more frequent and even require the involvement of a Special Risk Management unit. Atradiuscontinuously receives information on buyers through on-line connections with business information providers andfrom customers reporting negative payment experiences. Buyers are reviewed whenever substantive new
information is received. Atradius assigns an internal rating to buyers and the review process takes into accountexposure on a buyer through direct business, including exposure for special products and Surety. The authority
structure for approval of new exposure referred to in this note also applies to buyer reviews.
Atradius operates with an integrated risk and (capital) cost-based pricing system. Generally, new policies andrenewals are priced starting from a technical price suggested by one of the Pricing models approved for use by the
Quantitative Model Committee, a committee responsible for approving the quantitative models that are used within
Atradius, in the group.
For assumed reinsurance, Atradius uses a number of risk management tools to monitor the assumed reinsurance
portfolio for exposures and performance developments. The assumed reinsurance system is used to record the risk
profile, ultimate estimate and related accounting information for each reinsurance treaty. This allows the reporting of
performance, total aggregate exposure and accounting reinsurance results. Performance development and exposuresrelated to each assumed reinsurance treaty are reviewed quarterly within certain limits and through exception
reporting.
For ICP, consumer credit risk underwriting relies on the databases of the relevant national authorities. In addition, ICP
maintains and uses its own internal consumer credit database.

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Consolidated
financialstatements
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Atradius
Atradius
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N.V. N.V.

Both surety and ICP have their own pricing systems and guidelines that reflect the specifics of their businesses.

4.2.3 Reinsurance programme
Atradius transfers a significant portion of its insurance risk to external reinsurers, through a number of reinsurance
arrangements that include quota share and excess of loss treaties covering either the entire portfolio of Atradius or
specific risks. The reinsurance treaties are renewed annually. During 2023, Atradius decided to renew its reinsurance
arrangements for 2024. This trend will continue with the renewal of the reinsurance arrangements for 2025 in early2024. On renewal, Atradius assesses the optimal structure of the treaties for the forthcoming period, including excess
of loss. A number of items are taken into consideration during this review, including the forecast growth in theunderlying business, economic developments etc. In addition, the proposed structure is considered in the context of theSolvency II capital requirements and Atradius’ risk appetite.
For the underwriting year 2023 one quota share reinsurance treaty is in place covering the majority of Atradius’
business. The retention under this treaty is 63% (2022: 63%).
In addition, there are two separate quota share treaties, which cover a limited number of policies, where the retention
percentage is 25%, and a single excess of loss treaty, covering the own retention under these quota share treaties,
consisting of a series of excess of loss layers (per buyer group). The excess of loss treaty also provide protection for theassumed reinsurance of ACyC Ireland. The combined excess of loss programme for Atradius has mitigated the likelihoodof it retaining two separate retentions if a common buyer were to fail, affecting both the assumed and direct business ofAtradius. The top of the excess of loss layers is chosen so that, in the judgement of management, there remains only avery remote possibility that failure of any single buyer group will exceed the top end of the excess of loss coveragepurchased.
The attachment point of the excess of loss treaties has been set such that the net retention for business ceded under thequota share treaties and excess of loss structure for any buyer group does not exceed EUR 26.25 million for Atradius(2022: EUR 26.25 million)
With regard to the reinsurance panel, it is Atradius’ policy to select only reinsurers that have a high rating. The normal
minimum requirement is an ‘A-’ level rating. The treaties also include a provision that if a reinsurer is downgraded
during the period of the reinsurance below an A- rating then security can be requested and if not provided thereinsurance agreement with that reinsurer can be terminated.

4.2.4 Concentration risk
Atradius is exposed to concentration risk in a number of ways: primarily by buyer, buyer country or buyer industry.
The following tables illustrate the exposure at the end of 2023 and 2022 in terms of the sum of credit limits registeredby Atradius on individual buyers. This is referred to as total potential exposure or TPE.
TPE is an approximate upper boundary to real outstanding exposure, in the sense that a limit that Atradius has issued
does not necessarily give rise to underwriting risk at a specific point in time. Atradius normally does not know the real
outstanding exposure under its limits on any specific buyer at any point in time. The ‘usage’ of limits is, on average,
much smaller than the amount of the limit. At the portfolio level, real outstanding exposure tends to be in the range of
10% to 30% of TPE, on top of which customers still have their own retention. In addition to the TPE, customers are often
allowed to have exposure under the policy through discretionary limits. Potential exposure resulting from a
discretionary limit on any buyer is not held on Atradius’ system. Each policy specifies the maximum discretionary
limit allowed under the policy. For most policies this is no more than EUR 20 thousand per buyer. This illustrates that
TPE is a crude but appropriate measure of exposure and that, in aggregate, real outstanding exposure will be far
lower.
The following tables show aggregated TPE for credit insurance (including special products) and assumed reinsurance.

113

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Buyer country(EUR million)

TPE 2023%

TPE 2022%

Germany

129,890

14.5%

125,354

14.5%

Spain, Portugal

101,442

11.4%

97,58011.3%

USA93,24410.4%

95,616

11.1%

Central and Eastern Europe

93,574

10.5%

88,671

10.3%

Italy

62,5707.0%

62,161

7.2%

United Kingdom

64,223

7.2%

59,740

6.9%

France60,226

6.7%

58,808

6.8%

Nordic41,773

4.7%

40,912

4.7%

The Netherlands

41,116

4.6%

39,063

4.5%

Other

205,22023.0%

195,347

22.6%

Total

893,277100%

863,252

100%

The following table shows the distribution of TPE over buyer industry sector.
Industry sector(EUR millio)

TPE 2023%

TPE 2022%

Chemicals

126,643

14.2%

123,206

14.3%

Electronics

107,461

12.0%

107,892

12.5%

Metals99,523

11.1%

94,888

11.0%

Consumer durables

91,213

10.2%

91,125

10.6%

Food

84,098

9.4%

82,021

9.5%

Transport

81,1139.1%

75,6508.8%

Construction

66,4697.4%

62,382

7.2%

Other

62,5197.0%

59,186

6.9%

Machines

57,551

6.4%

55,2806.4%

Construction materials

41,276

4.6%

41,563

4.8%

Agriculture

43,483

4.9%

39,751

4.6%

Services

31,9283.6%

30,309

3.5%

Total

893,277100%

863,252

100%

The following table shows TPE aggregated by group of buyers. This is the method of aggregation that is relevant for
Atradius’ excess of loss treaties.
TPE Value band

TPE 2023%

TPE 2022%

0 - 20427,05347.8%

413,00347.8%

20 - 100

156,70717.5%

154,124

17.9%

100 - 250

103,669

11.6%

98,213

11.4%

250 - 500

77,604

8.7%

72,2968.4%

500 - 1000

67,700

7.6%

67,7397.8%1000 - and more

60,545

6.8%

57,878

6.7%

Total

893,277100%

863,252

100%(EUR million)

Exposure for Surety and for instalment credit protection has different characteristics and therefore is not included inthese tables. The Surety exposure is EUR 30.2 billion (2022: EUR 27.6 billion). Exposure for instalment credit

114

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

protection amounts to EUR 4.0 billion (2022: EUR 3.4 billion). Assumed reinsurance exposure is 25.3 billion (of which
16.3 billion are depicted in the tables above).

115All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

4.3

Financial risk

Atradius is exposed to financial risk mainly through its financial assets, financial liabilities, reinsurance contracts andinsurance contracts. The core components of financial risk are market risk, credit risk and liquidity risk.
These risks arise mainly from interest rate sensitive positions, equity instruments, credit exposures, non-Eurocurrency exposures and cash flow patterns.

4.3.1 Market risk
Market risk is the risk that the fair value of assets and liabilities that are sensitive to movements in market prices,
decreases or increases due to adverse movements in equity prices, interest rates or currency exchange rates. Atradius
exposes itself to these risks by holding assets and liabilities which fair value is sensitive to movements in those prices.
To measure these risks, Atradius uses several risk metrics. The most important ones being the mismatch between
assets and liabilities which fair value is denominated in foreign currency, value-at-risk, capital models from the credit
assessment institutions and interest rate duration.
Atradius uses a Solvency II available capital approach to define the Strategic Asset Allocation and to assess the impact
of investment decisions to ensure that sufficient Solvency II capital remains.

4.3.1.1

Fair value of financial assets and liabilities

The estimated fair values of the Company’s financial assets and liabilities, other than the subordinated debt, equal
their carrying value. The fair values of subordinated debts are disclosed in note 20.
The fair values correspond with the price, at our best estimate, that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date. Wheneverpossible, the fair values are based on quoted market prices. If there is no quoted market price available, the Company
uses valuation techniques, which are based on market prices of comparable instruments, or parameters fromcomparable active markets (market observable data). If no observable market inputs are available, valuation models
are used (non-market observable data). These valuation techniques are subjective in nature and involve various
assumptions about the relevant pricing factors. Changes in these assumptions could significantly affect the estimatedfair values. Consequently, the fair values presented may not be indicative of the net realisable value. In addition, thecalculation of the estimated fair value is based on market conditions at a specific point in time and may not be
indicative of future fair values.
The fair values are subject to a control framework designed to ensure that they are either determined or validated by afunction independent of the risk taker. To this end, the Company establishes the accounting policies and processes
governing valuation and is responsible for ensuring that these comply with all relevant accounting pronouncements.
Within this governance structure, non-quoted investments or illiquid investments in which the Company invests arevalued by an external independent valuation company or the asset manager of illiquid investment fund. The external
independent valuation company uses its own proprietary valuation systems to value the securities supported byeconomic and market assumptions from financial information providers. The valuations are provided on a monthly
basis and are reviewed and approved by the Company. The valuation process at the asset manager is audited andapproved by its external auditor.
Debt and equity securities
The fair value of debt and equity securities is based on quoted market prices, where available. For those securities, notactively traded, fair values are provided by an external independent valuation company or by the fund’s asset
manager.
Loans and short-term investments
For loans and other short-term investments, carrying amounts represent a reasonable estimate of their fair values.

116

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Other financial assets
The carrying amount of other financial assets, including cash and cash equivalents, is not materially different to theirfair value, given their short-term nature.
Subordinated debt
The fair values of subordinated debts are based on binding quotes from independent brokers (see Note 20 for further
details).
Other financial liabilities and deposits received from reinsurers
The carrying amount of other financial liabilities and deposits received from reinsurers is not materially different totheir fair value, given their short-term nature.
The following tables present the fair values and the hierarchy of the financial instruments carried at fair value (note
2.9).
2023

Level 1

Level 3

Total

61,01036,155

97,165Government bonds

1,949

-

1,949

Corporate bonds

328

-

328

36,15599,442402,400-

402,400

Government bonds

646,777-

646,777

Corporate bonds

1,690,475-

1,690,475

Total

2,739,652-

2,739,652

Level 1

Level 3

Total

214,778

31,649246,427

Government bonds

1,942

-

1,942

Corporate bonds

299

-

299

31,649248,668

147,798-

147,798

Government bonds

643,669-

643,669

Corporate bonds

1,785,110-

1,785,110

Total

2,576,577-

2,576,577

Fair Value through Profit and Loss:
Investment Funds
Debt securities:

Total

63,287 -Financial Assets at Fair Value through Other Comprehensive
Income:SharesDebt securities:

2022
Fair Value through Profit and Loss:
Investment Funds
Debt securities:

Total

217,019 -Financial Assets at Fair Value through Other Comprehensive
Income:SharesDebt securities:

117All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

At 31 December 2023 the Company is mainly exposed to securities traded in active markets (level 1), whereas having alimited exposure to illiquid markets (level 3).
Reconciliation of Level 3 fair values
The following table details the changes in the fair value of Level 3 financial investments (valuation techniques
incorporating information other than observable market data):
Funds

Financial investments Level 3

2023

2022

31,64927,123(3,234)

1,107

Acquisitions

7,740

3,419

Balance at 31 December

36,15531,649Balance at 1 January
Total gains or losses:
In profit and loss statement (net income from investments)

4.3.1.2

Equity securities and investment funds price risk

Risk on equity securities and investment funds is the risk that the fair value of the assets that are sensitive to
movements in equity securities and investment funds prices decreases due to adverse movements in equity securities
and investment funds prices. Atradius exposes itself to equity securities and investment funds price risk by investingin equity secutiries instruments issued by corporations and equity instruments issued by investment funds. Theserisks are measured and analysed by using value at risk techniques and capital models from the external credit
assessment institutions. The value-at-risk measures the potential maximum loss on Atradius’ equity securities andinvestment funds instruments due to adverse movements in equity and investment fundprices in the short-term
while the capital models measures the potential maximum loss in the long-term, (see Note 4.3.1.4 for more
information). Atradius invests in a portfolio of diversified equity and investment funds instruments to minimise theidiosyncratic risk of individual assets.
Individual equity instruments
Atradius invests in individual equities via a segregated mandate in which the asset manager has discretion to selectthe equity portfolio in accordance with investment restrictions set in the investment management agreement. This
diversified portfolio consists of EUR denominated large capitalisation equities. Per the end of December 2023, hemarket value of these equities is EUR 402.4 million (2022: EUR 147.8 million).

-

Investment funds: the investment funds in which Atradius invests are exposed to market risk, counterparty risk,
liquidity risk and currency risk (i.e., general investment fund risks). Atradius only selects investment funds thathave similar investment restrictions stated in their prospectus as set in the Atradius Investment Policy.

-

Debt instruments issued by investment funds: the portfolio of debt instruments issued by investment funds canbe divided by:-

Passive equities exchange traded funds: the portfolio of passive equities exchange traded funds mainly
consists of an exchange traded fund which passively tracks the Dow Jones Euro Stoxx 50 Index.

-

Active money market funds: the portfolio of active money market funds consists of money market funds
denominated in Euro, US dollar and Brazilian real.

-

Real estate funds: the portfolio of real estate funds consists of real estate funds denominated in EUR and inwhich the underlying asset exposure is focussed on prime European real estate.

-

Infrastructure funds: the infrastructure fund is a fund-of-funds investment denominated in EUR. The
underlying funds have different focus, e.g. from renewable energy towards more traditional infrastructure
sectors like utilities, transport, energy or telecommunications, but all with a global approach, resulting in a
multi-currency exposure of the underlying assets.

118

Atradius
financialstatements
2023
Atradius
Atradius || Consolidated
Company financial
statements
2023
Atradius
N.V.N.V.

The portfolio of debt instruments issued by investment funds are shown in the following table:
Investment funds

EUR million

Weight in %EUR million

2023

Weight in %2022

Passive equities exchange traded funds

7,824

8.1%

101,321

41.1%

Active money market funds

53,18854.7%

113,457

46.0%

Real estate funds

29,22230.1%

25,930

10.5%

Infrastructure funds

6,931

7.1%

5,719

2.3%

Total

97,165100.0%

246,427100.0%

4.3.1.3

Interest rate risk

Interest rate risk is the risk that the fair value of assets and liabilities, that are sensitive to movements in interest rates,
decreases or increases due to adverse movements in interest rates. Atradius exposes itself to this risk by investing in
debt instruments and instruments issued by investment funds that invest in debt instruments, issuing subordinateddebt and by insurance contracts. Financial assets in Atradius are mainly covering insurance liabilities. The refinancerisk of the bond, if not called the interest rate will be Euribor 3 months + fixed add-on. If refinanced it will result into
new market interest rate.
ProfileAt the end of the reporting period the interest rate profile of Atradius’ interest-bearing financial instruments was:Fixed rate instruments -Variable rate instruments -carrying amountcarrying amount

2023

2022

2023

2022

Financial assets (1) (3)2,337,252

2,428,779

1,008,290

695,220

Financial liabilities (2) (4)(249,828)(249,600)(10,367)(9,263)

Total

2,087,424

2,179,179

997,923

685,957

1) Fixed rate financial assets include debt securities
2) Fixed rate financial liabilities include the subordinated debt.
3) Variable rate financial assets include cash and cash equivalents, loans, short-term investments.
4) Variable rate financial liabilities include borrowings and deposits received from reinsurers.

Duration demonstrates the dependability of a bond’s market value to a change in the underlying discount rate of thatbond. The duration figure depicts the percentage change of the market value of a bond investment if the underlying
discount rate is parallel shifted by 100 basis points or 1.00%. The higher the duration figure, the more a bond issensitive to movements in the underlying discount rate. Atradius uses the duration to assess its interest rate risk
exposure and monitors whether the duration remains between the minimum and maximum duration limit (between
one to five years for government bonds and one to three years for corporate bonds) as set in the Atradius Investment
Policy. The duration is calculated as the weighted average of the discounted future cash flows to be received measured
in years. The duration as per 31 of December 2023 is 1.7 years (2022: 2.0 years) and the average maturity for 2023 is
1.9 years (2022: 2.2 years).
The fixed rate financial liabilitities include the subordinated notes issued by Atradius Finance BV on 23 September
2014 with a nominal amount of EUR 250 million. Unless previously redeemed, the notes will be redeemed at maturity
on 23 September 2044. The notes bear interest at a fixed rate of 5.250% per annum payable annually in the first 10
years until first call date, which will thereafter be reset to a floating 3 month-EURIBOR plus a margin of 5.031% perannum payable quarterly for the remaining 20 years.

4.3.1.4

Value-at-Risk

Atradius measures equity price and interest rate risk by analysing the value-at-risk (VaR) of its financial instruments.
This risk metric measures the maximum potential loss on those financial instruments due to adverse movements in

119All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedequity prices and interest rates within a specified time frame and probability (confidence level). The VaR is based on
variance-covariance methodology that uses the historical volatility of the fair values of the financial instruments andthe correlation between these as main inputs. These volatilities and correlations are provided by financial information
providers or financial institutions.
The risk of using the variance-covariance methodology or any other historical methodology is that it may
underestimate the riskiness of the financial instruments. This is because these methodologies assume that thehistorical volatility of and correlation between the financial instruments will be repeated in the future. Therefore, it is
not intended to represent or to guarantee any future price movements but rather to be used as guidance for
information purposes and comparison of historical developments only.
The VaR provides insight into the maximum expected loss per asset category and on portfolio level. The fair values
and percentages presented are calculated with a given confidence level of 99% for a period of 12 months. This implies
that there is 1% probability of underestimating the potential maximum loss for the coming 12 months.
The following table shows the VaR of Atradius equity securities and debt securities on portfolio level.
Value-at-Risk

EUR million% of themarket value2023

EUR million% of themarket value2022

Equity securities:
Shares133.3

33.10%

81.0

54.8%

1):

14.6

33.10%

72.9

54.8%

Government bonds

28.1

4.30%

30.2

4.7%

Corporate bonds

66.5

3.90%

90.7

5.1%

Total portfolio

179.1

5.7%

198.7

6.7%

Investment Funds
Debt securities:

1)

It excludes money market funds.

The classification of financial investments in the VaR table stated above are based on the actual financial risks that theindividual securities present in the investment portfolio carry. For instance, within debt securities a separation
between government bonds, and corporate bonds is maintained to capture the actual exposure to corporate bonds thatcarry additional credit risk above the risks that government bonds bring along. When individual securities areclassified to the asset class that fits their actual risk profile, the volatility of that asset class is calculated using thevolatility to the financial markets of the underlying securities in that asset class. The volatility of each asset classserves as input for the VaR calculation of that asset class. In case of an investment fund, the volatility of the fund(driven by the characteristics of its underlying securities) serves as input for the calculation of the VaR on that specificinvestment fund and is subsequently included in the VaR calculation of the asset class. Total portfolio VaR is less than
the sum of the VaR of the individual portfolio components because the correlation between these components is lessthan one and forms the basis of portfolio diversification. The VaR percentage decreased from 6.7% at the end of 2022 to5.7% at the end of 2023 and the VaR value decreased from EUR 198.7 million at the end of 2022 to EUR 179.1 million at
the end of 2023.

4.3.1.5

Currency risk

Movements in exchange rates may affect the value of consolidated shareholders’ equity, which is expressed in Euro.
Foreign exchange rate differences taken to other comprehensive income arise on the translation of the net investment
in foreign subsidiaries and associated companies. During 2023, the Euro appreciated in value against some of the nonEuro functional currencies (see Note 2.5.1) resulting in a foreign currency loss in other comprehensive income of EUR
28.9 million, net of tax (2022: a gain of EUR 59.6 million, net of tax).
However, the impact of these fluctuations is limited as revenue, expenses, assets and liabilities within our non-Euro
operations are generally denominated in the same currencies.

120Atradius | Consolidated financial statements 2023 Atradius N.V.
Atradius | Company financial statements 2023 Atradius N.V.

AssetsLiabilities

Net position

Assets2023

Liabilities

Net position

2022

EUR

3,868,992

1,806,999

2,061,993

3,603,671

1,748,242

1,855,429

GBP

249,835

153,268

96,567238,232

146,859

91,373USD

682,968

335,376

347,592

656,742

344,603

312,139

AUD

137,916

48,56389,353

125,150

43,84481,306

Other

588,441

399,262

189,179

539,295

384,309

154,986

Total

5,528,153

2,743,468

2,784,685

5,163,090

2,667,858

2,495,232

4.3.2 Credit risk
Credit risk is the risk that customers or counterparties are unable to repay their debt towards Atradius in full whendue. Atradius exposes itself to credit risk mainly by reinsurance contracts and holding financial assets.
Taking out reinsurance coverage with external reinsurers is used to manage insurance risk. This does not, however,discharge the liability as primary insurer. If a reinsurer fails to pay a claim for any reason, Atradius remains liable forthe payment to the policyholder. The Atradius policy is to select only reinsurers that have a well-establishedinvestment grade credit rating. The minimum requirement is an ‘A-’ level rating, although there are some minor
exceptions. In the event that the reinsurer’s rating is found to be below this threshold, Atradius has the right to either
terminate the reinsurance relationship during the course of the reinsurance year or else seek collateral if therelationship is to continue. Deposits received from reinsurers mitigate the credit risk.
Individual operating units maintain records of the payment history for significant contract holders with whom they
conduct regular business. The exposure to individual counterparties is also managed by other mechanisms, such as
the right of offset where counterparties are both debtors and creditors. Management information reported to Atradius
includes details of provisions for impairment on loans and receivables and subsequent write-offs.
Credit exposure to business partners, such as insured customers and brokers, is closely monitored. Potential
impairments on receivables are reviewed monthly and updated.
With regard to managing the credit risks of the financial investments, the investment policy of Atradius is to hold a,
principally Euro-centric, internationally diversified portfolio and to avoid large risk concentrations. From a Standard& Poor’s rating scale or comparable perspective, the minimum allowed average rating of the overall fixed income
portfolio is A-, whereas investments in individual fixed income securities are allowed a minimum rating of BBB- atpurchase. If a debt security in which Atradius has invested falls below the minimum credit rating or is not rated, itshould be reviewed by the Group Investment Committee to decide whether the debt security is still a suitable
investment. The maximum concentration limit per issuer (per legal entity and at Atradius N.V. level) is 5% of themarket value of the financial investments of the legal entity or Atradius N.V.. The concentration per issuer is evaluatedby aggregating the exposure to a single issuer through both debt investments and equity securities. The Group
Investment Committee monitors this limit and takes action if necessary.
The main objectives of the investment portfolio concentrate on the capital preservation and liquidity, in order tosupport Atradius strategic and operational needs at any given moment in time. Despite the steep increase in interest
rates, the annual review of the investment policy did not lead to any changes in the concentration risk settings, as theexisting restrictions were considered to be sufficient. The Group Investment Committee closely monitored any
downgrades on the BBB-rated bonds and any major changes in the concentration exposure by issuer throughout theyear.
Regarding receivables, there is no concentration of credit risk in respect of receivables as Atradius has a large numberof internationally dispersed debtors.
The amounts that best represent the maximum exposure to credit risk in reinsurance contract assets at the reporting
dates are EUR 137 million (2022: EUR 133 million).

121

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

The counterparty ratings of short-term investments, cash and cash equivalents and the rating of debt securities as at
31 December 2023 and as at 31 December 2022, are presented in the following tables:
2023

At 31 December (EUR million)
Stage 1

Stage 2

2022
Total

Stage 1

Stage 2

Total

Cash and cash equivalents
AAA

67

-

67

116

-

116

AA

47

-

47

46

-

46

A

551

-

551

378

-

378

BBB

18

-

18

21

-

21

Below investment grade

11

-

11

16

-

16

Without qualifications

-

-

-

-

-

-

694

-

694

576

-

576

AAA

329

-

329

357

-

357

AA

267

-

267

248

-

248

-

-

6

-

6

-

37

12

-

12

14

-

-

-

-

20

20

Gross amountFinancial Assets at FV with changes in
Other Comprehensive Income
Debt securities:
Government Bonds:

A

-

BBB

37

Below investment grade-

14

Without qualification

-

-

-

Corporate Bonds:
AAA

8

-

8

12

-

12

AA

202

-

202

189

-

189

A

1,137

-

1,137

1,121

-

1,121

BBB

343

-

343

453

-

453

-

-

-

10

-

10

2,337

2,409

20

2,429

Without qualification
Gross amount

2,323

14

Financial Assets at Amortised Cost
Deposits with credit institutions :
AAA

89

-

89

36

-

36

AA

43

-

43

64

-

64

A

165

-

165

9

-

9

BBB

9

-

9

5

-

5

5

-

5

Below investment grade
Without qualification

-

6

-

6

Loans:
Without qualification
Gross amount

-

-

2

-

2

-

-

314

-

314

119

-

119

The counterparty ratings of receivables, claims, commissions and deposits arising from reinsurance and the rating ofdebt securities as at 31 December 2023 and as at 31 December 2022, are presented in the following tables:

122

Atradius | Company financial statements 2023 Atradius N.V.

Atradius | Consolidated financial statements 2023 Atradius N.V.

At 31 December (EUR million)

2023

2022

AA

26

28

A

60

61

BBB

4

3

Without qualification

16

14

Gross amount

106

107

Receivables arising from reinsurance:

The counterparty credit ratings and the credit rating of debt instruments are predominantly based on Standard &Poor’s rating.

4.3.3 Liquidity risk
Atradius is exposed to liquidity risk if there is insufficient cash available to meet its financial obligations, when due, ata reasonable cost. For Atradius, liquidity risks may arise if large scale short-term fluctuations occur to cash flows, suchas a decline in incoming cash or a rise in outgoing cash, or a combination of both.
Liquidity risk is managed at Atradius level, in close coordination with local operations. Atradius’ policy is to monitor
and measure ongoing cash flow patterns and control liquidity by maintaining sufficient cash and highly marketablesecurities to reduce liquidity risk to acceptably low levels. The investment policy states that Atradius should mainly
invest in financial instruments that can be liquidated in less than three business days. Atradius is able to access credit
facilities to prevent certain liquidity shortages which may arise due to short-term cash flow variances. Atradius
maintain one uncommitted credit line in excess of EUR 1 million, in the form of an overdraft facility for a total amountof EUR 50 million (2022: EUR 50 million). The credit line provides liquidity to cover infrequent peaks in short-term
liquidity requirements while also permitting Atradius to reduce its cash balances and to benefit from a more
substantial and stable investment portfolio. Finally, Atradius has in place a simultaneous claims payment clause in themain reinsurance treaties. This clause allows Atradius to ask the reinsurers to anticipate the payment of a large claim
upon Atradius’ request instead of the usual payment terms agreed in the reinsurance treaties.
Liquidity and interest risk tables
The following tables indicate the estimated amount and timing of the main cash flows at the end of the reporting
period of interest and non-interest bearing liabilities and assets. The tables include both interest and principal cash
flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves
at the end of the reporting period. Atradius has considered the impact of the cross-border cash pooling arrangement inthis overview.
The tables have been drawn up based on the undiscounted contractual cash flows of financial liabilities based on theearliest contractual repayment date. When Atradius has a choice of when an amount is paid, the financial liability isallocated to the latest period in which Atradius can be required to pay. When the lender has a choice of when an
amount is paid, the financial liability is allocated to the earliest period in which Atradius can be required to pay.

123All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

At 31 December 2023

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest rate%

On demand

Less than 1 1 to 5 years
year> 5 years

Carrying
amountInterest bearing liabilities:
Subordinated debt

6.92%

-

13,12589,400607,600

249,828

Deposits received fromreinsurers

1.94%

-

10,367--

10,367-23,492

89,400607,600

260,195

Direct insurance liabilities-

1,090,852

316,733(3,437)

1,227,482

Payables-141,765--

141,765

Total-

1,232,617

316,733(3,437)

1,369,247> 5 years

Carrying
amountTotal
Non-interest bearing liabilities:

At 31 December 2022

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest rate%

On demand

Less than 1 1 to 5 years
yearInterest bearing liabilities:
Subordinated debt

6.92%

-

13,12580,175629,950

249,600

Deposits received fromreinsurers

1.36%

-

9,263

-

-

9,263

-

22,38880,175629,950

258,863

Direct insurance liabilities-

969,197

376,941(31,998)

1,131,430

Payables-

144,086--

144,086

Total-

1,113,283

376,941(31,998)

1,275,516

Total
Non-interest bearing liabilities:

1)

It includes subordinated debt in 2023.

124

Atradius | Consolidated financial statements 2023 Atradius N.V.
Atradius | Company financial statements 2023 Atradius N.V.

At 31 December 2023

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest rate%

On demand

Less than
1 year1 to 5 years> 5 years

Carrying
amountInterest bearing assets:
Debt securities
Investments: deposits and cash
held for investments

3.57%

-

648,498

1,797,377

53,564

2,339,529

4.95%

149,369

166,850-

2,441

314,052

Cash: Cash and bank deposits

3.10%

646,193

48,045--694,238

795,562

863,393

1,797,377

56,005

3,347,819

Other financial assets 1)-

502,006--

502,005

Reinsurance contracts-

364,180

125,772

21,494

482,874

Receivables-

124,381--

124,381

Total-

990,567

125,772

21,494

1,109,260

Total
Non-interest bearing assets:

At 31 December 2022

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest rate%

On demand

Less than 1
year

1 to 5 years> 5 years

Carrying
amountInterest bearing assets:
Debt securities
Investments: deposits and cash
held for investments

3.53%

-

406,119

2,180,863

54,7542,431,020

3.20%

37,20782,224--

119,431

Cash: Cash and bank deposits(0.03%)

555,676

20,113--575,789592,883

508,456

2,180,863

54,754

3,126,240

Other financial assets 1)-

394,678--

394,678

Reinsurance contracts-

339,168

150,1278,495

430,850

Receivables-

96,638--96,638

Total-

830,484

150,127

8,495

922,166

Total
Non-interest bearing assets:

4.4

Operational risk

4.4.1 Operational risk management
Operational risk is defined as the risk of loss arising from inadequate or failed internal processes, people or systems,
or from external events. This definition is in line with industry practice as well as with the European Solvency II
Directive. It is present within all activities undertaken by Atradius, at all levels and across all locations. At the sametime as classifying operational risk into processes, people, systems, and external events, Atradius also labels its risks
where they relate to ESG categories.
The Qualitative Risk Management (QRM) unit, which contains the teams Operational Risk Management and Control,and Business Continuity Management, is part of the Group Risk Management department. QRM is responsible fordeveloping methods for the identification, assessment and response to operational risks, and for monitoring and125

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedfurther enhancing the overall risk management and control framework. The QRM unit works closely with bothInternal Audit and the Group Legal & Compliance unit. At the highest level, operational risk is overseen by the
Operational Risk Committee (ORC), which has a reporting line to the RSMB.
The QRM unit uses a framework for the management of operational risk, which is based on the Committee ofSponsoring Organisations’ Enterprise Risk Management (COSO ERM) Integrated Framework. Identification andmonitoring activities are developed and enhanced on an ongoing basis and include the maintenance of risks registers,
facilitation of risk and control self-assessments, capture of risk indicators and incidents, and development,
maintenance, testing and review of business continuity plans. Risks and risk responses are discussed at all levels,
locations and units across the business, including the Management Board and Supervisory Board. High-level
information on crystallised risks has been captured for many years, with separate records of information technology
risk events stretching back even further. To provide oversight and assurance in an auditable and efficient manner, theQRM unit employs a dedicated governance, risk and compliance software platform (the ’GRC Portal‘) that integrates
existing risk management activities across the business.
Financial crime risk - results from illicit activity in the form of money laundering, terrorist financing, bribery andcorruption, sanctions evasion, fraud and customer tax offences and other predicate offences to money laundering suchas environmental crimes and human trafficking. It arises in Atradius’ day-to-day business if our customers,
employees or third parties undertake or facilitate financial crime, or if our products and services are misused for illicit
purposes to generate or disguise financial crime.
We have zero tolerance for deliberately or knowingly facilitating financial crime - keeping Atradius safe, secure andcompliant remains a top priority to protect our business and society at large from financial crime and its corrosive
effects upon individuals and communities.
Fraud risk
External fraud risk is defined within Atradius as the risk of acts of fraud or scams by individuals and/or parties
excluding Atradius staff (including contractors), with the consequence of financial loss, regulatory fines, litigation loss,
business disruption and/or reputational damage for Atradius. The Fraud Control Group, composed of employees
across over 30 countries, monitors the activity of customers and buyers to detect potential instances of fraud. This
monitoring includes using bespoke software to capture indicators of fraud from wide-ranging internal and externalsources. Atradius also provides fraud awareness training and advice to employees and customers to help identify
fraudulent buyers. Atradius in 2023 saw an increase in attempts by fraudsters to impersonate Atradius employees forthe financial gain but suffered no material losses.
Internal fraud risk is defined as the risk of acts of fraud performed by any Atradius employees, including where thisrelates to collusion between Atradius employees or agents with another party, whether or not known to Atradius, withthe consequence of financial loss, regulatory fines, litigation loss, business disruption and/or reputational damage for
Atradius. This risk is addressed through manual and automated operational controls such as the segregation of duties,
application of signing authorities including two, four and six-eye approvals and role-based system privileges andauthorities. Any instance of internal fraud that is discovered, whether successful or not, is reported as an operational
incident to the Risk Strategy Management Board. During 2023, 2 incidents of internal fraud with an estimated cost ofEUR 220 thousand were reported to the Risk Strategy Management Board.
In addition, the Atradius Code of Conduct and several additional compliance policies applicable for more specific areas,
set the requirements that Atradius’ employees must adhere to. For example, the Atradius Speak up Procedure gives
guidance on how to raise concerns regarding a violation or breach of the Code of Conduct, in a confidential manner.
Further information on compliance policies can be found in note 4.4.1.3.
Cyber risk – refers to the risk of financial loss, disruption or damage to reputation due to failure of IT systems.
Risks include: an event impacting the data centre (covered via Business Continuity / IT Disaster Recovery), security
incidents, network vulnerabilities, unauthorised activity, malicious code changes, application specific vulnerabilities
and unauthorised software. The Atradius Information Security team monitors and addresses threats and coordinates
the management of cyber risk across the Group. Atradius recognises increasing external threats especially from AI,
ransomware, phishing and denial of service.
The fast evolving cyber landscape highlights the increasing monetisation of cyber security threats against financial
services companies through insufficient technical controls and user error. As such, Atradius takes the education of end
users on the aforementioned cyber risks very seriously: awareness training is mandatory for all staff. Further
mitigation of this risk includes protections for critical Atradius applications and Multi-Factor Authentication for126

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

remote access. A medium-term Cyber Security Strategy is in place to further improve governance, protection,
resilience and vigilance across Atradius.
More details on certain operational risk management activities are provided below.

4.4.1.1

Risk registers and risk / control self-assessments

While the QRM is responsible for facilitating operational risk management within Atradius, the lines of business andfunctional areas are responsible for managing their operational risks. Atradius Leadership Team members, assisted by‘risk champions’, maintain risk registers for their respective units. The content of registers provides input to local
management meetings and is also reviewed by the ORC and during meetings of the Management Board. This ensuresthat operational risks are considered from all management perspectives.
While risk registers use a top-down approach to capturing risks, Atradius also uses a bottom-up approach of control
self-assessments to review existing risks and associated controls and identify any control weaknesses in businessprocesses.
On a quarterly basis, Atradius conducts specific assessments of processes and controls covering financial reporting
risks, including reporting for regulatory compliance purposes; the resulting ‘in control’ sign-off process is overseen by
a committee with representatives from Group Risk Management, Finance and Internal Audit.

4.4.1.2

Business continuity management

Atradius recognises the importance of being able to recover its critical business processes in the event of any major
operational disruption. A Business Continuity Management (BCM) programme is embedded in the organisation toensure the continuity of the Business in the event of severe disruptions. The BCM programme is aligned with theInternational Standard ISO22301. The Group Business Continuity manager co-ordinates the documentation,
maintenance and continual testing of practical plans for recovering key business activities within acceptable
timeframes.
A BCM programme is in place across the Group, which includes the setting and monitoring of Group and Country
objectives and this runs alongside central activities, such as conducting periodic Business Impact Analysis.
Atradius has adapted its business continuity arrangements to address new ways of working such as a hybrid working
model which involves a mixture of in-office and remote working. IT systems are stable and collaboration tools havebeen enhanced for the whole workforce. Overall service to customers and all other parties is being maintained at ahigh standard.
Atradius is preparing itself for alignment with regulations on operational resilience whereby firms must ensure thatthey can withstand, respond to and recover from all types of ICT-related disruptions and threats.

4.4.1.3

Legal Risk / Compliance Framework

At Atradius we believe that compliance with relevant laws, rules and regulations, and maintaining a high standard of
ethics and integrity, leads to lower operational risk and more-stable business processes. The Atradius Code of Conduct
outlines the basic corporate, legal and ethical compliance principles and guidelines that apply to all our employees andthat govern the Atradius operations and business conduct towards customers, brokers and all parties involved in
Atradius business.
Atradius has set up several additional compliance policies for more specific areas which set out the requirements that
Atradius’ employees must adhere to. For example, the Policy on Customer Due Diligence and Policy on Sanctions
address potential sanctions risks establishing operational and control procedures to comply with sanctions laws andregulations. Atradius also has a Data Protection Framework in place, which includes controls, policies and procedures
to comply with the applicable data protection legislation. All the compliance policies are available to employees andare reviewed on a regular basis.
The Compliance Function supports the management of Atradius in meeting its objective of being compliant withapplicable laws, rules and external and internal regulations. The Group Compliance Function is responsible for the
maintenance and overall effectiveness of the compliance framework at Group level and, the Local Compliance
Function monitors regulatory and compliance developments at local country level.

127

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

4.5

Capital management

4.5.1 Guiding principles
Capital management is guided by the following principles:-to ensure that Atradius is sufficiently capitalised to have the ability to survive by maintaining sufficient available
capital after meeting its financial obligations;
to meet the local regulatory capital requirements of all Atradius entities, including branches and subsidiaries ofAtradius worldwide;
to manage the capital adequacy of Atradius and its entities, taking into account the economic and accounting
views along with the external rating agencies and regulatory capital requirements;
to optimise capital structure by allocating funds across Atradius’ entities; andto minimise the overall cost of funding while preserving financial flexibility.

4.5.2 Atradius' objectives, policies and processes with regard to capital
The Company shows a robust capital and solvency position.
Atradius manages capital worth more than two billion euro. Per year-end 2023, the capital includes shareholders’funds of EUR 2.8 billion (2022: EUR: 2.5 billion) and subordinated debt of EUR 250 million (nominal value) classified
as Level 2 under the fair value hierarchy and as Tier 2 basic own funds for Solvency II (for further details see note 20).
In addition to the internally developed economic capital model, Atradius considers the solvency calculation models of
the relevant regulatory authorities and credit rating agencies in its process of managing capital.
In order to ensure capital adequacy, a capital buffer above the solvency capital required is maintained, such that large
loss events would not impair the ability of Atradius to carry on its normal course of business and the ambition tomaintain an ‘A’ rating level is sustained.
Atradius has embedded processes and procedures to ensure compliance with externally imposed regulations andinternally imposed requirements for capital adequacy. Such compliance is ensured by:-regular assessment of solvency needs, taking into account the business strategy, resulting risk profile and applied
risk appetite levels;
incorporating a view on expected future investments in new businesses, revenues, claims, reinsurance
expectations and dividends as these impact both available and required capital;
monitoring duration of assets; andtaking into consideration capital market expectations such as expected returns, volatilities and correlations asthese may impact earnings and the shareholder equity reserves.

4.5.3 Regulatory capital requirements
In each country in which Atradius operates with insurance or reinsurance companies established according to local
laws, and also where prescribed for branches, the local insurance regulator specifies the minimum amount and type of
capital that must be held by each of the subsidiaries or branches. The minimum required capital must be maintainedat all times throughout the year. In addition, the local insurance regulators have the discretionary right to impose
additional capital requirements in excess of the required minimum.
In 2023, the capital of Atradius has been managed according to the Atradius guidelines and in close cooperation withthe units involved. The Atradius entities were able to meet their financial obligations and to comply with local legal
and regulatory requirements.

4.5.4 Solvency II
Solvency II is the regulatory framework for (re-)insurance undertakings and groups domiciled in the EU.
Under Solvency II guidelines Group supervision takes place at the ultimate parent Grupo Catalana Occidente S.A. (GCO)
Since approval by the College of Supervisors in 2017, the regulated entities within Atradius apply a Partial Internal
Model for calculating their regulatory capital requirements. An internal model, which reflects our business better than128

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

the regulatory “standard formula”, is used to calculate capital requirements for Underwriting Risk. Atradius uses theStandard Formula for Market, Counterparty Default and Operational Risk as the characteristics of these risk types do
not warrant an internal model approach.
As per year end 2023 the eligible own funds under Solvency II for the Company amounts to EUR 2,961 million (2022:
EUR 2,600 million).

5

Segment information

Operating segments are identified based on internal reports about components of Atradius that are regularly reviewed
by the Management Board in order to allocate resources to the segment and to assess its performance. Although theManagement Board reviews the Company's results, at aggregated level in accordance with IFRS 17, operating
segments are reported in a manner consistent with the internal reporting provided to the Management Board, which isprepared in accordance with IFRS 4.
The Company has identified two operating segments, insurance and services. Within the insurance segment there aredifferent business activities: Credit insurance including related information income, Instalment credit protection (ICP),
Surety and Reinsurance. The segment Services includes collections activities, Atradius Dutch State Business, noninsurance related information income and other service related business. Group costs relate to corporate operations,after cost allocations to the other business segments.
Collections activities include recovery activities on behalf of insurance companies. Transactions between segments
are on an arm’s length basis in a manner similar to transactions with third parties.
Atradius revenue has no dependency on any large customer.
Compared to the information submitted in accordance with IFRS 4, IFRS 17 implies a change in the presentation ofbalance sheet items, but primarily in the income statement. IFRS 17 establishes principles for the recognition,measurement, presentation and disclosure of insurance and reinsurance contracts. See below the main changes:---

IFRS 17 introduces a model that measures groups of contracts based on estimates of the present value of future
cash flows that the Company expects to arise from the contract group of contracts with an explicit risk adjustment
for non-financial risk. Compared with IFRS 4 this is less conservative and consequently this will reduce insurance
liabilities and increase equity.
The establishment of the CSM, in accordance with IFRS17, is the main factor that will cause the increase ininsurance liabilities during the transition. Consequently, an increase in liabilities is expected to reduce equity.
When measuring insurance liabilities, future cash flows are discounted. Under IFRS 4, except for assets related to
Instalment Credit Protection, liabilities are not discounted.
The definition of ”occurrence” changed for traditional Credit Insurance, ceteris paribus, leading to a later
recognition of profits. For credit insurance business, liabilities for incurred claims will be reflected at the time theinsured event according to the policy wording occurs (legal insolvency, or protracted default). Under IFRS 4 theexpected claims inflow (IBNR) is recognized at the time the assumed shipment is done without building anunearned premium reserve, except for the business in Spain and Portugal where the premium is recognised
based on the trading terms between customer and their buyers.
Credit Insurance premium revenue is replaced by recognition of service margin earned on insurance contracts.
While under IFRS 17, business profits are recorded as a release in CSM and recognized during the coverage periodof the contract. Under IFRS 4, such recognition is made immediately in profit or loss.

Information regarding these segments is presented under IFRS4, in the following tables:

129

All amounts
amounts inAllin thousands
thousands ofof Euro,Euro, unlessunless otherwise
otherwisestatedstatedBusiness segment

Creditinsurance

SuretyAssumedReinsurance

Total
insurancebusiness

Insurance premium
revenue

1,950,205

146,305

186,319

2,282,829

Service and otherincome143,812--

143,812---

Total revenue

2,094,017

146,305

Insurance premium
ceded to reinsurers(787,283)

Total segment income
after reinsurance
Insurance claims andloss adjustment
expensesServices

Intersegment
elimination

Group
costs

Total

-

-

2,282,829

93,169--236,981-

2,916(2,916)--

186,319

2,426,641

96,085(2,916)-2,519,810(55,746)(8,019)(851,048) -1,306,734

90,559178,300

1,575,593

96,085(2,916)-

1,668,762(848,975)(21,543)(82,877)(953,395)

-

2,476

-

(950,919)

2023

Inter-segment revenue

-

-

-

(851,048)

Insurance claims andloss adjustment
expenses recoveredfrom reinsurers

274,273

6,091

5,796

286,160---

286,160

Net insurance claims(574,702)(15,452)(77,081)(667,235)

-

2,476

-

(664,759)

Gross operating
expenses(729,357)(60,444)(74,586)(864,387)(68,919)440(17,499)(950,365)--

350,788

Commission received
for business ceded toreinsurers
Net operating
expenses

326,618

22,846

1,324

350,788(402,739)(37,598)(73,262)(513,599)(68,919)440(17,499)(599,577)

Operating segment
result329,293

37,50927,957394,759

27,166-(17,499)

404,426-

Share of income/(losses) of associatedcompanies

11,266

Net income frominvestments

70,330Finance income

31,234

Finance expenses(29,089)

Result for the year
before tax

488,167

Income tax expense(117,662)

Profit for the year

370,505

Extraordinary items
Net result on
discontinued
operations

(451)

2,147

Result for the year

372,201130

Atradius
financialstatements
2023
Atradius
N.V.
Atradius || Consolidated
Company financial
statements
2023
Atradius
N.V.

Business segment

Creditinsurance

SuretyAssumedReinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Group
costs

Total

Insurance premium
revenue

1,925,409

133,376

166,555

2,225,340---

2,225,340

Service and otherincome141,922--

141,92283,785--

225,707

-

-

-

-

2,915

(2,915) -Total revenue

2,067,331

Insurance premium
ceded to reinsurers

133,376

166,555

2,367,262

86,700(2,915)-2,451,047

Total segment income
after reinsurance(790,821)(52,071)(16,047)(858,939)---(858,939)

1,276,510

81,305150,508

1,508,323

86,700(2,915)-

1,592,108

Insurance claims andloss adjustment
expenses(789,011)(40,255)(85,506)(914,772)

-

2,463

-

(912,309)-

2022

Inter-segment revenue-

Insurance claims andloss adjustment
expenses recoveredfrom reinsurers

265,992

15,141

10,373

291,506--

291,506

Net insurance claims(523,019)(25,114)(75,133)(623,266)

-

2,463

-

(620,803)

Gross operating
expenses(683,162)(50,116)(64,254)(797,532)(66,675)452(15,314)(879,069)

Commission received
for business ceded toreinsurers
Net operating
expenses

299,958

20,824

1,823

322,605---

322,605(383,204)(29,292)(62,431)(474,927)(66,675)452(15,314)(556,464)

Operating segment
result370,287

26,89912,944410,130

20,025-(15,314)414,841

Share of income/(losses) of associatedcompanies

17,755

Net income frominvestments

24,588Finance income

8,135

Finance expenses(7,255)Result for the year
before tax

458,065

Income tax expense(104,220)

Result for the year
from continuing
operations
Net result on
discontinuos
operations

353,844(21,633)

Result for the year

332,212131

All amounts in thousands
thousands ofof Euro,Euro, unlessunless otherwise
otherwisestatedstatedBusiness segment

Creditinsurance

SuretyAssumedReinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Total

Reinsurance contracts

694,554

184,453

47,228926,235--

926,235

Receivables

385,877

19,171

17,854422,902

7,353(4,190)426,065

2023

Unallocated assets

5,348,503

Total assets

1,080,431

203,62465,082

1,349,137

7,353(4,190)6,700,803

Insurance contracts

1,841,946

402,946

560,6432,805,535--

2,805,535

Payables

275,90234,256-

310,158

19,884(17,691)

Unallocated liabilities

312,351
1,152,541

Total liabilities
Total year end number of
employees (full-time equivalent)Business segment

2,117,848

437,202560,643

3,115,693

19,884

2,770

149

27

2,945

464

(17,691)-

4,270,427
3,409

Creditinsurance

SuretyAssumedReinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Total

Reinsurance contracts

684,246

161,553

54,241900,040--

900,040

Receivables

345,555

19,766

13,741

377,973

5,243(2,632)

381,673

-

-

-

-

-

-

5,010,416

Total assets

1,029,801

181,319

67,982

1,278,013

5,243(2,632)

6,292,129

Insurance contracts

1,709,310

343,424

512,835

2,565,569--

2,565,569

Payables289,780

37,841-

326,532

10,298(8,305)

329,614

-

-

-

-

-

-

1,221,496

1,999,090

381,265

512,835

2,892,101

10,298(8,305)

4,116,679

2,704

146

26

2,876

435

-

3,311

2022

Unallocated assets

Unallocated liabilities
Total liabilities
Total year end number of
employees (full-time equivalent)

The following table shows the total assets by geographical area under IFRS4:

2023
2022

Spain

Netherland &NordicCountries

Central andEasternEurope,Greece andTurkeySouthern
EuropeUnitedKingdom &Ireland

North
America

Oceania &
Asia

Total

2,358,611
2,139,256

1,062,840
841,094536,551
520,060

422,801
398,037

1,390,789
1,534,693

351,290319,593

577,920539,395

6,700,803
6,292,129

Comparative between the two standards is showed below.

132

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Assets2023
IFRS 9 /17

2023

Changes inmeasurement

IAS39 / IFRS4

Receivables

124,381

301,322425,703

Miscellaneous assets and accruals

191,481

563,464

754,945

Other assets 1)

1,078,111

95,8101,173,921

89,83562,208152,043

3,267,594-

3,267,594

776,751

149,484926,235

Total assets

5,528,153

1,172,288

6,700,441

Equity2023

Tax assets
Investments
Insurance contract assets

IFRS 9 /17

2023

Changes inmeasurement

IAS39 / IFRS4Capital and reserves attributable to the equity holders of
the Company

2,784,685(354,308)

2,430,377

Total equity

2,784,685(354,308)

2,430,377

Liabilities

2023
IFRS 9 /17

2023

Changes inmeasurement

IAS39 / IFRS4

Payables

602,323

441,191

1,043,514

Tax liabilities

168,333

2,854

171,187

Insurance contract liabilities

1,722,984

1,082,551

2,805,535

Subordinated debt

249,828-

249,828

2,743,468

1,526,596

4,270,064

Total liabilities

1) Property pan and equipment; Employee benefit assets cash and cash equivalents, intangible assets

133All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedProfit and loss

2023
IFRS 9 /17

2023

Changes inmeasurement

IAS 39 / IFRS 4

Profit and loss technical accounts premium-

1,431,780

1,431,780

Profit and loss technical accounts claims-(664,759)(664,759)

Broker and reinsurance commissions-

39,20839,208IFRS17 insurance contracts result

381,224(381,224)-

Insurance result

381,224

425,005806,229

Profit and loss service and other income

244,074(7,092)236,982

Operating expenses(200,431)(438,355)(638,786)

Investment income

89,615(2,151)

87,464

Investment expenses(33,242)

16,108(17,134)

Share of income from associated companies

11,266-

11,266

Profit and loss investment income

67,63913,95881,596

Other Finance income and expenses

1,323

372

1,695

Result for the year before tax

493,828(6,112)487,716

Income tax(119,061)

1,399(117,662)

4,314(2,167)2,147

379,081(6,880)372,201

Net Result on discontinued operations
Total result for the year

6

Cash and cash equivalents
2023

2022

Cash at bank and on hand549,187

431,851

Restricted cash

97,006

123,825

Short-term bank deposits

48,045

20,113

Cash and cash equivalents

694,238

575,789

Cash and cash equivalents

694,238

575,789

Cash and cash equivalents in the statement of cash flows

694,238

575,789

Atradius manages the cash by using a cross-border cash pooling agreement. This provides for a notional pool structurewith interest compensation per currency. The cash pool arrangement allows for offsetting of cash balances ofbranches within a legal entity. However, it does not allow offsetting between different legal entities.
The restricted cash line includes cash that is not available to the Company for immediate or general business useneither to spend, nor to invest.

134

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

7

Receivables

Other account receivables

2023

2022

124,381

96,638The outstanding Other account receivables are substantially all current and consequently their fair values do notmaterially differ from their carrying amounts. Insurance receivables are not included in this clasification, as they wereconsidered in LRC calculation.
There is no concentration of credit risk in respect of receivables as Atradius has a large number of internationallydispersed debtors (see Note 4.3.2).
The ‘Other account receivables’ related to service income, are short term balances which consist of individually smallbalances.
The increase in other account receivables is mainly driven by the Corporate Tax advanced payment in ACyC Spain.
The ECL of ‘Other accounts receivable’ for 2023 is EUR 1.3 million (2022: EUR 1.4 million). This balance takes into
account that a portion of the impaired receivables will be recovered. Atradius does not hold any collateral over thesebalances.

8

Other assets
2023

2022

Prepayments and accrued interest

59,96352,242

Net pension plan asset

94,54081,337

Reimbursement rights

6,590

6,687

Other

30,38823,816

Total

191,481

164,083

Prepayments and accrued interest, relate to payments in advance for which the Company has received and invoiced
for future services or goods, and interest of financial investments for which Atradius is entitled but has not received
yet.
The other assets and accruals are substantially all current and consequently the fair values of these assets do notmaterially differ from their carrying amounts.
The reimbursement rights relate to the Spanish pension plans. Since the related policies do not qualify as an insurance
policy under IAS 19, the fair value cannot be netted with the related pension liability (see Note 21).
The net pension plan asset concerns the surplus of the pension plans, mainly in the UK; as per 31 December 2023 it is
EUR 94.5 million (2022: EUR 81.3 million) (see Note 21).

9

Deferred and current income tax

Tax inspection
In July 2023, the Spanish Tax Authorities launched a full tax audit regarding GCO (Grupo Catalana Occidente S.A.) and
its Spanish group entities, including ACyC. Fiscal years in scope are 2016 up to and including 2019. Information has
been provided to the tax authorities and the tax audit is still ongoing. No topics have been formally disputed so far.

135

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Pillar Two model
In December 2022, the European Commission granted approval to Directive 2022/2523 within the European Union,
establishing a minimum effective tax rate for large groups. Aligned with the OECD Models Rules, this Directive isscheduled for transposition into the domestic legislation of Member States throughout 2023, with an effective date ofJanuary 1, 2024.
Pillar Two legislation is currently in the process of being adopted in Spain, the jurisdiction in which GCO isincorporated, see Note 1. In December 2023, the Council of Ministers in Spain approved, in its initial phase, the Draft
Law for the transposition of the aforementioned European Directive. Following the approval in the initial phase, thetext will need to be ratified by the Government and subsequently submitted to Parliament. The legislation is expected
to enter into force in Spain retroactively on January 1, 2024.
The Pillar Two legislation has been enacted or substantively enacted in other jurisdictions where Atradius operates,
including Ireland, the Netherlands, the United Kingdom, France and Italy, among others. These regulations take effectfor accounting periods beginning on or after 31 December 2023.
The Group is within the scope of the OECD Pillar Two model rules. Since the Pillar Two legislation was not effective at
the reporting date, the Group has no related current tax exposure. The Group applies the exception to recognising anddisclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in theamendments to IAS 12 issued in May 2023.
Under the new legislation, the ultimate parent company will generally be required to pay in Spain a top-up tax for thedifference between the GloBE effective tax rate per jurisdiction and the 15% minimum rate in those jurisdictions
without an enacted Qualified Domestic Top Up Tax. All entities within the Group have an effective tax rate thatexceeds 15%, except for certain entities located in countries with a lower statutory tax rate or with incidental tax
events.
The Group is in the process of assessing its exposure to the Pilar Two legislation for when it comes into effect. A
preliminary assessment has been performed based on the profits and tax expenses determined as part of the
preparation of the Group´s consolidated financial statement and considering only certain adjustment that would havebeen required applying by the Pillar 2 legislation. Based on this assessment, in most of these countries the estimatedPillar Two effective tax rates are above 15%. In countries where the estimated tax rate falls below the 15% threshold,the potential Pillar Two top- up tax impact has been estimated as not material.
Due to the complexities in applying the legislation and calculating GloBE income, the quantitative impact of theenacted or substantively enacted legislation cannot be reasonably estimated yet. Therefore, even for those entities
with an accounting effective tax rate above 15%, there may still be Pillar Two tax implications. The Group is currently
engaged with tax specialists to assist them with applying the legislation.
Current income tax
2023

2022

Current income tax assets

86,01883,035Current income tax liabilities

45,57873,194

Net

40,4409,841

The current income tax assets consist mainly of advances paid for local income tax. The current income tax liabilities
consist mainly of income and other local taxes payable.

136

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Deferred income tax
2023

2022

Deferred income tax assets before set-off

187,097

162,822

Set-off of deferred tax positions(183,280)(147,502)

3,817

15,320

Deferred income tax liabilities before set-off

306,035

231,680

Set-off of deferred tax positions(183,280)(147,502)

Net deferred tax liabilities as presented in the statement of financial position

122,755

84,1782023

2022

Balance at 1 January(68,858)(128,759)

Credit (charge) to other comprehensive income for the year

(28,110)22,029Charge to the profit and loss statement for the year

(20,588)

33,400-1,503(1,382)

2,969(118,938)(68,858)

Net deferred tax assets as presented in the statement of financial position

The gross movement on the deferred income tax is presented in the following table:

Movements with no impact on OCI nor P&L
Effect of movements in foreign exchange rates
Balance at 31 December

The movement in the deferred tax assets and liabilities is presented in the following table:
2023

Balance at
1 January

Recognised in Recognised
other in the profit
comprehensiv
and losse income forstatement
the year for the year

Movements
with noimpact on
OCI nor P&L

Effect ofmovements
in foreignexchange

Balance at
31
DecemberTax losses carriedforward34,841-(4,064)-515

31,292

Insurance contracts(115,086)-(15,182)-(2,406)(132,674)

Pensions(985)(3,031)(2,310)-(360)(6,686)

Fiscal goodwill

1,659

-

(300)

-

33

1,392

Financial investments

15,977(25,079)

4,061

-

(153)

(5,194)

Property, plant andequipment(9,802)

-

(371)

-

(50)

(10,223)

Other

4,539

-

(2,422)

-

1,039

3,156

Total

(68,858)(28,110)(20,588)-(1,382)(118,938)

137

All amounts in thousands of Euro, unless otherwise stated

All amounts in thousands of Euro, unless otherwise stated2022

Balance at
1 January

IFRS 9 & 17
Transition

Recognised in Recognised
other in the profit
comprehensiv
and losse income forstatement
the year for the year

Movements
with noimpact on
OCI nor P&L

Effect ofmovements
in foreignexchange

Balance at
31
DecemberTax losses
carried forward
Insurance
contracts

42,862--(8,066)-45

34,841(72,749)(67,717)-

24,744

1,164

(528)

(115,086)

Pensions

10,496-(11,388)(1,218)

-

1,125

(985)

Fiscal goodwill
Financialinvestments

1,926

-

-

(237)

-

(30)

1,659

(30,608)-

33,417

13,262112(205)

15,977

Property, plantand equipment(9,793)

-

-

57

2

(68)

(9,802)Other(3,176)

-

-

4,858

226

2,631

4,539

Total

(61,042)(67,717)

22,02933,400

1,503

2,969

(68,858)

Deferred income tax assets are recognised for tax losses carried forward, unused tax credits, and deductible
temporary differences, to the extent that it is probable that taxable profits will be available against which the unused
tax losses carried forward, unused tax credits, and deductible temporary differences can be utilised. In 2023, EUR 1.0
million deferred tax assets on the losses carried forward and deductible temporary difference were written down or
not recognised (2022: EUR 0.3 million). This is offset by the reversals of the impairments, prior year adjustments andforeign exchange, resulting in a net reversal of impairment of these deferred tax assets of EUR 1.8 million.
The DTA related to the financial investments changed to a DTL due to an increase of value of the investments.
Atradius has unrecognised tax losses carried forward balances amounting to EUR 37.9 million (2022: EUR 47.0
million). The expiration of these unrecognised tax losses carried forward is included in the following table:
Expiration unrecognised tax losses carried forward

2023

2022

1 - 3 years

1,926

324

4 - 9 years

5,237

618

Indefinite

30,73946,002

Total

37,902

46,945The decrease of unrecognised tax losses is mainly due to the utilisation of unrecognised tax losses or expiration of
unrecognised tax losses in countries where the carry forward of losses is limited to a certain amount of years.
Atradius has unrecognized deferred tax assets for an amount of EUR 1.7 million related to other items than tax losses.
The deferred and current income tax charged or credited to other comprehensive income during the year is presented
in the following table:

138

Atradius | Company financial statements 2023 Atradius N.V.

Atradius | Consolidated financial statements 2023 Atradius N.V.

2023
Deferredtax

2022
Current
tax

Deferredtax

Current
tax

Revaluation reserve in shareholders equity
related to:
FVOCI financial investments
Pension reserve in shareholders equity related
to:(25,079)-

33,417-

Recognised actuarial gains/(losses)
Currency translation reserve in shareholders
equity related to:(3,031)-(11,388)

-

-

1,624

-

134

(28,110)1,624

22,029134

Currency translation reserve
Total

139

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

10 Financial investments
Financialinvestments
classified bymeasurement
category andnatureFair Value through Profit FV with changes in Otherand Loss
Comprehensive Income

Amortised Cost 1)

Total

2023

2022

2023

2022

2023

2022

2023

2022

SharesInvestment
Funds

-

-

402,400

147,798--

402,400

147,798

97,165

246,427

-

-

-

-

97,165

246,427

Debt securities

2,277

2,241

2,337,252

2,428,779--

2,339,529

2,431,020

Loans

-

-

-

-

2,441

453

2,441

453

Short-term
investments

-

-

-

-

186,141

104,078

186,141

104,078

Cash held forinvestments

-

-

-

-

125,470

14,900125,470

14,90099,442

248,668

2,739,652

2,576,577

314,052

119,431

3,153,146

2,944,676

Total1) There are no bank deposits tacitly renewable in 2023 and 2022.

Movements in FVTPL financial
investments

Investment funds
2023

2022

2023

2022

2023

2022

Balance at 1 January

246,427

341,702

2,241

2,552

248,668

344,254

Additions

530,677

123,062--

530,677

123,062

Disposals(662,338)(159,577)--(662,338)(159,577)

-

-

-

-

-

-

(18,589)(55,967)

30

(287)

(18,559)(56,254)

988(2,793)

6

(24)

994

(2,817)

97,165

246,427

2,277

2,241

99,442

248,668

Amortisation charge for the year
Revaluations through profit and loss
statement
Effect of movements in foreign exchange
rates
Balance at 31 December

Movements in FVOCI financial
investments

Debt securities

Shares

Total

Debt securities

Total

2023

2022

2023

2022

2023

2022

Balance at 1 January

147,798

165,597

2,428,779

2,241,660

2,576,577

2,407,257

Additions

212,916

28,853484,678

1,045,287

697,594

1,074,140

Disposals(3,239)(23,169)(634,035)(700,996)(637,274)(724,165)

-

-

(938)

(12,566)(938)(12,566)

44,751(23,660)

66,251(164,280)

111,002(187,940)

175

177

(7,483)

19,674(7,308)19,851

402,400

147,798

2,337,252

2,428,779

2,739,652

2,576,577

Amortisation charge for the year
Revaluations through othercomprehensive income
Effect of movements in foreign exchange
rates
Balance at 31 December

140

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

11 Subsidiaries
The following table sets forth, as at 31 December 2023, the name and country of incorporation of the main subsidiaries of Atradius N.V.
All companies are, directly or indirectly, wholly owned unless otherwise indicated.

Entities for which Atradius does not have control are not fully consolidated.

On 31 October 2023, Atradius Reinsurance DAC (ARE) merged with Atradius Crédito y Caución S.A. de Seguros y
Reaseguros (ACyC) through a cross-border merger. Upon effectiveness of the merger, ARE’s assets and liabilities,
including all of its reinsurance obligations, were transferred to ACyC (through its Irish branch) which now conducts
ARE’s reinsurance business as its legal successor. The merger reduced the complexity of the corporate structure of the
Atradius group, achieving more efficient management of the activity and simplifying the operational businessactivities carried out by these companies.
Comparative with 2022:
PRO KOLEKT CCR, Slovenia and its subsidiaries: Bosnia-Herzegovina, Bulgaria, Croatia, North Macedonia,
Romania and Serbia (acquisition)
Atradius Crédito y Caución S.A. de Seguros y Reaseguros, branch in Slovenia (incorporation)
Atradius Rus Credit Insurance LLC (sold)
Atradius Reinsurance DAC (merged with Atradius Crédito y Caución S.A. de Seguros y Reaseguros)141All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

12 Investments in associated companies
2023

2022

Balance at 1 January

88,72675,623

Share of income of associated companies

11,266

17,755

Dividends received(5,686)(7,890)

892

2,240

Effect of movements in foreign exchange rates(6,384)

998

Balance at 31 December

88,81588,726

Revaluations

None of the associated companies are listed. All information from the associated companies, unless otherwise stated,
is based on balance sheet dates between 30 September 2023 and 31 December 2023.
Atradius assessed the goodwill for impairment of investments in associated companies. Based on this assessment
Atradius has decided that no impairment is needed in 2023 for the goodwill related to investments in associatedcompanies.

Country of % interest
incorporation
heldType of business

South Africa

25.00%

Credit insurance

CLAL Credit Insurance Ltd., Tel Aviv

Israel20.00%

Compañía de Seguros de Crédito Continental S.A., Santiago de Chile

Chile

50.00%

Credit Guarantee Insurance Corporation of Africa Limited

Credit insurance
1)

Credit insurance

1) Minus one share

The following tables show summarised financial information of Atradius’ interest in associated companies and thefinancial information of the associated companies:

142

Atradius | Consolidated financial statements 2023 Atradius N.V.
Atradius | Company financial statements 2023 Atradius N.V.

2023

Credit
CLAL Credit
Guarantee Insurance Ltd.
Insurance
Corporation of
Africa Limited

Compañía deSeguros deCréditoContinental
S.A. 1)

Total

Atradius 's interest:
-

380

1,611

1,991

Net assets

20,814

17,14948,86386,827

Carrying amount:

20,813

17,52950,47488,815

Share of income of associated companies

4,432

1,225

5,609

11,266

Dividends received(2,833)(289)(2,564)(5,686)

Assets146,477

119,359

162,576

428,412

Liabilities

63,22333,60864,849161,680

Revenue

52,373

15,26315,00982,645

Net assets

83,25485,75197,727

266,732

Result for the year

17,727

6,125

11,19935,051Credit
CLAL Credit
Guarantee Insurance Ltd.
Insurance
Corporation of
Africa Limited

Compañía deSeguros deCréditoContinental
S.A. 1)

Total

Goodwill

Associated companies:

2022

Atradius 's interest:
-

380

1,611

1,991

Net assets

21,73917,24647,75186,735Carrying amount:

21,73917,62649,362

88,726

Share of income of associated companies

6,612

1,782

9,361

17,755

Dividends received(5,584)-(2,306)(7,890)Assets158,727

124,998

159,086

442,811

Liabilities

71,772

38,77063,579174,120

Revenue

58,63016,73018,05093,409Net assets

86,95586,22895,507

268,690

Result for the year

26,448

8,908

18,72254,078Goodwill

Associated companies:

1)Figures for Compañía de Seguros de Crédito Continental S.A. are related to non-consolidated statements.

143All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

13 Property, plant and equipment & investment property

2023

Land &
buildings

Fixtures &fittings

IT
hardwareRight of
Use assets

Total
property,plant &
equipment

Investment
property

At cost at 1 January

90,50258,33458,062

155,355

362,253

33,125Additions

-

7,726

6,979

20,56735,272-

Disposals
Effect of movements in foreignexchange rates-(5,821)(4,629)(20,659)(31,109)

-

167

279

284

(388)

342

72

At cost at 31 December

90,66960,51860,696

154,875

366,758

33,197

Accumulated depreciation andimpairments at 1 January(13,204)(42,545)(49,678)(75,947)(181,374)(7,178)Depreciation charge for the year

(860)

(3,565)(4,526)(16,620)(25,571)(400)

Disposals

-

5,121

4,297

20,59830,016-

Impairment / reversal impairment
Effect of movements in foreignexchange rates
Accumulated depreciation andimpairments at 31 December

-

-

-

-

-

23

(29)

(87)

(263)

773

395

(9)

(14,093)(41,076)(50,170)(71,196)(176,535)(7,564)

Balance at 1 January

77,29815,7908,384

79,409180,880

25,947

Balance at 31 December

76,576

19,442

10,527

83,678190,223

25,633

144

Atradius | Consolidated financial statements 2023 Atradius N.V.
Atradius | Company financial statements 2023 Atradius N.V.

2022

Land &
buildings

Fixtures &fittings

IT
hardwareRight of
Use assets

Total
property,plant &
equipment

Investment
property

At cost at 1 January

90,341

66,84559,649142,094358,929

33,985Additions

-

1,945

5,059

27,105

34,109-

Disposals-(3,814)(5,308)(3,138)(12,261)(6,380)Reclassification-(5,510)(131)(1,218)(6,859)5,452

Change in consolidation group
Effect of movements in foreignexchange rates

-

(502)

(257)

(8,992)(9,751)

-

161

(630)

(949)

(496)

(1,914)68

At cost at 31 December

90,50258,33458,062

155,355

362,253

33,125

Accumulated depreciation andimpairments at 1 January(12,288)(43,005)(49,625)(63,784)(168,702)(7,960)Depreciation charge for the year(889)

(3,249)(5,496)(20,290)(29,924)(413)

Disposals

-

3,205

4,333

2,457

9,995

1,204

Reclassification

-

49

113

598

760

-

Change in consolidation group
Effect of movements in foreignexchange rates
Accumulated depreciation andimpairments at 31 December

-

44

181

4,849

5,073

-

(27)

412

816

223

1,424

(9)

(13,204)(42,545)(49,678)(75,947)(181,374)(7,178)

Balance at 1 January

78,053

23,83910,02378,310190,225

26,025

Balance at 31 December

77,29815,7908,384

79,409180,880

25,947The depreciation charge on property for own use is reported as part of net operating expenses. The depreciation
charge on investment property is reported as part of net income from investments.
The fair value of land and buildings for own use and of investment property is presented in the following table:
Property own use

Investment property

2023

2022

2023

2022

Spain and Portugal

78,18077,41921,97021,970Italy

20,65020,650453

443

Mexico

6,461

5,531

2,154

1,844

Other

250

250

-

-

Total

105,541

103,849

24,57624,256

Fair value measurement
Land and buildings are independently appraised by real estate valuers, which are registered in the relevant countries
and have appropriate qualifications and experience in the valuation of properties. Atradius usually revalues land andbuildings every two years.
All significant inputs used in the measurement are market observable and the fair value is therefore classified in Level
2 in the fair value hierarchy (as in 2022). Valuation techniques used are: Market (comparison) approach, Income
approach (discounted cash flow method) and Cost approach. Significant valuation inputs used to determine the fairvalue measurements based on techniques used are construction features, location (and/or conditions) and transportutilities.

145

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

The estimated fair value of the properties is directly dependent on the changes of the inputs used. There has been nochange in the valuation techniques used compared to prior year.
The investment property can be classified as follows: 91% office (2022: 92%) and 9% retail (2022: 8%).
Direct operating expenses incurred (including repairs and maintenance) arising from investment property are EUR 50
thousand (2022: EUR 44 thousand). During the year an amount of EUR 1.157 thousand (2022: EUR 673 thousand) has
been recognised as rental income from investment property for lease contracts. These contracts have remaining termsof between 1 and 10 years. Expected rental income arising from these contracts for next year is EUR 1.564 thousand for
non-cancellable contracts (In 2022, expected rental income for next year was 1.650 thousand for non-cancellable
contracts).
Leases: Right of Use Assets
Right of Use assets consist of office space (93%), including parking and vehicles under a number of operating leaseagreements. The most significant lease contracts relate to the offices in our locations in Western Europe. The
remaining terms of these office rentals vary between 2 to 10 years and most of the contracts contain extension
options. The extension options are taken into account in the measurement of lease liabilities when the Group isreasonably certain to exercise these options.
Further information about the leases for which Atradius is a lessee is presented below:
2023

2022

87,06282,336

Interest expenses on lease liabilities(2,541)(1,668)

Expenses relating to short-term leases

(582)

(386)

Expenses relating to low-value assets

(37)

(31)

17,04823,449Lease liability included in statement of financial position at 31 December (see Note 18)
Amounts recognised in profit and loss statement :Amounts recognised in the statement of cash flows :Total cash outflow for leases

146

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

14 Intangible assets
2023

Goodwill

Software

Other 1)Total

At cost at 1 January

120,401

362,023

30,529512,952

Additions888

16,998-17,886

Disposals-(8,452)(7,399)(15,851)

Reclassification

-

12

-

12

Effect of movements in foreign exchange rates

(5)

2,576

(30)

2,542

121,284

373,157

23,100517,541(905)(267,899)(30,529)(299,333)

Amortisation charge for the year-

(6,343)-(6,343)

Disposals

-

3,873

7,399

11,272

Impairment-(27,471)-(27,471)(905)(2,046)(299,887)30(23,100)(2,016)(323,892)

Balance at 1 January

119,496

94,123-

213,618

Balance at 31 December

120,379

73,270-

193,649

At cost at 31 December
Accumulated amortisation and impairments at 1 January

Effect of movements in foreign exchange rates
Accumulated amortisation and impairments at 31 December

+
++

+

+

+

2022

Goodwill

Software

Other 1)Total

At cost at 1 January

151,421366,327

30,458548,206

Additions-25,438-25,438

Disposals-(1,090)-(1,090)(30,931)(21,800)-(52,731)(90)(6,852)71(6,871)

At cost at 31 December

120,401

362,023

30,529512,952

Accumulated amortisation and impairments at 1 January(13,735)(270,275)(29,306)(313,316)

Amortisation charge for the year-

(9,138)(1,152)(10,290)

Disposals

-

7,072

-

7,072

Impairment(170)(7,768)-(7,938)13,0006,699-

19,699

(905)

5,510
(267,899)(71)(30,529)5,439(299,334)

Balance at 1 January

137,686

96,052

1,152

234,890

Balance at 31 December

119,496

94,123-

213,618

Change in consolidation group
Effect of movements in foreign exchange rates

Change in consolidation group
Effect of movements in foreign exchange rates
Accumulated amortisation and impairments at 31 December

1) Other intangible assets relate to agent networks, non-patented technology, trade names and insurance portfolios

147

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Goodwill
If applicable, impairment of goodwill is included as part of Finance expenses (see note 26). Atradius assessed all
goodwill for impairment.
The goodwill allocated to the main cash-generating units or groups of units (CGU’s) is presented in the following table:
Cash-Generating Units

2023

2022

ACyC 1)

98,797

98,797

Atradius Trade Credit Insurance Inc.

4,750

4,750

Atradius Collections B.V.

6,426

6,426

ACyC (France)

2,767

2,767

2,470

2,476

Other

5,168

4,280

Total

120,378

119,496

ACyC (Nordic surety)

2)1) The CGU ACyC includes the local business in Spain and Portugal.
2) The Nordic Surety unit goodwill includes Atradius’ surety business in Denmark, Norway, Sweden and Finland, and the movement is driven by foreign exchange
movements.

The value in use of an individual CGU is determined using a dividend discount model (DDM). The dividend flows are
estimated using a projection period and a normalised period. The projection period is 10 years, where the first 1-4 year
projections are based on financial budgets and/or forecasts. The remaining years are estimated using ratios andgrowth rates that converge towards their normalised term value. The discount rate, gross of tax, varies depending on
the Risk-Free Rate and the Country Risk Premium of the country where the CGU is located. For those CGUs with
Goodwill higher than EUR 10 million (ACyC), the discount rate applied is between 9.0% and 10.0% and the growth rate
is between 1% and 1.5%, respectively. The terminal value is calculated based on the dividend flows of the normalised
period through a perpetuity which applies a long term growth rate of 2.0% for CGUs excluding ACyC and 3.0% forassociated companies (2022: 2.0%-3.0%) and the specific discount rate. Any profits, after fulfilling minimum capitalrequirements, are assumed to be distributable dividends. Minimum capital requirements are calculated taking into
account local solvency rules, the Solvency II Partial Internal Model and minimum shareholders equity required (nondistributable)
CGUs are defined by line of business according to the way we manage and steer the operational business.
An approximation of the sensitivity of the following assumptions would impact the CGU market value by thepercentages shown below (other CGUs are not included due to immaterial impacts):

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Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Cash-Generating Units

Discount rate

Growth rate

Combined ratio

Solvency ratio 1)

2023

+50bp

-50bp

+50bp

-50bp

+50bp

-50bp

ACyC
Atradius Trade Credit
Insurance Inc.

(5.6%)

6.2%

0.5%(0.5%)(2.8%)

2.8%(6.3%)

6.2%(7.7%)

9.1%

5.7%(4.9%)(1.1%)

1.1%--

Atradius Collections B.V.

(4.6%)

5.4%

2.7%(2.3%)----

ACyC (France)(7.8%)

9.5%

6.0%(4.9%)(3.3%)

3.3%(0.8%)

0.8%

ACyC (Nordic surety)(8.2%)

10.0%

6.4%

(5.3%)(2.4%)

2.4%(2.5%)

2.5%

Cash-Generating Units

Discount rate

Growth rate

+1,000bp -1,000bp

Combined ratio

Solvency ratio 1)

2022

+50bp

-50bp

+50bp

-50bp

+50bp

-50bp

ACyC

(5.9%)

6.8%

1.1%(0.9%)(3.2%)

3.2%(5.5%)

5.5%

Atradius Trade Credit
Insurance Inc.

(9.5%)

11.5%

7.6%

(6.3%)(2.4%)

2.4%--

Atradius Collections B.V.

(7.4%)

9.5%

6.2%(4.8%)----

ACyC (France)(10.3%)

13.2%

9.2%

(7.2%)(3.6%)

3.6%(0.7%)

0.7%

ACyC (Nordic surety)(12.1%)

16.1%

11.9%

(8.9%)(4.3%)

4.3%(4.6%)

4.6%

1)+1,000bp -1,000bp

With the same required capital.

No sensitivity analysis mentioned above, both individually and combined, would assume that the carrying amount of
the GCUs would exceed their market value.
SoftwareAtradius assessed all capitalised software to determine if the criteria for capitalisation are being met (see note 2.6.2).
Based on this assessment, Atradius decided to impair EUR 27.5 million (2022 EUR 0.6 million) of self-developed
software due to the materiality of developments and advancements within the transformation programme renderingsome existing features deprecated. The features within the transformation programme include data models, users
journeys, utilisation of shared components, new functionalities and multichannel/omnichannel integrations to deliver
the best customer experience. During 2023, Atradius capitalised EUR 15.5 million due to the Atradius BusinessTransformation projects (2022: EUR 20.4 million).

149

All amounts in thousands of Euro, unless otherwise stated

All amounts in thousands of Euro, unless otherwise stated

15 Insurance contracts
15.1

Composition of the Balance Sheet

An analysis of the amounts presented on the consolidated balance sheet for insurance contracts is included in the tablebelow, along with the presentation of current and non-current portions of the balances:

2023
Insurance contract liabilities

1,722,832

Insurance contract assets
Total

CreditInsurance

2023- Insurance contract
assets/liabilities
excluding Insurance
acquisition cash flows
assetsDeferred acquisition
costs
Total insurance
contract assets andliabilities

2022

SuretyAssumedReinsurance

1,119,572

159,262

12,831
1,106,741

1,626,287

122,619

105,6211,600,213

1,520,666

Total

Total

Current

Non-current

334,210

1,613,044

1,157,316

455,729

1,613,044--

12,831

12,831-

12,831

159,262334,2101,600,213

1,144,485

455,7291,600,213

Total

Current

Non-current

2022

CreditInsurance

SuretyAssumedReinsurance- Insurance contract
assets/liabilities
excluding Insurance
acquisition cash flows
assets

1,042,608

178,513

310,678

1,531,798

1,070,031

461,767

1,531,798

11,132--

11,132

11,132-

11,132

1,031,476

178,513

310,678

1,520,666

1,058,898

461,767

1,520,666

Deferred acquisition
costs
Total insurance
contract assets andliabilities

Total

Detailed reconciliations of changes in insurance contract balances during the reporting periods are included in notes
15.3 and 15.4.

15.2
15.2.1

Insurance revenue and expenses
Insurance revenue and insurance service result

An analysis of insurance revenue and insurance service expenses by product line for 2023 and 2022 is included in thefollowing tables. Additional information on amounts recognised in profit or loss and OCI is included in the insurance
contract balances reconciliations in notes 15.3 and 15.4. The Company reinsurance contracts held cover combined all
product lines. The Company therefore discloses the reinsurance held disclosure combined. See note 16.

150

Atradius | Company financial statements 2023 Atradius N.V.

Atradius | Consolidated financial statements 2023 Atradius N.V.

CreditInsurance

2023

SuretyAssumedReinsurance

Total

Insurance revenue:
Amounts relating to the changes in the LRC:
- Expected incurred claims and other directly attributable
expenses

1,207,279(5,313)54,194

1,256,160- Change in the risk adjustment for non-financial risk for the risk
expired89,096

5,215

8,944

103,255- CSM recognised for the services provided

128,810

68,152

14,678211,640- Experience adjustments – arising from premiums received in
the period other than those that relate to future service

112,349

32,944

61,645206,938

455,686

30,99335,808522,487

1,993,220

131,991

175,2692,300,480(918,921)

42,411(88,320)(964,830)- Changes that relate to past service – changes in the FCF
relating to the LIC

65,703(17,806)(18,385)

29,513- Losses on onerous contracts and reversal of those losses(130,504)(1,581)(33,402)(165,487)- Insurance acquisition cash flows recovery
Total insurance revenue
Insurance service expenses:- Incurred claims, other directly attributable expenses and losses
amortisation- Acquisition expenses
Total insurance service expenses
Total insurance service revenue and expenses(455,686)(30,993)(35,808)(522,487)(1,439,408)(7,968)(175,915)(1,623,291)

553,812124,023(646)

677,189

CreditInsurance

2022

SuretyAssumedReinsurance

Total

Insurance revenue:
Amounts relating to the changes in the LRC:
- Expected incurred claims and other directly attributable
expenses

961,944

72,792

72,593

1,107,329- Change in the risk adjustment for non-financial risk for the risk
expired64,866

4,559

5,830

75,255- CSM recognised for the services provided

171,351

53,777

15,766

240,894- Experience adjustments – arising from premiums received in
the period other than those that relate to future service

132,297

25,97740,829199,103379,386

29,112

47,231455,729

1,709,844

186,217

182,249

2,078,310- Incurred claims, other directly attributable expenses and losses
amortisation(693,139)(43,387)(92,650)(829,176)- Changes that relate to past service – changes in the FCF
relating to the LIC

105,992(9,350)50,032

146,674- Losses on onerous contracts and reversal of those losses(167,169)(53,631)(9,200)(230,000)- Acquisition expenses(379,388)(29,112)(47,231)(455,731)(1,133,704)(135,479)(99,049)(1,368,231)

576,140

50,73883,200710,079- Insurance acquisition cash flows recovery
Total insurance revenue
Insurance service expenses:

Total insurance service expenses
Total insurance service revenue and expenses

Insurance service revenue and expenses, on Surety business, are significantly impacted by the higher amortization of
the loss component (EUR 67 million) (2022: EUR 10 million). See further details in note 15.3.1.

151

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

15.2.2

Determined on transition to IFRS 17

An analysis of insurance revenue for insurance contracts issued and the CSM by segment is included in the following
tables.
CreditInsurance

SuretyAssumedReinsurance

Total

1,986,226

75,421

148,028

2,209,675

6,994

56,57027,24090,805

1,993,220

131,991

175,2692,300,480

New contracts and contracts measured under the full
retrospective approach at transition

53,527

101,390

15,554

170,472

Contracts measured under the modified retrospective approachat transition

17,96823,571

6,126

47,664

Total CSM

71,495

124,961

21,680218,136

CreditInsurance

SuretyAssumedReinsurance

1,457,700

106,464

110,942

1,675,106

252,145

79,75371,306403,204

1,709,845

186,217

182,248

2,078,310

New contracts and contracts measured under the full
retrospective approach at transition

62,13175,791

12,860150,782

Contracts measured under the modified retrospective approachat transition

29,69747,035

1,440

78,172

Total CSM

91,829122,826

14,300228,955

2023
Insurance revenue:
New contracts and contracts measured under the full
retrospective approach at transition
Contracts measured under the modified retrospective approachat transition
Total insurance revenue
CSM as at 31 December:

2022

Total

Insurance revenue:
New contracts and contracts measured under the full
retrospective approach at transition
Contracts measured under the modified retrospective approachat transition
Total insurance revenue
CSM as at 31 December:

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Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

15.2.3

Expected recognition of the Contractual Service Margin

An analysis of the expected recognition of the CSM remaining at the end of the reporting period in profit or loss isprovided in the following table:
2023
Number of years until expected to be recognised

Insurance contracts issued
Total CSM forAssumedinsurance
SuretyReinsurance
contracts
issuedCreditInsurance

Total CSM forreinsurance
contracts
held

As at 31 December 2023
1

58,99149,393

10,000118,384

20,100

2–5

10,84767,921

10,23889,005

8,747

6–10

1,632

7,409

1,381

10,422

811

>10

25

238

61

324

30

Total

71,495

124,961

21,680218,136

29,688Insurance contracts issued
Total CSM forAssumedinsurance
SuretyReinsurance
contracts
issuedTotal CSM forreinsurance
contracts
held

2022
Number of years until expected to be recognised

CreditInsurance

As at 31 December 2022
1

75,76748,5486,596

130,911

39,627

2–5

13,932

66,761

6,753

87,446

17,244

6–10

2,097

7,283

911

10,291

1,599

>10

32

234

40

306

59

Total

91,828122,826

14,300228,954

58,529153

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

15.3

Reconciliation of the liability for remaining coverage, incurred claims and CSM

15.3.1 Reconciliation of the liability for remaining coverage and incurred claims
A reconciliation of the LRC and LIC is included in the following tables. The reconciliation is performed by operating
segment.
Credit Insurance:
2023

2022

LRC

Insurance contract
assets/liabilities as at 1 January
Insurance revenue

LRC

Excluding loss
component

Losscomponent

LIC

614,099

164,976

263,532

Total(1,993,220)

Excluding loss
component

Losscomponent

LIC

58,768

196,725

1,042,607

610,890(1,993,220)(1,709,845)

Total

866,383(1,709,845)

Insurance service expenses:
Incurred claims and otherdirectly attributable
expenses
Changes that relate to futureservice: losses on onerous
contracts and reversal of
those losses
Changes that relate to past
service: Changes to liabilities
for incurred claims
Acquisition Expenses
Investment Results

3,206(165,369)

1,081,086

918,923

96(57,194)

750,237

693,139-

130,504-

130,504-

167,169-

167,169--(65,705)(65,705)87-(106,079)(105,992)

455,686--

455,686

379,388--379,388

10,3702,849

22,25935,478(9,387)(584)

18,980

9,009

1,439

1,599

(5,444)(2,406)(938)(1,934)

13,25910,387

1,885,839

1,750,892--

1,750,892

Amounts recognised incomprehensive income:
Other comprehensive
incomeCurrent Period Cash Flows:
Premiums received

1,893,784-(7,945)

Claims and other expenses
paid

-

-

(692,196)(692,196)--(438,667)(438,667)

Acquisition Cash Flows paid

(420,188)--(420,188)(403,579)--(403,579)--(184,776)(184,776)--(168,908)(168,908)

5,685
570,861

236
134,795

3,105
413,916

9,026
1,119,572(3,506)
614,099(1,249)164,976(2,014)
263,533(6,769)1,042,608

Administration and Other
costs paid
Change in scope*
Insurance contract
assets/liabilities as at 31
December*Reclassified as Held-for-Sale due to sale of the businessAs described in note 2.15.2, the credit insurance business is managed on a country-by-country basis except for the
global credit portfolio, ICP and Special Products, which are managed globally. As a result, certain credit insurance
portfolios result on a loss component, when adversely impacted by potential worsening of macroeconomic conditions
or large claims. The 2022 loss component was primarily impacted by the Event Based Provision related to thepotential impact of the war in Ukraine described in note 3.4. This loss component has been released during 2023,
applying the release patterns for credit insurance, and recorded as part of the LIC by the end of 2023. The 2023 loss
component is driven by the worsening conditions in certain credit insurance portfolios, where there has been an
increase in actual claims reported and further uncertainly in claims development is expected.

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Atradius | Consolidated financial statements 2023 Atradius N.V.

Surety:
2023

2022

LRC

LRC

Excludingloss
component

Losscomponent

Insurance contract
assets/liabilities as at 1 January(1)(13,263)

95,672

Insurance revenue(131,991)

LIC

Total

96,104

Excluding loss
component

Losscomponent

178,51444,66955,823(131,991)(186,216)

LIC

Total

99,104

199,596(186,216)

Insurance service expenses:
Incurred claims and otherdirectly attributable expenses(131)(67,818)

25,538(42,411)(316)(10,325)

54,02843,387

Changes that relate to futureservice: losses on onerous
contracts and reversal of thoselosses

-

1,582

-

1,582

-

53,631-

53,631

Changes that relate to past
service: Changes to liabilities
for incurred claims
Acquisition Expenses
Investment Results--

17,806

17,806

-

-

9,350

9,350

30,993--30,99329,112--

29,112

2,114

270

319

2,703

117

(82)

(4)

30

615

540

313

1,468

(3,817)(3,375)(2,260)(9,452)

165,130-(390)

164,740

135,857--

135,857--(16,078)(16,078)--(40,879)(40,879)(24,909)--(24,909)(32,667)--(32,667)--(23,153)(23,153)--(23,235)(23,235)

28,55830,245

100,459

159,262(13,262)

95,672

96,104

178,514Amount recognised incomprehensive income:
Other comprehensive income
Current Period Cash Flows:
Premiums Received
Claims and other expenses paid
Acquisition Cash Flows Paid
Administration and Other costs
paid
Insurance contract
assets/liabilities as at 31
December

The loss component recorded during 2022 is primarily driven by a large case exposure. During 2023, the release of theloss component is primarily driven by refinements to the amortization patterns applied in the cash flow models tobetter align the covered period and occurrence dates for claims.

155

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Assumed Reinsurance:
2023

2022

LRC

LRC

Excludingloss
component

Losscomponent

Insurance contract
assets/liabilities as at 1 January

58,03453,914

Insurance revenue(175,269)

Insurance service expenses:
Incurred claims and otherexpenses
Changes in estimates notreflected in the contractual
service margin or loss
component
Changes that relate to futureservice: losses on onerous
contracts and reversal of
those losses
Changes that relate to past
service: Changes to liabilities
for incurred claims

Total

LIC

198,729

Excluding loss
component

Losscomponent

57,657

310,677

78,225(175,269)(182,249)

LIC

Total

190,539

326,420(182,249)

6,891(39,502)120,931

88,320(2,444)(13,013)108,106

92,649

-

-

-

-

-

-

-

-

-

33,402-33,402

-

9,200

-

9,200

7

-

18,37818,3852-(50,034)(50,032)

Acquisition Expenses

35,808--35,80847,231--

47,231

Investment results
Amounts recognised incomprehensive income:(11,112)970

17,315

7,173(10,838)(322)

14,2203,060(7,119)(11,477)(28,266)(46,862)

(372)

393

7,220

7,241

Premiums Received
Claims and other expenses
paid

192,863--

192,863

173,056--

173,056--(82,105)(82,105)--(65,977)(65,977)

Acquisition Cash Flows Paid
Administration and Other
costs paid
Insurance contract
assets/liabilities as at 31
December(41,897)--(41,897)(44,578)--(44,578)--(6,285)(6,285)--(5,346)(5,346)

58,20537,308

238,697334,21058,03353,915

198,728

310,676

Other comprehensive income
Current Period Cash Flows:

During 2023, the release of the loss component is primarily driven by refinements to the amortization patterns
applied in the cash flow models to better align the covered period and occurrence dates for claims.

156

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

15.3.2 CSM Roll forward
A reconciliation of the CSM by transition method is included in the following tables.
2023
Transition
Contracts
Contracts
under theunder the fullmodified
retrospective
retractive
approachapproach

2022

Post
Transition

Total

Transition
Contracts
Contracts
under theunder the fullmodified
retrospective
retractive
approachapproach

Post
Transition

Total

Insurance
revenue

90,805289,117

1,920,558

2,300,480

403,204

1,125,211

549,895

2,078,310

CSM as at 1
January

78,172

39,720111,061

228,954

133,967

164,703-

298,671(48,513)(21,768)(141,359)(211,640)(74,740)(65,442)(100,713)(240,894)

(83)

426

374,659

375,002425

33,927

181,478

215,830

Changes in
estimatesreflected in the
CSM

6,078

2,679

(202,366)(193,610)

19,017(77,329)(9,451)(67,763)

Changes in
estimates that
result inonerouscontract losses

11,567

1,222(2,527)

10,26297(6,857)3,254(3,507)

-

-

-

-

-

-

31,97031,970Insurance
Finance
Expenses

443

(207)

7,951

8,187

(450)

(7,412)

4,524(3,338)Change in
scope

-

161

818

980

(143)

(1,871)-(2,014)47,664

22,234

148,238

218,136

78,172

39,720111,061

228,954

Changes that
relate tocurrent service:
Changes in CSM
Changes that
relate to futureservice:
Initial
Recognition

Changes that
relate to past
service:
Adjustments to
LRC

CSM as at 31
December157

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

15.4

Reconciliation of the measurement components of insurance contract balances

A reconciliation of the measurement components of insurance contract balances is included in the following tables.
The reconciliation is performed by operating segment.
Credit Insurance:

Present
value offuture cashflows
Insurance
contract
assets/liabilities
as at 1 January

2023
Risk
adjustment
CSM
for nonfinancial
risk

Total

Present
value offuture cash
flows

2022
Risk
adjustment
CSM
for nonfinancial
risk

Total

841,304

109,476

91,8281,042,608

613,781

100,907

151,695

866,383--(128,810)(128,810)--(171,351)(171,351)(391,997)--(391,997)(361,923)--(361,923)-(37,801)-(37,801)-(38,781)-(38,781)Contracts initiallyrecognised in the
period(215,938)

79,170270,183

133,415(120,422)

78,234

128,286

86,098Changes in
estimatesreflected in thecontractual
service margin

161,867

4,694(166,562)-

17,004

1,518(18,522)-

Changes in
estimates that
result in onerous
contract losses(1,416)305(1,426)(2,537)(86,209)

14,387(3,344)(75,166)

Adjustments to
LIC(69,413)(57,422)-(126,835)(106,574)(54,391)-(160,965)

Adjustments to
LRC

662

-

-

662

136,036

9,670

8,834

154,540

Insurance FinanceExpenses

26,549

1,311

5,302

33,162

13,356(819)(1,757)

10,780Current Period
Cash Flows

588,679--

588,679

739,762--

739,762

Change in scope

7,393

654

980

9,027

(3,506)(1,249)(2,014)(6,769)Insurance
contract
assets/liabilities
as at 31 December

947,690

100,387

71,495

1,119,573

841,304

109,476

91,8281,042,608

Changes that
relate to current
service:
CSM recognised
for the services
providedExperience
adjustments*
Risk adjustment
recognised for therisk expired
Changes that
relate to futureservice:

Changes that
relate to past
service:*As noted within note 3.5, Atradius operations are highly sensitive to changes on claims experience, especially impacting its credit insurance portfolio. During 2023 and2022, there have been deviations between management`s expectations and actual claims experience, in addition to better than expected developments on pipeline
premiums. All these result on positive experience adjustment as noted in the tables below.

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Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Surety:Present
value offuture cashflows
Insurance
contract
assets/liabilities
as at 1 January

2023
Risk
adjustment
CSM
for nonfinancial
risk

Total

Present
value offuture cash
flows

2022
Risk
adjustment
CSM
for nonfinancial
risk

Total

24,272

31,415

122,826

178,513

40,77632,023

126,797

199,596--(68,152)(68,152)--(53,777)(53,777)(46,092)--(46,092)(29,811)--(29,811)-(4,531)-(4,531)-(3,221)-(3,221)

Contracts initiallyrecognised in the
period(90,241)

11,61678,445(180)(53,081)

8,118

45,467504

Changes in
estimatesreflected in thecontractual
service margin

12,627(1,283)(11,344)-

16,895(1,757)(15,138)-

Changes in
estimates that
result in onerous
contract losses

843

(67)

985

1,761

7,102

1,244

(264)

8,082

Changes that
relate to past
service:
Adjustments to
LIC

5,372

(1,472)-

3,900(1,979)(6,051)-(8,030)Adjustments to
LRC(10,728)--(10,728)

12,1583,322

20,03535,515

Insurance FinanceExpenses

1,533

437

2,201

4,171

(6,863)(2,263)(295)(9,421)

100,601--

100,601

39,076--

39,076(1,815)

36,116

124,961

159,262

24,272

122,826

178,513

Changes that
relate to current
service:
CSM recognised
for the services
providedExperience
adjustments
Risk adjustment
recognised for therisk expired
Changes that
relate to futureservice:

Current Period
Cash Flows
Insurance
contract
assets/liabilities
as at 31 December

159

31,415

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Assumed Reinsurance:

Present
value offuture cashflows
Insurance contract
assets/liabilities as at 1
January2023
Risk
adjustment
CSM
for nonfinancial
risk

Total

Present
value offuture cash
flows

2022
Risk
adjustment
CSM
for nonfinancial
risk

Total

265,854

30,52414,300310,678

267,490

38,753

20,178326,420

CSM recognised for theservices provided--(14,678)(14,678)--(15,766)(15,766)

Experience adjustments(29,653)--(29,653)

2,446

-

-

2,446

Risk adjustment
recognised for the risk
expired

-

2,249

-

2,249

-

563

-

563

Contracts initiallyrecognised in the period(33,676)

7,303

26,3741(47,129)

5,062

42,076

9

Changes in estimatesreflected in thecontractual service margin

17,460(1,756)(15,704)-

32,525

1,579(34,103)-

Changes in estimates that
result in onerous contract
losses

20,732

2,401

10,703

33,836

3,375(1,530)

101

1,945

Adjustments to LIC

9,684(6,376)-

3,308(53,927)(15,823)-(69,750)

Adjustments to LRC

6,017

-

-

6,017

1,100

304

3,101

4,505

Insurance FinanceExpenses(37,388)(3,421)

685(40,124)

2,819

1,618

(1,286)

3,151

Current Period Cash Flows

62,576--

62,57657,156--57,156

Insurance contract
assets/liabilities as at 31
December

281,606

30,924

21,680334,210

265,854

Changes that relate tocurrent service:

Changes that relate tofuture service:

Changes that relate topast service:160

30,52414,300310,678

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

15.5

Impact of contracts recognised in the year

In the following tables are detailed the cash flows on the contracts initially recognised in the period detailed in thesection 15.4
Credit Insurance:
2023
Nonprofitable
contracts

Profitable
contracts

2022
Nonprofitable
contracts

Profitable
contracts

Total

Total

Estimates of the present value of
future cash outflows

870,950

751,494

1,622,444

626,729

719,909

1,346,638- Insurance acquisition cash flows

218,495

146,841

365,336

149,120

148,905

298,025- Claims and other directly
attributable expenses

652,455

604,653

1,257,108477,608

571,004

1,048,613

Estimates of the present value of
future cash inflows(1,183,204)(655,179)(1,838,382)(791,124)(675,936)(1,467,060)- Risk adjustment for non-financial
risk

42,071

37,10079,17036,10942,12578,234- Insurance acquisition cash flows
asset/ cash flows derecognised
CSM
Increase in insurance contract
liabilities from contracts
recognised in the period

-

-

-

-

-

-

270,183-

270,183

128,286-

128,286-

133,415

133,415-

86,09886,098

Atradius makes each month estimates on premium, claims and expenses for the new months that Atradius is on risk
and reviews on a regular basis the estimates for the prior months on which Atradius is on risk. Note 3.4.4 describes
how Atradius makes these estimates. The factors affecting the frequency and severity of claims are described in note
3.4.1.
As noted within note 15.3, the level of aggregation at which Atradius groups its contracts implies that certain insurance
portfolios may generate loss component at each valuation date as there is no-offsetting between insurance portfolios.
Credit portfolio, analysed as a whole, shows positive insurance service results.

161

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Surety:2023
Nonprofitable
contracts

Profitable
contracts

2022
Nonprofitable
contracts

Profitable
contracts

Total

Total

Estimates of the present value of
future cash outflows

95,967

737

96,70475,057559

75,616- Insurance acquisition cash flows

25,385

88

25,472

21,232

116

21,349- Claims and other directly
attributable expenses

70,582649

71,23153,825443

54,268Estimates of the present value of
future cash inflows(186,001)(943)(186,945)(128,576)(122)(128,697)- Risk adjustment for non-financial
risk

11,58927

11,616

8,051

67

8,118

- Insurance acquisition cash flows
asset/ cash flows derecognised
CSM
Increase in insurance contract
liabilities from contracts
recognised in the period

-

-

-

-

-

-

78,445-78,44545,467-45,467

-

(179)

(179)

-

504

504

Assumed Reinsurance:
2023
Nonprofitable
contracts

Profitable
contracts

2022
Nonprofitable
contracts

Profitable
contracts

Total

Total

Estimates of the present value of
future cash outflows

141,3111

141,311110,00813

110,021- Insurance acquisition cash flows

43,376-43,37649,074

4

49,078- Claims and other directly
attributable expenses

97,935

1

97,93660,934

9

60,943

Estimates of the present value of
future cash inflows(174,987)-(174,987)(157,145)(5)(157,150)- Risk adjustment for non-financial
risk

7,303

-

7,303

5,061

-

5,061

- Insurance acquisition cash flows
asset/ cash flows derecognised

-

-

-

-

-

-

26,374-

26,37442,076-42,076

-

1

1

-

9

9

CSM
Increase in insurance contract
liabilities from contracts
recognised in the period

162

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

15.6

Insurance Acquisition Cash Flow assets

In the following tables it is detailed the movement in the period of the cash flows recognize as an asset during the
year.

2023

2022

Opening asset

11,132

11,209Amounts derecognised on initial recognition of groups of insurance contracts(11,132)(11,209)

Cash flows recognised as an asset during the year

12,831

11,132

Closing asset

12,831

11,132The insurance acquisition cash flows relate to the brokerage on the prepaid premium and are all current. The
acquisition cash flows are immediately recognised when the premium is recognised. The insurance acquisition cash
flows will all be derecognised in one year. In the case the company should derecognise the premium also thebrokerage will be derecognised.

15.7

Gross claims development

Actual claims payments are compared with previous estimates of the undiscounted amounts of the claims in theclaims development disclosure below on a gross of reinsurance basis as at 31 December 2023.
The claims development tables provide an overview of how Atradius’ recognised estimate of ultimate claim costs forunderwriting years 2019-2023 have changed at successive financial year-ends. Underwriting year here means theyear in which the risks were accepted; for reinsurance business it is the treaty year.
Credit Insurance:
UWY
2019

2020

2021

2022

2023

Total

319,730

399,917602,343897,770

Estimate of ultimate claim costs (gross of reinsurance,
undiscounted, inclusive of other directly attributable
expenses related to claims management)
At end of accident year-

1 year later

1,645

291,841

336,969

603,189-

2 years later

9,491

300,605

318,895--

3 years later

917

276,566---

4 years later(7,058)

-

-

-

-

-

-

-

5 years later
Cumulative gross claims and other directly attributable
expenses paid

6,123

280,951

285,530

565,957

572,373

1,710,934

Gross cumulative claims liabilities - accident years from2019 to 2023

(13,180)(4,385)33,36537,232

325,397

378,429(12,435)

Gross cumulative claims liabilities - prior accident years
Effect of discounting

1,303

Effect of the risk adjustment margin for non-financial risk

46,618Gross LIC for the contracts originated (Refer to note 15.3 )

413,916163

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

Surety:
UWY
2019

2020

2021

2022

2023

Total

-

35,59918,212

41,16014,1091 year later

2,651

36,874

17,32440,999-2 years later

4,879

32,375

18,178--3 years later

6,120

33,264---

4 years later

10,576----

5 years later

Estimate of ultimate claim costs (gross of reinsurance,
undiscounted, inclusive of other directly attributable
expenses related to claims management)
At end of accident year

-

-

-

-

-

Cumulative gross claims and other directly attributable
expenses paid

8,112

17,076

8,267

39,616

9,155

82,226Gross cumulative claims liabilities - accident years from2019 to 2023

2,465

16,188

9,911

1,383

4,953

34,900Gross cumulative claims liabilities - prior accident years

52,560Effect of discounting(4,144)

Effect of the risk adjustment margin for non-financial risk-

Gross LIC for the contracts originitaed (Refer to note 15.3)

100,459

Assumed Reinsurance:
UWY
2019

2020

2021

2022

2023

Total

Estimate of ultimate claim costs (gross of reinsurance,
undiscounted, inclusive of other directly attributable
expenses related to claims management)
At end of accident year-

146,924

137,837

107,548

114,857

1 year later

11,36565,624

66,39757,386-

2 years later

14,10568,68070,899--3 years later

16,892

74,263---4 years later

12,977----

5 years later

-

-

-

-

-

Cumulative gross claims and other directly attributable
expenses paid

3,043

58,26647,20728,26825,737

162,521

Gross cumulative claims liabilities - accident years from2019 to 2023

9,934

15,996

23,692

29,11889,120167,860

Gross cumulative claims liabilities - prior accident years

66,690Effect of discounting(15,783)

Effect of the risk adjustment margin for non-financial risk

19,930Gross LIC for the contracts originated (Refer to note 15.3)

238,697

164

Atradius | Consolidated financial statements 2023 Atradius N.V.

16 Reinsurance contracts
16.1

Composition of the Balance Sheet

2023
Reinsurance contract liabilities

2022

152

37

Reinsurance contract assets

654,132

634,015

Total

653,980

633,978

2023

2022

Current

Non-current

Current

Non-current

portionportionTotal

portionportion

Total

188,307653,980

431,960

202,018

633,978

2023

2022

New contracts and contracts measured under the full retrospective approach at transition

68,264

66,929Contracts measured under the modified retrospective approach at transition

35,16868,530Total CSM

103,432

135,459

Reinsurance contract

16.2

16.3

465,673

Determined on transition to IFRS 17

Reconciliation of the remaining coverage and incurred claims

For the underwriting year 2023 one quota share reinsurance treaty is in place covering the majority of Atradius’
business. The retention under this treaty is 63% (2022: 63%). For more information related reinsurance programme
please see Note 4.2.3.
A reconciliation of the LRC and LIC is included in the following tables.

165All amounts in thousands of Euro, unless otherwise stated

Remaining coverage
ExcludingLoss-loss-recovery

recoverycomponent

component

Reinsurance contract assets/liabilities as at 1 January

231,873

76,929325,177

633,979

Net expense from reinsurance contracts(573,670)(3,060)315,663(261,067)

5,831

-

4,623

10,4542023

Investment Results

Incurred claims

Total

Insurance Finance Expenses
Amounts recognised in comprehensive income
Other comprehensive income

(352)

-

(1,943)(2,295)Current Period Cash Flows-

Premiums paid

888,655--

888,655

Amounts received(352,688)-(266,306)(618,994)

Change in scope

1,504

-

1,743

3,247

378,958

653,980

Reinsurance contract assets/liabilities as at 31 December

201,153

73,869Remaining coverage
2022

ExcludingLoss-loss-recovery

recoverycomponent

component

Incurred claims

Total

Reinsurance contract assets/liabilities as at 1 January

335,42135,397

264,815635,633

Net expense from reinsurance contracts(498,677)

42,980183,422(272,275)

Insurance Finance Expenses(8,488)-3,462(5,026)

96

-

(659)

(563)

Amounts recognised in comprehensive income
Other comprehensive income
Current Period Cash Flows
Premiums paid

832,472--

832,472

Amounts received(425,266)-(125,067)(550,334)

Change in scope(3,685)(1,450)(795)(5,929)

Reinsurance contract assets/liabilities as at 31 December

231,873

76,928325,177

633,978

166

Atradius | Consolidated financial statements 2023 Atradius N.V.

16.4

Reconciliation of the measurement components of reinsurance contract balances

A reconciliation of the measurement components of reinsurance contract balances is included in the following tables.

2023
Reinsurance contract assets/liabilities as at 1 January

Present value of

Risk adjustment for

future cash flows

non- financial risk

430,850

CSM

Total

67,669135,459

633,978

Changes that relate to current service:
Changes in CSM--(51,776)(51,776)(213,642)--(213,642)-(16,633)-(16,633)(100,582)

40,538

169,656

109,612

106,632

7,252(151,815)(37,931)

Adjustments to LIC(17,211)(32,086)-(49,297)

Adjustments to LRC(1,400)--(1,400)Experience adjustments
Risk adjustment recognised for the risk expired
Changes that relate to future service:
Initial Recognition
Changes in estimates reflected in the contractual
service margin
Changes that relate to past service:

Insurance Finance Expenses
Cash flows
Change in scope

6,080

506

1,574

8,160

269,661--

269,661

2,485

429

334

3,248

482,873

67,675

103,432

653,980

CSM

Total

Reinsurance contract assets/liabilities as at 31
December2022
Reinsurance contract assets/liabilities as at 1 January

Present value of

Risk adjustment for

future cash flows

non- financial risk

422,82987,651

125,154635,634

Changes that relate to current service:
Changes in CSM--(138,299)(138,299)(166,267)--(166,267)-(23,020)-(23,020)(96,485)

37,180223,454

164,149

51,59810,431(73,369)(11,339)

Adjustments to LIC(56,163)(43,000)-(99,163)

Adjustments to LRC

1,666

-

-

1,666

Experience adjustments
Risk adjustment recognised for the risk expired
Changes that relate to future service:
Initial Recognition
Changes in estimates reflected in the contractual
service margin
Changes that relate to past service:

Insurance Finance Expenses
Cash flows
Change in scope(4,782)

(123)

(685)

(5,590)282,138--

282,138(3,685)(1,450)(795)(5,929)430,850

67,669135,459

633,978

Reinsurance contract assets/liabilities as at 31
December

166

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

16.5

CSM Roll forward RE

An analysis of the CSM is included in the following tables.
2023

Reinsurance
expenses:
CSM as at 1
January

2022

Contracts
under themodified
retroactive
approachContracts under
the fullretrospective
approach(48,425)(37,178)

68,5303,934

62,995(21,199)(2,976)

39

Post
Transition

Total(491,126) (576,730)

Contracts
under themodified
retroactive
approachContracts
under the full
retrospective
approach

Post
Transition

Total(59,092)(249,124)(190,014)(498,230)

135,459

74,65047,722

2,782

125,154(27,601)(51,776)(31,435)(22,770)(84,094)(138,299)

152

169,464

169,656

365

13,384

209,705

223,454(12,203)

6,834(146,446)(151,815)

24,783(33,279)(64,874)(73,370)

-

-

1,574

1,574

13

(173)

(525)

(685)

-

-

334

334

153

(948)

-

(795)

35,168

7,945

60,319103,432

68,5303,934

62,995

135,459

Changes that
relate tocurrent service:
Changes in CSM
Changes that
relate to futureservice:- Initial
Recognition- Changes in
estimatesreflected in thecontractual
service margin
Insurance
Finance
Expenses
Change inscope
CSM as at 31
December167

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

17 Payables

Other accounts payable

2023

2022

141,765

144,086

The payables are substantially all current. Insurance payables were not included in this clasification, as they are partof the LRC.

18 Other liabilities
2023

2022

Deposits received from reinsurers

10,367

9,263

Payroll and bonus accruals

65,06862,869Prepaid premiums

105,984

111,844

Other accruals

109,760

111,588

Other taxes

28,021

27,658

Lease liabilities

87,06282,336

Total

406,262

405,558

2023

2022

Less than one year

19,84824,062

Between one and five years

52,566

63,582More than five years

24,38238,445

Total

96,795126,089

Restructuring

Litigation

Total

Balance at 1 January

-

4,087

4,087

Additional provisions

-

373

373

Unused amounts reversed

-

-

-

Utilised

-

(112)

(112)

Effect of movements in foreign exchange rates

-

-

-

Balance at 31 December

-

4,347

4,347

Current---

Non-current

-

4,347

4,347

1) Ceded pipeline premium: Ceded accrued premium which has not been invoiced but for which Atradius is on risk

Lease liability maturity analysis (undiscounted cash flows)

19 Provisions
2023

168

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

2022

Restructuring

Litigation

Total

Balance at 1 January

1,584

3,442

5,026

Additional provisions

-

645

645

Unused amounts reversed

(589)

-

(589)

Utilised

(995)

-

(995)

Effect of movements in foreign exchange rates

-

-

-

Balance at 31 December

-

4,087

4,087

-

-

4,087

4,087

Current
Non-current-

Litigation
The litigation provision is related to disputes with third parties that are not related to the insurance business ofAtradius. Insurance business related litigation provisions are included in the provisions for outstanding claims. The
provision relates to the estimated cost including the costs of legal proceedings of any non-insurance claims against
Atradius. These provisions have not been discounted to reflect present value since the effect of discounting is notmaterial.

20 Subordinated debt
2023

2022

Balance at 1 January249,600

249,383

Accretion of interest

228

217

249,828

249,600

Balance at 31 December

On 23 September 2014, Atradius Finance B.V. issued guaranteed subordinated notes with a nominal value of EUR
100,000 each for an aggregate amount of EUR 250 million (the ‘notes’). Unless previously redeemed, the notes will be
redeemed at maturity on 23 September 2044. The notes bear interest at a fixed rate of 5.250% per annum payableannually in the first 10 years, which will thereafter be reset to a floating 3 month-EURIBOR plus a margin of 5.031%
per annum payable quarterly for the remaining 20 years. The notes do qualify as regulatory capital under the
Solvency II grandfathering rules. The notes are issued by Atradius Finance B.V. and guaranteed by the Company. The
notes are listed on the Luxembourg Stock Exchange. At the date of issue of these annual accounts, no decision has yet
been taken regarding to the call of the notes.
The fair value estimate of the subordinated notes issued by Atradius Finance BV is EUR 251 million (2022: EUR 247
million). They are classified as Level 2 under the fair value hierarchy and as Tier 2 basic own funds for Solvency II.
The fair value estimate of the subordinated bond is provided by an external independent valuation company, whichuses its own proprietary valuation systems to value securities supported by economic and market assumptions fromfinancial information providers. The model calculates, accordingly to IFRS methodology, the present value of thesubordinated bond’s cash flows discounted using the Euro government bond yield curve as a benchmark and applying
an appropriate risk spread. The risk spread applied is estimated using the credit spreads of market quoted
subordinated bond issues from similar issuers and with similar rating and maturity profiles.

169

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

21 Employee benefit assets and liabilities
2023

2022

Retirement benefits

40,99950,689Other long-term employee benefits

8,950

8,290

Total

49,94958,97921.1

Retirement benefits

The employee benefit assets and liabilities relate mainly to pension assets and liabilities for defined benefit plans.
The main defined benefit plans as of 31 December 2023 are in the United Kingdom and Germany and these represent
96.1% (2022: 83.6%) of the pension plan assets and 70.1% of the defined benefit obligation booked in the liabilities(2022: 79.5%). The main characteristics of these plans are in this note.
Other plans are related to Italy, Switzerland, Sweden, Belgium, Norway, France, Mexico with a DBO between EUR 0.8- 6 million (2022: EUR 0.5 - 6.3 million), and Spain with a surplus of EUR 3.6 million in 2023 (2022 EUR 2.7 million).
The number of participants for these plans are between 13 and 451 (2022 between 13 and 451).
Defined benefit plans expose Atradius mainly to market investment risk, interest rate risk and inflation risk:-a decline in asset market value (equity, real estate, alternatives etc.) will impact the balance sheet liability andthe near-term cash flows for countries where there are minimum funding requirements;-a decrease in corporate bond yields will result in an increase in plan liabilities even if this effect will be
partially offset by an increase in the value of the plans’ bonds that are part of the plan assets; and-an increase in inflation rate will result in higher plan liabilities thus, an increase in future employer
contributions in countries where there are minimum funding requirements.

Within Atradius there are also defined contribution plans. The contributions to these plans are recognised as expenses
in the profit and loss statement. The total contributions amounted to EUR 19.6 million in 2023 (2022: EUR 19.3
million).

170

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

Pension assets and liabilities
The following table presents the change in the value of the net defined benefit liability:
Defined benefit
obligation

Fair value of plan
assetsAsset ceiling

2023

2022

2023

2022

355,443

563,941

304,814472,034(60)

Additions

-

-

-

-

Included in the profit and loss
statement:

-

-

-

Current service cost

4,059

7,263

Interest cost / income

15,307Administration costs

Balance at 1 January

Total included in the profit andloss statement

2023 2022

Net defined benefit(asset) liability
2023

2022

-

50,68991,907

-

-

-

-

-

-

-

-

-

-

-

-

-

4,059

7,263

8,419

17,733

9,234

-

-

(2,426)

(815)

4

4

-

-

-

-

4

4

19,37015,686

17,733

9,234

-

-

1,637

6,452

Included in OCI:
Remeasurement loss (gain):
Actuarial loss (gain) arisingfrom:- demographic assumptions(4,306)(2,840)---(4,306)(2,840)

(**)

(525)

(187,482)

-

-

-

(525)

(187,482)- experience adjustments- financial assumptions

424

8,273

-

-

-

424

8,273

Return on plan assets excludinginterest income

-

-

7,035

(144,052)-(7,035)144,052

Change in Irrecoverable Surplus
other than Interest

-

-

-

-

(37)

(60)

37

60

(4,407)(182,049)

7,035(144,052)

(37)

(60)

(11,405)(37,937)(4,334)(4,115)

7,796

3,054

-

-

(12,130)(7,169)

606

621

606

621

-

-

-

-

Benefits paid

(13,402)(15,752)(13,402)(15,752)

-

-

-

-

Settlements(3,106)-(3,106)

-

-

-

-

-

380

(9,028)-(9,005)

-

-

380

(23)

4,030

(13,861)

5,405(18,353)--(1,375)

4,492-(13,203)

7,034

-

-

13,203(7,034)

Total included in OCI
Other:
Contributions paid by theemployerPlan participants contributions(*)

Acquisition / Divestiture
Effect of movements in foreignexchange rates
Reclassification of surplus plan
assetsTotal other(15,826)(42,135)(15,904)(32,402)--78(9,733)

Balance at 31 December

354,580

355,443

313,678

304,814

(97)

(60)

40,99950,689(*) It includes the Sweden pension plan settlement (DBO EUR 0.5 million)(**) In 2022 mainly driven by the change of the financial assumptions in UK, where discount rate increased 300 basic points, which lead to an actuarial gain of EUR 121.7 million on
DBO.

Plan assets
Atradius has pension related assets which under IAS 19 do not meet the criteria to qualify as plan assets. In Germany,for one of the plans, assets of EUR 12.1 million (2022: EUR 2 million) are classified as cash and cash equivalents and171All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedassets of 1.0 million (2022: EUR 14.9 million) are clasified as financial investments since in the event of bankruptcy,
these assets are not fully secured for the members of the pension plan. In the UK, EUR 26.8 million of financial
investments (2022: EUR 24.1 million) is on an escrow account to support the UK pension fund. In the event of
insolvency, the Trustee of the pension fund has the right to those investments, provided certain conditions are met.
Net plan pension assets is EUR 94.5 million (EUR 81.3 million) and corresponds mainly to the surplus of UK pension
plans, which is disclosed as net plan pension assets as part of Note 8.
In Spain and Portugal, the defined benefit plans are partially insured with Seguros Catalana Occidente S.A.. These
insurance policies do not qualify as insurance policies under IAS 19, therefore the fair value is treated asreimbursement rights, which are recorded as part of other assets for an amount of EUR 6.6 million (2022: EUR 6.7
million). At the end of 2023, the defined benefit obligation related to the reimbursement rights amounts to EUR 9.4
million (2022: EUR 10.4 million). This same defined benefit obligation has in addition plan assets of EUR 13.0 million(2022: EUR 13.1 million).
Characteristics of the main defined benefit plans
Characteristic
Entitlement

Defined benefit obligation

United Kingdom
Pension entitlements are based on apercentage of final salary (closed for new
employees).
74 active members (2022: 85 active
members).
556 inactive members (2022: 547 inactive
members).
EUR 167.5 million (2022: EUR 169 million).

Germany
Pension entitlements are based on apercentage of the average salary of the last
10 years.
479 active members (2022: 471 active
members).
500 inactive members (2022: 496 inactive
members).
EUR 117 million (2022: EUR 113 million).

Plan assets

EUR 258 million (2022: EUR 247 million).

EUR 89.7 million (2022: EUR 76.1 million).

Remeasurement gain
(loss) through OCI
Funding arrangement

EUR 6.5 million - loss (2022: EUR 6.3 million- loss).
The basis of the funding agreement lies in
the Trust Deed and Rules. The pension fundperforms triennial actuarial valuations todetermine employer contributions.

Employee contributions

In 2023 contributions amounted to 7.1%
(2022: 7.1%) of the eligible salary.
A Cash Driven Investment portfolio has been
implemented that combines Buy & Maintain
Credit with a Liability Driven Investment, toprovide contractual income that aligns withthe timing of the pension liability cash flow
payments together with a 100% interest rateand inflation rate liability hedge to maintain
Self-sufficiency.
The UK pension plan is subject to UK
pensions legislation and guidance issued by
the Pensions Regulator in the UK

EUR 3.3 million - gain (2022: EUR 27.6
million - gain).
A Contractual Trust Agreement is established
as a financing vehicle to cover part of thepension liabilities. There is no specificfunding arrangement although the assets
must exceed the initially funded amount of
EUR 39.2 million.
None; all contributions are made by theemployer.
The investment objectives and policies aredeveloped based on an ALM-study.

Number of participants

ALM-strategy

Regulatory Framework

The investment policy limits the interest raterisk by restricting the investment in bonds tofixed rate bonds. Equity price risk iscontrolled by investing according to the Dow
Jones Euro Stoxx 50 Index.
The German pension plan is subject toGerman pensions legislation and guidanceissued by the Pensions Regulator in
Germany

In general, the defined benefit plans are administered by pension vehicles. Although liaised with the Group, these are
separate legal entities (a Trustee in the United Kingdom and a Pension Trust eV in Germany). The boards of these
entities comprise both employer and employee representatives. The boards are responsible for setting their own
policies (e.g. investment and governance) within the applicable legal framework. These defined benefit plans may
expose the Group to actuarial risks (such as longevity risk) and financial risks like interest rate risks and investment
risk.
Fair value of plan assets

172

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

The fair value of plan assets at the end of the reporting period is analysed in the following table:

Plan assets 2023

Cash and cash Equity
equivalents
instruments

Debt
instruments

Investment Insurance
funds
contractsRealestateTotal 2023

Belgium

-

-

-

-

25,139-25,139Germany

7,339

28,81653,529---89,684

Mexico

-

27

293

-

-

-

320

Norway

-

-

-

2,686

-

2,686

Spain

-

-

-

9,362

-

9,362

Switzerland

-

-

-

4,458

-

4,458

United Kingdom

5,176

-

166,849

10,004--

182,029

Total

12,51528,843

220,671

10,004

41,645-

313,678

Cash and cash Equity
equivalents
instruments

Debt
instruments

Plan assets 2022

Investment Insurance
funds
contractsRealestateTotal 2022

Belgium

-

-

-

-

25,203-25,203Germany(532)

28,69047,931---

76,089Mexico

-

19

233

-

-

-

252

Norway

-

-

-

-

2,734

-

2,734

Spain

-

-

-

-

13,126-

13,126

Sweden

-

347

1,522

481

-

320

2,670

Switzerland

-

-

-

-

4,510

-

4,510

United Kingdom

6,443

-

163,584

10,203--

180,230

Total

5,911

29,056

213,270

10,68445,573320

304,814All equity and debt securities have quoted prices in active markets. The plan assets do not include any of Atradius’
own financial instruments, nor any property occupied or other assets used by Atradius.
The return on plan assets is determined by multiplying the fair value of the plan assets by the discount rate as
determined at the start of the annual reporting period, taking account of any changes in the plan assets held during theperiod as a result of contributions and benefit payments. The actual return on plan assets (including reimbursement
rights) was EUR 24.75 million – gains (2022: EUR 135.1 million – loss).
Actuarial assumptions
The principal assumptions used for the purpose of the actuarial valuations are reviewed country by country by anindependent external consultant and approved by the management. In the following table the ones related the twomain defined benefit plans are presented:

173

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedPrincipal actuarial assumptions

United Kingdom

Germany

2023

2022

2023

2022

Discount rate

4.75%

5.00%

3.25%

3.75%

Price inflation rate

3.25%

3.50%

2.25%

2.50%

Expected increase of future salaries

3.00%

3.25%

2.80%

3.05%

Expected increase of future benefit levels
Mortality table

2.89%

3.36%

2.00%

2.25%

CMI 2022

CMI 2021

Heubeck

Heubeck

Richttafeln

Richttafeln

2018 G

2018 G

1313(1% LTR) (1.25% LTR)
Duration in years

14

15

An approximation of the sensitivity of the relevant actuarial assumptions, holding other assumptions constant, would
impact the total defined benefit obligation of the main pension plans by the amounts shown below:
Defined benefit obligation

2023

2022

Increase

Decrease

Increase

Decrease

Discount rate (1% movement)(36,436)

43,480(36,874)

46,098

Price inflation rate (1% movement)

33,411(28,423)

38,505(34,569)

Future salary growth (1% movement)

6,971(6,305)

6,887(6,175)

Future pension growth (1% movement)

31,781(26,943)

33,913(28,551)

Future mortality (+1 year)

9,502

n/a

9,668

n/a

21.2

Defined benefit costs

A total defined benefit cost of EUR 4.8 million (2022: EUR 6.7 million) is recognised in the profit and loss statement
under net operating expenses (see Note 27). EUR 4.5 million (2022: EUR 6.4 million) relates to pension plans and gainof EUR 0.3 million (2022: EUR 0.7 million gain) to other long-term employee benefits.

174

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

22 Capital and reserves
22.1

Share capital

The authorised share capital of Atradius N.V. amounts to EUR 250,000,000 and is divided into 250,000,000 ordinary
shares with a nominal value of EUR 1 each (2022: the same) of which 79,122,142 ordinary shares were issued and fully
paid (2022: the same). The fully paid ordinary shares carry one vote per share and carry the right to dividends.
Earnings per share are calculated by dividing the Group share of the net income by the number of ordinary shares inissue during the year. The earnings in 2023 were of EUR 4.2 per share.

22.2

Share premium reserve
2023

2022

Balance at 1 January639,228

639,228

Balance at 31 December

639,228

639,228

2023

2022

(58,770)

49,351

Change in revaluation reserve - gross

93,687(169,382)

Change in revaluation reserve - tax(23,489)

33,417

Net (gains)/losses transferred to net profit or retained earnings on disposal - gross

10,301

27,844

Net (gains)/losses transferred to net profit or retained earnings on disposal - tax(1,590)-

Balance at 31 December

20,138(58,770)

2023

2022

(2,317)(61,959)

Change in currency translation reserve - gross(30,547)

59,508Change in currency translation reserve - tax

1,624

134

(31,240)(2,317)

22.3

Revaluation reserve

Balance at 1 January

22.4

Currency translation reserve

Balance at 1 January

Balance at 31 December

Atradius’ significant foreign currencies and sensitivity to fluctuations are set out in Note 4.3.

22.5

Pension reserve
2023

2022

(28,999)(55,082)

Recognised actuarial gains/(losses)

8,077

26,083

Change in pension reserve - gross

11,10837,471

Change in pension reserve - tax(3,031)(11,388)(20,922)(28,999)

Balance at 1 January

Balance at 31 December
The main drivers of the pension reserve variance are explained in Note 21.

175All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

22.6

Retained earnings
2023

2022

Balance at 1 January

1,521,025

1,454,564

Appropriation of prior year result

329,100

240,249

Indexation´s hyperinflation-

55

Revenue Reserve - Transition-(2,977)(37)(6,293)

Dividends(193,160)(164,574)

Balance at 31 December

1,656,928

1,521,025

2023

2022

Balance at 1 January

16,84525,583FX Adjustments

46,570(25,364)

Other(1,065)

16,626

Balance at 31 December

62,35016,845

Net gains/losses on investments measerured at FVOCI

22.7

22.8

OCI - Insurance finance expenses

Dividend distribution

Atradius’ dividend distribution is based on the Company financial statements. The Company and its subsidiaries are
subject to legal restrictions regarding the amount of dividends they can pay to their shareholders. Dividends can only
be paid up to an amount equal to the excess of the Company’s shareholders' equity and reserves required by law. The
Dutch Civil Code contains the restriction that dividends can only be paid up to an amount equal to the excess of theCompany’s shareholders’ equity and reserves required by law. Additionally, certain subsidiaries are subject torestrictions on the amount of funds they may distribute in the form of dividends or otherwise and also in respect ofminimum capital requirements that are imposed by industry regulators in the countries in which the subsidiaries
operate.
The Company distributes dividends out of the retained earnings balance (see Note 10 in the Company financial
statements). If this balance is insufficient, the Company will distribute dividends out of the share premium reserve(see Note 4.2 in the Company financial statements).

176

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

23 Investment result
Financial income/expenses from retained

Insurance contracts
2023

2022

Reinsurance
2023

2022

Interest Accreted(7,774)

1,234

1,415

(526)

Effect of changes in interest rates and other financial assumptions(809)(15,744)--

Effect of changes in FCF at current rates when CSM is unlocked atlockedin rates(31,532)(8,372)7,231

93

Foreign exchange differences(5,237)

10,783

1,808(4,593)

Total financial income / (expenses) of insurance contracts issued
recognized in P&L(45,352)(12,099)

10,454(5,027)

Total financial income / (expenses) of insurance contracts issued
recognized in OCI

47,800(8,175)(2,294)(564)

Total financial income / (expenses) of insurance arising frominsurance contracts issued

2,448(20,273)

8,160(5,590)24 Other income
Other income from ancillary insurance activities

2023

2022

244,074

240,835

The other income from ancilliary insurance activities, is composed by the information income and credit information
services.
The main characteristics of service contracts and income are:--

The contracts of credit information, collections and business information services mostly have a duration of
one year. The contract period of credit information contracts is linked to the insurance policies, which can be
up to two years. But the credit limits are renewed on an annual basis, which requires additional credit
information that is separately invoiced to the customer. The cooperation agreement of Atradius Dutch StateBusiness with the Dutch state has an undetermined period.
The agreed performance obligations and transaction prices, included in the contracts, are clear and contain nojudgements that significantly affect the determination of the amount and timing of revenue.
The contracts contain no financing elements, warranties or obligations for returns or refunds.
In the cases that service income relates to variable consideration, the conditions are explicitly stated in thecontract.
All costs for obtaining and fulfilling contracts are recognised as expenses. Atradius does not incur costs thatmeet the criteria to create assets for obtaining or fulfilling specific contracts
Applying the practical expedient in paragraph 121 of IFRS 15 Atradius does not separately disclose theremaining performance obligations for service contracts at year end, since the contracts either have aduration of one year or Atradius is allowed to recognise revenue in an amount to which it has a right toinvoice.

177All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

25 Net investment income
The following table presents the net investment income by type of investment:
2023
FVTPL

FVOCI

2022
Other

Total

FVTPL

FVOCI

Other

Total

Income26

30,649-30,67526

13,640-13,666

41,324--

41,32440,222--40,222Equity securities-

11,833-

11,833

4,817

-

4,817

Short term
investments

-

-

4,462

4,462

-

-

825

825

Other investments

-

-

164

164

-

-

40

40

Total income fromfinancial investments

41,35042,482

4,626

88,45840,24818,457865

59,570Investment property

-

-

1,158

1,158

-

-

673

673

41,35042,482

5,784

89,61640,24818,457

1,538

60,243

Debt securities
Investment Funds

Total investment
incomeExpenses-(10,353)-(10,353)(295)(27,746)-(28,041)(21,190)--(21,190)(56,558)--(56,558)

Equity securities

-

(787)

-

(787)

-

(286)

-

(286)

Other investments

-

-

(208)

(208)

-

-

(114)

(114)

Total expenses fromfinancial investments(21,190)(11,140)(208)(32,538)(56,853)(28,032)(114)(84,999)

Investment property

-

-

(705)

(705)

-

-

(1,668)(1,668)

Total investment
expenses(21,190)(11,140)(913)(33,243)(56,853)(28,032)(1,782)(86,667)

Net income frominvestments

20,16031,342

4,871

56,373(16,605)(9,575)(244)(26,424)---

11,266---

17,755

20,16031,342

4,871

67,639(16,605)(9,575)(244)(8,669)Debt securities
Investment Funds

Share of income/(losses) of associatedcompanies
Net income frominvestments
including associatedcompanies

178

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

The following table presents the net investment income by nature of income/(expense):
2023
FVTPL

2022

FVTOCI

Other

Total

FVTPL

FVTOCI

Other(4)30,572

4,627

35,195

Dividends

2,280

11,833-

Realised gains

36,714

77

-

-

-

2,360

-

Total

26

13,227865

14,113

6,878

4,817

-

11,69536,791

32,880413-

33,293

-

-

-

-

2,360

464

-

464

IncomeInterest

Realised gains investment
property
Unrealised gains
Rental income frominvestment property

14,118

-

-

1,157

1,157

-

-

673

673

41,35042,482

5,784

89,61640,24818,457

1,538

60,243

Handling expenses(65)(5,366)-(5,431)(135)(5,031)-(5,166)

Realised losses(206)(10,340)(10,546)-(21,997)-(21,997)

Total
ExpensesRealised losses
investment property

-

-

-

-

-

-

(937)

(937)

Unrealised losses(20,919)--(20,919)(56,718)--(56,718)

Impairment loss

-

4,566

23

4,589

-

(1,004)-(1,004)

Depreciation of
investment property

-

-

(400)

(400)

-

-

(413)

(413)

Other

-

-

(536)

(536)

-

-

(432)

(432)

Total

(21,190)(11,140)(913)(33,243)(56,853)(28,032)(1,782)(86,667)

Net income frominvestments

20,16031,342

4,871

56,373(16,605)(9,575)(244)(26,424)

Share of income ofassociated companies--

11,266

11,266--

17,75517,755

Total

-

-

11,266

11,266--

17,75517,755

20,16031,342

16,137

67,639(16,605)(9,575)

17,511(8,669)Net income frominvestments including
associated companies

Realised
gains/(losses)

Unrealised
gains/(losses)

23

-

-

-

(937)

-

-

36,507(18,559)-

32,880(56,254)

Financial assets FVOCI

4,566(10,263)-(1,004)(21,584)

-

Total

4,589

26,244(18,559)(1,004)

10,359(56,254)

Impairments
Investment property
Financial assets
FVTPL

179

Impairments

Realised
Unrealised
gains/(losses) gains/(losses)

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

26 Finance income and expenses
2023

2022

-

170

Interest and fees on the subordinated debt

13,364

13,352

Net interest on the net defined benefit liability(2,489)(868)

Other finance income and expenses(18,194)(4,448)Foreign exchange (income)/expense

3,455(11,364)

Impairment of goodwill

Interest expense on Right of use

2,541

1,676

Total

(1,323)(1,482)The subordinated debt costs include the periodic interest expenses of EUR 13.1 million (2022: EUR 13.1 million) and theaccretion of interest on the debt in the amount of EUR 0.2 million (2022: EUR 0.2 million).

27 Net operating expenses
2023

2022

Claims and benefits

935,317682,501

Acquisition expenses

522,487455,730

Losses on onerous contracts

165,488229,999

Employee benefits

378,007366,980

Depreciation and amortisation

31,914

40,214

Impairment loss on intangible assets and goodwill

27,471

7,938

619

417

Advertising

15,51013,841

Professional and consultancy

125,533

128,364

Other

111,627

70,097

Leases2,313,973

1,996,081

Amounts attributed to insurance cash flows(490,251)(452,756)

Total expenses

1,823,722

1,543,325

Represented by

2023

2022

1,623,291

1,368,231

Insurance service expenses
Other operating expenses

200,431

175,094

Total expenses

1,823,722

1,543,325

Employee benefit expenses

2023

2022

353,575

342,248

14(1,278)Pension costs - defined contribution plans

19,58919,299Pension costs - defined benefit plans

4,829

6,711

378,007366,980

Salaries and wages (including social security costs)
Restructuring costs and termination benefits

Total employee benefit expenses
For an explanation of the employee benefit details see Note 21.

180

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

28 Income tax
2023

2022

Current tax

98,473

110,465

Deferred tax

20,588(1,435)

Income tax expense/(income) for the year

119,061

109,030

The reconciliation from the expected tax rate to the actual tax rate is provided in the following table:
2023

2022

Result before tax

493,828

479,232

Tax calculated at domestic tax rates applicable to results in the respective countries

118,643

99,613Tax exempt (income)/loss(2,885)(5,111)

Write down/(reversal) of deferred tax assets(1,757)

2,831

Reassessment of prior year local tax positions

1,769(4,145)

Impact of change in tax rate

(458)

239

Regional taxes

391

3,155

-

4,810

3,357

7,638

119,061

109,030IFRS 9 &17 Transition
Other
Income tax expense/(income) for the year
The weighted average applicable tax rate was 24.0% (2022: 21.7%).

Deferred tax assets relating to losses carried forward in certain entities have been impaired. This is included in ‘write
down (reversal) of deferred tax assets’. On balance, the reversal exceeded the impairment.
The impact of the change in tax rate in 2023 mainly reflects the effect of changes in income tax rate in Turkey.
The category "Other" includes non-deductible expenses and withholding taxes.

29 Dividends per share
The dividends paid in 2023 and 2022 were EUR 193 million (EUR 2.44 per share) and EUR 165 million (EUR 2.1 pershare) respectively.

30 Assets not freely disposable
The financial assets not freely disposable in 2023 are EUR 498.5 million (2022: EUR 447.5 million). Assets that are notfreely disposable consist of financial investments and cash that have been held mainly for local regulatory purposesand can be used to cover insurance contracts liabilities. The amount of pledged assets not covering technicalprovisions is EUR 81.4 million (2022: EUR 79.5 million).

31 Capital commitments and contingencies
Capital commitments of EUR 18 million (2022: EUR 24.1 million) are related to contracted obligations for future
payments for outsourcing, networking, imaging and licences.
Atradius has contingent liabilities in respect of matters arising in the ordinary course of business. It is not anticipatedthat any material liabilities will arise from the contingent liabilities. The Group has given guarantees to third parties
amounting to EUR 2.6 million (2022: EUR 2.2 million).

181

All amounts in thousands of Euro, unless otherwise stated

All amounts in thousands of Euro, unless otherwise stated

32 Held for sale
On 19 July 2023 Atradius Insurance Holding N.V. (99.9%) and Atradius Participations Holding S.L.U. (0.10%) completed
the sale of all their shares in Atradius Rus Credit Insurance Limited Liability Company, Russia. The sale of Atradius
Rus Credit Insurance Limited Liability Company, Russia resulted in the removal of the assets and liabilities classified
as held for sale and in a result on the sale of 4.3 million – gain (2022: EUR 38.9 million - loss).
Assets

2023

2022

-

34,742

2023

2022

-

21,851

2023

2022

Total average number of employees (full-time equivalent)

3,360

3,404

Total year end number of employees (full-time equivalent)

3,409

3,310

Total year end number of employees (headcount)(1)(2)

3,525

3,426

Total assets held for sale
Liabilities
Total liabilities held for sale

33 Personnel
The number of employees working for Atradius is included in the following table:

1) Excluding management board members and including PRO KOLEKT CCR
2) Of which 3069 employees work outside the Netherlands (2022: 2987 employees)

34 Related party transactions
The following table provides the total value of transactions which have been entered into with related parties in thefinancial year:
Associatedcompanies

Parent (1)2023
Sales to related parties

Associatedcompanies

Parent (1)2022

16,40776

20,61779

Purchases from related parties

275

2,125

104

2,315

Amounts owed by related parties

212

41,239191

6,511

Amounts owed to related parties
Total

8
16,902(131)
43,30920,912

(282)
8,623

1) Subsidiaries of Grupo Catalana Occidente, S.A..

Sales to related parties consist of the net effect of Reinsurance business (premiums, claims, recoveries andcommission) and for information services provided to Atradius. Purchases from related parties consist of the net effectof (retro-) ceded insurance (premiums, claims, recoveries and commission). The amounts owed by related Atradiuscompanies consist of the fair value of insurance policies as calculated under the requirements of IAS 19 and advancepayments of the corporate tax.
The increase in amounts owed by related parties relates to the fiscal unity with the parent (EUR 34.7 million).
The decrease on sales to related parties is mainly due to lower invoiced premium booked in 2023. (2023: EUR 16.4
million vs 2022: EUR 20.6 million).
Terms and conditions of transactions with related parties

182

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Consolidated financial statements 2023 Atradius N.V.

No guarantees have been provided or received for any related party for 2023 or 2022. For the years ending 31
December 2023 and 2022, Atradius has not raised any provision or expenses for doubtful debtors relating to amounts
owed by related parties.
Subordinated debt
Occident GCO, S.A.U. de Seguros y Reaseguros, a subsidiary of the ultimate parent of the Group purchased EUR 95.5
million (38.2%) of the guaranteed subordinated notes issued by Atradius Finance B.V. In 2023 the interest expense
relating to this portion was EUR 4.35 million (2022: EUR 3.0 million).
The related party share for the subordinated debt is:
2023

2022

Nominal value

95,47660,041

Interest expense

4,352

3,027

Compensation of key current and former management personnel of Atradius
The following table provides details on the remuneration for members of the Management Board and Supervisory
Board.
Remuneration

2023

2022

Management Board
Short-term employee benefits 1)

2,336

2,331

Long-term employee benefits

1,582

1,362

Post-employment benefits

357

327

4,275

4,020

5

5

2023

2022

Short-term employee benefits 1)

615

630

Total compensation paid to Supervisory Board members
Number of members

615
9

630
9

Total compensation paid to Management Board members
Number of members
Remuneration
Supervisory Board

1) Short-term employee benefits include salaries, housing, social security, medical expenses, lease cars and other.

From the total compensation for Management Board members, EUR 2.7 million (2022: EUR 2.7 million) has been paid
at the end of the reporting period. The remaining balance payable is subject to meeting the variable pay conditions.
The Management Board and Supervisory Board members also participate in the Boards of some of the Company´ssubsidiaries. Apart from this, they do not have other relationships with the Company or its subsidiaries.
A member of the Management Board with a potential conflict of interest with the Company will immediately report
this to the Chair of the Management Board, who will determine whether the reported case qualifies as a conflict ofinterest. A member of the Management Board will not participate in any deliberations or decision-making of theManagement Board if that member has a direct or indirect personal interest that conflicts with the interest of theCompany or its business. In such a case, the other non- conflicted members of the Management Board will pass theresolution. If all members of the Management Board are conflicted, then the Supervisory Board will pass theresolution.

183

All amounts in thousands of Euro, unless otherwise stated

All amounts in thousands of Euro, unless otherwise stated

35 Auditor fees
The following expenses were made for audit and non-audit services rendered by Atradius’ external auditor:
2023 Including VAT

PwC
Accountants
N.V.

Other PwC
Networkorganisations

Total PwC
Network

918

3,181

4,099

Other services required by law and regulation

-

375

375

Other assurance related services

-

63

63

Other non-audit services

-

178

178

918

3,797

4,715

PwC
Accountants
N.V.

Other PwC
Networkorganisations

Total PwC
Network

883

3,142

4,025

Other services required by law and regulation

-

390

390

Other assurance related services

-

18

18

Other non-audit services

-

63

63

883

3,613

4,496

Audit services

Total2022 Including VAT

Audit services

Total

These amounts relate to the fees agreements incurred for the audit of the related financial year, and other services(expenses and non-recoverable VAT costs are included). The amounts on other audit services include services related
to audit reviews on Solvency II and other regulatory requirements. The amounts reported on non-audit services lines
are related to projects where external auditor is involved.

36 Events after the reporting period
The Company has no events after the reporting period that should be reported.

184

Atradius | Company financial statements 2023 Atradius N.V.

Company financial
statements 2023
Contents
Company financial statements ............................................................................................................................................................................. 186
Notes to the Company financial statements
1 		General information ....................................................................................................................................................................................... 189
2 		Summary of significant accounting policies ........................................................................................................................................... 189
3 		Investments in group companies ............................................................................................................................................................... 190
4 		Cash and cash equivalents ........................................................................................................................................................................... 190
5 		Capital and reserves ....................................................................................................................................................................................... 191
6 		Other liabilities ................................................................................................................................................................................................. 192
7 		Contingencies ................................................................................................................................................................................................... 192
8 		Personnel .......................................................................................................................................................................................................... 192
9 		Remuneration of Management Board and Supervisory Board.......................................................................................................... 192
10 		Proposed profit appropriation .................................................................................................................................................................... 192

185

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedCompany statement offinancial position
Company statement of financial position as at December 31, 2023
(before profit appropriation)
AssetsNote

Fixed assets
Property, plant and equipment

31/12/2023

31/12/2022

2,782,098

2,517,941

5

5

2,782,093

2,517,936

Current assets

59,887

46,121

Receivables from group companies

20,43530,0963

Investments in group companies

Deferred income tax assets

-

1,320

Current income tax assets

6,798

12,13232,6542,573

2,841,985

2,564,062

79,122

79,122

Share premium reserve862,883

862,883

Legal reserve

101,446

10,997- Reserve intangibles assets

52,97766,095- Revaluation reserve82,488(41,925)- Pension reserve(20,922)(28,999)- Currency translation reserve(13,097)

15,826

Retained earnings

1,362,151

1,213,130

Result for the year (unappropriated)379,081329,100

2,784,685

2,495,232

57,30068,83053,47063,584

3,830

5,246

57,30068,8302,841,985

2,564,062

4

Cash and cash equivalents
Total
EquityCapital and reserves attributable to the owners of the Company

5

Share capital

Total
Liabilities
Current liabilities
Payables to group companies
6

Other liabilities
Total
Total equity and liabilities

186

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Company financial statements 2023 Atradius N.V.

Company profit and loss statement for the year ended December 31, 2023

Income after tax from group companies
Other results after tax
Result for the year

187

2023

2022

385,463335,640(6,382)(6,540)379,081329,100

All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise statedCompany statement of changes in equity for the year ended December 31, 2023

Balance at 1 January
2022
IFRS9 & 17
transition

SharecapitalSharepremium
reserve

79,122862,883

Legal reserves
Reserveintangibles
assets

Revaluation
reserve

Pensionreserve

Currencytranslation
reserve

Retainedearnings

Result for
the year

Total

61,300110,854(55,082)(43,815)886,811240,249

2,142,323

- -

- -

-

(35,920)--

264,653-

228,733

Balance at 1 January
2022

79,122 -862,883 -

61,300 -74,934(55,082)(43,815)

1,151,464

240,249

2,371,056

Change in reserves--(116,859)

26,08359,642(9,215)-(40,349)

Change in currencytranslation reserve

-

-

-

-

-

Net income
recognised directlyin equity---

59,642(9,215)-(40,349)

Acquisitions

-

-

-

- -

- -

-

-

-

-

Appropriation ofprior year result

-

-

-

-

-

-

240,249(240,249)-

Result for the year

-

-

-

-

-

-

Change in reserves

-

-

4,795

Dividends
Balance at 31
December 2022

-

-

-

-

-

79,122862,883

66,095(41,925)

79,122862,883

66,095

Change in reserves

-

-

-

Change in currencytranslation reserve--

Net income
recognised directlyin equity---

124,4148,077(28,923)

Acquisitions

-

-

-

-

-

-

Appropriation ofprior year result

-

-

-

-

-

-

Result for the year

-

-

-

-

-

Change in reserves--(13,118)--

Dividends
Balance at 31
December 2023

-

-

-

-

79,122862,883

52,97782,488

Balance at 1 January
2023-(116,859)

26,083

329,100

329,100(4,795)---(164,574)-(164,574)(28,999)

15,826

1,213,130

329,100

2,495,232(41,925)(28,999)

15,826

1,213,130

329,100

2,495,232

124,4148,077(28,923)(37)-

103,531

-

-

-

(37)

-

103,531--

329,100(329,100)---

379,081

379,081-

13,118----(193,160)-(193,160)(20,922)(13,097)

1,362,151

379,0812,784,685

188

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Company financial statements 2023 Atradius N.V.

Notes
to thethe company
Company
Notes tofinancial statements
1

General information

Atradius N.V. (referred to as the “Company’) is based in Amsterdam (The Netherlands) and registered at the Dutch
Chamber of Commerce under number 34196963.
The Company financial statements are part of the 2023 consolidated financial statements, which are also included in
the annual report. The Company profit and loss statement is presented in abbreviated form in accordance with Article
402 of Book 2 of the Dutch Civil Code.
The Company has applied the provisions of Article 379, Subsection 5 of Book 2 of the Dutch Civil Code. The list referred
to in this article has been included in the appendix.
The Company has issued a statement of liability in accordance with Article 403, Book 2 of the Dutch Civil Code for thefollowing Atradius companies: Atradius Collections B.V., Atradius Collections Holding B.V., Atradius Credit
Management Services B.V, Atradius Dutch State Business N.V, Atradius Insurance Holding N.V.and Atradius
Information Services B.V.
The Company financial statements have been authorised for issue by the Management Board on 12 March 2024.

2

Summary of significant accounting policies

2.1

Basis of presentation

The Company annual financial statements have been prepared in accordance with Part 9, Book 2 of the Dutch Civil
Code. In the preparation of the Company annual financial statements, the provisions of Article 362, Subsection 8 ofBook 2 of the Dutch Civil Code have been applied.
Group companies are accounted for using the equity method. Equity of group and associated companies is based on
IFRS accounting principles of Atradius N.V.
The Company has the power to govern the group companies . The equity method involves recognition of the groupcompany’s profit or loss in the profit and loss statement for the Company’s share in the result. The Company’s interestin the group companies is carried in the balance sheet at an amount that reflects its share in the net asset value of therelated subsidiary.
All amounts in the notes are shown in thousands of Euro (EUR), rounded to the nearest thousand, unless otherwise
stated.

2.2

New and revised standards

Although the company did not adopt any revised accounting standard. As described in note 2.2.1 of the consolidated
financial statements, the accounting principles of the insurance entities changed due to the implementation of IFRS 9
and IFRS 17. This has a material impact on the equity. The impact of these changes is separately reflected in the tables
below:

189

All amounts in thousands of Euro, unless otherwise stated

All amounts in thousands of Euro, unless otherwise stated

2023
IFRS 9 /17

Changes inmeasurement

2023
IAS39 / IFRS4Capital and reserves attributable to the equity holdersof the Company

2.784.685(354.308)

2.430.377

Result for the year

379.081(6.880)372.201

2.3

Investments in group companies

Atradius companies are valued using the equity method in accordance with the accounting principles applied in the
consolidated financial statements.

2.4

Legal reserve

The legal reserve has to be created under Dutch legislation for the reserves established by subsidiaries that cannot be
distributed and relates to:Reserve intangible assets;
Revaluation reserve;
Pension reserve;
Currency translation reserve

3

Investments in group companies

The following table shows the changes in investments in group companies valued using the equity method:
2023

2022

2,517,936

2,355,919

475

6,000

Share of profit/(loss)

385,463335,640

Dividends received(225,312)(139,275)

Change in revaluation reserve, pension reserve and OCI-Insurance contracts

132,491(99,990)

Foreign exchange reserve movements(28,923)

59,642(37)-

2,782,093

2,517,936

Balance at 1 January
Investments in group companies

Other
Balance at 31 December

There has been no impairments nor reversal of impairments during 2023 (2022: 0 million).

4

Cash and cash equivalents
2023

2022

Cash at bank and on hand

32,654

2,573

Cash and cash equivalents

32,654

2,573

Cash and cash equivalent disclosed is freely available.

190

Atradius | Company financial statements 2023 Atradius N.V.
Atradius | Company financial statements 2023 Atradius N.V.

5

Capital and reserves

5.1

Share capital

The authorised share capital of Atradius N.V. amounts to EUR 250,000,000 and is divided into 250,000,000 ordinary
shares with a nominal value of EUR 1 each (equal to 2022) of which 79,122,142 ordinary shares were issued and fully
paid (equal to 2022). The fully paid ordinary shares carry one vote per share and carry the right to dividends.

5.2

Share premium reserve
2023

2022

Balance at 1 January862,883

862,883

Balance at 31 December

862,883

862,883

5.3

Legal reserve

The total amount of equity in the Company financial statements equals shareholders’ equity in the consolidated
financial statements. Certain components within equity are different in the Company financial statements due to legal
reserves, established by subsidiaries of the Company, which in accordance with Book 2, Part 9 of the Dutch Civil Code,
Article 389, Subsection 6, cannot be distributed. In particular:--

costs for research and development to the extent they are capitalisedchanges in revaluation of group companies, which consists of unrealised revaluations within consolidated groupcompanies presented in the revaluation reserve in the consolidated financial statements, actuarial gains andlosses, and OCI on insurance finance expenses.
effect of asset ceilings within consolidated group companies presented in the pension reserve in the consolidated
financial statements andforeign currency translations on consolidated group companies, presented in the currency translation reserve inthe consolidated financial statements

The legal reserves cannot be freely distributed. In case of negative balances for individual reserves legally to beretained, no distributions can be made out of retained earnings to the level of these negative amounts.
In addition to the legal and regulatory restrictions on distributing dividends from subsidiaries to the Company, there
are various other considerations and limitations that are taken into account in determining the appropriate levels ofequity in the Group’s subsidiaries. These considerations and limitations include, but are not restricted to, local
regulatory regulations and rating agency requirements, that can change over time. It is not possible to disclose areliable quantification of these limitations.

5.4

Retained earnings

Balance at 1 January

2023

2022

1,213,130

886,811

IFRS9 & 17 transition-

264,653

Balance at 1 January

1,213,130

1,151,464

Appropriation of prior year result

329,100

240,249

13,118(4,795)(193,160)(164,574)(37)(9,215)

1,362,151

1,213,130

Transfer between legal reserve and retained earnings
Dividends
Other comprehensive income
Balance at 31 December

191All amounts in thousands of Euro, unless otherwise stated
All amounts in thousands of Euro, unless otherwise stated

6

Other liabilities

Other taxes
Long-term employee benefits

2023

2022

148

171

1,090

1,162

Other liabilities

2,592

3,913

Total

3,830

5,246

7

Contingencies

The Company has contingent liabilities in respect of guarantees arising in the ordinary course of business. It was not
anticipated that any material liabilities will arise from the contingent liabilities. The Company gave guarantees tothird parties in the ordinary course of business amounting to EUR 0.6 million (2022: EUR 0.6 million).
Atradius N.V. is head of the Dutch fiscal unity for corporate income tax, consisting of Atradius N.V., Atradius Insurance
Holding N.V., Atradius Finance B.V., Atradius Crédito y Caución S.A. de Seguros y Reaseguros, Dutch branch, Atradius
Information Services B.V., Atradius Collections Holding B.V., Atradius Collections B.V., Atradius Credit Management
Services B.V., and Atradius Dutch State Business N.V. All companies included in the fiscal unity are jointly andseverally liable for the corporate income tax payable in the Netherlands by the fiscal unity.
The Company is subject to litigation in the normal course of business. The Company believes that such litigation will
not have a material effect on its profit or loss and financial condition.
The Company acts as the guarantor for the guaranteed subordinated debt, EUR 250 million, (2022: EUR 250 million)
issued by Atradius Finance B.V. (see Note 20 of the consolidated financial statements).

8

Personnel

The number of employees working for the Company:
2023

2022

5

5

5

5

Total average number of employees (headcount)
Total year end number of employees (headcount)(1)

9

Remuneration of Management Board and Supervisory Board

For information on remuneration of the members of the Management Board and the Supervisory Board: see Note 34 of
the consolidated financial statements.

10 Proposed profit appropriation
The Management Board proposes to the General Meeting to allocate the result for the year to the retained earnings.

192

Atradius | Other information 2023 Atradius N.V.

Other information

193

Atradius | Other information 2023 Atradius N.V.

Statutory appropriation of result
In accordance with article 24 of the Articles of Association the result for the year is at the disposal of theGeneral Meeting.

194

Atradius | Annual Report 2023 Atradius N.V.

Annual Report Atradius N.V.
12 March 2024
The Supervisory Board

The Management Board

Xavier Freixes, Chair
Hugo Serra
Désirée van Gorp
John Hourican
Carlos Halpern
José María Sunyer
Juan Ignacio Guerrero
Joaquín Guallar

David Capdevila, Chair
Andreas Tesch
Christian van Lint
Claus Gramlich-Eicher
Marc Henstridge

195

Atradius | Independend auditor’s report

Independent auditor’s report
Independent auditor’s report
Independent auditor’s report
Financi al Statem ents
31 Dec em ber 2023
1 J anuary 2023
Atradius N.V.
Control e
Goedkeurend
00k 4L00000HEXoRQAXKVK
Create SBR Extensi on
1.0

Financi al Statem ents
31 Dec em ber 2023
1 J anuary 2023
Atradius N.V.
Control e
Goedkeurend
00k 4L00000HEXoRQAX
Amsterdam
KVK
Create SBR Extensi on
1.0

15 Marc h 2024

To: the general meeting and the supervisory board of Atradius N.V.
Amsterdam

15 Marc h 2024

To: the general meeting and the supervisory board of Atradius N.V.

Report on the audit of the financial statements 2023
Report on the audit of the financial statements 2023
Our opinionIn
ouropinion
opinion:Our• our theconsolidated financial statements of Atradius N.V. together with its subsidiaries
In
opinion:(‘theconsolidated
Group’) givefinancial
a true andfair view offinancial
the Group
as at
•
the
statementsof theAtradius
N.V.position
togetherofwith
its subsidiaries
31
December
2023
and
of
its
result
and
cash
flows
for
the
year
then
ended
in
with
(‘the Group’) give a true and fair view of the financial position of the Group asaccordance
atInternational
Financial
Reportingas adopted
thethenEuropean(‘EU-IFRS’)
31
December 2023
and ofits resultStandards
and cash flows
for theby
year
endedUnionin accordancewith
andwith Part Financial
9 of Book Reporting
2 of the Dutch
Civil Code;International
Standards
as adopted by the European Union (‘EU-IFRS’)•
theof Atradius
N.V. (‘the Company’) give a true and fair view of
andcompany
with Partfinancial
9 of Bookstatements
2 of the Dutch
Civil Code;thefinancial
positionoftheCompanyasat31
December
2023 and of
its aresult
for the•the company financial statements of Atradius N.V.
(‘the Company’)
givetrue andfairyearviewthenofendedin accordancePart
9 of Book
2 of
Dutch Civil
Code.
the financial
positionwithof theCompany
as at
31theDecember2023
and of its result for the year thenended in accordance with Part 9 of Book 2 of the Dutch Civil Code.

What we have auditedWe
have
auditedaccompanying financial statements 2023 of Atradius N.V., Amsterdam.
What
wehavetheauditedThe
financialstatements
comprise theconsolidated
financial
the Groupand theWe have
auditedthe accompanying
financialstatements
2023statementsof AtradiusofN.V.,
Amsterdam.
company
financialstatements.
The financial statements comprise the consolidated financial statements of the Group and thecompany financial statements.
The consolidated financial statements comprise:•The consolidated
the consolidated
statementof financial
position as at 31 December 2023;
financialstatements
comprise:••
thestatements
forof2023:
the consolidated
and loss 2023;
statement, the consolidated
the following
consolidated
statement
financial
position as atprofit
31 December
statementsof statements
comprehensive
income,in equityandcashand the consolidated•thefollowingfor 2023:
the changes
consolidated
profitandlossflows;statement,•
the notes toof
thefinancial statements,
material
accounting
policyinformation andstatements
comprehensive
income,includingchanges inequity andcash flows;
and
other
explanatory
information.
•
the notes to the financial statements, including material accounting policy information andother explanatory information.
The company financial statements comprise:• company
the company
statementof financial
position as at 31 December 2023;
The
financialstatements
comprise:••
thecompany
profitandlossstatement
for theasyear
31 December
the company statement of financial position
at 31ended
December2023; 2023; andthe company
notes, comprising
a summaryof thefor
accounting
policiesand2023;
other andexplanatory••
theprofit andloss statement
the year ended
31applied
Decemberinformation.
•thenotes, comprising a summary of the accounting policies applied and other explanatory

information.
The financial reporting framework applied in the preparation of the financial statements is EU-IFRS
and therelevant
provisionsof Part applied
9 of Bookof preparation
the Dutch Civil
Codefor the statements
consolidated
financialThefinancialreportingframeworkin2theof thefinancialis EU-IFRS
statements
and Part
9 of Book
2 of theCodefor thestatements.
andthe relevant
provisionsof Part
9 ofDutch
Book 2Civilof theDutch
Civilcompany
Code forfinancial
the consolidated
financialstatements and Part 9 of Book 2 of the Dutch Civil Code for the company financial statements.
NLE00023197.1.1
NLE00023197.1.1
PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357,
1006
BJ Amsterdam, the Netherlands
PricewaterhouseCoopers
Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357,
T:
+31
(0)
88 792 00 20,+31 (0) 88 792 96 40, www.pwc.nl
1006 BJ
Amsterdam,
the F:
Netherlands
T:
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(0)
88under
792which
00 PricewaterhouseCoopers
20, F: +31 (0) 88Accountants
792 96 40,‘PwC’
is thebrand
N.V. www.pwc.nl(Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V.

(Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V.
(ChamberCommerce
PricewaterhouseCoopers
Pensions,
Actuarial& Insurance
Services
B.V. (Chamberof Commerce 54226368),‘PwC’
is theofbrandunder 51414406),
which PricewaterhouseCoopers
Accountants
N.V.
(Chamberof Commerce
34180285),
PricewaterhouseCoopers
Belastingadviseurs N.V.
PricewaterhouseCoopers
B.V. (Chamberof Commerce 34180289)
and othercompaniesofoperate
and provide
services.
These services are governedby General(Chamberof Commerce 34180284),
PricewaterhouseCoopers
Advisory
N.V. (Chamber
Commerce
34180287),
PricewaterhouseCoopers
Compliance
ServicesTerms
B.V.
and Conditions(‘algemenevoorwaarden’),which include provisions
regarding
our liability.
Purchasesby thesecompanies
governed54226368),
by General Terms and Conditions(Chamberof Commerce
51414406),
PricewaterhouseCoopers
Pensions,
Actuarial& Insurance
Services
B.V. (Chamber
ofare
Commerceof
Purchase(‘algemene
inkoopvoorwaarden’).
At
www.pwc.nl
moredetailed
informationonthese
companies
isavailable,
includingthese
GeneralTerms
andConditions
PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General Terms
and theGeneral(‘algemene
Terms andvoorwaarden’),Conditions of Purchase,which
have alsoregarding
been filed
at liability.
the Amsterdam
Chamberof companies
Commerce.are governed by General Terms and Conditions
Conditions
which include
provisions
ourPurchasesby theseof Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions
and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.

196

Atradius | Independend auditor’s report

The basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing.
We have further described our responsibilities under those standards in the section‘Our responsibilities for the audit of the financial statements’ of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Independence
We are independent of Atradius N.V. in accordance with the ‘Wet toezicht accountantsorganisaties’(Wta, Audit firms supervision act), the ‘Verordening inzake de onafhankelijkheid van accountants bij
assuranceopdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect toindependence) and other relevant independence regulations in the Netherlands. Furthermore, we havecomplied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).

Information in support of our opinion
We designed our audit procedures with respect to fraud and going concern, and the matters resulting
from that, in the context of our audit of the financial statements as a whole and in forming our opinion
thereon. The information in support of our opinion, such as our findings and observations related tothe audit approach fraud risk and the audit approach going concern was addressed in this context, andwe do not provide a separate opinion or conclusion on these matters.

Audit approach fraud risks
We identified and assessed the risks of material misstatements of the financial statements due tofraud. During our audit we obtained an understanding of Atradius N.V. and its environment and thecomponents of the internal control system. This included the management board’s risk assessment
process, the management board’s process for responding to the risks of fraud and monitoring theinternal control system and how the supervisory board exercised oversight, as well as the outcomes.
We refer to section Risk and Capital – managing and adapting to changes – Operational risk of the
management report for management’s fraud risk assessment and section 4.4.1 Operational risk
management of the notes to the financial statements.
We evaluated the design and relevant aspects of the internal control system with respect to the risks ofmaterial misstatements due to fraud and in particular the fraud risk assessment, as well as the code of
conduct, whistleblower procedures, incident registration and investigation protocols, among otherthings. We evaluated the design and the implementation and, where considered appropriate, tested theoperating effectiveness of internal controls designed to mitigate fraud risks.
We asked members of the management board as well as the internal audit department, legal affairs
and the supervisory board whether they are aware of any actual or suspected fraud. This did not resultin signals of actual or suspected fraud that may lead to a material misstatement.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect tofinancial reporting fraud, misappropriation of assets and bribery and corruption. We evaluatedwhether these factors indicate that a risk of material misstatement due to fraud is present.

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We identified the following fraud risks and performed the following specific procedures:[]

Identified fraud risks
The risk of management override ofcontrol

Our audit work and observations
We evaluated the design and implementation of the internal control
system for the processes of generating and processing journal entries,
The management board members are making estimates, and monitoring projects.
in a unique position to perpetrate
We also paid specific attention to the access safeguards in the
fraud because of management’s
IT system and the possibility that these led to violations of segregation
ability to manipulate accountingof duties.
records and prepare fraudulent
financial statements by overriding
We performed our audit procedures in a mix of controls andcontrols that otherwise appear to be
substantive procedures.
operating effectively. That is why, inall our audits, we pay attention to theWe have addressed the risk of management override of controls by:risk of management override of•
Journal entries and other adjustments: we have selected journal
controls in:entries based on risk criteria and performed specific audit•
the appropriateness of journal
procedures on these. These procedures include, among others,
entries and other adjustments
inspection of the entries to source documentation. We havemade in the preparation of theassessed all other adjustments made in the preparation of thefinancial statements;
financial statements and noted no irregularities.
•
management estimates;•
Management estimates: we have evaluated management estimates.
•
significant transactions, if any,
We also specifically paid attention to the inherent risk ofoutside the normal course of(unintentional or intentional) bias of management with respect tobusiness for the Company.
assumptions made. We assessed the sensitivity calculation for theestimates performed by management and established that it fell
We paid particular attention towithin a reasonable range of outcomes.
tendencies due to possible interests of•
Significant transactions outside the normal course of business: wethe management board.
did not identify any significant transactions outside the normal
course of business.
Our audit procedures did not lead to specific indications of fraud or
suspicions of fraud with respect to management override of controls.
We evaluated the design and implementation of the internal control
measures and assessed the effectiveness of relevant controls in theprocess related to revenue reporting.

Risk of fraud in revenue recognition
As part of our risk assessment andbased on a presumption that there
are risks of fraud in revenue
recognition, we evaluated each type of Furthermore, we performed the following specific procedures, whererevenue. With the application of theapplicable on a sample basis:
new IFRS 17 accounting standard, a•We performed specific work on the recognition of contracts, the
new concept of insurance revenue isassumptions used and subsequently the CSM balance sheet
introduced.
recognition.
•
We assessed the distribution pattern of CSM release into theUnder IFRS 17, the insurance revenue
insurance revenue.
in each reporting period reflects the•We performed testing on contractual input data related to theconsideration to which the Company
insurance liabilities.
expects to be entitled in exchange forthe services provided in that period.

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Identified fraud risks
The consideration contains a releaseof expected cash flows from theinsurance contract assets andliabilities for elements like expectedclaims, contractual service margin
and risk adjustment for non-financial
risks.

Our audit work and observations••

We challenged managements assumptions on both the Best
Estimate Reserve and the Risk adjustment as well as the results
driven by experience adjustments.
As part of our procedures, we evaluated the reasonableness of
onerousness of insurance contracts.

We performed our audit procedures in a mix of control andsubstantive procedures. We involved specialists in the field of actuarial
valuations during the audit of the CSM.

Consequently, insurance revenue isbased on management’s estimation of
the valuation of certain assets andOur audit procedures did not lead to specific indications of fraud or
liabilities arising from insurance
suspicions of fraud with respect to fraud in revenue recognition.
contracts using new or existingmodels and significant assumptions
which may be influenced bymanagement bias.
We determined the risks of fraud inrevenue recognition of insurance
revenue to be predominantly present
as it relates to the completeness,accuracy and cut-off assertions forthe balance sheet recognition of theclient service margin (CSM).
In particular, the judgements
associated with determining theparameters considered to measure
whether insurance contracts havebecome onerous, as well as therelease pattern of the CSM, areimportant in this regard.
[]

We incorporated an element of unpredictability in our audit. We also reviewed lawyer’s letters andcorrespondence with regulators. During the audit, we remained alert to indications of fraud.
Furthermore, we considered the outcome of our other audit procedures and evaluated whether any
findings were indicative of fraud or non-compliance with laws and regulations.

Audit approach going concern
The management board prepared the financial statements on the assumption that the Company is agoing concern and that it will continue all its operations for at least twelve months from the date of
preparation of the financial statements.

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Our procedures to evaluate the management board’s going-concern assessment included, among
others:•considering whether the management board identified events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern (hereafter: goingconcern risks);•
considering whether the management board’s going-concern assessment included all relevant
information of which we are aware as a result of our audit and inquiring with the management
board regarding the management board’s most important assumptions underlying its goingconcern assessment;•
evaluating the management board’s current budget including cash flows for at least twelve
months from the date of preparation of the financial statements taken into account current
developments in the industry such as the macroeconomic outlook affecting global changes of
insolvency and all relevant information of which we are aware as a result of our audit;•
analysing whether the current and the required financing has been secured to enable thecontinuation of the entirety of the Company’s operations, including compliance with relevantcovenants;•
performing inquiries of the management board as to its knowledge of going-concern risks
beyond the period of the management board’s assessment.
Based on our procedures performed, we concluded that the management board’s use of the goingconcern basis of accounting is appropriate, and based on the audit evidence obtained, that no material
uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern.

Report on the other information included in the annual report
The annual report contains other information. This includes all information in the annual report inaddition to the financial statements and our auditor’s report thereon.
Based on the procedures performed as set out below, we conclude that the other information:•is consistent with the financial statements and does not contain material misstatements; and•contains all the information regarding the directors’ report and the other information that isrequired by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and the understanding obtained in our
audit of the financial statements or otherwise, we have considered whether the other information
contains material misstatements.
By performing our procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil
Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scopeof those procedures performed in our audit of the financial statements.
The management board is responsible for the preparation of the other information, including thedirectors’ report and the other information in accordance with Part 9 of Book 2 of the Dutch Civil
Code.

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Responsibilities for the financial statements and the audit
Responsibilities of the management board and the supervisory board
for the financial statements
The management board is responsible for:•the preparation and fair presentation of the financial statements in accordance with EU-IFRS
and Part 9 of Book 2 of the Dutch Civil Code; and for•such internal control as the management board determines is necessary to enable thepreparation of the financial statements that are free from material misstatement, whether due tofraud or error.
In preparing the financial statements, the management board is responsible for assessing theCompany’s ability to continue as a going concern. Based on the financial reporting frameworks
mentioned, the management board should prepare the financial statements using the going-concern
basis of accounting unless the management board either intends to liquidate the Company or to cease
operations or has no realistic alternative but to do so. The management board should disclose in thefinancial statements any event and circumstances that may cast significant doubt on the Company’s
ability to continue as a going concern.
The supervisory board is responsible for overseeing the Company’s financial reporting process.

Our responsibilities for the audit of the financial statements
Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtainsufficient and appropriate audit evidence to provide a basis for our opinion. Our objectives are toobtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high but not absolute level of assurance, and is not a guarantee that an audit
conducted in accordance with the Dutch Standards on Auditing will always detect a material
misstatement when it exists. Misstatements may arise due to fraud or error. They are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of the financial statements.
Materiality affects the nature, timing and extent of our audit procedures and the evaluation of theeffect of identified misstatements on our opinion.
A more detailed description of our responsibilities is set out in the appendix to our report.
Amsterdam, 15 March 2024
PricewaterhouseCoopers Accountants N.V.
/PwC _Partner _Signature/

Original has been signed by M.D. Jansen RA

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Appendix to our auditor’s report on the financial statements
2023 of Atradius N.V.
In addition to what is included in our auditor’s report, we have further set out in this appendix our
responsibilities for the audit of the financial statements and explained what an audit involves.

The auditor’s responsibilities for the audit of the financial statements
We have exercised professional judgement and have maintained professional scepticism throughout
the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence
requirements. Our audit consisted, among other things of the following:•
Identifying and assessing the risks of material misstatement of the financial statements, whether
due to fraud or error, designing and performing audit procedures responsive to those risks, andobtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the intentional override of internal control.
•
Obtaining an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
•
Evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management board.
•
Concluding on the appropriateness of the management board’s use of the going-concern basis ofaccounting, and based on the audit evidence obtained, concluding whether a material
uncertainty exists related to events and/or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s reportand are made in the context of our opinion on the financial statements as a whole. However,
future events or conditions may cause the Company to cease to continue as a going concern.
•
Evaluating the overall presentation, structure and content of the financial statements, including
the disclosures, and evaluating whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Considering our ultimate responsibility for the opinion on the consolidated financial statements, weare responsible for the direction, supervision and performance of the group audit. In this context, wehave determined the nature and extent of the audit procedures for components of the Group to ensurethat we performed enough work to be able to give an opinion on the financial statements as a whole.
Determining factors are the geographic structure of the Group, the significance and/or risk profile ofgroup entities or activities, the accounting processes and controls, and the industry in which the Group
operates. On this basis, we selected group entities for which an audit or review of financial informationor specific balances was considered necessary.
We communicate with the supervisory board regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

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Glossary
Atradius Atrium
Credit management portal giving customers and brokers access to all the information they need to manage theirpolicies and apply for credit limits in one place, in real time.

Atradius Insights
An advanced online business intelligence tool to support our customers with a detailed analysis of their debtor
portfolio and help them in managing their buyer portfolios and credit risks.

Buyer
A customer of our insured customer (i.e. the holder of the credit insurance policy). Buyers carry a credit risk such as
protracted default, insolvency and bankruptcy. This could lead to a financial loss for our customer and/or policyholder.
Buyer underwriting is related to the assessment of this credit risk.

Buyer underwriting
The activity related to the risk acceptance of credit risk of buyers. Buyer underwriting determines the credit limits thatare attached to the credit insurance policy and determines the amount for which shipments are insured. Buyers areassessed on financial and non-financial criteria, including financial status, profitability, liquidity, size, region, trade
sector and payment experience.

Claim
An application by an insured customer for indemnification of a loss under the policy.

Claims ratio*
A performance indicator that is defined as total claims including claims handling expenses divided by total insurance
revenue.

Combined ratio*
The combined ratio is a performance indicator calculated using the general insurance standard; the sum of the claims
and the expenses divided by total insurance revenue.

Credit Insurance (product)
Commercial and/or political risk insurance whereby the customer is protected against non-payment of tradereceivables due to insolvency or default.

Credit limit
The maximum exposure specifically approved or otherwise authorised by the insurer in respect of a buyer.

Debt collection
Activity to collect monies owed by a company. Atradius offers this service to both insured customers and third parties.

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Economic capital
The amount of risk capital, assessed on a realistic basis, required by a company to cover its risks assumed underinsurance contracts.

Eurozone
Refers to the European Union member states that have adopted the Euro as their currency.

Expense ratio*
A performance indicator that is defined as total insurance expenses divided by total insurance revenue.

Exposure
Total amount underwritten by the insurer as cover on a buyer, a country, under a policy or under all policies.

Financial year
A period used for calculating annual financial statements but which does not require that the period reported on
constitutes a calendar year.

GlobalAtradius’ product and service offering to multinational customers, which provides tailored credit management
solutions for customers worldwide in several languages and currencies.

Atradius Insights
An advanced online business intelligence tool to support our customers with a detailed analysis of their debtor
portfolio and help them in managing their buyer portfolios and credit risks.

Insolvency
Legally recognised inability of a debtor to meet its commitments and pay its debts.

Instalment credit protection
Atradius’ offering to financial and corporate policyholders in Belgium and Luxembourg, that protects against
short and medium-term risks involved in multiple instalment agreements with private individuals and businesses(business-to-consumer).

Insurance revenue*
The total of gross earned premium and information income (i.e. credit checking fees).

Medium-term businessBusiness (capital goods and major projects) transacted on credit terms of between two and five years.

Policyholder
Our insured customer; the party that purchases an insurance policy for protection against the risk of non-payment by(foreign or domestic) buyers and assumes responsibilities and obligations under that policy.

Policy underwriting
The activity related to establishing the terms and conditions of the insurance policy designed to mitigate
unacceptable risks. These terms and conditions include premium rate, maximum credit periods, the insurer’s
maximum liability, the customer’s own retention and other risk sharing and mitigation aspects.

Political risk
The risk that a government or a country prevents the fulfilment of a transaction, or fails to meet its payment
obligations, or the risk that is beyond the scope of an individual buyer or falls outside the individual buyer’s
responsibility.

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Premium*
Amount paid by an insured customer to the insurer in return for risk coverage.

Reinsurance
A risk-sharing operation, whereby the insurer obtains cover from a third party (the reinsurer) for part of the credit
risks that it has guaranteed, in exchange for the payment of a premium.

Reinsurance business
The activity whereby Atradius acts as a reinsurance company for credit insurance and bonding business of primary
insurers. This activity is performed by our dedicated team of underwriters.

SME
Small and medium-sized enterprises.

Solvency II
An EU Directive that codifies the EU insurance regulation. The Solvency II Directive aims to create a harmonised, riskorientated solvency regime resulting in capital requirements for (re) insurance companies that are more reflective of
the risks they run. Its objectives are to deepen the integration of the EU insurance market, to improve the protectionof policyholders and beneficiaries, to improve the international competitiveness of EU insurers and to instil better
regulation of the EU insurance markets.

Surety (product)
The activity of providing guarantees that protect the beneficiary if the supplier fails to meet the agreed performancelevel. Surety was previously named bonding.

Underwriter
Person charged with risk acceptance, control of that risk and the setting of cover conditions on buyer/credit limits,
including any country-specific terms of cover.

Underwriting year
The year in which a risk is accepted for a shipment from a customer/policyholder to its buyer. The underwriting
year performance provides management with important insight into the buyer (risk) underwriting performance. In
addition, it gives information about the most recent underwriting year performance without any impact from previous
underwriting years.

UN Global Compact
A United Nations strategic policy initiative for Businesses that are committed to aligning their operations andstrategies with ten universally accepted principles in the areas of human rights, labour, environment andanti-corruption.

* Applies to terminology used int he management report.

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Disclaimer
The information in the chapter ‘The global economic environment” is forgeneral guidance on matters of interest only. While we have made every
attempt to ensure that the information contained in this report reflects carefulanalysis and investigations on our side before publication of this Annual
Report, we are neither responsible for any errors or omissions nor for the
results obtained from the use of this information.
The information in this Annual Report does not contain nor imply a warranty
as to the completeness, accuracy, timeliness or otherwise. Atradius, its relatedcompanies, or the directors, agents or employees thereof, will in no event
be liable to you or anyone regarding any decision made or action taken inreliance on the information in this Annual Report or for any consequential,
special or similar damages.

Produced and publishedThis Annual Report is published by Atradius N.V.

Your contact
Dirk Hagener – Director Group Marketing and Communication
Phone: +31 20 553 2626
Email: dirk.hagener@atradius.com

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