ATRADIUS CRÉDITO YCAUCIÓN S.A. DE SEGUROSY REASEGUROSAnnual Statements and Management Report for the financial year
closed on December 31, 2023
Together with the Independent Audit ReportAll amounts are in millions of Euros, unless otherwise stated

Independent Audit Report on the Annual Financial Statements

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

ATRADIUS CRÉDITO Y CAUCIÓN S.A.
DE SEGUROS Y REASEGUROSAnnual Financial Statements and Management Report for the financial year
ended on December 31, 2023

All amounts are in millions of Euros, unless otherwise stated

Annual Statements for the financial
year 2023

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Balance Sheets at 31 December 2023 and 2022
(Thousands of Euros)
AssetsNoteNo31.12.2023

31.12.2022 (1)627,725

399,682

Cash and cash equivalents

8.1

Available-for-sale financial assets

8.2

2,579,327

1,781,248

Equity instruments-

446,855

303,803

Debt securities-

2,132,472

1,477,445

Loans and receivables-

624,636

480,646

Loans

8.2

2,000

-

Deposits in credit institutions

8.2

50,21243,073

Deposits made for accepted reinsurance

10

23,8992,320

Receivables on direct insurance operations

10

114,449

119,394

Policyholders-

94,96098,237

Brokers-

19,48921,157

Receivables on reinsurance operations

10

97,812

111,881

Other receivables

10

336,264

203,978

Tax receivables

-

2,917

717

Rest of receivables
Reinsurance share on technical provisions-

333,347

203,261

16.1

915,005

888,962

Provision for unearned premiums-

286,512272,430

Provision on claims-

628,493

616,532

Property, plant and equipment and investment property

674,13868,822

Property, plant and equipment-

67,077

61,631

Investment property

-

7,061

7,191

Intangible assets

580,004

105,985

Goodwill-

9,123

13,713

Other intangible assets-

70,881

92,272

Holdings in Group companies and associates

916,493

16,493

Holdings in Group companies-

16,493

16,493

Tax assets

12

271,143244,884

Current tax assets-

56,714

51,388Deferred tax assets-

214,429

193,496

Other assets-

630,346

366,695

14.1

101,762

88,505

Assets and reimbursement rights for long-term staff remuneration
Accrual accounts-

528,584

278,190

Total assets-

5,818,817

4,353,417(1) Presented solely and exclusively for purposes of comparison. Atradius Reinsurance DAC amounts are nort included in these figures. Notes 1 to 20 and the Annex tothese Financial Statements form an integral part of the balance sheet at 31 December 2022.

All amounts are in millions of Euros, unless otherwise stated

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Balance Sheets at 31 December 2023 and 2022
(Thousands of Euros)
Liabilities

Note

31.12.2023

31.12.2022 (1)Debts and payables

11

338,994

396,137

Deposits received for ceded reinsurance

0

9,256

9,903

Payables on insurance operations

0

68,31774,089

Payables to insurers

037,943

41,925

Payables to brokers

0

16,96818,532

Conditional payables

0

13,406

13,632

Payables on reinsurance operations

0

130,682

182,534

Other accounts payable:

0130,739

129,611

Tax payables
Other accounts payable to Group companies and associates
Rest of other accounts payable

0

11,092

7,616

18.1

20,66949,315

098,97872,68016.1

2,847,594

2,004,525

Provision for unearned premiums

0960,131701,723

Claims provision0

1,830,743

1,238,688

Provision for profit sharing and for return premiums

0

56,72064,114

Non-technical provisions

14

53,02360,450

Provision for pensions and similar obligations

0

51,67659,475

Technical provisions

Other non-technical provisions

0

1,347

975

Tax liabilities

12295,007

252,199

Current tax liabilities

025,69643,519Deferred tax liabilities

0269,311

208,680

Other liabilities

0177,218

173,345

Accrual accounts

064,90265,926

Commissions and other acquisition costs of ceded reinsurance

0112,316

107,419

Total liabilities

3,711,836

2,886,656

Equity000Shareholder funds

17

2,121,028

1,551,444

Capital or mutual fund032,81324,870Share premium

0478,495

1,231

Reserves

01,587,656

1,418,879

Legal and bylaws reserves

0

17,40917,409Equalization reserve0

1,001,709

800,488

Other reserves

0568,538

580,204

Other shareholder contributions

0

60,00060,000Result for the year

0325,441

216,422(Interim dividend and interim equalization reserve)

0(363,377)(169,958)

Valuation adjustments:0(14,047)(63,905)

Available-for-sale financial assets

0

17,045(37,232)

Exchange and translation differences0(31,092)(26,673)

Total equity

02,106,981

1,466,761

5,818,817

4,353,417

Total liabilities and equity(1) Presented solely and exclusively for purposes of comparison. Atradius Reinsurance DAC amounts are nort included in these figures. Notes 1 to 20 and the Annex
to these Financial Statements form an integral part of the balance sheet at 31 December 2022.

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Profit and loss Statements for the years ended 31 December 2023 and 2022
(Thousands of Euros)

Technical account – Non-life insurance

Note

2023

2022 (1)Premiums Attributed to the Year, Net of Reinsurance

0

1,354,225

1,022,691

Gross written premiums

0

2,232,283

1,880,367

Direct insurance

15

1,816,664

1,760,973

Accepted reinsurance

15417,914

124,452

Change in impairment losses on uncollected premiums (+ /-)Ceded reinsurance premiums
Change in the provision for unearned premiums and for unexpired risks (+/-)

0(2,295)(5,058)15(796,224)(767,448)

16.1(97,734)(62,636)

Direct insurance

0(65,054)(64,742)

Accepted reinsurance

0(32,680)

2,106

16.1

15,900(27,592)

072,83923,808Change in the provision for unearned premiums, ceded reinsurance (+/-)
Income from property, plant and equipment and from investments
Income from investment property

6

961

518

Income from financial investments

071,87823,290

Other technical income

16.3

56,59657,784Claims for Year, Net of Reinsurance

0(631,726)(521,914)

Claims and expenses paid

0(437,232)(184,415)

Direct insurance

0(529,167)(394,411)

Accepted reinsurance

0(157,304)(12,188)

Ceded reinsurance

0249,239

222,184

Variation in the claims provision (+/-)

16.1(146,786)(295,702)

Direct insurance

0(142,726)(244,373)

Accepted reinsurance

0(15,211)(31,207)

Ceded reinsurance

0

11,151(20,122)

Expenses attributable to claims

0(47,708)(41,797)

Profit sharing and for return premiums

0

11,087(27,972)

Variation in the provision for profit sharing and for return premiums (+/-)

16.3

11,087(27,972)0(460,689)(279,328)

Acquisition costs

16.3(332,892)(225,305)

Administration costs

16.3(455,536)(376,766)

Commissions and profit sharing on ceded reinsurance and retrocession

16.3

327,739

322,743

Other Technical Expenses

Net Operating Expenses

16.3

163

(225)

Expenses on property, plant and equipment and investments

0(15,067)(6,163)

Investment management expenses

0(14,937)(5,592)

Espenses on investment property

0

(327)

(318)

Expenses on investments and financial accounts

0(14,610)(5,274)

0

(130)

(571)

6

(130)

(158)

8.2

-

(413)

387,428

268,681

Valuation adjustments of property, plant and equipment and investments
Impairment of property, plant and equipment and investment property
Impairment of financial investments
Subtotal (Result of Non-Life Insurance Technical Account)(1) Presented solely and exclusively for purposes of comparison. Atradius Reinsurance DAC amounts are nort included in these figures. Notes 1 to 20 and the Annex to these Financial Statements form an
integral part of the balance sheet at 31 December 2022.

All amounts are in millions of Euros, unless otherwise stated

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Profit and loss Statements for the years ended 31 December 2023 and 2022
(Thousands of Euros)

2023

2022 (1)Income from property, plant and equipment and from investments

36,87835,192

Gains on sale of property, plant and equipment and investments

36,87835,192

Of property, plant and equipment and investment property

-

3,839

Non-Technical AccountOf financial investments

Note

36,87831,353

Expenses on property, plant and equipment and investments

8.2(12,057)(19,753)

Losses on property, plant and equipment and investments(12,057)(19,753)

On property, plant and equipment and investment property
On financial investments

8.2

Other income(1,766)(1,039)(10,291)(18,714)

21,310-21,310-(3,729)6,340(3,729)6,340

Subtotal (Result of Non-Technical Account)

42,403

21,779Profit before tax

429,831

290,461(104,390)(74,039)

325,441

216,422

Rest of revenues

13.2

Other expenses
Rest of expenses

Corporate Income Tax
Net Profit for the Year

13.2

12

(1) Presented solely and exclusively for purposes of comparison. Atradius Reinsurance DAC amounts are nort included in these figures. Notes 1 to 20 and the Annex to these Financial Statements
form an integral part of the balance sheet at 31 December 2022.

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Statement of Changes in Equity in 2023 and 2022
A) Statement of Recognised Income and Expense(Thousands of Euros)

Result for the year

2023

2022 (1)

325,441

216,422

Other recognised income and expense
Available-for-sale financial assets

93,699(155,629)

Valuation gains/(losses)

120,286(143,403)

Amounts transferred to profit or loss

(26,587)(12,226)

Valuation gains/(losses)(6,043)(7,431)

Valuation gains/(losses)(6,043)(7,431)

Actuarial gains/(losses) on pension benefits

9,905

36,009Actuarial gains/(losses) on pension benefits

9,905

36,009Corporate income tax(19,678)

27,562

Total recognised income and expense

403,325

116,933(1) Presented solely and exclusively for purposes of comparison. Atradius Reinsurance DAC amounts are nort included in these figures. Notes 1 to 20 and the Annex to these Financial Statements form an integral part of the balance sheet at
31 December 2022.

All amounts are in millions of Euros, unless otherwise stated

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Statements of Changes in Equity in 2023 and 2022
B) Statement of Changes in Total Equity (Thousands of Euros)
Authorised
Sharecapitalpremium

Balances at 1 January 2022

Legal andbylawsreserves

Equalization Voluntary Revaluation Reserve Shareholders Result forInterim
Valuation
reserve
reserve
reserveforcontribution the year
dividends adjustments
and other
actuarialand interim
reserves
gains andequalization
lossesreserve

Total

24,8701,231

17,409630,530

477,879

5,552(59,052)

60,000132,371(1,642)60,627

1,349,775

Total recognised income/(expenses)

-

-

-

-

-

-

25,042-

216,422-(124,532)

116,933

Transactions with shareholders or
mutual soc. members

-

-

-

-

-

-

-

-

-

-

-

-

Other changes in equity

-

-

-

169,958

130,783---(132,371)(168,316)-

54

Transfers between equity captions

-

-

-

-

130,729---(132,371)

1,642

-

-

Other changes
Balances at 31 December 2022

24,8701,231

17,409169,958
800,48854
608,661

5,552(34,010)60,000216,422(169,958)(169,958)

54(63,905) 1,466,761

Balances at 1 January 2023

24,8701,231

17,409800,488608,661

5,552(34,010)60,000216,422(169,958)(63,905) 1,466,761

-

-

-

-

-

-

7,248

-

325,441-

70,636403,325

-

-

-

-

(86,156)

-

-

-

-

(162,156)-(248,312)

-

-

-

-

(86,156)

-

-

-

-

(162,156)-(248,312)

7,943

477,264--

20,778

-

-

-

-

-

(20,778)

485,207(2)

Total recognised income/(expenses)
Transactions with shareholders or
mutual soc. members
Distribution of dividends orassessments received
Merger with Atradius Reinsurance
DAC
Other changes in equity

-

-

-

201,22146,463---(216,422)(31,263)--

Transfers between equity captions

-

-

-

-

46,463---(216,422)

169,958--

32,813

478,495

17,409201,2211,001,709

589,747

5,552(26,762)

60,000325,441(201,221)(363,377)

Other changes
Balances at 31 December 2023

(1) Presented solely and exclusively for purposes of comparison. Atradius Reinsurance DAC amounts are nort included in these figures. Notes 1 to 20 and the Annex to these Financial Statements form an integral part of the balance sheet at 31 December 2022.

(2) Included NIC29 effect due to hyperinflation in Turkey (EUR 0,1 million)(14,047) 2,106,981

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Statements of Cash Flows for 2023 and 2022 (Thousands of Euros)
A. Cash flows from operating activities
A-1 Underwriting activities
1.- Premiums received from direct insurance, coinsurance and accepted reinsurance
2.- Payments of claims for direct insurance, coinsurance and accepted reinsurance
3.- Cash received from ceded reinsurance
4.- Payments for ceded reinsurance
5. - Recovery of claims
6.- Remuneration paid to brokers
7.- Other cash received from operating activities
8.- Other cash paid in operating activities
9. Total cash inflows from underwriting activities (1+3+5+7 = I)
10. Total cash outflows in underwriting activities (2+4+6+8 = II)
A-2 Other operating activities
3.- Cash received from other activities
5.- Total cash inflows from other operating activities (1+3) = III
6.- Total cash outflows in other operating activities (2+4) = IV
7.- Cash received/(paid) for Corporate Income Tax (V)A-3 Total net cash flows from operating activities (I-II+III-IV+V)
B. Cash flows from investing activities
B-1 Cash inflows from investing activities
1.- Property, plant and equipment
2.- Investment property
4.- Financial instruments
6.- Interest received
7.- Dividends received
6. Total cash inflows from investing activities (1+2+3+4+5 = VI)
B-2 Cash paid in investing activities
1.- Property, plant and equipment
3.- Intangible assets
4.- Financial instruments
6.- Business unit
5. Total cash outflows in investment activities (1+2+3+4 = VII)
B-3 Total cash flows from investing activities (VI + VII)
C. Cash flows from financing activities
C-1 Cash received from financing activities (VIII)
C-2 Cash paid in financing activities
1.- Dividends to shareholders
2.- Interest paid
C-3 Total net cash flows from financing activities (VIII+IX)
Total increases/decreases in cash and cash equivalents (A-3 + B-3 + C-3)
Cash and cash equivalents at start of year
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of year
Components of cash and cash equivalents at end of year
1.- Cash on hand and at bank
2.- Other financial assets
Total cash and cash equivalents at end of year

Note

2023

2022 (1)

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17.4
0
0
0
0
8
0
8
0
0

2,164,138(894,498)
640,477(835,946)
208,027(318,823)
50,394(470,164)
3,063,036(2,519,431)

1,823,469(574,257)
573,258(1,014,259)
167,658(200,711)
50,314(440,501)
2,614,699(2,229,728)

9,011
9,011
(110,530)
442,086-

10,537
10,537(110,530)
284,978-

9,542
1,380,240
51,966
13,795
1,462,535

60
1,162
684,749
19,301
8,740
714,012(13,953)(14,672)(1,430,392)
66,827(1,392,190)
70,345(258,703)(258,703)(248,312)(10,391)(258,703)(5,892)(23,263)(925,514)(954,669)(240,657)(2,600)(2,600)(2,600)(2,600)253,728
399,682623
654,033

41,722
347,323
10,637
399,682

482,865
144,860
627,725

345,682
1,641
347,32300(1) Presented solely and exclusively for purposes of comparison. Atradius Reinsurance DAC amounts are nort included in these figures. Notes 1 to 20 and the Annex to these Financial Statements form an integral part ofthe balance sheet at 31 December 2022.
2) Includes Atradius Reinsurance DAC figures at 2023 closing

All amounts are in millions of Euros, unless otherwise stated

Atradius Crédito y Caución S.A. de
Seguros y Reaseguros
Notes to the Financial Statements for the year ended 31 December2023

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Notes 2023
Content
1

Description of the Company ................................................................................................................................................ 14

2

Basis of presentation of the financial statements ....................................................................................................... 19

3

Allocation of results .............................................................................................................................................................. 22

4

Recognition and measurement standards ....................................................................................................................23

5

Intangible assets .....................................................................................................................................................................39

6

Property, plant and equipment and investment property...................................................................................... 42

7

Leases ........................................................................................................................................................................................ 44

8

Financial assets, cash and cash equivalents................................................................................................................ 45

9Investments in Group companies, jointly controlled entities and associates ................................................... 51

10 Receivables on insurance and reinsurance operations and other receivables ................................................ 53
11 Debts and payables................................................................................................................................................................ 54
12 Tax matters...............................................................................................................................................................................56
13 Income and expenses........................................................................................................................................................... 60
14 Provisions and contingencies ............................................................................................................................................ 61
15 Segment Reporting ............................................................................................................................................................... 68
16 Technical information ......................................................................................................................................................... 69
17 Capital and reserves and equity ........................................................................................................................................ 75
18 Transactions and balances with related parties .......................................................................................................... 76
19 Other information ................................................................................................................................................................ 80
20 Subsequent events ................................................................................................................................................................ 81
ANNEX. BREAKDOWN OF REAL ESTATE PROPERTIES ................................................................................................. 82
Management report of the Company ......................................................................................................................................88

All amounts are in millions of Euros, unless otherwise stated

Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Notes to the Financial Statements for the year ended 31 December 2023
Translation of a report originally issued in Spanish. In the event of a discrepancy, the Spanish-language version
prevails.

1

Description of the Company

a. Incorporation, duration and registered office
Atradius Crédito y Caución S.A. de Seguros y Reaseguros (‘ACyC’ or the ‘Company’) was incorporated in Madrid on 6
July 1929 for an unlimited duration. The registered office is located in Madrid, at Paseo de la Castellana, no. 4.
b. Registered corporate object, regulatory framework and lines of insurance in which the Company operates
ACyC's corporate object consists of the following businesses:--

In the insurance field:
Commercial risks arising from credit transactions in domestic trade;
Commercial risks arising in all types of foreign trade;
Any other types of credit insurance allowed under the applicable legal provisions and the
pursuit of which has been agreed;
Surety bonds and guarantees;
Reinsurance of the above operations.

At 31 December 2023, the applicable legal framework is set out in Spanish Law 20/2015 of 14 July 2015 on Regulation,
Supervision and Capital Adequacy of Insurers and Reinsurers and in Royal Decree 1060/2015 of 20 November 2015.
The Company is registered in the Commercial Registry of Madrid in volume 10836 of section 8, on folio 1, page M171,144, entry 308, and with Legal Entity Identification Code no. 9598002U9BK2VP1RTG14 issued by that Registry; it is
likewise registered in the Administrative Register of Insurers of the Spanish Directorate General of Insurance andPension Funds (Dirección General de Seguros y Fondos de Pensiones; hereinafter 'DGSFP') under reference C-0046,
and is authorised to operate in the following lines of insurance: Credit (commercial risks in domestic and foreign
markets) and Surety.
c. Information on the GroupThe main shareholder of ACyC is Atradius Insurance Holding N.V., a company incorporated and domiciled in
Amsterdam, the Netherlands. The parent company of Atradius Insurance Holding N.V. is Atradius N.V. (together with
its subsidiaries, hereinafter referred to as “Atradius” or the “Atradius Group”), incorporated and domiciled in
Amsterdam, the Netherlands, which also holds one share in the Company. The ultimate parent and controlling party ofAtradius is Grupo Catalana Occidente, S.A. (“GCO”), a company incorporated and domiciled in Madrid, Spain.
At year-end 2023, the shareholder structure had not changed. The shareholder of reference of GCO is INOC, S.A., which
controls, direct and indirectly, approximately 62.03% of the share capital.
GCO, through the company Sociedad Gestión Catalana Occidente S.A., holds 1,977,283 shares with an aggregateacquisition cost of 22.8 million euros, representing 1.65% of the share capital. Those linked to the council represent a
2.79%. GCO's free float is 33.53%, half of which is held by institutional investors. GCO has no information as to theexistence of agreements among its shareholders for concerted exercise of voting rights or placing restrictions on thetransfer of their shares. The institutional investors are distributed geographically as follows:
Spain (32.4%)
USA (31.0%)
United Kingdom (23.2%)
Norway (1.4%)
Switzerland (3.2%)
14

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros-

Rest of Europe (7.5%)
Rest of the world (3.0%)

The Company is a group parent company and under the current legal framework is exempted from presenting
consolidated financial statements, given that the group is consolidated with a larger group headed by GCO that isgoverned by Spanish company law and has its registered office at Paseo de la Castellana, 4 (Madrid). The 2023
consolidated financial statements of GCO were authorised by the Directors of GCO at the Board of Directors meeting
held on 29 February 2024 and will be deposited with the Commercial Registry of Madrid.
GCO has the obligation to file consolidated information with the DGSFP.
d. Merger with Atradius Reinsurance DAC
As per 31 October 2023, the intracommunity cross-border merger by absorption between ACyC as the Absorbent
Company and Atradius Reinsurance DAC (ARE) as the Absorbed Company was completed. ARE was dissolved without
going into liquidation and the whole of its assets and liabilities, included its reinsurance obligations, were transferredby universal succession to ACyC by being assigned to its branch in Ireland, carrying out the reinsurance activities of
ARE as its legal successor since that date.
e. Internal structure
The ACyC organisation is based on centralisation of functions and decentralisation of operations.
In Spain, the regional network is composed of five commercial areas that comprise 20 branches. It has been operatingin Portugal since March 1998, with offices in Lisbon and Oporto.
As per 31 December 2023, and after the merger previously mentioned in this Note, the Company has a strong internationalpresence in more than 50 countries through its branches network.
Grupo Catalana Occidente, S.A.
Spain
Grupo Compañía Española de Crédito y Caución S.L.
Spain
Atradius N.V.
The Netherlands
Atradius Insurance Holding N.V.
The Netherlands

Atradius Crédito y Caución S.A. de Seguros y
Reaseguros
Spain
Atradius Crédito y Caución Seguradora S.A.
BrazilBranches:
Australia
Austria
Belgium
Bulgaria
CanadaCzech Rep
Denmark
FinlandFranceGermany
GreeceHong Kong
Hungary
Ireland
Italy

Japan
Luxembourg
The Netherlands
New Zealand
NorwayPolandPortugal
Romania
Singapore
Slovakia
SwedenSwitzerland
TurkeyUnited Kingdom
Slovenia

Iberinform internacional S.A.U.
Spain
Branch: Portugal
Crédito y Caución do Brasil
Gestao de Riscos de Crédito eServicios LTDA
Brazil
Iberinmobiliaria, S.A.
Spain
B2B Safe, S.A.
Spain

15

All amounts are in millions of Euros, unless otherwise statedf. Insurance products, their characteristics, sensitivity to insurance risk, risk mitigation and controls:
ACyC works with two main direct insurance products: credit insurance and surety. Credit insurance can be divided
into three subcategories: traditional credit insurance, instalment credit protection and special products. Each of thesecategories has particular risk characteristics.
The starting point for the management of insurance risk is that all staff have well-defined capacities specifying thelevel of risk they can accept and that all risk acceptance must take place within the framework of the risk governancestructure described in Note 16.2. Furthermore, ACyC's 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, ACyC 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. Policies can also cover socalled ‘political’ causes of loss, which include but are not limited to the risk of non-payment due to payment transfer
problems, cancellation of export/import licenses 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 their debtors without prior approval from ACyC. ‘Debtors’ are the customers of the ACyC’s
insured customers, i.e., the parties on whom ACyC insures credit risk. In order to mitigate the risk of adverse selection,
the traditional credit insurance products of ACyC usually cover only the entire portfolio of debtors of a policyholder. In
addition, policies contain modules that exclude cover for transactions involving sanctioned entities.
For traditional credit insurance, there are two underwriting processes: policy underwriting and risk underwriting.
Policy underwriting is the process by which ACyC decides which companies to accept as policyholders and thecoverage terms and conditions offered. Risk underwriting is the process by which ACyC sets risk limits for each buyer
and issues credit limits, thus allowing the risk of existing policies to be managed. Policy underwriting takes place in
the Commercial Units and risk underwriting in the Risk Services.
Policies are issued for a fixed period: usually between one and three years. Normally, customers retain some of therisk for their own account to protect ACyC from the risk of moral hazard. That self-retention can take the form, forexample, of an uninsured percentage, a deductible on each claim, an aggregate first loss amount or a combination ofthese. Almost all policies stipulate the maximum liability borne by ACyC. A customer is covered for the credit risk on abuyer once a credit limit has been established for the debtor. Many policies allow customers to establish credit limits
themselves for smaller amounts, under conditions specified in the policy. For larger amounts, ACyC must establish thelimits for each debtor. Credit limits are an important risk management instrument for ACyC as they cap the amountthat ACyC would have to pay out to a customer in the event of a claim. Moreover, ACyC can, in principle, withdraw thecredit limit on a buyer at any time if circumstances so require. Credit limits may be subject to specific conditions andACyC can also set conditions for cover on a country or withdraw cover on a country altogether. These are important
tools in managing risk exposure.
Staff in Commercial Units have well-defined capacities specifying who can underwrite which policies. The approval of
two people is usually required, and conditions become stricter as the policy coverage grows larger, with the biggest
contracts needing sign-off by both the Director of a Commercial Unit and the responsible Executive Committee
member. The pricing of credit insurance policies, whether renewed or amended, is also subject to governance systems
and the methodologies used to establish a benchmark price require the approval of the Quantitative Model Committee,
a committee specifically tasked with approving the quantitative models used in ACyC.
Staff in Risk Services have well-defined capacities specifying who can set the credit limit approval levels. As credit
amounts grow, decisions require approval from at least one supervisor with a higher authority level. Largest credit
amounts require approval by a committee with the appropriate authority level and, in special cases, by a reinsurance
panel.
The special products business offers a range of tailor-made policies to insure against a number of credit and politicalrisks; this type of product includes policies that cover single transactions, single trade relationships and asset
confiscation. A distinguishing feature of the special products policies is that, unlike traditional credit insurance, credit
limits can usually not be easily withdrawn. The conditions of the special products policies demand greater supervisionand due diligence vis-à-vis the insured.

16

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

All policies come under a framework of clearly defined authorities issued for underwriters who ultimately report to
the Markets Director. Policyholders’ risk is approved by a dedicated Risk Service that ultimately reports to the Risk
Director. In addition, a risk management team with a functional reporting line to the Group Risk Management unit
ensures adherence to the risk governance model, monitors the portfolio risk and ensures compliance with the terms of
the reinsurance treaty.
SuretyACyC issues surety bonds for customers in a number of European countries, including Italy, France, Spain, Portugal,
Germany, the Nordic and Benelux countries. Surety bonds insure beneficiaries against the risk of our customer not
meeting contractual, legal, or tax obligations. Beneficiaries include national, regional and local governments as well as
tax authorities and businesses.
Just as there exists the risk that our customer may fail to meet its obligations, whether because it is unable to performthe agreed services or at the required level or because it is insolvent, there is also the risk of the customer intentionallynot performing its obligations. Therefore, our assessment of both the customer’s financial strength and its ability toperform plays an important part in the underwriting process. Unlike traditional credit insurance, exposure related toissued bonds cannot be unilaterally cancelled by ACyC.
When a beneficiary reports a claim, ACyC mediates to resolve conflicts by working with both customer andbeneficiary. If, as a result of non-performance a payment is made by ACyC to the beneficiary, a recovery action istaken against the customer, who remains ultimately liable. Whenever ACyC incurs an irrecoverable loss, it is almost
always because of the customer’s financial distress, making the triggers for loss similar to those of traditional credit
insurance.
The distribution of customers across different sectors of the economy varies by country as a result of different legal
and market environments. The type of bonds issued include bid bonds, performance bonds, maintenance bonds,
advance payment bonds and various types of administrative bonds. These bonds are issued with terms ranging from a
few weeks to years, but only rarely do they run beyond five years.
All surety bonds and individual bonds are underwritten by technical underwriters who are part of the Commercial
Units. Technical underwriters assess the risk of non-performance, as well as the terms of the surety facilities and othertechnical aspects. Financial underwriters, who are not part of the Commercial Units, focus on aspects relating tocustomer risks and must approve the acceptance of facilities and individual bonds with respect to certain thresholds.
There is an authority structure in which decisions are escalated depending on the amounts analysed. The largest
amounts require the approval of a committee with the appropriate authority level.
Reinsurance
ACyC underwrites reinsurance programmes for credit insurance and surety business written by primary insurers.
This business is conducted by the branch of ACyC in Ireland (“ACyC Ireland”).
ACyC provides reinsurance capacity for primary insurance companies from both the developed and developing credit
insurance and surety markets. It currently assumes business from 70 countries worldwide, maintaining a balanced
diversity within the portfolio from each continent. The underlying business consists of approximately 59% credit
insurance and 41% surety, based on premium volume.
Reinsurance underwriting guidelines and risk boundaries define the kind of business Atradius Reinsurance DAC 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.
All reinsurance business is regularly reviewed with respect to past underwriting years’ performance, triangulation
development, individual buyer exposure development, aggregate total potential exposure management of economic
capital requirements and market and country exposure. Risk and policy limit setting is monitored to ensure credit
quality and compliance of the underlying insurance products to the terms of the reinsurance programme.

17All amounts are in millions of Euros, unless otherwise statedInstalment 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 rise to 100% and recoveries are for the benefit of ACyC.
Risk underwriting is performed by the risk underwriting teams. Authorities are granted to underwriters in accordancewith their seniority and expertise. Cases are escalated in accordance with pre-determined thresholds to the local ICP
credit committees, then to the ICP credit committee and finally to the Executive Committee member responsible for
ICP.
g. Distribution Systems
With the main goal of providing a high-quality service to its customers, manifest in highly personalised bespoke
advising using advanced technological resources, ACyC distributes its products through a regional network in Spainand branches in different locations around the world.
h. Subsidiaries
The ACyC subsidiary companies are (see Note 9):
Subsidiaries

Registered Corporate Objects

Iberinform Internacional, S.A.U.
B2B Safe, S.A.

Information services
Advisory services

Iberinmobiliaria, S.A.U.

Real estate

Crédito y Caución de Brasil Gestao de Riscos de Crédito e Management company
Servicos LTDA (Brasil)
Atradius Crédito y Caución Seguradora S.A. (Brasil)

Domestic and foreign credit insurance company

Atradius Reinsurance DAC Escritório de Representação no Reinsurance and related operations
Brasil Ltda.

18

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2

Basis of presentation of the financial statements

2.1

Financial reporting regulatory framework that applies to the Company

The regulatory framework governing the Company's financial reporting is set out in:
a)
b)
c)
d)

e)
f)

The Spanish Commercial Code (Código de Comercio) and related company legislation;
The Accounting Plan for Insurers approved by Royal Decree 1317/2008, as amended;
The mandatory standards approved by the Institute of Accounting and Auditing (Instituto de Contabilidad y
Auditoría de Cuentas — ICAC) implementing the General Accounting Plan and its complementary rules;
Royal Decree 1060/2015 of 20 November 2015 on Regulation, Supervision and Capital Adequacy of Insurers
and Reinsurers (“ROSSEAR”). The purpose of the ROSSEAR is to implement the regulation of private
insurance and reinsurance activities set out in Law 20/2015 of 14 July 2015 on Regulation, Supervision andCapital Adequacy of Insurers and Reinsurers, as well as to complete the transposition into Spanish law of
Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up
and pursuit of the business of Insurance and Reinsurance (Solvency II Directive);
Spanish Law 20/2015 of 14 July 2015 on Regulation, Supervision and Capital Adequacy of Insurers andReinsurers (“LOSSEAR”);
All other applicable Spanish accounting rules.

For business operations located outside Spain and Portugal, adjustments have been made to the Accounting Plan for
Insurers (Plan Contable de Entidades Aseguradoras — PCEA) for the sake of uniform accounting treatment where
those operations differ significantly from the accounting standards that apply in Spain. In addition, homogenization
journals have been made for those transactions related to the business of the absorbed company in the merger (ARE),
as indicated in Note 1.

2.2

Fair presentation

The 2023 financial statements have been obtained from the accounting records of the Company and are presented inaccordance with the applicable financial reporting regulatory framework (see Note 2.1) and, in particular, with theaccounting principles and policies contained thereof to give a true and fair view of the net assets and financial positionof the Company at 31 December 2023, as well as of the results of its operations, of the changes in equity and of the cash
flows during said financial year.
These financial statements, which were approved by the Directors of the Company at the Board Meeting held on 12
March 2024, will be submitted for approval by the Company’s shareholders in General Meeting and are expected to beapproved without any modifications. The financial statements for 2022, were approved by the Directors of theCompany on 1 March 2023 and by the Company’s shareholders at the General Shareholders’ Meeting of 31 March 2023.

2.3

Critical issues regarding valuation and estimation of uncertainty

The information contained in these financial statements is the responsibility of the Directors of the Company, whohave had to make estimates to measure some of the assets, liabilities, revenues, expenses and commitments recorded
herein. Basically, those estimates primarily refer to:-

Impairment losses on certain assets (see notes 4.1, 4.2 y 4.5);
The assumptions made for the actuarial calculation of defined-benefit pension liabilities and othercommitments to personnel (see Note 4.11);
Determining the value of the technical provisions (see Note 4.8);
Estimates for calculating premiums accrued and not issued (see Note 4.13);
Estimates for recovery of claims (see Note 4.5.1);

These estimates were made on the basis of the information available at year-end 2022 on the situations analysed.
However, these estimates may have to be modified (upward or downward) in the coming years as a consequence ofsubsequent events. Such modifications would be made prospectively and recognising the effects of the changed
estimates in the profit and loss statement for the years affected.

19

All amounts are in millions of Euros, unless otherwise stated

The energy crisis and the Russian invasion of Ukraine have had relevant adverse impacts across the global economy,notably on inflation and interest rates. Most trade sectors are dependent on energy, which has suffered material
inflation during 2022. Therefore, the world-trade is being affected by such inflation and stress. This in turn impacts
uncertainty related to the frequency and severity of claims.
As a collateral effect of the above mentioned, most relevant central banks have increased the interest rates. This has
been followed by banks and suppliers of credit, leading to tougher lending conditions, thus adding to the uncertainty
in frequency and severity of claims, and affecting, in particular, 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 its guarantors fails. 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.
Atradius’ business processes are designed to effectively manage the impact of the many risk factors that affect thefrequency and severity of claims. The business processes continually evolve in response to how Atradius views theserisk factors in the context of its overall business strategy.

2.4Grouping of items

Certain items in the balance sheet, profit and loss statement, statement of changes in equity and statement of cash
flows are presented grouped together for easier understanding, although a breakdown of material items is given in therelevant Notes to the financial statements.

2.5

Allocation of expenses

Expenses are initially booked according to their nature and, subsequently, in those cases where the classification of
expenses by use differs from their classification by nature, reclassified to expense accounts by use.
The policy applied by the Company to reclassify expenses by nature to expenses by use is described below:---

Expenses attributable to benefits mainly include the cost of both internal and external staff that manage
claims and the cost of supplies and maintenance services for the material resources used in that activity;
Acquisition costs mainly include the fees of brokers directly involved in the acquisition of insurance
contracts and other related expenses;
Administration expenses mainly include the cost of both internal and external staff engaged in services
relating to this activity, such as the expenses of studies and re-studies borne by the Company inanalysing the insured risks;
Expenses attributable to investments mainly include both internal and external investment
management expenses, comprising, in the latter case, the professional fees, commissions and brokeragecharges accrued, the cost of staff engaged in those functions and the amortisation and depreciation
charges (without including goodwill);
Other technical expenses are those that cannot be allocated to one of the above uses per the establishedcriteria.

In addition, with respect to the allocation by insurance line, separate accounting control and management ismaintained for each line in which ACyC operates and for the different types, with the applicable revenues andexpenses being allocated in line with the volume of premiums and nature of their operations.
There are allocated to the non-technical income statement for the year the losses or profits obtained on the sale oramortisation of financial investments in the asset base, as well as changes in the measurement of investments at fairvalue through profit or loss for said assets.

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Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Dividends from financial assets accrued after the date of acquisition will be recognised as income in the profit and loss
statement.

2.6

Comparative Information

The information contained in the accompanying financial statements for 2022 is presented solely and exclusively for
purposes of comparison with the information for 2023.
As per 31 October 2023, and as indicated in Note 1, ACyC merged with ARE. The effective date of the merger of the twoentities under common control, for purposes of preparing the financial information, is 1 January 2023. As both
entities belong to the same group, figures prior to the date of the merger remain without any change. This means thatcomparative figures corresponding to financial year 2022 in financial statements of 31 December 2022 correspondexclusively to ACyC, as ARE figures are included from 1 January 2023 (see Annex. Merger Balance sheets). The impact
in net assets due to the merger are detailed in the Statement of Changes in Total Equity.
All amounts presented in these financial statements are presented in thousands of euros (EUR), rounded to the closest
thousand, unless otherwise specified. Such differences as may be observed in some cases between the sums of the
figures recorded in the balance sheet, the profit and loss statement, the statement of changes in equity, the statementof cash flows and the explanatory Notes are due to rounding.

21All amounts are in millions of Euros, unless otherwise stated3

Allocation of results

The proposed allocation of the net results for the financial year 2023 adopted by the Directors of the Company and tobe submitted for approval by the shareholders of the Company in General Meeting is the following:
Basis of distribution
Profit/(Loss) for the year

325,441

Total

325,441

Allocation
Interim allocation to the equalization reserve
To legal and bylaws reserves

201,2215,561

To voluntary reserves

118,659

Total

325,441

According to the ROSSP, the equalization reserve will be increased every year against the allocation of profit for theyear (see Note 17.6).
At the proposal of the Board of Directors, the General Meeting of the Company's shareholders will resolve to allocate
the results of each year after the interim allocation to the equalization reserve as follows:
-

-

22

10% will be allocated to the legal reserve until it reaches at least 20% of the share capital;
The amount needed to pay the dividend deemed appropriate by the General Meeting, which will be
distributed in proportion to the capital paid in. At 31 December 2023 and 2022, there was no capital
pending disbursement;
Any remaining sum will be allocated, by decision of the Shareholders in General Meeting, to setting up
special reserves, to increasing those already created, to extraordinary writeoffs, or will be carriedforward in the part not earmarked for any other special use to the following year.

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

4

Recognition and measurement standards

The main recognition and measurement standards used by the Company to prepare the financial statements for theyear ended 31 December 2023 in accordance with the Accounting Plan for Insurers (“PCEA”) were as follows:

4.1

Intangible fixed assets

4.1.1

Goodwill

Goodwill is the excess, at the acquisition date, of the cost of the business combination over the fair value of theidentifiable net assets acquired in the transaction. Consequently, goodwill is only recognised when assets are acquiredfor valuable consideration and relates to the future economic benefits from assets that could not be individually
identified and recognised separately.
Goodwill is allocated to each of the cash generating units that are expected to benefit from the synergies of thebusiness combination. After its initial recognition, goodwill is carried at the acquisition price less the accumulated
amortisation and, if applicable, the cumulative amount of valuation adjustments recognised for impairment.
According to the applicable standards and rules, the useful life of goodwill is set at 10 years and it is amortised on astraight-line basis.
Furthermore, those cash generating units will be analysed at least annually for signs of impairment and, if such signs
exist, impairment testing will be conducted using the methodology indicated further below and, if applicable, avaluation adjustment will be made. The impairment testing has been conducted taking into account the current
macroeconomic conditions, which are being impacted by the COVID-19 pandemic.
Impairment adjustments recognised against goodwill are not reversible in later financial periods.

4.1.2

Computer applications

Acquired 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 a 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.

4.1.3

Other fixed assets

Other intangible assets are recorded at their fair value as at the date of acquisition. Their amortisation is calculated ona straight-line basis during the expected useful life of the assets, which is estimated at between 5 and 10 years.

4.2

Property, plant and equipment and investment property

Property, plant and equipment and investment property are initially recorded at their acquisition price or cost of
production, revised, where applicable, as provided in Royal Decree Law 7/1996 of 7 June 1996 and in Royal Decree
2607/1996 of 20 December 1996 (for property located in Spain), less their accumulated depreciation and such
impairment losses as may exist according to the policy mentioned at the end of this Note.

23

All amounts are in millions of Euros, unless otherwise stated

All land, natural assets and buildings held to obtain income, capital gains or both are considered investment property.
The land, natural assets and buildings held to provide services or for administrative purposes are considered property,
plant and equipment.
Expenses associated with the repair and maintenance of property, plant and equipment and investment properties arecharged to the profit and loss statement for the year in which they are incurred. Conversely, sums invested in
improvements that contribute to increasing the capacity or efficiency or to lengthening the useful life of those assets
are recorded as a higher cost of those assets.
The Company depreciates its property, plant and equipment and investment properties on a straight-line basis,
applying yearly depreciation percentages calculated as a function of the years of estimated useful life of the respective
assets, as indicated below:
Asset Category

Depreciation
Percentage

Buildings

2%

Furniture

10%-33%

Plant

10%-33%

Data processing equipment

20%-33%

Other property, plant and equipment

12%-15%

4.2.1

Impairment of intangible assets, property, plant and equipment and investment property

At the end of each year, the Company conducts an impairment test for the existence of impairment that reduces therecoverable value of these assets to below their carrying amount. Impairment of intangible assets and of property,
plant and equipment and investment property is calculated, in general terms, separately asset by asset. If therecoverable value of each individual asset or right cannot be calculated, the Company determines the recoverable
value of the cash generating unit to which each fixed asset belongs.
In its impairment testing of assets, the Company considers at least the following factors:-

Evidence from internal reports indicating that the economic return on the assets is, or will be, worse than
expected.
Evidence of obsolescence or physical deterioration of an asset.

The recoverable amount is the higher of the asset's fair value less costs to sell and its value in use, with the latter
understood to mean the present value of the expected future cash flows.
In the case of real estate, fair value is the appraised value determined by appraisal companies authorised to appraise
properties. Those appraisals are updated at least biannually. Where the fair value of the property, thus determined, isless than its net carrying value, the loss of value is accounted for by setting aside the relevant provision for
impairment with a charge to profit and loss statement.
The individualised valuation adjustments of the above assets, and their reversal when the circumstances that led tothe adjustments disappear, are taken to the profit and loss statement as an expense or income, respectively. Reversals
are limited to the carrying value at which the fixed asset or the investment property would have been recognised at
the reversal date had no loss of value been recorded.

4.3

Operating leases

Leases are classified as finance leases when their conditions imply substantial transfer to the lessee of the risks andrewards incidental to ownership of the leased asset. Operating leases are those in which the conditions do not imply
substantial transfer to the lessee of the risks and rewards incidental to ownership of the leased asset.

24Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Revenues and costs arising from operating lease agreements are taken to the profit and loss statement in the year they
are accrued. Any payment that may be received or made when contracting an operating lease will be treated as aprepayment and taken to profit and loss statement over the term of the lease, as the rewards of the leased asset aretransferred or received.
In the case of finance leases, the cost of acquiring the leased asset is presented on the balance sheet according to its
nature, increased by the amount of the directly attributable contracts costs, which are recognised as an expense over
the term of the contract, applying the same criterion as used for recognising lease revenues.

4.4

Fair value

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, industry
group, pricing service or regulatory agency and those prices represent actual and regularly occurring market
transactions conducted 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 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 current observable market transactions. This category also includes the financial
investments for which the fair value is based on brokers’ quotes or pricing services. These valuations are for 100% of
the fair value verified by 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 ACyC is the current ask price.
Transaction costs on initial recognition of financial investments are expensed as incurred.
The fair value of financial instruments not traded in an active market is determined using valuation techniques. ACyC
uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting period.
The fair value of own-use property and of investment property is determined by independent real estate appraisers
registered in the relevant countries and with the appropriate qualifications and experience in property valuations.

4.5

Financial instruments

4.5.1

Financial assets

Classification
The financial assets held by the Company have been classified, as at 31 December 2023, into the following categories:-

25

Loans and receivables: financial assets originating in insurance and reinsurance operations, or thosewhich, not having a commercial origin, are not equity instruments or derivatives, with receipts of fixed
or determinable amounts and not traded on an active market. This excludes debt securities and swaps ofcertain or predetermined cash flows that the Company allocates, at the time of initial recognition, to"Available-for-sale financial assets".

All amounts are in millions of Euros, unless otherwise stated--

Holdings in Group companies and associates: Group companies are those with which the Company has acontrolling relationship, while associated companies are those in which the Company exercises
significant influence.
Available-for-sale financial assets: this includes debt securities and equity instruments of othercompanies that have not been classified in any of the above categories.

Initial measurement
The Company recognises financial assets on its balance sheet when it becomes a party to the associated contract orlegal arrangement according to its terms.
Recoveries of claims are only recognised when they are sufficiently certain at the date on which the financial
statements are issued and, therefore, expected to give rise to economic benefits. As regards Spain and Portugal, forrecoveries specific to the credit insurance line, in accordance with article 43 of the Regulations on the Organisationand Supervision of Private Insurance (Reglamento de Ordenación y Supervisión de los Seguros Privados) and Finance
Ministry Order EHA/339/2007 of 16 February 2007 implementing certain specific provisions of private insurance, theCompany capitalises the recoveries, using statistical methods, with the execution of certain requirements andsubmitting the calculations to periodic assessments by independent experts. In this case, the Company calculates theamount of the estimated recoveries using a statistical method specifically developed for this purpose, which studies
the historical evolution of the settlements of all declared losses, including completed claims, and allows their future
behaviour to be predicted, in order to apply them to the actual situation and make reasonable estimates of therecoveries to be obtained with those projections. For the other branches, the estimated recovery is implicit in thecalculation of the technical provisions (see Note 4.8).
The amount of the estimated recoveries of the business in Spain and Portugal, net of the reinsurance share, is recorded
under “Loans and receivables – Other receivables – Rest of receivables” on the accompanying balance sheets (see Note
10).
Purchases and sales of financial assets structured in conventional contracts are recognised on the trade or settlement
date. Contracts that can be settled for cash differences are recorded as a derivative instrument. In particular, foreign
currency transactions are recorded at the settlement date, and financial assets traded in Spanish secondary securities
markets are recognised on their trade date if they are equity instruments and on their settlement date if they are debt
securities.
Financial assets are initially recorded at the fair value of the consideration received plus any transaction costs that are
directly attributable at the acquisition date.
In the case of equity investments in Group companies that entail control of the subsidiaries, the fees paid to legal
advisors and other professionals in relation to the acquisition of the investment are taken directly to the profit and loss
statement. Investments in Group companies, jointly controlled entities and associates are initially recorded at cost.
Loans and receivables are initially recognised al fair value plus transactions costs.
Subsequent measurement
Financial assets classified as "Loans and receivables" are carried at their amortised cost. The interests accrued arerecorded in the profit and loss statement, applying the effective interest rate method.
In particular, with respect to valuation adjustments of premiums pending collection, the Company makes theappropriate allocation with a charge to the profit and loss statement in accordance with the impairment of thereceivables from policyholders. That impairment is calculated at year-end separately for each line of insurance or risk
using the information available on receipts of premiums pending collection at that date.
The general policy followed by the Company is as follows:-26

Premiums of six months or more are provisioned for in full;Premiums of three months or more and less than six months are 50% provisioned for;

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros--

Premiums of less than three months that have not been claimed in court are provisioned for applying the
average percentage of cancelled premiums that were in that situation in the last three years, making thehistorical series as uniform as possible. Where the recorded experience is not sufficient, these premiums
are provisioned for applying a percentage of 25%;
Premiums claimed in court are provisioned for separately according to the circumstances of each case.

For the rest of the items classified as loans and receivables, at least at year-end the necessary impairment adjustments
are made if there is objective evidence that not all sums owed will be received.
Available-for-sale financial assets are carried at their fair value. Such variations as may occur in that fair value will berecorded in equity until the asset is disposed of or becomes impaired (on a stable or permanent basis), at which timethose accumulated results will be taken to the profit and loss statement. In this regard, signs of impairment (of apermanent nature) are considered to exist in equity instruments if there is a 40% decline in the trading price of theasset or if its value enters into a prolonged decline of a year and a half without recovering. In the case of debt
instruments acquired, impairment is deemed to exist if there is a reduction or delay in the estimated future cash flowsthat may be caused by insolvency of the issuer.
Debt securities and swaps of certain or predetermined cash flows assigned to the "available for sale" category, and all
financial assets that are not carried at their fair value, will be tested for impairment by the Company at least at yearend.
Objective evidence of impairment is considered to exist if the recoverable amount of the financial asset is lower thanits carrying amount. The recoverable value is determined by the present value of the future cash flows that are
estimated will be generated by the financial assets being measured discounted at the effective interest rate calculated
at the time of their initial recognition.
Investments in Group companies, jointly controlled entities and associates are stated at their cost, minus, asapplicable, the cumulative amount of valuation adjustments for impairment. Those adjustments are calculated as thedifference between the carrying value of those investments and their recoverable amount, the latter being taken as thehigher of the fair value less costs to sell and the present value of the future cash flows from the investment. Unlessthere is better evidence of the recoverable amount, the equity of the investee is considered, adjusted for the unrealised
capital gains existing at the measurement date (including such goodwill as may exist).
The Company derecognises financial assets when they expire or when the rights to the cash flows of the financial
asset are assigned and the risks and rewards incidental to ownership are substantially transferred, such as in outrightsales of assets, sales of financial assets with an agreement for repurchase at their fair value and securitisations offinancial assets in which the seller neither retains subordinated financing nor gives any type of guarantee nor
assumes any other type of risk.
Conversely, the Company does not derecognise financial assets, and instead recognises a financial liability equal to theconsideration received, in those assignments of financial assets in which it substantially retains the risks and rewards
incidental to ownership, such as discounted bills, sales of financial assets with an agreement to repurchase at a fixedprice or at the selling price plus interest, and securitisations of financial assets in which the seller retains subordinatedfinancing or some other type of guarantee that substantially absorbs all expected losses.
The impact of foreign currency on available-for-sale financial assets is recorded in the profit and loss statement.

4.5.2

Financial liabilities

The financial instruments issued, incurred or acquired are classified as financial liabilities, in full or in part, when they
imply for the Company a contractual obligation to deliver cash or another financial asset, or to exchange financial
assets or liabilities with third parties on conditions that are potentially unfavourable.
Debts and payables that originate in insurance and reinsurance operations, as well as those which, though not of acommercial origin, cannot be considered as derivative financial instruments, are classified as financial liabilities, forpurpose of their measurement, in the category of debts and payables.
Debts and payables are initially stated at the fair value of the consideration received adjusted for any directly
attributable transaction costs.

27

All amounts are in millions of Euros, unless otherwise stated

They are subsequently stated at their amortised cost. The interest accrued is recorded in the profit and loss statement,
applying the effective interest method. Nevertheless, debts that have been initially measured at their nominal value
will continue to be carried at that amount.
Trade payables falling due within one year and that do not have a contract interest rate, and capital calls on
shareholdings in third parties that are expected to be paid in the near term, are recorded at their nominal value, whenthe effect of not discounting cash flows to present value is not significant.

4.6

Transactions in foreign currency

4.6.1

Functional and presentation currency

Items included in the financial statements of the Company are measured using the functional currency of therespective markets in which it operates. For purposes of its financial reporting, the Company's currency is the euro.

4.6.2

Transactions and accounting balances

At the close of the financial year, monetary assets and liabilities held in foreign currencies are converted to euros at
the rate of exchange in effect at the balance sheet date. Exchange gains and losses are expensed when they arise.
Non-monetary assets and liabilities that are measured at fair value and denominated in foreign currency areconverted according to the exchange rates prevailing on the date the fair value was determined. The exchange gains
and losses that arise are taken to equity or to profit and loss for the year applying the same policy as for recording
variations in fair value.

4.6.3

Branches

Where the functional currency of a branch of the Company is a non-euro currency, the differences generated in theconversion of its financial statements to the presentation currency will be recorded directly in equity.
Shown below are the most significant functional currencies for the Company:
Currency

Year end rate

At 31 December 2023

GBP
1.151

AUD
0.615

GBP
1.158

Average rate
AUD
0.605

At 31 December 2022

1.127

0.637

1.156

0.648

Shown below are the assets, earned premiums and the profit before tax of the most significant functional currencies
for the Company:

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Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2023

AssetsEarned premiums

Profit before tax

EUR

3,837,185

1,616,627

332,685

GBP

628,190

158,910

25,525

AUD

147,704

55,545

9,505

Other currencies

1,206,089

401,201

62,116

Total

5,819,168

2,232,283

429,8312022

AssetsEarned premiums

Profit before tax

EUR

2,619,511

1,282,563

188,248

GBP

573,239

156,32133,020AUD

135,274

58,041

13,872Other currencies

1,025,393

383,443

55,319Total

4,353,417

1,880,367

290,460

4.7

Corporate income tax

Corporate income tax cost or income includes both the part relating to the current income tax and the one for deferredtax.
Current income tax is that paid as a result of tax assessments on the profits for the year. Tax relief and other tax
benefits, excluding withholdings and interim payments on account, and tax loss carry forwards applied in the year,
reduce the current income tax liability.
The deferred income tax cost or income reflects the recognition and cancellation of deferred tax assets and liabilities.
These include temporary differences, which are identified as the expected balances payable or recoverable as a resultof differences between the book value and tax value of assets and liabilities, as well as tax losses pending carryforward and credits for tax deductions not applied. These amounts are recorded applying to the temporary differenceor credit in question the tax rate at which they are expected to be collected or settled.
Deferred tax liabilities are recognised for all taxable temporary differences, except those in which the temporary
difference derives from the initial recognition of goodwill or other assets and liabilities in operations that affectneither tax income nor accounting income and which are not a business combination.
Deferred tax assets are only recorded when it is considered likely that the Company will have sufficient future taxable
earnings against which they can be applied.
Deferred tax assets and liabilities arising on operations debited or credited directly to equity accounts will also berecognised in a balancing entry under equity.
Deferred tax assets are reviewed at each balance sheet date and the necessary adjustments are made if there is any
doubt concerning their future recoverability. Deferred tax assets not recognised in the balance sheet are also reviewed
at each balance sheet date and are recognised if their recovery against future tax profits becomes probable.
On 23 July 2015, the Board of Directors of the Company resolved that for tax periods beginning as from 2015, theCompany would pay tax in Spain under the tax consolidation system provided for in articles 55 to 75 of Law 27/2014
on Corporate Income Tax, designating Grupo Catalana Occidente, S.A. as parent company of ACyC.

4.8

Technical provisions y Equalization reserve

As mentioned in Note 2.1, on 1 January 2016 the Royal Decree 1060/2015 of 20 November 2015, which approved theROSSEAR and repealed the previous ROSSP came into force. Nevertheless, as stipulated in Additional Provision Fiveof the ROSSEAR, when calculating technical provisions for accounting purposes, articles 29 to 48 bis of the ROSSP will
apply.
29

All amounts are in millions of Euros, unless otherwise statedTechnical provisions record the amounts of obligations undertaken under insurance contracts in force in order toensure, based on prudent and reasonable considerations, the fulfilment of those obligations.

4.8.1

Provision for unearned premiums and ongoing risks

The provision for unearned premiums is made to time allocate the premiums accrued at year-end and includes thepart of the premium earmarked for fulfilling future obligations not expired at that date.
Commissions and other acquisition costs in respect of the premiums written are expensed according to the same
criterion as used to recognise revenue from the premiums of insurance contracts in force. The part of commissions
and other acquisition costs for the unearned period of insurance policies in force is recorded in “Other assets – Accrual
accounts” under assets on the accompanying balance sheets. At 31 December 2023, the amount of accruedcommissions was EUR 147.0 million (2022: EUR 69.6 million).
The provision for unexpired risks complements the provision for unearned premiums to the extent that the amount of
this provision is not sufficient to reflect the measurement of all risks and expenses to be covered in relation to thecoverage period not closed at year-end. It is calculated as provided in the current ROSSP. At 31 December 2023 and2022, the result of the calculation indicated the provision was not required.
In compliance with the resolution issued by the DGSFP in reply to a query submitted by the Company on 18 December
2015, the Company made an adjustment for uniform treatment of the insurance operations originating from theformer Atradius Credit Insurance S.A. (ACI), allocating to the provision for unearned premiums the part of thepremium in respect of outstanding operations that was included as provision for claims incurred but not yet reported
in ACI's books.

4.8.2

Claims provisionThis records the total amount of outstanding obligations in respect of claims incurred prior to the balance sheet date.
The Company calculates this provision as the difference between the estimated or certain total cost of claims not yetreported or pending settlement or payment and aggregate sums already paid in respect of those claims.
Claims not yet settled or paid and claims not yet reported
For claims pending to be settled that were declared at year-end, the amount of this provision is calculated on the basisof an individual analysis of each file, based on the best information available at year-end, using the claim data for
individual cases notified to the AC&C and statistical analysis for claims that have occurred but have not been declared.
This includes external expenses inherent to the claims settlement, interest on late payments and legally establishedpenalties, where applicable. In addition, estimates of expected losses are made based on historical claims experience,
estimates of future payments versus estimates and other known trends and developments.
The risks associated with credit insurance and surety are subject to a number of influences that are not particularly
open to quantitative sensitivity analysis. This section describes the quantitative sensitivity analysis that is feasible.
Under normal circumstances, the most important assumption used in the main methods for reserving for traditional
credit insurance to set the estimate for the ultimate number of claims for the most recent months of risk would be thatthe claims inflow in early 2024 would be around 20% above the level of end 2023. The main methodologies for
estimating claims provisions for traditional credit insurance combined underpin 71% (2022: 65%) of the claims
provisions for traditional credit insurance.
In light of the increased uncertainty as a result of the current circumstances, we have taken a similar approach for2023 closing as we did for 2022 closing. During the second half of 2020, the number of reported claims dropped
significantly compared to the first half of the year. This partly relates to a drop of insured business as result of thelock-downs in early 2020 and, partially, because of government’s support for the economy. Despite of the increasing
trend in claim entry during second half of 2022 and 2023, the total number of claims registrations during 2023 is still4 – 24% lower than the claims reported during the first half of 2020, depending on the country (overall, 14% lower).
The 2023 provisions have been set based on the assumption that this reduction is still temporary and that a further
strong increase in claims registrations is still expected going forward. The estimated ultimate claim count for mostrecent month of risk has been set at the level of the first half of 2020 plus 15 – 40% depending on the country due touncertainty in the current economic environment (overall, 22%).
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Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

An indication of the sensitivity to projected ultimate number of claims would be the following: if the estimatedultimate number of claims, inclusive of the expected increase mentioned in the previous paragraph, for the mostrecent six months of risk were to change by 10%, the claims provisions would change by EUR 42 million, gross ofreinsurance (2022: EUR 37 million). As in essence provisions for most recent months are set as estimated number
times estimated claims size, this also describes the sensitivity to assumed claims size. This sensitivity isapproximately linear. Unless noted otherwise, the same holds true for other sensitivities mentioned in this section.

Under normal circumstances, for modelling attritional losses, the uncertainty in severity quickly becomes lessimportant compared to the uncertainty in frequency, as the portfolio becomes larger. This feature is not specific tocredit insurance, but holds for any insurance product, provided the portfolio is large enough, and correlation between
count and severity is small enough. It is our experience that average claim sizes, for the attritional losses, aresufficiently stable over time to not have significant margins of uncertainty in the parameters governing the size of
attritional claims that have not yet been reported.
Whilst recent trends in severity have been duly considered as part of the process by which Atradius reviews and sets
parameters and prudent choices have been made, we still consider there to be more uncertainty than in recent history,
as result of the unprecedented circumstances.
To indicate an overall level of sensitivity with respect to the parameters driving the average size for claims not yet
registered, if this average would be increase by 10%, claims provisions for attritional losses would increase by EUR 38
million (2022: 34 million).
By its nature, an estimate of the expected inflow of large cases is not easy to quantify. The order of magnitude of thissensitivity would be, in the judgement of management, similar to the sensitivity in the estimated number of claims forthe most recent months, although, as is inevitable with severity risk, it has a longer tail. From historic data it can beseen that the correlation between the ultimate aggregate losses arising from large claims by underwriting year andthe attritional losses is larger than 80%.
As such, supporting the plausibility of the management judgement, provisions for large cases are in part based on
historic experience with large cases and in part on case by case reporting of ultimate loss estimates. The approach that
relies on historic experience sets an ultimate loss arising from large cases as a fraction of the total losses for the last
two risk years. Despite the historically high correlation between large and attritional losses, current low claims entry
implies estimated attritional losses for recent underwriting years to be well below prior years. These exceptional
circumstances, accompanied with the current level of uncertainty and experience from prior financial crisis (20082009, which showed a higher proportion of large losses over total losses) leads to setting a ratio aligned to the historic
one observed in prior financial crisis. The selected ratio implies estimated ultimate large loss amounts (as opposed to
the ratio with attritional losses) to be in the range of those observed under normal circumstances, like underwriting
years 2012 to 2019. If these fractions were chosen 10% higher, then the claims provisions for traditional credit
insurance would increase by EUR 94 million (2022: 75 million). The case by case estimates are specific to theindividual facts and circumstances of the case. As such, no meaningful overall insight to the sensitivity can be given.
In addition to contributions from standard components of Atradius reserving methodologies, an Event Based
Provision is estimated, due to the impact of the conflict between Russia and Ukraine. This is for those risks considered
to be not fully covered by the standard methodologies. This is based on a case-by-case review of the exposures related
to the Russia-Ukraine conflict and the outstanding related to sanctioned parties involved in the impacted policies.
Management has considered two main drivers of risks to be covered by the Event Based Provision:a)Real Outstanding Exposure (ROE) related to traditional credit insurance business from customers trading out
of Russia and for Russian/Ukrainian buyers. This excludes exposure already notified as claims, as thestandard methodology already caters for this. It also excludes exposure for which a notification of nonpayment was registered. This is treated as a separate category:b) Notifications of Non-Payments related to business from customers out of Russia but affected by the conflict
between Russia and Ukraine.
As a result of the analysis update, a EUR 122m provision gross of reinsurance (EUR 92m net of reinsurance) has been
added. (2022: EUR 140m, and EUR 98m net of reinsurance).

31

All amounts are in millions of Euros, unless otherwise stated

Claims provisions are presented net of recoveries from salvage and subrogation. Realised recoveries can deviate fromexpected recoveries. Expected recoveries amount to EUR 400 million (2022: EUR 364 million). The largest twocomponents of the expected recoveries are the recoveries for traditional credit insurance of EUR 178 million (2022:
EUR 160 million) and for instalment credit protection of EUR 134 million (2022: EUR 132 million).
As recovery rates differ by country as well as product, moreover, that the development depends on the age of theunderwriting year, it is challenging to provide insight into sensitivity to assumptions by measuring the impact of amere parameter change. For traditional credit insurance, ultimate recoveries are first estimated using commonly usedprojection methods. These estimates are then reduced considering a margin for uncertainty, such that a favourable
development on these estimates is by far the most likely outcome. Nevertheless, the impact of setting the recovery
provisions lower by 10% is EUR 18 million (2022: EUR 16 million). For instalment credit protection, for which similar
margins for uncertainty are introduced, the impact of setting recovery provisions lower by 10% is EUR 13 million(2022: EUR 13 million).
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 Note 2.3.
The insurance liabilities that cover claims experience after the reporting period for risks that have been accepted
before the end of the reporting period consist of two elements: the provision for unearned premium (UPR) and theprovisions for claims ‘incurred but not reported’, the IBNR. The accounting policies and estimation methods for setting
UPR and IBNR vary by product and in part also by entity within Atradius:- For traditional credit insurance, premium is earned in full when the underlying shipment takes place. UPR
exclusively relates to the unearned part of premium invoiced in advance and to risks that have not started.
IBNR is Atradius’ estimate for future claims payments that will result from risks taken on, but for which noclaims notification has been received;- For the local credit insurance business in Spain and Portugal, premium is earned pro rata over the period
between invoice date and due date of invoices for the insured shipments. Thus, part of UPR relates to risks
that have started, in the sense that the underlying insured shipment has taken place. IBNR is the local
business in Spain and Portugal’s estimate for future claims payments that will result from risks taken on, forwhich no claims notification has been received and for which the underlying invoices are overdue at the endof the reporting period;- For surety, instalment credit protection and reinsurance, the UPR relates to risk taken on; and- For special products, UPR is set on the same basis as for traditional credit insurance. With the exception of
single transactions, where the UPR relates to risk taken on.
As a consequence, the release of the provision for unearned premium should be taken into account for the local credit
insurance business in Spain and Portugal, surety, instalment credit protection and reinsurance to evaluate theaccuracy with which Atradius has historically estimated future claims payments.
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 cover of the policy (i.e., theperiod in which the insured shipment has taken place). Large cases are provisioned separately, at expected loss.

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Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

In the case of traditional credit insurance, the main sources of uncertainty for estimates of future claims payments
include the same as the ones contained in Note 2.3. 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., thetime between issuance of the bond and receipt of the bond call tends to be much longer than that of traditional shortterm credit insurance. For example, most credit insurance covers credit periods up to 180 days, while around half thenumber of bonds written has tenors of over two and a half years. After receipt of a bond call, it usually takes longer tosettle 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-case basis are based on the amount called minus an amount to account for
expected recoveries based on historic experience or case specific information. For imminent large bond calls as well
as for large customers in financial difficulties, the Company sets a claim provision. The case by case and businessoriented evaluation is integrated with a statistical and actuarial model. This model based on the exposure of active
bonds applies probability of defaults and loss given default. Booked recovery provisions for surety are periodicallyreviewed and adjusted to experience. All reinsurance business assumed is reviewed regularly in detail for past
underwriting years performance, triangulation development, individual buyer exposure development and aggregate
total potential exposure management, market and country exposure.
Internal claims settlement expenses
The claims provision includes an estimated amount for internal management and claims handling expenses.

4.8.3

Provisions for profit-sharing and return premiums

These provisions include the profits accrued and not yet allocated to policyholders or beneficiaries, as well as theestimated amount of premiums to be returned to policyholders based on the recorded behaviour of the insured risks.
They are calculated according to the relevant clauses of the contracts in force at year-end.

4.8.4

Equalization reserve

Unlike the above reserves, this is a restricted reserve recorded in the Company's equity. It is cumulative and must be
set aside for the credit and surety insurance lines out of the profits recorded each year (see Note 3).
By law, in credit insurance the allocation to this reserve can be no less than 75% of the positive technical result of theinsurance line and must be made until it reaches 134% of the average of the self-retention premiums accrued in thelast five years. In surety insurance, the minimum allocation is 2% of the commercial premium. The reserve may only
be used to offset deviations in the self-retention claims rate (see Note 17.6). For the surety line the allocations are madeuntil the reserve stands at 35% of the self-retention risk premiums.

4.8.5

Reinsurance share on technical provisions

These are calculated according to the conditions of the reinsurance contracts in force at year-end. ACyC transfers asignificant portion of its insurance risk to external reinsurers through a number of reinsurance arrangements that
include quota share and excess of loss treaties covering both the entire portfolio of ACyC and the quota sharearrangements relating to specific risks. The reinsurance treaties are usually renewed annually one year in advance,
normally in December of the previous year. During 2023, Atradius decided to renew its reinsurance arrangements for2024. This trend will continue with the renewal of the reinsurance arrangements for 2025 in early 2024. 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 the underlying business,
economic developments etc. In addition, the proposed structure is considered in the context of the Solvency II capitalrequirements and Atradius’ risk appetite.
For the 2023 underwriting year, one quota share reinsurance treaty was in place covering the major part of ACyC's
business. The retention under this treaty is 63% (2022: 63%).

33

All amounts are in millions of Euros, unless otherwise stated

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 business 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 businessof Atradius. The top of the excess of loss layers is chosen so that, in the judgement of management, there remains only
a very 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 underthe quota share treaties and excess of loss structure for any buyer group does not exceed EUR 26.25 million for ACyC.
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 that then security can be requested and if not provided thereinsurance agreement with that reinsurer can be terminated.
Government Agreements
In view of the situation generated by the COVID-19 pandemic and, as a support to the national economy, the 10 main
countries where the Group operates have supported the business of credit insurance in the form of specificgovernment reinsurance schemes with high cession rates.
The government schemes were part of an overall package of measures and aimed to ensure that sufficient liquidity
was available in the market, to counteract the damage inflicted on companies affected by the outbreak and to preserve
the continuity of economic activity during and after the outbreak. In particular, they aimed to ensure that trade credit
insurance services continued to be available to businesses.
In 2020 Atradius entered into agreements with the governments of France, Germany, Denmark, Norway, Belgium,
Luxemburg, the Netherlands, United Kingdom, Italy and Spain. All these agreements were renewed until the firstsemester of 2021, except for France where the covered period was extended to 31 December 2022. In general terms,
all government schemes covered Credit Insurance with domestic policyholders related to all the buyers. In Europe, allagreements were approved by their correspondent regulators. These government reinsurance agreements are applied
before the private reinsurance with the exception of Spain where the agreement provided an additional cession to theprivate cession). All government schemes are risk attaching, the cession rates are different per country.
Reinsurance Result decreased by EUR 32.3 million. The result from government schemes in comparison with previous
year is significantly lower (EUR -16.7 million at DEC 2023 vs EUR -39.5 million at DEC 2022). During 2023, Spain andUnited Kingdom have proceeded to commute their respective Government Schemes, with the remaining treaties stillin force.

4.9

Provisions and contingencies

In preparing the financial statements, the Directors of the Company distinguish between:--

Provisions: credit balances covering current obligations arising as a result of past events the cancellation ofwhich will probably result in a future outflow of funds but whose amount and/or cancellation date areuncertain;
Contingent liabilities: possible obligations arising as a result of past events, whose materialisation is dependent
on the occurrence, or otherwise, of one or more future events falling outside the Company’s control.

The financial statements present all provisions for which it is more likely than not that the obligation will have to be
met.
The value of these provisions is measured using the best possible estimate of the amount necessary to cancel ortransfer the obligation, taking into consideration the information available on the event and its consequences,
recording the adjustments made from updating said provisions as financial costs as they accrue.

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Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Provisions for restructurings, onerous contracts and litigation are recognised when ACyC has a present legal orconstructive obligation as a result of past events and that an adverse result is highly likely to imply a loss for theCompany on its settlement and that such loss is reasonably quantifiable.
Restructuring provisions include employees’ termination payments which are directly related to workforce
restructuring plans. No provisions are recognised for future losses. Where there is a number of similar obligations, thelikelihood that an outflow will be required is determined by considering the different classes of obligations as a whole.
Where the effect of the time value of money is material, the provision is measured as the present value of the expected
expenditure, discounted using a pre-tax discount rate.
Contingent liabilities are not recognised in the financial statements but are disclosed in the Notes thereto insofar as
they are not considered remote.

4.10

Indemnities for termination

In accordance with current legislation, the Company is required to make severance payments to employees whose
contracts of employment are terminated in certain circumstances. Therefore, the indemnities for termination that canbe reasonably quantified are recorded as a cost in the financial year in which the decision to terminate the contract istaken and a valid expectation regarding termination is created for third parties.

4.11

Pension commitments

4.11.1 Defined benefit pension commitments
A defined benefit plan is a pension plan that defines the amount of the pension that an employee will receive on
retirement, dependent on one or more factors such as age, length of service and salary. In a defined benefit plan the
Company may pay contributions into a separate entity or pension fund. ACyC and, in some cases, the employees who
participate in funding a defined benefit plan have the legal or constructive obligation to make further contributions if
the fund does not have sufficient assets to pay the benefits due to all employees for the rights acquired in the current
or prior periods.
The amount recognised as a defined benefit pension liability is the present value of the obligation at the end of thereporting period, less the fair value at that date of the plan assets (if any) out of which the obligations are to be settled.
The recognition of assets that arise by over-funding of the defined benefit plan is limited to the ability to using thesurplus to generate future benefits (the asset ceiling). The defined benefit obligation is calculated annually byindependent actuaries using the projected unit credit method. The present value of the benefit is determined bydiscounting the estimated future cash outflows using interest rates on high-quality corporate bonds that are
denominated in the currency in which the benefits will be paid and that have terms to maturity that approximate theterms of the related pension liabilities.
The present value of the defined benefit, which includes actuarial gains and losses, the return on the plan assets (notincluding 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 revenue and expenses recognised in equity. ACyC determines
the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discountrate used to measure the defined benefit obligation defined at the beginning of the annual period, taking into accountany changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit
payments. Net interest expense and other expenses related to defined benefit plans are recognised in the profit andloss statement.
The non-recognition of assets (‘asset ceiling’) can occur when the plan assets are higher than the projected benefits
and ACyC cannot recover any surplus due to solvency and/or control requirements.
When the conditions of a plan are changed or the obligations of a plan are discharged, the resulting impact on benefits
related to past services or the gain or loss from that change is recognised immediately in the profit and loss statement.
If the changes to the pension plan are conditional on the employees remaining in service for a specified period of time(the vesting period), the related past service costs are amortised on a straight-line basis over the vesting period. ACyC
recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Expenses for defined benefit pension commitments are classified as follows:35

All amounts are in millions of Euros, unless otherwise stated-Service expense (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);
Administration costs;
Net interest expense or income;Remeasurement.

The first two components of defined benefit pension commitments are presented in the profit and loss statement
under net administration costs. The net interest is presented under finance expenses. Curtailment gains and losses areaccounted for as past service costs. Remeasurements are recognised in other income and expenses recognised inequity. The characteristics of those commitments are described in Note 14.1.
Defined benefit pension commitments in Spain
According to article 6L of the General Spanish National Collective Bargaining Agreement (CBA) for Insurers,
Reinsurers and Occupational Accident Mutual Societies, on reaching retirement age an employee may elect to retire or
retirement may be decided by the employer, with a lifelong economic compensation, in both cases, payable by theemployer and consisting of the difference between the pension received by the employee from the Social Security
General System and the percentages set out in the CBA. These commitments do not apply to personnel hired as from 9
June 1986 from companies not included in the scope of the sector CBA.
The CBA also includes coverage for the contingencies of death or disability of employees during their employment.
At the end of 1986, Crédito y Caución set up an alternative employee retirement plan to the above system, expanding
the commitments under the CBA, which were externalised in insurance policies.
During 2005, the Company adapted its commitments to the terms of Additional Provision Fifteen of Law 44/2002 of
22 November 2002 on Measures for Reform of the Financial System, by contracting insurance policies with theinsurers Seguros Catalana Occidente S.A. de Seguros y Reaseguros and Axa Aurora Vida S.A.
In the case of insurance policies contracted with non-related entities, the assets earmarked to meet thesecommitments, “plan assets”, are not owned by the Company but by a legally independent entity and can only be used
to pay or fund the employee contributions. They can only be returned to the Company if the plan assets are sufficient
to discharge all of the obligations.

4.11.2 Defined contribution pension commitments
Defined contribution plans are post-employment benefit plans under which ACyC pays fixed contributions into aseparate entity (a fund) and has no legal or constructive obligation to pay further contributions if the fund assets are
not sufficient to pay all employee benefits relating to employee service in the current and prior periods.
For defined contribution plans, ACyC pays contributions to publicly or privately administered pension plans on a
mandatory, contractual or voluntary basis. ACyC has no further payment obligations once the contributions have been
paid. The contributions are recognised as employee benefit expenses when they fall due. Prepaid contributions arerecognised as an asset to the extent that a cash refund or a reduction in the future payments is possible. The
contributions to these plans are recognised as expenses in the profit and loss statement. The characteristics of thosecommitments are described in Note 14.1.
Defined contribution pension commitments in Spain
In 2007, the Company set up a complementary employee benefit system in the form of a company social security planthat provides benefits for retired employees and for those who suffer full and permanent disability that incapacitates
them to perform their regular job or absolute permanent disability for all types of work, major disabilities and death.
The Company has adapted the related insurance contracts to Royal Decree 1588/1999 of 15 October 1999 that approved
the regulations on formal arrangements for company pension commitments.
In 2017, a new social security system was approved with the aim of promoting an appropriate employment policy forthe sector. It has been implemented through a defined contribution group life insurance policy suitable forexternalisation of the pension commitments. This system applies automatically to staff hired as from 1 January 2017
and to the previously hired employees who were given the option of keeping the retirement economic incentive staff
regulated in the previous CBA or of enrolling in this new plan.
36

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

4.11.3 Special retirement plan
During 2015 the Company prepared a special retirement plan for a group of employees who meet a series ofrequirements of seniority and years of paid affiliation to the Social Security system.
The “Non-technical provisions – provision for pensions and similar obligations” on the balance sheet at 31 December
2023 includes EUR 1.7 million to fund the commitments with those employees (2022: EUR 1.7 million).

4.12

Related party transactions

The Company´s transactions with related parties are all done at market prices. In addition, the transfer prices are fully
supported and the Company’s Directors therefore do not consider that there is any significant risk in this regard that
could produce a liability in the future.

4.13

Income and expenses

According to the PCEA, income and expenses are generally recognised on an accrual basis, that is, when the actual
transfer of goods and services occurs, irrespective of the timing of the related financial or monetary flow. Revenues
are stated at the fair value of the consideration received, less discounts and taxes.
Premium income is recorded on the dates the related invoices are issued for the estimated provisional premium(credit insurance) or final premium (surety). This provisional premium is later adjusted to match the actual sales
insured. At 31 December 2023, EUR 330.8 million was recorded in “Other assets – Accrual accounts” for premiums
accrued and not issued net of commissions and reinsurance (2022:EUR 165.2 million).
That line item also includes deferred expenses of EUR 13.7 million (2022: EUR 16.3 million).
The reclassification of expenses by nature to expenses by use is done applying objective criteria to the various
existing parameters, namely: volume of transactions, number of employees and investments used in the businessprocess, etc., as described in Note 2.5.
Premiums accrued and not issued
Premiums accrued and not issued refer to insured sales made by ACyC customers in which ACyC covers the risk
insured by the policy, but which have not yet been issued. Premiums accrued and not issued are defined as the part ofthe insurance premium that has been accrued but not yet issued at the end of the reporting period. Although thecalculation of premiums accrued and not issued stems from the underwriting operations and is made at the policy
level on a parametrised basis, the Company considers all specific elements of analysis that can have an impact on thecalculation. Premiums for covered risks depend on the amount of business insured during the period of reference,
when not all of the business has been reported at the end of that period. A second element to consider is that for thepolicies the final premium will depend on the claims rate of the policy. Given that the result attributable to the policy is
not fully known at the analysis date, part of the final amount of the premium accrued but not yet due reflects
estimates. The assumptions employed in making those estimates are based on the most recent trends of the insured
business, specific information on the customers, information on pending claims and, where relevant, macroeconomic
information. It is that changing macroeconomic information, within the context of an unprecedented pandemic, which
requires quantification of the additional uncertainty with respect to the normal process followed to estimate
premiums accrued and not issued, in order to ensure that the possible future behaviour of that parameter does nothave a negative effect on the financial statements in the coming years. The positive historical evolution of this process
indicates that any potential deviation in insured sales not reported during a pandemic without precedent and in an
uncertain economic environment would be covered without having a significant impact on premium revenue. The
Company nonetheless conducts a detailed analysis of the different components included in the automated calculationsof the modelled premium, making adjustments to those which the Company considers could prove more uncertain in
the current environment of low claims rates (given its impact on the bonus component of the accrued premium
pending issuance) or the deviations in the estimates of insured sales (reconciliation invoices).

37All amounts are in millions of Euros, unless otherwise stated

For third party business, premium estimates and reserves are set on a reinsurance contract to contract basis by theCompany actuary in consultation with the reinsurance underwriter. The underwriters estimate the premium income,ultimate loss ratios and ultimate commission and brokerage costs. These values are then applied to an actuarial risk
earnings model incorporating standard actuarial statistical techniques to evaluate the appropriate earned income,reserves setting and costs basis for each reinsurance contract. The performance of each reinsurance contract isregularly reviewed for past underwriting years performance and development and triangulation development toensure reserves for that reinsurance contract are maintained or adjusted as appropriate.
Regarding to the reinsurance business after the merger with ARE, for third party business, premium estimates andreserves are set on a reinsurance contract to contract basis by the Company actuary in consultation with thereinsurance underwriter. The underwriters estimate the premium income, ultimate loss ratios and ultimate
commission and brokerage costs. These values are then applied to an actuarial risk earnings model incorporating
standard actuarial statistical techniques to evaluate the appropriate earned income, reserves setting and costs basis
for each reinsurance contract. The performance of each reinsurance contract is regularly reviewed for past
underwriting years performance and development and triangulation development to ensure reserves for thatreinsurance contract are maintained or adjusted as appropriate” Premium estimates and related earned premium arealso reviewed by reference to reports from third party companies to determine whether any premium adjustments arenecessary.

4.14

Cash and cash equivalents

This balance sheet line includes cash, composed by cash on hand and deposits held on call with banks, as well as cash
equivalents. Cash equivalents correspond to other short-term highly liquid investments with original maturities ofthree months or less that are subject to an insignificant risk of changes in their fair value.

38Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

5Intangible assets

The breakdown and movements of this balance sheet heading in 2023 and 2022 are as follows:

2023
Goodwill

Computerapplications

Portfolioacquisition

Total

45,803342,358

17,120405,281

Effect of merger with ARE (Note 1)

-

14

-

14

Additions-

14,672-

14,672Retirements-(5,459)(1,533)(6,992)

Balances at cost at 1 January

Effect of changes in foreign exchange rates

(5)

2,576

(30)

2,541

Balances at cost at 31 December

45,798354,161

15,557415,516

Accumulated amortisation and impairment at 1 January(32,090)(250,086)(17,120)(299,296)

Allocations with a charge to the profit and loss statement(4,585)(5,879)-(10,464)

Retirements

-

1,860

1,533

3,393

Impairment-(27,119)-(27,119)

Effect of changes in foreign exchange rates
Accumulated amortisation and impairment at 31 December(36,675)(2,042)(283,280)30(15,557)(2,012)(335,512)

Balances at 1 January

13,71392,272-

105,985

Balances at 31 December

9,123

70,881-80,004

Goodwill

Computerapplications

Portfolioacquisition

Total

2022

Balances at cost at 1 January

45,826326,102

17,049388,977

Additions-

23,263-23,263Retirements

-

(119)

-

(119)

Effect of changes in foreign exchange rates(23)(6,874)71(6,826)

Balances at cost at 31 December

45,803342,372

17,120405,295

Accumulated amortisation and impairment at 1 January(27,507)(246,949)(17,049)(291,505)

Allocations with a charge to the profit and loss statement(4,583)(8,324)-(12,907)

Retirements

-

84

-

84

Impairment

-

(435)

-

(435)

Effect of changes in foreign exchange rates
Accumulated amortisation and impairment at 31 December(32,090)

5,524(250,100)(71)(17,120)

5,453(299,310)

Balances at 1 January

18,31979,153-

97,471

Balances at 31 December

13,71392,272-

105,985

Goodwill
If applicable, impairment of goodwill is recognised as a separate item on the profit and loss statement. ACyC assessed
the possible impairment of its goodwill. No impairment was recognised in 2023, just as in 2022.

39

All amounts are in millions of Euros, unless otherwise stated

The goodwill allocated to the main cash generating units (CGU) or groups of units is shown below:

Cash Generating Units

2023

2022

ACyC branch France

1,797

2,700

ACyC branches in Nordic countries

484

736

ACyC branch Germany

6,194

9,304

ACyC branch Switzerland

648

973

Total

9,123

13,713(1) The goodwill of the Nordic countries unit includes the surety business in Denmark, Norway, Sweden and Finland.

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. Long term projections are applied to ensure coverthrough-the-economic cycle performance. The projection period is 10 years towards, 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 higher
Goodwill (ACyC Germany and ACyC France), the discount rate applied is between 6.7% and 8.9% and the growth rate is
between 1% and 2%, 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% for CGUs excluding ACyC and a 3% forassociated companies (2022: 2%-3%) 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).
The sums seen for the CGUs in France, Germany and Switzerland were due to restructurings via mergers of theGroup's credit insurance companies. The Nordic CGU refers to the surety line. Both restructurings were carried out in2005 via an aggregation of businesses of the former ACI. The changes generated during 2023 are mainly due toamortisation of goodwill (see Note 4.1.1).
The business plans of the CGUs are consisted with the expected claims rates and are approved by the Executive
Committee.
In the sensitivity analysis of the following assumptions, the market value of the CGUs would be impacted in thefollowing percentages (other CGUs are not included because they are not material):40

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Cash Generating Units

Discounte rate

Growth rate

2023

+50pb

-50pb

+50pb

-50pb

Combined ratio+50pb -50pb

Solvency
Ratio(1)+1,000bp-1000bp

ACyC branch France(7.8%)

9.5%

6.0%(4.9%)(3.3%)

3.3%(0.8%)

0.8%

ACyC branches in Nordic countries(8.2%)

10.0%

6.4%

(5.3%)(2.4%)

2.4%(2.5%)

2.5%

ACyC branch Germany(7.6%)

9.6%

6.5%(5.1%)(3.8%)

3.8%(3.2%)

3.2%

ACyC branch Switzerland(7.4%)

9.7%

6.8%(5.2%)(3.7%)

3.7%(5.5%)

5.5%

Cash Generating Units

Discounte rate

Growth rate

2022

+50bp

-50bp

+50bp

-50bp

+50bp -50bp+1,000bp-1000bp

ACyC branch France(10.3%)

13.2%

9.2%

(7.2%)(3.6%)

3.6%(0.7%)

0.7%

ACyC branches in Nordic countries(12.1%)

16.1%

11.9%

(8.9%)(4.3%)

4.3%(4.6%)

4.6%

ACyC branch Germany(8.0%)

10.5%

7.3%

(5.6%)(5.2%)

5.2%(5.0%)

5.0%

ACyC branch Switzerland(8.9%)

12.1%

8.7%

(6.4%)(3.6%)

3.6%(3.5%)

3.5%

1)

Combined ratio

Solvency
Ratio(1)For the same required capital.

None of the previously mentioned sensitivity analyses would imply a book value of the CGUs greater than theirrecoverable value.
Computer applications
ACyC assessed all capitalised software to determine if the criteria for capitalisation are being met (see Note 4.1.2
Aplicaciones informáticas). Based on that assessment, ACyC decided to recognise an impairment loss of EUR 27.1
million in its in-house software (2022: EUR 0.4 million) mainly relating to the need to redesign some of the solutionsin its transformation programmes, including data models, user needs, use of shared components, new functionalities
and multichannel/omnichannel integrations to deliver a better customer experience. In addition, during 2023, ACyC
capitalised EUR 14.2 million primarily in respect of the Atradius Business Transformation project (ABT) (2022: EUR 20
million).
The amount recorded for computer applications in branches outside Spain totalled EUR 72.8 million (2022: EUR 91.1
million).
At 31 December 2023 and 2022 there were no fully amortised intangible assets still in use. The whole of the intangible
assets that were fully amortised by year-end 2023 have been derecognised on the balance sheet in the amount of EUR
1.9 thousand (2022: EUR 84 thousand).

41

All amounts are in millions of Euros, unless otherwise stated

6

Property, plant and equipment and investment property

The breakdown and movements of this balance sheet heading in 2023 and 2022 are as follows:

2023

Balances at cost at 1 January

Land andbuildings

66,781

Furnitureand fixtures

Data
processing
equipment

Total

47,93045,547160,259

Additions

-

7,650

6,303

13,953Retirements-(5,762)(3,780)(9,542)

Effect of changes in foreign exchange rates

3

266

324

593

Balances at cost at 31 December

66,78450,16848,477

165,430

Accumulated depreciation and impairment at 1 January(19,750)(33,591)(38,007)(91,348)(769)(3,025)(4,019)(7,813)Retirements

-

4,942

3,488

8,430

Effect of changes in foreign exchange rates

Charge to the profit and loss statement

-

(181)

(291)

(472)

Accumulated depreciation and impairment at 31
December(20,519)(31,906)(38,867)(91,292)

Balances at 1 January
Balances at 31 December

47,031
46,265

14,28818,262

7,502
9,610

68,822
74,138

Furnitureand fixtures

Data
processing
equipment

62,491

56,18647,390166,067

-

1,572

4,320

5,892

(1,162)(3,570)(5,063)(9,795)-(806)(1,100)(1,906)

Balances at cost at 31 December

66,78147,93045,547160,259

Accumulated depreciation and impairment at 1 January(19,685)(34,311)(38,087)(92,083)

Charge to the profit and loss statement(826)(2,814)(5,095)(8,735)Retirements

761

2,958

4,208

7,927

-

-

-

-

Effect of changes in foreign exchange rates
Accumulated depreciation and impairment at 31
December(19,750)525(33,642)929(38,045)1,454(91,437)

Balances at 1 January
Balances at 31 December

42,80647,031

21,875
14,288

9,303
7,502

73,984
68,822

2022

Balances at cost at 1 January
Additions
Retirements
Effect of changes in foreign exchange rates

Reversal of impairment losses

Land andbuildings

At 31 December 2023, a total of EUR 0 miles (2022: EUR 0 miles) of impairment adjustments were reversed.

42

Total

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

At year-end 2023 and 2022, none of the fully depreciated property, plant and equipment remained in use. The wholeof these assets that were fully depreciated by year-end 2023 have been derecognised on the balance sheet in theamount of EUR 8.4 millones (2022: EUR 7.9 millones).
At 31 December 2023, the value allocated to the real estate awarded to the Company in foreclosures in and out of court
by the debtors of its insureds was EUR 1.3 million (2022: EUR 1.2 million). The Company maintains proper nonaccounting control of those property assets.
Shown below is a breakdown of the land and buildings recorded in the preceding table at 31 December 2023 and 2022:
At 31 December 2023

Property, Plant and Equipment

Carrying
Value (Gross)

Accumulated
Depreciation

Accumulated
Valuation
Adjustments

55,689(16,270)

(218)

Total

39,201

Investment Property

11,092(3,961)

(70)

7,061

Total

66,781(20,231)(288)

46,262

55,689(15,604)(245)

39,840At 31 December 2022
Property, Plant and Equipment
Investment Property

11,092(3,808)

(93)

7,191

Total

66,781(19,412)(338)

47,031Shown below is the separate gross value of the buildings and land owned by the Company at year-end 2023 and 2022:
At 31 December 2023

Land

Property, Plant
and Equipment

22,512

Investment
Property

Total

1,206

23,718

Buildings

33,1779,886

43,063Total
At 31 December 2022

55,689

11,092

66,781

Land

22,512

1,206

23,718

Buildings

33,1779,886

43,063

Total

55,689

11,092

66,781

The attached Annex gives a breakdown of the land and buildings owned by the Company at 31 December 2023 withthe following information for each asset: classification as own-use property, plant and equipment or as investment
property (rented or for sale), gross book value, accumulated depreciation, accumulated valuation adjustments,
location, appraised value and appraisal date. Land has an unlimited useful life and is therefore not depreciated.
The Company has several insurance policies with GCO to cover the risks to which its properties in Spain and Portugal
are exposed. The coverage afforded by those policies is considered sufficient.
The investment properties held by the Company at 31 December 2023 are rented out, mainly for offices andcommercial activities. In 2023, the rent revenue from the investment properties owned by the Company amounted to
EUR 1 million (2022: EUR 0.5 million), which is recorded under “Income from property, plant and equipment and frominvestments – Income from investment property” on the attached non-life insurance technical account for the year.
The Company held the following investment properties other than land and buildings located outside of Spain at yearend 2023 and 2022:

43

All amounts are in millions of Euros, unless otherwise stated2023
Carrying Value
Accumulated(Gross)Depreciation

2022
Carrying Value
Accumulated(Gross)Depreciation

Furniture and Fixtures

45,000(32,255)

42,998(32,586)

Data processing equipment

39,767(35,748)

42,748(36,519)

Total

84,767(68,003)85,746(69,105)

7

LeasesThe non-cancellable operating lease commitments are shown below:
2023

2022

Less than 1 year

17,351

19,840Between 1 and 5 years

44,32849,913More than 5 years

20,483

33,639Total

82,162

103,392

ACyC leases office equipment and office space under a number of operating lease agreements. The lease agreements
have remaining terms of between 1 and 20 years. Leasing of office space accounts for around 93.0% (2022: 93.0%) of
the expected total future payments.
The Company is lessee in leases with third parties that during 2023 generated a cost of EUR 24.2 million (2022: EUR
23.8 million).
At 31 December 2023, the Company was lessor in leases with third parties of part of its investment properties.
The leased property assets are listed in the attached Annex and, as explained in Note 6, most of those properties areused for the commercial offices of the Company's network of agents. Lease revenue is detailed in Note 6. All of theleases have a term of one year and are renewal and no contingent rent payments were recognised as income during
the year.

44

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

8

Financial assets, cash and cash equivalents

8.1

Cash and cash equivalents
2023

2022

Cash at bank and cash at hand
Restricted cash
Bank deposits

482,865
97,00647,854

260,499
119,070
20,113

Total

627,725

399,682

ACyC forms part of the Atradius centralised cash pooling system that involves different cross-border arrangements.
This system provides a cash pooling structure with interest compensation per currency. The cash pool arrangementsallow for offsetting of cash balances within the same legal entity, but do not allow offsetting between different legal
entities.
Restricted cash is mainly a local requirement to cover technical provisions in Switzerland and the United Kingdom.

8.2

Financial assets

There follows a breakdown of the different financial instruments owned by the Company. These assets do not include
investments in Group companies, which are detailed separately in Note 9.
Investments classified bycategory and nature of thefinancial assets

Cash and cash
equivalents

Available-for-Salefinancial assets at fair
value
2023
2022

2023

2022

-

-

446,855

303,803

Debt securities--

2,132,472

Loans

-

-

-

Loans andreceivables 1)

Total

2023

2022

2023

2022

-

-

446,855

303,803

1,477,445--

2,132,472

1,477,445

-

2,000

-

2,000

-

Equity instruments:- Financial investmentsin equity

Deposits in credit
institutions

-

-

-

-

50,21243,07350,21243,073

Other financial assets

627,725

399,682

-

-

-

-

627,725

399,682

Total

627,725

399,6822,579,327

1,781,248

52,21243,0733,259,264

2,224,003

1) In 2023 and 2022 there were no deposits with tacit renewal.

45

All amounts are in millions of Euros, unless otherwise statedShown below are the movements in financial assets:

Available-for-sale financial assets
Equityinstruments

Debt securities

Deposits increditinstitutions andotherinvestments

303,803

1,477,445

43,073

1,824,321

Effect of merger

78,750776,509-855,259

Additions

693,111399,52288,221

1,180,854

Retirements(688,904)(574,585)(77,466)(1,340,955)

Writedowns-(2,717)-(2,717)

Gains/losses recognised on sale36,314(9,776)-

26,538Changes in value against reserves

23,732

69,967-

93,699

-

-

-

-

2023

Balances at 1 January

Impairment losses
Effect of changes in foreign exchange rates
Balances at 31 December

Total

49

(3,893)(1,616)(5,460)446,855

2,132,472

52,212

2,631,539

Available-for-sale financial assets

Equityinstruments

Debt securities

Balances at 1 January394,134

1,277,064

60,015

1,731,213

Additions

123,046664,978

82,885870,909

Retirements(181,376)(349,823)(100,922)(632,121)

Writedowns-(8,181)-(8,181)

Gains/losses recognised on sale27,930(15,291)-

12,639Changes in value against reserves(59,999)(95,629)-(155,628)

(413)

-

-

(413)

481

4,327

1,095

5,903

303,803

1,477,445

43,073

1,824,321

2022

Impairment losses
Effect of changes in foreign exchange rates
Balances at 31 December

Deposits increditinstitutions andotherinvestments

Total

At 31 December 2023, there had accrued explicit interest on fixed-income securities and deposits in credit institutionsof EUR 16.5 million (2022: EUR 10.1 million), which is included in “Other assets – accrual accounts” on theaccompanying balance sheet at that date.
The fair value of financial instruments has been determined as follows:
The fair value of equity investments has been obtained from the market trading prices. For shareholdings inunlisted companies the fair value has been determined using valuation techniques generally accepted in thefinancial sector.
Fixed-income securities are measured by reference to their market trading prices or using valuation
techniques generally accepted in the financial sector.
46

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros-

Holdings in mutual funds have been measured by reference to the net asset value published by the
management companies. Unlisted funds will be measured by an external independent valuation company or
the asset manager of illiquid mutual funds.

The following tables present the fair values of the financial instruments recorded at fair value:
Financial instruments measured at fair value assets

Level 1

Level 3

Total

2023
Available for sale:
Equity securities

410,702

36,153446,855

Government bonds

1,607,689-

1,607,689

Corporate bonds

524,783-

524,783

Total

2,543,174

36,153

2,579,327

Financial instruments measured at fair value assets

Level 1

Debt securities:

Level 3

Total

2022
Available for sale:
Equity securities

272,154

31,649303,803

Government bonds

1,176,552-

1,176,552

Corporate bonds

300,893-

300,893

1,749,599

31,649

1,781,248

Debt securities:

Total

At 2023, the Company was primarily exposed to securities traded on active markets (Level 1), although newinvestments have also added exposure to illiquid markets (Level 3).
Reconciliation of Level 3 fair values
The following tables detail the changes in the fair value of Level 3 financial investments (valuation techniques
incorporating information other than observable market data):

Financial investments Level 3

Equity securities
2023

2022

Balance at 1 January

31,64927,123

Total gains or losses:--(3,236)

1,107

In statement of recognised income and expense
Purchases/Sales

7,740

3,419

Balance 31 at December

36,15331,64947

All amounts are in millions of Euros, unless otherwise stated

The breakdown by maturity of the different categories of financial instruments classified is as follows:

At 31 December 2023

Available

Available-for-sale financial assets:- Debt securities
Loans and receivables:- Deposits in credit institutions andloans

Less than 1 year

1 to 5 years

More than 5
years

Total

-

439,074

1,559,809

133,588

2,132,472-

52,212--

52,212Other financial assets
Total

1,074,580
1,074,580

491,286

1,559,809

133,588

1,074,580
3,259,264

At 31 December 2022

Available

Less than 1 year

Available-for-sale financial assets:- Debt securities
Loans and receivables:- Deposits in credit institutions andloans

1 to 5 years

More than 5
years

Total

-

213,229

1,238,208

26,0081,477,445-

43,073--43,073

Other financial assets

703,485---

703,485

Total

703,485

256,3021,238,208

26,0082,224,003

The average annual yields in 2023 and 2022 on fixed-income securities and other similar financial investments,
classified by homogeneous issuer group, are shown below:% Yield2023

2022

Bonds issued by private entities

3.39%

3.48%

Bank deposits

3.56%

0.24%

The following table presents a breakdown of gains and losses on disposal of debt securities and equity securities in the“Available-for-sale financial assets” portfolio in 2023 and 2022:
2023

2022

Gains recorded in the profit and loss statement on sale

36,87831,353Losses recorded in the profit and loss statement on sale

(10,291)(18,714)

Information on the nature and level of risk of the financial instruments
The most important components of financial risk are market risk, credit risk and liquidity risk.
The Company invests in a diversified portfolio of capital instruments to mitigate those risks.


48

Market risk

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Market risk is the risk that the fair value of assets and liabilities that are sensitive to movements in market prices will
decrease or increase due to adverse movements in equity prices, interest rates or exchange rates. The Company is
exposed to these risks by holding assets and liabilities whose fair value is sensitive to movements in those prices.
These risks are measured using the mismatch between assets and liabilities whose fair value is denominated inforeign currency, Value at Risk, capital models of credit risk rating institution and the duration of interest rates,
among others.
ACyC uses the capital approach available under the Solvency II Directive to define strategic asset allocation and assess
the impact of investment decisions to ensure sufficient capital under Solvency II.
The estimates of the fair value of ACyC's financial assets and liabilities are their carrying amount.
The assets are exposed to increases in inflation and/or in inflation forecasts, which could accompany increases ininterest rates and lead to a decrease in the market value of bonds held in our investment portfolio. Increases in
inflation could also have an impact on the creditworthiness of bond issuers and could result in an increase in credit
spreads. All of these factors could lead to a decline in the value of the bonds.
Inflation in the costs of claims, labour costs, cost of energy and raw materials, and/or inflation due to disruptions in
the global supply chain could impact the industry. The impact of inflation on claim costs could be more pronounced forcertain of our claims that are indexed to inflation and for surety business which is considered “long tail”.
The fair values are based on the price, as best estimate, which would be received on selling an asset or paid ontransferring 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, valuation
techniques are used that are based on market prices of comparable instruments or on observable market observable
data. If no observable market inputs are available, valuation models are used (non-market observable data). Thesevaluation techniques are subjective in nature and rely on pricing assumptions. Deviations in those assumptions may
significantly affect the estimated fair values. Consequently, the fair values presented may not be indicative of the net
realisable value. In addition, the calculation of the estimated fair value is based on market conditions at a specificpoint in time and may not be indicative of future fair values.
The fair values are subject to a control environment designed to ensure that they are determined or validated by afunction that is independent of the owner of those risks. Toward this end, ACyC defines the accounting policies andprocesses that govern the measurements and at the same time ensure compliance with the applicable accounting
legislation. Within this governance structure, non-quoted investments or illiquid investments in which ACyC invests
are measured by an external independent valuation company or the asset manager of the illiquid investment fund.
Those firms use their own proprietary valuation systems to measure the securities based on economic and market
assumptions from financial information providers. The valuations are provided on a monthly basis and are reviewed
and approved by ACyC. The valuation process of the asset manager is audited and approved by its statutory auditor.


Credit risk

With regard to managing the credit risks of its financial investments, the investment policy of ACyC is to hold aprincipally 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 Atradius Investment Committee to decide whether the debt security is still a suitable
investment. The maximum concentration limit per issuer is 5% of the market value of the financial investments of theentity. Concentration per issuer is evaluated by aggregating the exposure to a single issuer through both debt
investments and equity securities. The Atradius Investment Committee monitors this limit and the appropriate actions
are taken if a concentration limit is breached.
The counterparty credit ratings and the credit rating of the debt instruments are predominantly based on Standard &Poor’s rating.

49All amounts are in millions of Euros, unless otherwise stated

Liquidity risk

ACyC is exposed to liquidity risk if there is insufficient cash available to meet its financial obligations, when due, at areasonable cost. For ACyC, liquidity risks may arise if large-scale short-term fluctuations occur in cash flows, such as adecline in cash inflows or a rise in cash outflows, or a combination of both.
Liquidity risk is managed at Atradius level, in close coordination with local operations. The Atradius policy is tomonitor and measure ongoing cash flow patterns and control liquidity by maintaining sufficient cash and highlymarketable securities to reduce liquidity risk to acceptably low levels. The investment policy states that ACyC should
only invest in financial instruments that can be liquidated within three business days or less. ACyC is able to accesscredit facilities to prevent liquidity shortages that can arise due to short-term cash flow variances. ACyC maintains
uncommitted credit lines in excess of EUR 1 million. It is an overdraft facility for a total of EUR 50 million (2022: EUR
50 million). The credit line provides liquidity to cover infrequent peaks in short-term liquidity requirements while
also permitting ACyC to reduce its cash balances and to benefit from a broader and more and stable investment
portfolio. Lastly, ACyC has in place a simultaneous claims payment clause in the main reinsurance treaties. This clauseallows ACyC to ask the reinsurers to accelerate the payment of a large claim upon ACyC’s request instead of the usual
payment terms agreed in the reinsurance treaties.

50

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

9 Investments in Group companies, jointly controlled entities andassociates
The following table presents the most significant information on the subsidiaries, jointly controlled entities andassociates of ACyC at year-end 2023 and 2022:

51

All amounts are in millions of Euros, unless otherwise stated

Business
2023
IberinformInternacional, S.A.
(Paseo de laCastellana, 4 Madrid)

Information
ServicesB2B Safe, S.A.
(Paseo de laCastellana, 4 Madrid)

Advisory
Services

Iberinmobiliaria, S.A.
(Paseo de laCastellana, 4 Madrid)

Real Estate

Crédito y Caución do
Brasil Gestao de
Riscos de Crédito eServicios LTDA (Avda
Angelica, 2530 Sao
Paulo)
Atradius Crédito y
Caución Seguradora,
S.A. (Avda Angelica,
2530 Sao Paulo)Management
Company

Domestic
and foreign
creditinsurance

Business
2022
IberinformInternacional, S.A.
(Paseo de laCastellana, 4Madrid)B2B Safe, S.A.
(Paseo de laCastellana, 4Madrid)Iberinmobiliaria, S.A.
(Paseo de laCastellana, 4Madrid)Crédito y Caución do
Brasil Gestao de
Riscos de Crédito eServicios LTDA (Avda
Angelica, 2530 Sao
Paulo)
Atradius Crédito y
Caución Seguradora,
S.A. (Avda Angelica,
2530 Sao Paulo)%
Holding

Net Valueof theInvestment

Dividends
received
in 2023

Share
Capital(1)

100%

6,311

2,000

6,311

4,456

2,475

100%

57

-

60

(2)

(9)

100%

60

-

60

16

1.1

100%

693

-

1,306

3,317

986

100%

9,372

-

7,478

5,704

1,753

16,493

2,000

-

-

-

Net Valueof theInvestment

Dividends
received
in 2022

Share
Capital(2)EquityReserves

100%

6,311

-

6,311

4,652

1,805

100%

57

-

60

2

(4)

100%

60

-

60

16

0

100%

693

-

1,300

2,257

1,045

100%

9,372

-

7,445

3,690

1,989

16,493-%
Holding

EquityReserves(1)(2)

Advisory
Services

Real EstateManagement
Company

Domestic
and foreign
creditinsurance

Includes indirect participations in subsidiaries.

(1)

Data obtained from 2023 financial statements of each investee company, pending approval by their respective control bodies. Nevertheless, theDirectors of the Company estimate that those financial statements will be approved without changes.
Data obtained from the 2022 financial statements of each investee company.

52

Profitfor theyear(2)

Information
Services(*)(2)

Profitfor theyear(1)

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

All amounts expressed in euros, unless stated otherwise.
None of the subsidiaries is quoted on the stock market.
Note 18 “Transactions and balances with related parties” gives a breakdown of the positions with Group entities
according to their carrying value in the Company's books.

10 Receivables on insurance and reinsurance operations and otherreceivables
The breakdown of accounts receivable from insurance and reinsurance contracts, along with other receivables, ispresented below:
2023

2022

23,899114,449
94,9602,320
119,394
98,237

Direct business and coinsurance

112,166

116,546

Provision for uncollected premiums(17,206)(18,309)19,48921,157

Deposits made for accepted reinsurance
Accounts receivable on direct insurance operations
Policyholders – outstanding invoices

Brokers

19,48921,157

Receivables on reinsurance operations

Receivables from brokers

97,812

111,881

Receivables from reinsurers

100,985

116,120

Provision for impairment of receivables from reinsurance
Other receivables
Tax receivables
Rest of receivables
Total(3,173)(4,239)336,264

203,978

2,917

717

333,347

203,261

572,424

437,573

Shown below is a breakdown of “Other receivables – Rest of receivables”:
2023

2022

Recovery receivables (Note 16.1)
Recoveries pending allocation

49,2573,720

37,903
3,841

Recovery management expenses pending application

7,519

7,363

Invoiced study expenses

11,152

11,430

Amounts owed by Group companies (Note 18.1)

89,863

95,573

Others

171,836

47,151

Total

333,347

203,261

Note 16 on “Technical information” includes the estimated movements in recoveries in 2023 and 2022.
The decrease in receivables is mainly explained by collections received in reinsurance business. The balances inreinsurance operations are partially offset in 2023 by the merger with ARE (EUR 17.9 million).
The “Other receivables” line item on the balance sheet records recoveries obtained during the claims management
process that at the end of the year were pending allocation to specific claims. Also included in that line item the expenses
arising from the management process mentioned before which, though already allocated to specific claims, are pendingof inclusion in the settlement of the claim.

53

All amounts are in millions of Euros, unless otherwise stated“Other receivables – Other” mainly records deposits held in compliance with legal or contractual obligations.
There follows a breakdown of the movement recorded in provisions in 2023 and 2022:
2023

Provision foruncollected
premiums

Provision for
impairment ofreceivablesfromreinsurance(18,309)(4,239)-(57)

Allocations with a charge to the profit and loss statement(17,206)(3,116)

Applications with a credit to the profit and loss statement
Balances at 31 December

18,309(17,206)

4,239(3,173)

Provision foruncollected
premiums

Provision for
impairment ofreceivablesfromreinsurance

Balances at 1 January
Effect of merger with ARE (Note 1)

2022

Balances at 1 January(14,119)(3,037)

Allocations with a charge to the profit and loss statement(18,309)(4,239)Applications with a credit to the profit and loss statement

14,1193,037

Balances at 31 December(18,309)(4,239)11 Debts and payables
Shown below is the breakdown of debts and other accounts payable under insurance and reinsurance contracts,
together with other accounts payable, at year-end 2023 and 2022:
2023

2022

Deposits received for ceded reinsurance

9,256

9,903

Payables on insurance operations

68,31774,089

Payables to policyholders

37,943

41,925

Payables to brokers

16,96818,532

13,406

13,632

Payables on reinsurance operations

130,682

182,534

Other accounts payable

130,739

129,611

Tax and employee payables

11,092

7,616

Other accounts payable to Group companies and associates (Note 18.1)

20,66949,315Rest of payables

98,97872,680338,994

396,137

Conditional payables

(1)

Total

The decrease in payables in is mainly explained by the settlements with reinsurers. The balances in payables fromreinsurance operations are partially offset in 2023 due to the merger with ARE in EUR 18.7 million.
In the preceding table, “Other accounts payable” includes the following items:

54

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Tax and employee payables
VAT payable to the Treasury

2023

2022

11,092

7,616

3,208

471

Other government entities (Consortium, Tax on premiums ...)

1,646

1,678

Payables to Social Security system

6,238

5,467

Other accounts payable to Group companies and associates (Note 18.1)

20,66949,315Rest of payables

98,97872,68057,83528,592Sundry creditors
Payables for services

2,078

1,789

Recoveries pending application

19,67522,544

Staff compensation payable

19,39019,755

130,739

129,611

Total

Recoveries pending application year-end are recoveries obtained in the claims management process which, thoughalready allocated to specific claims, are pending inclusion in the settlement process.
Information on deferral of payments to suppliers
Below is the information required by Final Provision Two of Law 31/2014 of 3 December 2014 amending the recast
text of the Spanish Companies Act (Ley de Sociedades de Capital) for the improvement of corporate governance andLaw 15/2010 of 5 July 2010 amending Law 3/2004 of 29 December 2004. That information was prepared by the
Directors of the Company pursuant to the Resolution of the Spanish Institute of Accounting and Auditing (Instituto deContabilidad y Auditoría de Cuentas) of 29 January 2016. This information is limited to the operations of the ACyC
branch in Spain.

2023

2022

Days

Days

Average period of payment to suppliers

27.89

26.00

Ratio of paid operations

28.35

26.66

Ratio of pending operations

3.81

7.70

AmountAmountTotal payments (Thousands of Euros)

39,196

31,667

Total payments made within established standard terms

21,44019,457

Total payments made within established standard terms / total payments

55%

61%

Total pending payments (Thousands of Euros)

735

1,144

Total number of invoices paid

5.31

5.26

Total number of invoices paid within established standard terms

3.68

3.70

% invoices paid within established standard terms/total invoices paid

69%

70%

According to the ICAC Resolution, the average supplier payment period has been calculated taking into account tradetransactions involving the delivery of goods or provision of services accruing since the effective date of Law 31/2014of 3 December 2014.
Solely for the purposes of the disclosure provided for in that Resolution, suppliers are considered to be commercial
creditors for debts with suppliers of goods or services, included in the item "Debts and payables other liabilities –Other accounts payable – Rest of accounts payable" under current liabilities on the balance sheet.
“Average payment period to suppliers” means the time period between delivery of the goods or performance of theservices by the supplier and actual payment of the transaction.

55

All amounts are in millions of Euros, unless otherwise stated

12 Tax matters
Years open for review and tax audits
At 31 December 2023, the Company remained open to tax audit for those years not yet time barred with respect to themain taxes that affect its operations. According to the applicable regulations, tax settlements cannot be considered
final until they have been audited by the competent authorities or until the legal limitation periods have lapsed.
In July 2023 the Spanish Tax Authorities launched a tax audit regarding ACyC SA. Fiscal years in scope are 2016 up to
and including 2019. The tax authorities sent several information requests in the previous months and the company
provided the requested information. The tax audit is still ongoing, and no topics have been formally disputed so far.
With respect to the years not inspected, due to the different tax law interpretations of the Company's operations,contingent tax liabilities can arise that cannot be objectively quantified, although the Directors of the Company
estimate that if those liabilities were to materialise, they would not have a material effect on these financial
statements.
Pillar Two model
In December 2022, the Council of the European Union adopted Directive 2022/2523 incorporating the OECD Model
Standards on Pillar Two into the European legal framework. The Directive sets a minimum effective tax rate of 15% for
the large groups concerned and sets 31 December 2023 as the deadline for transposition by Member States, with anentry into force date of 1 January 2024.
Under this new legislation, the groups concerned will be required to pay a supplementary tax on the difference
between the effective tax rate per jurisdiction, calculated in accordance with the provisions of the Directive, and theminimum rate of 15%.
At the time of preparation of these annual accounts, the process of transposing the Directive into Spanish law is stillongoing. In December 2023, the Council of Ministers in Spain approved, in its initial phase, the Draft Law for thetransposition of the mentioned Directive, which is expected to enter into force in Spain retroactively on January 1,
2024.
Once the legislation is applied in Spain, the company Grupo Catalana Occidente S.A. will be the main responsible forthe payment of the complementary tax derived from Pillar Two of the Catalana Occidente Group in its capacity as theparent company of the Group, to the extent that there are no Qualified Minimum Domestic Complementary Taxes inforce in force ("QDMTT", for its acronym in English).
As of December 31, 2023, given that the legislation is not yet in force, the Company has not recorded the corresponding
exposure to the current complementary tax derived from Pillar Two. The Company has not recognized deferred tax
assets and liabilities in relation to Pillar Two taxes.
At the end of the year, a preliminary assessment was made of the potential exposure to Pillar Two legislation once itenters into force. This analysis has been carried out based on a simplified calculation and considering only certain
adjustments provided for in the legislation.
As a result of this preliminary analysis, the effective tax rate obtained in most of the jurisdictions in which Grupo
Catalana Occidente operates exceeds 15%. With respect to those jurisdictions that do not reach the minimum rate, it has
been estimated that the impact derived from the complementary tax of Pillar Two will not be significant.
Due to the complexities of applying legislation and calculating GloBE revenue, the quantitative impact on legislation
passed or substantially passed is not yet reasonably estimable. Therefore, even for those jurisdictions with an effective
tax rate above 15%, there may still be tax implications arising from a full application of Pillar Two. Grupo Catalana
Occidente is currently collaborating with tax specialists in the process of implementing the legislation.
Reconciliation of accounting profit/(loss) and taxable income
The reconciliation between account income and the corporate income tax base for 2023 and 2022 for operations
subject to tax in Spain is shown below:

56

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2023

Increases

Decreases

-

-

1,672

(359,852)(358,180)(357,852)(357,852)

1,665

-

1,665

Reinvestment extraordinary profits

7

-

7

Impairment of foreign investments

-

-

-

Dividends received-(2,000)(2,000)Temporary differences

225,497(205,564)

19,933

Originating in the year

225,497-

225,497

223,495-

223,495

Reported profit/(loss) before tax
Permanent differences
Reported profit/(loss) before tax ACYC and foreign entities
Non-deductible expenses

Accounting allocations to non-deductible provisions
Allocation to Equalization Reserve (art.12.3 Spanish CIT Law)

-

Total
429,831

2,002

-

2,002

-

(205,564)(205,564)

Accounting allocations to non-deductible provisions in previous
years
Total

227,169(205,564)(565,416)(205,564)
91,5852022

Increases

Decreases

Total

-

-

1,388

(301,503)(300,115)-(301,476)(301,476)

1,381

(27)

1,354

Reinvestment extraordinary profits

7

-

7

Dividends received

-

-

-

203,427
203,427(175,701)-

27,727
203,427

203,427-

203,427

Originating in previous years

Reported profit/(loss) before tax
Permanent differences
Reported profit/(loss) before tax ACYC and foreign entities
Non-deductible expenses

Temporary differences
Originating in the year
Accounting allocations to non-deductible provisions
Allocation to the Equalization Reserve (art.12.3 Spanish CIT Law)
Originating in previous years
Accounting allocations to non-deductible provisions in previous
years
Total

290,461

-

-

-

-

(175,701)(175,701)-(175,701)(175,701)

204,815(477,203)

18,073

Reconciliation between accounting profit/(loss) and corporate income tax expense/ (rebate)
Shown below is the reconciliation between accounting profit and corporate income tax expense for 2023 and 2022:

57

All amounts are in millions of Euros, unless otherwise stated

2023

2022

Reported profit/(loss) before tax

429,831

290,461

Gross tax

102,652

71,770

(334)

(593)

Adjustment for prior years' tax expense

2,180(3,644)

Adjustment for change of tax rate

(456)

216

Deductions
Other adjustments

Impairment/reversal of deferred tax assets(1,719)(201)

Other adjustments

2,067

6,491

104,390

74,039Total tax expenses recognised in profit and loss statement

The amounts in the following tabs for deferred tax assets and liabilities, are shown before the assets and liabilities
compensation calculated at fiscal jurisdiction level.
Deferred tax assets
There follows a breakdown of deferred tax assets at year-end 2023 and 2022:
2023

2022

Technical accounts

154,201

130,913

Foreign branches

55,941

22,336

98,26093,504

Temporary differences (tax prepayments):

Branches in Spain
Increase in asset base on recording defined contribution pension commitments

19,84020,277

Foreign branches

16,44327,426

Branches in Spain

3,396

2,855

Tax loss available for setoff

30,75632,672Foreign branches
Tax effect of revaluation of available-for-sale investment portfolio

32,75632,672

13,03522,524Foreign branches
Other items

13,03522,52425,654

26,728Foreign branches

23,74725,172

Branches in Spain

1,907

1,556

Total deferred tax assets

243,486

233,114The deferred tax assets mentioned above have been recognised on the accompanying balance sheets because the
Directors of the Company believe that the best estimate of the Company's future earnings, including certain tax
planning actions, make their recoverability probable.
ACyC has tax losses from previous years not recorded on the balance sheets at 31 December 2023 of EUR 17.4 million(2022: EUR 25.9 million), which are wholly in respect of foreign branches. The time limit for carrying forward those
tax losses are specified below:
Setoff of tax loss carryforwards

2023

2022

Indefinite

17,39025,926

Total

17,39025,926

Deferred tax liabilities
There follows a breakdown of deferred tax liabilities at year-end 2023 and 2022:

58

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2023

2022

Equalization Reserve

175,119

159,736

Foreign branches

115,932

99,550Branches in Spain

59,18760,18525,69620,922

Temporary differences (deferred tax)

Increase in asset base on recording defined contribution pension commitments
Foreign branches

25,69620,922

Technical accounts

60,43938,364Foreign branches

60,43938,364

16,31010,725

Tax effect of revaluation of available-for-sale investment portfolio
Foreign branches

4,066

1,133

Branches in Spain

12,244

9,591

20,803

18,552Foreign branches

20,122

17,830Branches in Spain

682

723

298,368

248,298

Other items

Total deferred tax liabilities
Deductions

In its Corporate Income Tax declarations from 2004 to 2014, the Company took deductions for its spending on
research, development and technological innovation in Spain of EUR 3.7 million in accordance with article 35 of therecast text of the Spanish Corporate Income Tax Law approved by Royal Decree Law 4/2004 of 5 March 2004 (for tax
periods beginning as from 1 January 2015, the deduction for research and development and technological innovationis regulated under article 35 of the Law 27/2014, of 27 November 2014, on the Corporate Income Tax (the CIT Law)).
Current tax
Current tax assets primarily consist of prepayments of the local corporate income tax. Current tax liabilities primarily
consist of corporate income tax and other local taxes payable.
Tax consolidation treatment
Since 2016, some of the companies in the consolidated group with registered office in Spain are taxed, for Corporate
Income Tax purposes, on a tax consolidation basis under Chapter VI of Title VII of the CIT Law that applies nationallyin Spain.
Atradius Crédito y Caución S.A. de Seguros y Reaseguros is part of consolidated tax group number 173/01 that isheaded by the company Grupo Catalana Occidente, S.A. The branches located outside Spain apply the different tax
systems in force in the different countries in which they operate or are established. They had an average effective tax
rate of 24% in 2023 (27% in 2022).
Additional information regarding the impact of the merger
At 31 December 2023 the cross-border merger was made effective, in which ACyC (absorbing company) absorbed ARE(absorbed company). That deed of merger was registered in the Mercantile Registry of Madrid on 31 October 2023. The
merger involved the dissolution of the Absorbed company and the whole transfer of all its assets and liabilities to ACyC.
From an accounting perspective, the effects of the merger were rolled back to 1 January 2023. The merger has increased
the volume of the foreign countries in EUR 0.1 million in deferred tax assets and EUR 0.1 million in deferred tax liabilities.

59

All amounts are in millions of Euros, unless otherwise stated

13 Income and expenses
13.1

Personnel expenses

Shown below is the breakdown of personnel expenses at year-end 2023 and 2022:
2023

2022

Wages and salaries

193,484

182,081

Employee benefits

116,607

116,103

771

840

42,671

39,273

Indemnities
Employer's Social Security contributions
Long-term remuneration in defined-benefit systems

1,404

5,979

Long-term remuneration in defined-contribution systems

16,684

15,960

Other employee costs

55,07854,050310,092

298,184Total

The increase in personnel expenses due to the ARE merger is EUR 4.3 million.

13.2

Other expenses – Rest of Expenses

This line item of the non-technical profit and loss statement for 2023 mainly records the allocation to the amortisationof goodwill of EUR 4.6 million (2022: EUR 4.6 million) and income from exchange and translation differences and the
management of the Dutch State business of EUR 12.9 million (2022: EUR 10.6 million of income).

13.3

Commissions and profit sharing on ceded reinsurance and retrocession

The line item “Commissions and profit sharing on ceded reinsurance and retrocession” of the technical account at
year-end 2023 (EUR 327.7 million) and 2022 (EUR 322.7 million) records the accrual of commissions under thereinsurance contracts in effect at the respective year-ends.

60

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

14 Provisions and contingencies
14.1

Obligations for pensions and similar obligations

The various commitments the Company had to staff as at 31 December 2023 are described in Note 4.11.
2023

2022

Pension Plans

43,556

51,937

Other employee benefits

8,120

7,538

Total

51,67659,475

Defined benefit plans expose Atradius mainly to market investment risk, interest rate risk and inflationary risk:-a decline in asset market value (equity, real estate, alternatives, etc.) will impact the balance sheet liability
and the near-term cash flows for countries where there is 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; andan increase in inflation rate will result in higher plan liabilities thus, an increase in future employer
contributions in countries where there is minimum funding requirements.

The main defined benefit plans remaining at 31 December 2023 are in the United Kingdom and Germany andrespectively represent 96.1% (2022: 83.0%) of pension plan assets and 76.6% (2022: 79.3%) of the liabilities for defined
benefits recorded under liabilities on the balance sheet. The rest of the plans are in respect of Italy, Switzerland,
Sweden, Belgium, Norway and France with defined benefit liabilities under those plans range between EUR 0.8
million and EUR 5.5 million (2022: EUR 1.6 million – EUR 10.2 million), and Span with a surplus of EUR 3.6 million in
2023 (2022: EUR 2.7 millions). The number of participants enrolled between 7 and 451 people (2022: between 13 and451).
The Company also has defined contribution plans. The contributions to these pension plans are recognised as an
expense in the accompanying technical profit and loss statements and amounted to EUR 16.7 million in 2023 (2022:
EUR 16 million).

Pension assets and liabilities
Shown below are the changes recorded in the value of net pension liabilities:

61

All amounts are in millions of Euros, unless otherwise statedBalance at 1 January

Defined benefit
obligations

Fair value of assets

Techo del activo

Net defined benefit
liabilities (assets)

2023

2022

2023

2022

2023

2022

2023

2022

340,255

535,348

288,378

443,871(60)-

51,93791,477--

Adiciones
Profit and loss statement:
Cost of current services

3,847

6,903

-

-

-

-

3,847

6,903

-

-

-

-

-

-

-

-

14,664

8,147

17,102

9,010

-

-

(2,438)

(863)

4

4

-

-

-

-

4

4

18,515

15,054

17,102

9,010

-

-

1,413

6,044

- actuarial assumptions(4,341)(2,840)

-

-

-

-

(4,341)(2,840)– financial assumptions(952)(181,910)

-

-

-

-

(952)

(181,910)– adjustments for experience

891

7,278

-

-

-

-

891

7,278

Return on the plan asset, notincluding interest income

-

-

5,830

(141,061)--(5,830)141,061

Change in unrecoverable surplus
other than interest

Cost of past services –Modifications of the plans
Net interest
Administration costs
Total Profit and loss Statement
Recognised income and expense:
Measurements of losses (gains):
Actuarial gains and losses:

-

-

-

-

(37)

(60)

37

60

Total recognised income andexpenses(4,402)(177,472)

5,830(141,061)

(37)

(60)

(10,195)(36,351)

Others:Contributions by employer
Contributions by employee(3,826)606(3,612)
616

7,763
606

2,995
616

-

-

(11,589)-(6,607)-

Benefits paid

(13,369)(15,707)(13,369)(15,707)

-

-

-

-

3,864

(13,972)

5,376(18,380)--(1,512)

4,408

Effect of exchange rates
Reclassification of plan surplus
assets--(13,203)

7,034

-

-

13,203(7,034)

Total Other(15,532)(32,675)(15,933)(23,442)

-

-

401

(9,233)

Balance 31 at December

338,836

340,255

295,377

288,378

(97)

(60)

43,556

51,937

The present value of the remuneration referred to in the preceding table has been determined by qualified
independent actuaries, who considered the following to quantify those items:-

Method of calculation: “Projected credit unit”, which considers each year of service as entitling one
additional unit of rights to the benefits, with each unit being measured separately;
Actuarial assumptions used: unbiased and compatible with each other. The main assumptions used formaking the actuarial valuations of the principal defined plans are shown in the following table:

The surplus of the pension plans amounts to EUR 94.5 million at 31 December 2023 (2022: EUR 81.3 million), recorded
in “Other assets – Assets and reimbursement rights for long-term staff remuneration”.

62Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

In Spain, the defined benefit plans are partly insured by Seguros Catalana Occidente, S.A. These insurance policies are
not considered qualified and, therefore, their value is considered as reimbursement rights, recorded as other assets inthe amount of EUR 6.6 million (2022: EUR 6.7 million).
The pension commitments with related entities at 31 December 2023 and 2022 are shown below:

2023

2022

Present value of the net obligations

3,664

2,716

Fair value of the plan assets

6,158

6,260

Total

9,822

8,976

These amounts have been recorded in the item “Non-technical provisions – Provision for pensions and similar
obligations” and in “Other assets – Assets and reimbursement rights for long-term staff remuneration”, respectively,on the accompanying balance sheets. The difference between the two amounts has been recorded under shareholder
funds of the Company.
The measurement of the fair value of the plan assets earmarked for the defined benefit commitments has been
performed considering the amount of the mathematical provisions reported by the insurers and the pension fundmanagement companies for those commitments, which have calculated those provisions according to their own
assumptions on interest rates and mortality tables. Those assumptions must conform to the specific insurance
standards in effect in each country at present. This gives rise to an accounting asymmetry between the assumptions
used to measure assets and those employed to measure the obligations by the independent actuaries.

63

All amounts are in millions of Euros, unless otherwise stated

Characteristics of the main defined benefit plans
Characteristics
Entitlement

United Kingdom
Based on a percentage of final salary (closed
to new employees).

Germany
Based on a percentage of the average salaryof the last 10 years.

Number of participants

74 active members (2022: 85 active
members).
556 inactive members (2022: 547 inactive
members).

435 active members (2022: 424 active
members).
382 inactive members (2022: 378 inactive
members).

Defined benefit
obligations

EUR 167.5 million (2022: EUR 168.6 million).

EUR 103.7 million (2022: EUR 99.7 million).

AssetsEUR 257.9 million (2022: EUR 246.8
million).

EUR 71.7 million (2022: EUR 59.9 million).

Measurement of gain
(loss) in income andexpenses not recognised

EUR 6.5 million – gain (2022: EUR 6.3
million – gain).

EUR 2.4 million – gains (2022: 23.6 million –gains).

Funding agreement

The basis of the funding agreement lies inthe trust agreement. The pension fundperforms triennial actuarial valuations todetermine employer contributions.

A trust agreement is established as afinancing vehicle to cover part of thepension liabilities. There is no specificfunding agreement although the assets
must exceed the initially funded amount of
EUR 39.2 million.

Employee contributions

In 2023 contributions amounted to 7.1% of
the salary (7.1% in (2022).

None; contributions are made by theemployer.

ALM strategy

The investment strategy consists of aliabilities management driven investment
portfolio in order to provide revenues thatmatch the retirement benefits, together
with interest rate and inflation hedges, withthe rate of inflation, so that the plan can be
self-sufficient.

The investment objectives and policies aredeveloped based on an ALM study.

The UK pension plan is subject to UK
legislation and to the pension guidelines
issued by the UK pension regulator.

The German pension plan is subject toGerman legislation and to the pension
guidelines issued by Germany's pension
regulator.

Regulatory Framework

The investment policy limits the interest
rate risk by restricting the investment inbonds to fixed rate bonds. Equity price risk
is controlled by investing according to the
Dow Jones Euro Stoxx 50 Index.

Fair value of the pension assets
The fair value of pension plan assets at the end of the year is shown below:

64Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Assets 2023

Cash and cash
equivalents

Shares

Bonds

Investment
funds

Insurance
contracts

Real estate

Total

Belgium

-

-

-

-

25,139-25,139Germany

6,774

22,64642,283---71,703

Norway

-

-

-

-

2,686

-

2,686

Spain

-

-

-

-

9,362

-

9,362

Sweden

-

-

-

-

-

-

0

Switzerland

-

-

-

-

4,458

-

4,458

United Kingdom

5,176

-

166,849

10,004--

182,029

Total

11,95022,646

209,132

10,004

41,645-295,377

Investment
funds

Insurance
contracts

Real estate

Assets 2022

Cash and cash
equivalents

Shares

Bonds

Total

Belgium

-

-

-

-

25,203-25,203Germany(457)

22,54937,815---59,907

Norway

-

-

-

-

2,734

-

2,734

Spain

-

-

-

-

13,126-

13,126

Sweden

-

347

1,522

481

-

319

2,669

Switzerland

-

-

-

-

4,510

-

4,510

United Kingdom

6,443

-

163,583

10,203--

180,229

Total

5,986

22,896

202,920

10,68445,573319

288,378

The investments held by the pension plans in equities and fixed-income securities are quoted on active markets. The
plan assets include no financial instruments owned by ACyC or any real estate occupied by the Company or assets
used by the Company.
The expected rates of return on the assets of the pension plans are calculated by multiplying the fair value of the plan
assets by the discount rate determined at the start of the year taking into account the changes in the plan assets during
the period as a result of the contribution and benefits payments. The current return on the plan assets (including
reimbursement rights) amounted to EUR 22.9 million – gains (2022: EUR 132.3 million-loss).
In 2024 ACyC expects to contribute approximately EUR 2.6 million to defined benefit plans.
Actuarial assumptions
The principal assumptions used for the purpose of the actuarial valuations of the two main defined benefit plans arepresented in the following table:

65All amounts are in millions of Euros, unless otherwise statedPrincipal actuarial assumptions

United Kingdom

Germany

2023

2022

2023

2022

4.75%

5.00%

3.25%

3.75%

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 benefits
Mortality table

2.89%
CMI 2022(1% LTR)

3.36%
CMI 2021(1.25%
LTR)

2.00%
Heubeck
Richttafeln
2018 G

2.25%
Heubeck
Richttafeln
2018 G

14

15

13

13

Discount rate

Duration in years

An approximation of the sensitivity of the key 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 obligations

2023
Increase

2022
Decrease

Increase

Decrease

Discount rate (1% movement)(34,983)

41,719(35,441)

44,356

Inflation rate (1% movement)

31,834(27,094)

36,944(33,255)

Future salary growth (1% movement)

6,887(6,227)

6,791(6,085)

Future pension growth (1% movement)

30,299(25,684)

32,461(27,317)

Future mortality (+1 year)

8,888

n/a

9,111

n/a

Expenses for personnel commitments
EUR 4.4 (2022: EUR 6.3 million) was recorded as pension expense in the technical profit and loss statements under“Administration costs”. Of this amount EUR 4.2 million (2022: EUR 6.9 million) was in respect of pension plans and
EUR 0.2 million (2022: EUR 0.2 million) of other long-term commitments.

14.2

Other non-technical provisions

Shown below is the breakdown of other non-technical provisions:2023

Retirements

Litigation

Total

Balances at 1 January

-

975

975

Allocation

-

373

373

Application

-

-

-

Effect of changes in foreign exchange rates

-

-

-

Balances at 31 December

-

1,347

1,347

Retirements

Litigation

Total

1,584

925

2,509

Allocation

-

60

60

Application

2022
Balances at 1 January(1,584)(10)(1,594)

Effect of changes in foreign exchange rates

-

-

-

Balances at 31 December

-

975

975

Litigation

66

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The litigation provisioning is in respect of disputes with third parties that do not involve the Company's insurance
business. The provisions for the insurance underwriting business are included in the Technical provision for claims.
The provision reflects the estimated cost of legal proceedings unrelated to the insurance underwriting business. These
provisions have not been discounted to their present value as the effect of the discounting is not material.

14.3

Contingencies

There are no contingencies at year-end 2023 and 2022.

67All amounts are in millions of Euros, unless otherwise stated

15 Segment Reporting
The Company carries out transactions globally through an extensive network of branches. The regional distribution of
the direct insurance, accepted reinsurance and ceded reinsurance business areas in 2023 and 2022, was as follows:
2023

Transactions reported in:Rest ofRest of theEurope (1)World (2)

Total

364,210

1,321,890

130,564

1,816,664-

319,873

98,041

417,914

Spain andPortugal
Net premiums
Direct insurance premiums
Assumed reinsurance premiums
Ceded reinsurance premiums(141,673)(555,777)(98,774)(796,224)

Total premiums

222,536

1,085,985

129,831

1,438,352

84,386620,619

73,818778,823

Technical provisions
Provision for sms and for unexpired risks
Provisioning for the year, direct insurance
Provisioning for the year, accepted insurance-

172,472

8,836

181,308

Provisioning for the year, ceded reinsurance(31,223)(224,257)(31,032)(286,512)

Total

53,163568,836

51,621

673,620

600,676

559,935

55,2001,215,811

Claims provision
Provisioning for the year, direct insurance
Provisioning for the year, accepted insurance

119468,183

146,630

614,932

Provisioning for the year, ceded reinsurance(203,398)(342,283)(82,812)(628,493)

Total
Total provisions net of reinsurance

397,397685,836

119,018

1,202,251

450,560

1,254,672

170,639

1,875,871

Spain andPortugalRest ofEurope (1)Rest of theWorld (2)

Total

2022

Transactions reported in:

Net premiums
Direct insurance premiums

372,8311,254,230

133,9121,760,973

Assumed reinsurance premiums-

21,959102,493

124,452

Outward reinsurance premiums(149,620)(514,023)(103,805)(767,448)

Total premiums

223,211762,165

132,600

1,117,976

86,514533,21373,987693,714

Provisioning for the year, accepted insurance

-

335

7,673

8,008

Provisioning for the year, ceded reinsurance(29,089)(212,292)(31,048)(272,429)

Total

57,425321,256

50,612429,293415,280595,295

51,177

1,061,752

Provisioning for the year, accepted insurance

182

7,340

169,414

176,937

Provisioning for the year, ceded reinsurance(200,925)(505,954)

90,348(616,532)

Total

214,537

96,682

310,939622,157

271,962

417,938

361,551

1,051,450

Technical provisions
Provision for unearned premiums and for unexpired risks
Provisioning for the year, direct insurance

Claims Provision
Provisioning for the year, direct insurance

Total provisions net of reinsurance68Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The increase in reinsurance accepted premiums of 305 mill EUR and in provisions of accepted reinsurance of 171 mill
EUR is mainly due to the ARE merge.

16 Technical information
16.1

Technical provisions

The movements recorded in technical provisions during 2023 and 2022 is as follows:
2023

Balance at 1
January

Effects ofthe merger

Allocations

Applications

Balance at
31
DecemberDirect Business and Accepted
Reinsurance
Provision for unearned premiums
and for unexpired risks
Claims provision
Provision for profit sharing and for
return premiums
Total

701,723 1,238,688 -

201,741
513,970

758,390
1,316,773(701,723)(1,238,688)

960,131
1,830,743

64,114 2,004,525 -

1,407
717,118

55,3132,130,476(64,114)(2,004,525)

56,7202,847,594

Reinsurance share on technicalprovisions
Provision for unearned premiums
and for unexpired risks
Claims provision
Other technical provisions
Total(272,430) (616,532) - (888,962) -(9,622)(76,888)(86,510)(276,890)(551,605)(828,495)

272,430
616,532
888,962(286,512)(628,493)(915,005)

Balance at 1
January

Effects ofthe merger

Allocations

Applications

Balance at
31
December

2022

Direct Business and Accepted
Reinsurance
Provision for unearned premiums
and for unexpired risks
Claims provision
Provision for profit sharing and for
return premiums
Total

641,731959,898-

701,723
1,238,688(641,731)(959,898)

701,723
1,238,688

36,135
1,637,764-

64,1142,004,525(36,135)(1,637,764)

64,1142,004,525

Reinsurance share on technicalprovisions
Provision for unearned premiums
and for unexpired risks
Claims provision
Other technical provisions
Total(300,417)(644,122)(944,539)-(272,430)(616,532)(888,962)

300,417644,122944,539(272,430)(616,532)(888,962)

The movements in estimated recoveries of the technical claims provisions recorded under assets on the balance sheetsat 31 December 2023 and 2022 in the line item “Loans and receivables – Other Receivables – Rest of Receivables” (seeNote 10), which are in respect of the Spain and Portugal business, are shown below:

69

All amounts are in millions of Euros, unless otherwise statedBalance at 1
January 2022

Allocations

Applications

Balance at 31
December
2022

Estimated Recoveries Direct insurance

69,29378,365(69,293)

78,365

Estimated Recoveries Ceded insurance
Total(31,390)
37,903(29,108)
49,25731,390(37,903)(29,108)
49,257

Balance at 1
January 2022

Allocations

Applications

Balance at 31
December
2022

Estimated Recoveries Direct insurance

65,816

69,293(65,816)

69,293

Estimated Recoveries Ceded insurance
Total(38,505)
27,311(31,390)
37,90338,505(27,311)(31,390)
37,9032023
Estimated Recoveries

2022
Estimated Recoveries

The change in the estimated recoveries is recorded in the technical profit and loss statement in the line item “Variationin the provision for claims” both in the direct insurance and in the ceded reinsurance business.

16.2

Risk exposure and management

Operational risk management
Operational risks are the risks of direct or indirect loss from inadequate or failed internal processes, people, andsystems or external events. This definition is in line with industry practice as well as with the Solvency II Directive.
This risk is thus present in all activities carried on by Atradius, at all levels and in all locations. At the same time asclassifying operational risk into processes, people, systems, and external events, Atradius also labels the its risks
according to Environmental, Social & Governance (ESG) categories.
The Operational Risk Management (ORM) unit is part of the ACyC Risk Management department and is responsible fordeveloping methods for identifying, assessing and responding to risks and for monitoring and further enhancing theoverall risk management and control framework. The ORM unit works closely with both Internal Audit and the Legaland Compliance unit. At the highest level, operational risk is supervised by the Operational Risk Committee, which has
a reporting line through to the Chief Risk Officer.
The ORC 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 risk registers,
facilitation of risk and control self-assessments, capture of risk indicators and incidents and testing and review ofbusiness continuity plans. Risks and risk responses are discussed at all levels, locations and units across the business,
including the Management Board and Supervisory Board of Atradius N.V. High-level information on crystallised risks
has been captured for many years, with separate records of information technology risk events stretching back evenfurther. To provide oversight and assurance in an auditable and efficient manner, the ORC unit employs a dedicatedgovernance, risk and compliance software platform (the ’GRC Portal‘) that integrates existing risk management
activities across the business.
In respect of external fraud, the Fraud Control Group, composed of employees across over 30 locations, monitors theactivity of customers and buyers to detect indications of fraud. This monitoring includes using bespoke software tocapture indicators of fraud from wide-ranging internal and external sources. Atradius also provides fraud awarenesstraining and advice to employees and customers to help identify fraudulent buyers. Internal fraud is addressed
through manual and automated operational controls such as the segregation of duties, application of signingauthorities and role-based system privileges and authorities.

70Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

More details on certain operational risk management activities are provided below.
Risk registers and risk /control self-assessments
While the ORC unit is responsible for facilitating operational risk management within ACyC, 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 Operational Risk Committee and during meetings of the Executive
Committee of ACyC. This ensures that 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 inherent inbusiness processes.
On a quarterly basis, ACyC conducts specific assessments of processes and controls covering financial reporting risks,
including reporting for Solvency II purposes; the resulting ‘in control’ sign-off process is overseen by a committee withrepresentatives from Group Risk Management, Finance and Internal Audit.
Business continuity management
ACyC recognises the importance of being able to recover its critical business processes in the event of any major
operational disruption. Business continuity management at ACyC is based on the International Standard ISO22301.
The ORM unit coordinates the documentation, maintenance and continuous testing of practical plans for recovering
key business activities within acceptable timeframes.
Regulatory compliance
At Atradius we believe that complying with all applicable laws, rules and regulations and maintaining high standardsof ethics and integrity serves to lessen operational risk and achieve more stable commercial processes. The Atradius
Code of Conduct outlines the basic corporate, legal and ethical compliance principles and guidelines that apply to all
our employees and that govern Atradius' commercial conduct toward its customers, brokers and all parties involved inour 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 an are
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.
Russia – Ukraine War
The large number of sanctions restrictions relating to Russia and Belarus imposed by authorities in the EU, the UK and
the US, among others, have been closely reviewed by the organization to analyse their impact on the business. In linewith its sanctions compliance programme, Atradius reviews the potential exposure of business counterparties andother entities to sanctions in close coordination between the Group Legal & Compliance, Risk Services and Commercial
teams, based both on its regular screening tools as well as on ad hoc review initiatives. In the context of this situation,
the organization has relied on a number of measures to closely monitor the impact of the updated sanctions regimes,
including the daily screening of its main databases against certain tools coordinated by a central compliance team, theestablishment of a task force with representatives from various departments to align the strategy and measures
adopted, and the introduction of certain additional checks to enhance the monitoring capabilities.

71All amounts are in millions of Euros, unless otherwise statedManagement of environmental risk
The higher frequency and severity of extreme weather events is harming infrastructure and disrupting supply chains.
The transition to a low-carbon economy is bringing about new policies, regulations and changes in market dynamics.
There is a risk of these changes having a negative impact in ACyC by affecting our operations and/or our customers
and their buyers. The focus on reducing their carbon footprint and CO2 emissions can require manufacturers to adapt
or close, which can have a domino effect on their suppliers. Doing business in certain commercial sectors can become
undesirable and draw negative publicity. At the same time, the interest in climate change and ethical practices, and
ESG and Corporate Social Responsibility (CSR) considerations can create opportunities for improving the Company's
offerings. These developments are being tracked and discussed in various forums within the Company.

16.3

Information on the non-life insurance businessTechnical revenues and expenses by insurance line72

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

CreditPremiums attributed (Direct andAccepted)
Gross written premiums netof cancellations and return
premiums+/- Change in provision forunearned premiums+/- Change in provision foruncollected premiums
Reinsurance premiums (Cession
and Retrocession)
Gross written premiums netof cancellations and return
premiums+/- Change in provision forunearned premiums
Total of premiums attributed
net of reinsurance
Claims (Direct and Accepted)
Claims and expenses
attributable to claims+/- Change in claims technicalprovisions
Claims (Cession andRetrocession)
Claims and expenses paid+/- Change in claims technicalprovisions
Total claims net of reinsurance+/- Change in other technicalprovisions net of reinsurance
Acquisition costs (Direct andAccepted)
Administration costs (Direct andAccepted)
Other technical expenses (Direct
and Accepted)
Comissions and profit sharing on
ceded reinsurance andretrocession
Other technical income
Total operating expenses andother technical expenses (net)

73

2023

2022

2023

Surety2022

Assumed Business
2023
2022

1,805,678

1,688,616

142,420

129,114

186,452-

1,835,799

1,756,872

191,231

128,553

207,548-(27,963)(63,280)(48,673)644(21,096)-(2,157)(4,976)

(138)

(83)

-

-

(718,329)(728,754)(53,975)(66,285)(8,019)-(720,830)(714,354)(72,650)(53,093)(2,744)-2,501(14,400)

18,675(13,192)(5,275)-

1,087,349

959,862

88,44562,829178,433-(791,007)(685,073)(18,231)(38,904)(82,877)-(674,895)(407,548)(10,822)(40,848)(48,461)-(116,112)(277,525)(7,409)1,944(34,416)-

249,701
240,500

182,778
198,815

4,891
2,678

19,28323,368

5,796
6,060

-

9,201

(16,037)

2,214(4,085)(264)-(541,306)(502,295)(13,340)(19,621)(77,081)-

11,106(27,959)

(20)

(13)

-

-

(286,115)(215,419)(46,777)(9,886)--(399,589)(338,013)(45,745)(38,753)(10,202)

-

155

(215)

8

(10)

-

-

333,167
51,789293,180
53,00557,631
4,939

29,563
4,779(63,059)(133)-(289,487)(235,421)(29,964)(14,320)(73,394)-

All amounts are in millions of Euros, unless otherwise statedTechnical result by year of occurrence

CreditSuretyAssumed Business

2023

2022

2023

2022

2023

1,241,717

1,189,416

45,24038,71779,024-Gross written premiums net ofcancellations and return premiums

1,669,802

1,613,632

145,362

103,206

182,456-+/- Change in provision for unearned
premiums(336,893)(314,015)(99,928)(64,330)(103,432)-+/- Change in provision for uncollected
premiums(11,210)(10,498)

(116)

(100)

-

-

+/- Change in provision for bonuses andreturn premiums(79,982)(99,704)

(78)

(58)

-

-

Time allocated reinsurance premiums(510,345)(502,649)(17,173)(14,907)(3)-

Gross written premiums net ofcancellations and return premiums(621,448)(609,425)(55,717)(39,755)(6)-+/- Change in provision for unearned
premiums

111,103106,776

38,544

24,8483-

Total premiums acquired net of reinsurance

731,372

686,766

28,067

23,81079,021-

Premiums attributed (Direct and accepted)

Claims (Direct and Accepted)

2022(884,594)(909,713)(19,022)(18,095)(41,781)-

Claims and expenses attributable to claims(219,122)(170,058)(2,007)(666)(3,578)-

Technical provision for claims paid on
claims occurred during the year

(665,472)(739,656)(17,015)(17,429)(38,203)-

329,008

336,949

6,910

6,681

-

-

75,59860,907

711

260

-

-

253,410

276,042

6,199

6,421

-

-

(555,586)(572,764)(12,112)(11,414)(41,781)-

Reinsurance claims (Ceded)
Claims and expenses attributable to claims
Technical provision for claims paid on
claims occurred during the year
Total claims net of reinsurance
Acquisition costs (Direct)(172,441)(149,822)(4,117)(2,866)(23,258)-

Administration costs (Direct)(275,622)(264,306)(10,042)(8,603)(17,541)--

172,151

-

5,608

-

-

196,806

9,901

6,864

(268)

-

-

Other technical expenses (Direct)
Comissions and profit sharing on ceded
reinsurance and retrocession (Ceded)
Technical finance income net of expenses ofsame nature

59,77451,758(1,530)3,268(1,305)-

Other technical income

51,559(66,316)

2,643

9,533

(252)

-

Technical result by year of occurrence

35,863(6,183)

9,774

4,207

(5,115)-The information presented in the preceding table includes data for the 2023 underwriting year, with underwriting
year understood to mean the risk underwritten in that year (2023).
Using data for the year of occurrence would not produce significant differences.
The line item “Other technical income” of the technical profit and loss statement records, among other items, EUR 49.4
million in 2023 (2022: EUR 49.7 million) invoiced in respect of studying and re-studying customers in relation to thepurchase of insurance and subsequent development. The expenses associated with that activity are recorded as“Administration costs” of the Company.

74

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

17 Capital and reserves and equity
The movement in the Company's shareholder fund during 2023 and 2022 is presented in the accompanying
statements of changes in total equity.

17.1

Share capital

Under the applicable laws, insurance companies operating in the credit and surety insurance lines must havesubscribed share capital of not less than EUR 9,015,181.57.
The share capital of Atradius Crédito y Caución S.A. de Seguros y Reaseguros at 31 December 2023 was represented by
5,459,796 registered shares (2022: 4,138,065), each with a nominal value of EUR 6.01, fully subscribed and paid in andcarrying identical financial, voting and other rights. There are no restrictions on the transferability of the shares. The
Company's shares are not traded on the stock market.

17.2

Legal reserve

According to the recast text of the Spanish Companies Act (Ley de Sociedades de Capital), 10% of profit for the year
must be allocated to the legal reserve until the balance of this reserve reaches at least 20% of share capital. Until thatthreshold is reached, the legal reserve may only be used to offset losses, if there are no other sufficient reserves
available for that purpose. At year-end 2023, it is proposed to increase it by 1.6 million (2022: EUR 5.0 million).

17.3

Bylaws reserves

At year-end 2023, the Company had a reserve set aside in accordance with a previously existing bylaws obligation toallocate 5% of profit to a voluntary reserve until it reached 50% of the share capital. At year-end 2023, it is proposed toincrease it by 4.0 million (2022: EUR 12.4 million).

17.4

Voluntary reserves

The Company has absorbed, as indicated in Note 1, Atradius Reinsurance DAC in 2023. The equity position of ARE has been
added into different lines of the equity of the Company. The equity, share premium and voluntary reserves, excluding theequalization reserve, have been added into the voluntary reserves of the Company.
At 31 December 2023, the balance of these reserves was freely disposable.
In 2023, an extraordinary cash dividend was distributed from freely disposable reserves, amounting to EUR
162,155,941.20. The distribution was made among the Company's shareholders in proportion to their share in the sharecapital.
The balance of these reserves at year-end 2023 is EUR 589.7 million (2022: EUR 608.7 million).

17.5

Revaluation reserve

With this reserve the Company recognises differences in the value of certain assets, as provided in Royal Decrees
7/1996 of 7 June 1996 and Royal Decree 2607/1996 of 20 December 1996.
The amount of this reserve is the difference between the quantities obtained by applying the revision percentages
stipulated in Royal Decree 2607/1996 to the Company's property, plant and equipment and their depreciation charges,
and their value before the revision. The reserve is presented net of the associated single charge of 3%.
The revisions were inspected for tax purposes and gave way to no incidents for the Company.
The balance of these reserves at year-end 2023 is EUR 5.6 million (2022: EUR 5.6 million).

17.6

Equalization reserve

According to the PCEA, the equalization reserve is recognised in the Company's equity. At year-end 2023, it totaled
EUR 1,001.7 million (2022: EUR 800.5 million).
75

All amounts are in millions of Euros, unless otherwise stated

Due to the merger with ARE, the equalization reserve increased in EUR 43.6 million.
During 2023, the Company has allocated EUR 196.7 million in the credit insurance line and EUR 4.1 million in thesurety insurance line, as required by the ROSSP. During 2022 allocated EUR 167.7 million in the credit insurance line
and EUR 2.7 million in the surety line.
During the year there were applications of the reserve, given the positive operating technical result.

17.7

Share premium

The Recast Text of the Spanish Companies Act permits the use of the share premium account balance to increase
capital and places no specific restrictions on its disposability.
Due to the merger with ARE, the share premium increased in EUR 477 million.

17.8

Other shareholder contributions

No contribution from the Shareholders was registered in 2023 (EUR 0 millon in 2022).

17.9

Reserve for actuarial gains and losses

During 2023, the Company recognised a gain of EUR 7.2 million in reserves for actuarial gains and losses (2022: EUR
25 million). All of them come from the impact of the annual measurement of the Company's defined benefit pension
plans.

18 Transactions and balances with related parties
18.1

Balances with related parties

The breakdown of balances with related parties at 31 December 2023 and 2022 is as follows:76Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2023
AssetsInvestments
Receivables(Note 10)
ReinsuranceGroup tax
receivables
Long-term staff
remuneration
Total Assets
Liabilities
Security
deposits
received
Debts and otheraccounts
payable (Note11)
Reinsurance
payablesGroup tax
payablesTotal Liabilities

2022
AssetsInvestments
Receivables(Note 10)
ReinsuranceLong-term staff
remuneration
Total Assets
Liabilities
Security
deposits
received
Debts and otheraccounts
payable (Note11)
Reinsurance
payablesTotal Liabilities

Atradius Collections
Atradius
Atradius
Atradius
Subsidiarie
Insurance
Holding
Reinsuranc Informatio(1)NV
s of ACyC
Holding NV
B.V.
e DAC
n Services

Grupo
Catalana
Occidente

Others
(2)

Total

(3)

-

-

-

24,440

-

-

76

-

24,516

51,644448

13,310334-

18,29947

5,829

89,910

-

-

-

4,693

-

-

-

(1,121)

3,572

-

-

-

-

-

-

34,612-

34,612

-

-

-

-

-

-

6,369

-

6,369

51,644448

13,31029,467-

18,29941,104

4,708

158,979

-

-

-

-

-

-

-

-

-

2,294

-

1,878

2,004

-

14,087-407

20,670

-

-

-

-

-

-

131

806

937

-

-

-

-

-

-

-

-

-

2,294

-

1,878

2,004

-

14,087131

1,212

21,607

Grupo
Catalana
Occidente

OthersAtradius Collections
Atradius
Atradius
Atradius
Subsidiarie
Insurance
Holding
Reinsuranc Informatio(1)NV
s of ACyC
Holding NV
B.V.
e DAC
n Services

(2)

Total

(3)

-

-

-

24,440

-

-

76

-

24,51660,211

571

4,981

594

75

25,136

223

3,782

95,573----37,753--447

38,200

-

-

-

-

-

-

6,464

-

6,464

60,211

571

4,981

25,03437,82825,136

6,764

4,229

164,754

-

-

-

-

1,778

-

-

-

1,778

10,404

-

1,591

1,917

-

35,339-64

49,315----

13,571

-

195

1,705

15,471

10,404

-

1,591

1,917

15,34911,895

195

1,769

66,564(1) –ACyC – Includes transactions with Iberinform, Invercyca, Iberinmobiliaria, Crédito y Caución de Seguradora de Crédito e Garantías and Crédito y Caución do Brasil Gestao de Riscos deCrédito e Servicios LTDA
(2) – Others – Includes transactions with DSB NV, Mexico, ATCI Inc., Atradius Rus and Atradius Italia Intermediazioni S.r.l.
(3) – Grupo Catalana Occidente – Includes transactions with Grupo Catalana Occidente S.A., Seguros Catalana Occidente, Sociedad Anónima de Seguros y Reinsurance, Grupo Catalana Occidente
Gestión de Activos S.A., S.G.I.I.C. and Grupo Catalana Occidente Tecnología y Servicios, A.I.E.

77

All amounts are in millions of Euros, unless otherwise stated

The variation in the balance with related parties are explained mainly due to the fiscal unity and the corresponding
charges of the transfer pricing.
18.2

Related party transactions

The following table breaks down the transactions with related parties as at year-end 2023 and 2022 according to theircarrying value on the Company's books:

2023

Atradius
NV

Collections
Atradius
Subsidiaries
Holding
Reinsurance(1)of ACyC
B.V.
DAC

Atradius
Information
Services

Grupo
Catalana
Occidente

Others (2)

Total

(3)

Income statement
From premiums
ceded/accepted
From claims
ceded/accepted
From commission
on reinsurance
ceded/accepted
From services
provided andreceived
From financeincome and costs
Total

2022

-

-

2,113

-

-

64

67,60969,786-(2,970)(2,701)

-

-

(93)

(38,646)(44,410)

-

-

(768)

-

-

12

(25,449)(26,205)

29,943

11,568(16,937)

-

6,766

(968)

(2,518)27,854

-

-

-

-

-

-

-

-

29,943

8,598(18,293)

-

6,766

(985)

996

27,025

Collections
Atradius
Subsidiaries
Holding
Reinsuranceof ACyC (1)
B.V.
DAC

Atradius
Information
Services

Atradius
NV

Grupo
Catalana
Occidente

Others (2)

Total

(3)

Income statement
From premiums
ceded/accepted
From claims
ceded/accepted
From commission
on reinsurance
ceded/accepted
From services
provided andreceived
From financeincome
Total

-

4,403

1

(34,206)

-

79

4,403

(29,723)-(7,042)-(64,854)-(112)(7,042)(75,084)-(1,835)-30,339--(1,835)28,50428,581(1,356)(17,013)-7,585(3,805)(1,356)23,364

-

-

-

(2)

-

-

-

(2)

28,581(5,831)(17,012)(68,723)

7,585(3,837)(5,831)(52,943)(1) – ACyC – Includes transactions with Iberinform, Invercyca, Iberinmobiliaria, Crédito y Caución de Seguradora de Crédito e Garantías and Crédito y Caución do Brasil Gestao de Riscos de Crédito eServicios LTDA
(2) – Others – Includes transactions with DSB NV, Mexico, ATCI Inc., Atradius Rus and Atradius Italia Intermediazioni S.r.l.
(3) – Grupo Catalana Occidente – Includes transactions with Grupo Catalana Occidente S.A., Seguros Catalana Occidente, Sociedad Anónima de Seguros y Reinsurance, Grupo Catalana Occidente
Gestión de Activos S.A., S.G.I.I.C. and Grupo Catalana Occidente Tecnología y Servicios, A.I.E.

78

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The variation in the transactions with related parties compared to 2022 is driven by the merge of Atradius
Reinsurance DAC with ACyC.
In 2023 the Company has paid dividends to Grupo Catalana Occidente for EUR 58,015,002.05 (in 2022 no dividend
was paid) and to Grupo Compañía Española de Crédito y Caución in the amount of EUR 104,185,389.05 (2022: EUR 0
million).
In 2023 the Company received no dividend from related parties (in 2022 EUR 0 million).

18.3

Compensation of the Board of Directors and Senior Management

The Board of Directors did not receive any remuneration as members of the Board, nor any for their pension or life
insurance obligations contracted on their behalf.
The following table provides details on the remuneration for members of the Executive Committee, which haveassumed senior management functions:Short-term employee compensation (1)Long-term employee compensation
Post-employment benefits
Total remuneration

2023

2022

1,125
840
187
2,152

1,154
720
152
2,026

(1) Short-term employee compensation includes salaries, housing, Social Security, medical expenses, vehicle rental and others.

An insurance policy has been contracted for senior managers to cover possible civil liability with a premium of EUR
0.2 million (2022: 0.2 million euros).

18.4

The duty of loyalty and duty to avoid situations of conflicts of interest of the Directors

The members of the Board of Directors have sent to the Company the communications relating to the duty of loyalty
and to the duty to avoid situations of conflicts of interest, pursuant to articles 227 to 231 of the recast text of the
Spanish Companies Act, as amended by Spanish Law 31/2014 of 3 December 2014 for the improvement of corporate
governance for the year ended 31 December 2023.
In said communications, the members of the Board of Directors have stated that they have not been in any situation of
direct or indirect conflict of interest with the interest of the Company and that, according to the information that they
are aware of and that they have been able to obtain with the greatest due diligence, none of their related persons are insuch situation either. Lastly, in compliance with the aforementioned Law, they have indicated that they will promptly
report any change that may occur with regard to the detailed information.

79

All amounts are in millions of Euros, unless otherwise stated

19 Other information
19.1

Personnel

The average number of full-time employees of the Company and their distribution by job category during 2023 and2022 is as follows:
2023

2022

Management

89

87

Technical staff and middle managers

457

447

Administrative staff

1,843

1,805

Others

235

230

Total

2,623

2,569

The gender distribution of full-time employees of the Company at year-end 2023 and 2022 is shown below,
breakdown by job category:
2023
2022

Management

Men

Women

Men

Women

73

14

71

14

Technical staff and middle managers

312

141

305

138

Administrative staff

901

943

884

922

Others

52

188

51

184

Total

1,338

1,285

1,311

1,258

The Board of Directors of the Company at 31 December 2023 was composed of 9 members (8 men and 1 woman). In
2022, the Board was composed of 9 members (8 men and 1 woman). No member of the Board of Directors has an
employment relationship with the Company.
During 2023, there were a total of 58 employees with a disability of 33% (2022: 58 employees).

19.2

Auditor fees

During 2023 and 2022, the fees for accounting audit services and other services performed by the Company's
statutory auditor, PricewaterhouseCoopers Auditores (PwC) or by any company related to the auditor by virtue ofcontrol, common ownership or management were as follows:

Items

PwC

Audit services
Other services required by theregulations

1,402
375

Other verification services
Rest of other services
Total other professional services

80

2023

2022

Other firms in
the PwC
network

Other firms in
the PwC
network

Total

PwC

Total

1,182

2,584

1,388

1,078

2,466

-

375

342

-

342

55

7

62

6

7

13

-

156

156

-

63

63

1,832

1,345

3,177

1,736

1,148

2,884

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

These figures are for the fees agree for audit services for 2023 and other services (including VAT and other expenses).
The amounts of audit services include services involving review of the Solvency II Directive and other regulatory
requirements. The sums reported for non-audit services are related to projects that required the involvement of thestatutory auditor according to the regulation applicable in each country.

19.3

Customer Service Office

In compliance with the regulatory framework that applies in Spain, the Customer Service Department has prepared
the prescribed Report on Complaints and Claims for 2023.
That report, which relates to the businesses in Spain, shows that four written submissions were received in the
Customer Service Department. All of them met the formal requirements, and consequently have been processed asclaims.
One claim, out of the four processed, was settled by agreement with the customer. In other one, the resolution wasentered rejecting the claim and ruling that the decisions made by the Company departments involved were lawful. In
another one the claim was admitted.
In each submission and in the resolution issued it was expressly stated that the Commission for the Defence of
Insureds and of Pension Plan Participants, of the DGSFP, is not authorised to hear the claims submitted as these
involved insurance contracts for major risks. Four out of the five claims handled were in respect of credit insurance
policies.
In addition, it bears emphasis that comparing the number of claims processed with the customer who could
potentially submit claim gave a percentage of 0.01725% for the year ended 31 December 2023, in comparison with thepercentage of 0.01372% in 2022.
Given the small number of claims and their different underlying reasons, as well as the Company's experience, nogeneral guidelines have been set and no recommendations or suggestions were issued.

19.4

Information on the environment

Given the nature of the Company's business, it has no liabilities, expenses, assets or provisions and contingencies of anenvironmental nature that could be significant in relation to its equity, financial position and earnings. For thisreason, no specific disclosures on these issues are included in these Notes.

19.5

Guarantees with third parties

At 31 December 2023 there were bank guarantees securing EUR 1.1 million in lease obligations of the Company and
EUR 27 thousand in bonds in respect of legal proceedings against third parties.

20 Subsequent events
The Board of Directors will propose to the General Shareholders' Meeting the distribution of a dividend to theCompany's shareholders in the amount of EUR 23.7 million charged to voluntary reserves.
Except previously mentioned, the Company is not aware of any other events that occurred after the end of the 2023
financial year and until the preparation of these annual accounts that are significant, or that their knowledge may be
useful to the user of the same, or that affect the application of the going concern principle.

81

All amounts are in millions of Euros, unless otherwise stated

ANNEX. BREAKDOWN OF REAL ESTATE PROPERTIES AT 31 DECEMBER
2023(Figures in euros)

Location

Address

Country

Year ofacquisition

2023
Gross value

Accum.
Depreciation

Net value

Impairment

Last
AppraisalDate(187,473)

28-mar.-22

PROPERTIES FOR OWN USE
Comp.Inmob.Garena Plaza pl 9
ALCALA DE H.
Spain
B

2005

1,031,468(302,903)

728,565

ALICANTE

C/ San Fernando , 19 Principal Spain

2002429,024(54,061)

374,96424-mar.-22

BILBAO

Gran Vía, 17 2º Planta Of.1 y 3

Spain

2004

2,931,093(733,982)

2,197,11129-abr.-22

CASTELLON

Ruíz Zorrilla, 1 5º

Spain

1999

414,097(123,283)

290,8145-abr.-22

GERONA

Avda. Jaime I, 1

Spain

1990

335,248(180,442)

154,806

8-abr.-22

LA CORUÑA

Real, 85 6º

Spain

1975

495,743(370,436)

125,307

LAS PALMAS

Plaza de España, 6

Spain

2020

365,013(14,407)

350,607

LEON

Avda. Independencía, 2 3º

Spain

1974

36,998(28,540)8,466

8-abr.-22

MADRIDPº de la Castellana, 4

Spain

1995

21,739,237(7,786,128)

13,953,109

28-mar.-22

MALAGA

Avda. Andalucia, 19 L-A2

Spain

1981

160,619(105,493)

55,12622-abr.-22

MALAGA

Avda. Andalucia, 19 L-A5

Spain

1987

119,346(68,568)

50,77822-abr.-22

MURCIA

Avda. Libertad, 2

Spain

1988

252,571(140,729)

111,842

18-mar.-22

MURCIA

Avda. Libertad, 2 Local C

Spain

2001

115,755(41,502)74,25318-mar.-22

OVIEDO

Conde de Toreno, 4

Spain

1967

134,614(107,691)

26,92313-abr.-22

PAMPLONA

Avda. Carlos III, 13-15

Spain

1984

110,902(67,627)

43,276

3-may.-22

SEVILLA

Plaza Nueva, 8 Dpdo. 5

Spain

1971

494,036(395,228)

98,80724-mar.-22

SEVILLA

Plaza Nueva, 8

Garaj. 63

Spain

1971

6,842

(5,348)1,494

24-mar.-22

SEVILLA

Plaza Nueva, 8

Garaj. 50

Spain

1973

6,540

(5,112)

1,428

24-mar.-22

TARRASA

Gutemberg, 3 3º F

Spain

1976

143,451(104,378)

39,07428-mar.-22

VALENCIA

Avda. Jacinto Benavente,14

Spain

2004

2,284,661(507,696)

1,776,965

8-abr.-22

VALLADOLID

Duque de la Victoria, 4

Spain

1978

247,596(176,112)

71,483

1-abr.-22

ZARAGOZA

Plaza Salamero, 14 3º A

Spain

1975

285,300(211,448)

73,8527-abr.-22

ZARAGOZA

Plaza Salamero, 14 Trasteros

Spain

1989

4,608

(3,320)

1,288

7-abr.-22

LISBOA

Av.C. Bordalo Pinheiro 75

Portugal

2017

3,970,100(376,616)

3,593,484

3-nov.-23

LISBOA

Avda. la Liberdade, 245

Portugal

2001

1,444,953(504,202)

940,751

OPORTO

Plaza Buen Suceso, 61

Portugal1905

977,169(329,972)

647,197(375)

29-jun.-22

ROMA

Via Crescenzio

Italy

1972

15,823,758(3,266,369)

12,557,390(17,929)10-dic.-23

ROMA

Via Cassiodoro 9

Italy

1993

1,328,200(258,000)

1,070,200

55,688,942(16,269,593)

39,419,360

Total Own-Use Real Estate82

9-may.-22(12,454)

6-jun.-23

29-jun.-22

10-dic.-23(218,231)

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Location

Address

Year ofCountry acquisition

2023
Gross
value

Accum.
Net value
Depreciation

Impairment

Last
Appraisal
Date

PROPERTIES FOR OWN USE
ALBACETE

Tesifonte Gallego, 4

Spain

1982

59,865(38,369)

21,49510-mar.-22

ALMERIA

Lachambre, 2 2º

Spain

1996

102,998(45,818)

57,18029-mar.-22

BADAJOZ

Avda. Ramon y Cajal, 13 1º

Spain

1992

64,119(32,051)

32,06821-mar.-22

BARCELONA

Provenza, 216

Spain1965 7,847,107

BILBAO

Gran Vía, 53

Spain

1967

BURGOS

P. Alonso Martinez, 8

Spain

CORDOBA

Ronda de los Tejares, 32

Spain

GRANOLLERS

Avda. San Esteban, 9

Spain

1999

JAEN

P. Constitución, 10

Spain

1989

JEREZ

Cmte. Paz Varela, 21 2º L-8 Spain

LA CORUÑA

Alameda, 34 5º C

LERIDAMADRID(2,133,219) 5,713,888

5-abr.-22

146,093(116,874)

29,21929-abr.-22

1987

80,510(46,018)

34,49117-mar.-22

1986

127,910(75,057)

52,85321-mar.-22

201,270(86,551)

114,71928-mar.-22

76,541(41,995)

34,54625-mar.-22

1988

41,184(22,929)

18,25529-abr.-22

Spain

1974

82,324(62,868)

19,456

6-may.-22

Avda. del Segre, 1

Spain

1990

109,392(57,961)

51,43128-mar.-22

Dulcinea, 47 Bajo L-1-2

Spain

1969

213,572(170,858)

42,7145-abr.-22

P. MALLORCAPª del Borne, 15

Spain

1975

137,568(103,033)

34,53522-mar.-22

S. C. TENERIFE

Villalba Hervas, 9 1º C

Spain

1987

190,727(108,900)

81,827

9-jun.-22

SABADELL

Plaza de Cataluña,16

Spain

1997

222,201(92,384)

129,81728-mar.-22

SANTANDER

Cuesta, 2 4º Dcha.

Spain

1985

132,231(79,005)

53,22624-mar.-22

SEVILLA

Plaza Nueva, 8 Garaj. 61

Spain

1971

6,842

(5,349)1,494

24-mar.-22

SEVILLA

Plaza Nueva, 8 Garajes

Spain

1973

32,699(25,560)

7,139

24-mar.-22

TARRAGONA

Rambla Nova, 76 1º 2

Spain

1976

110,509(81,446)

29,06311-abr.-22

VIGO

Uruguay, 2 2º

Spain

1967

205,884(164,708)

41,17615-mar.-22

VITORIA

Manuel Iradier, 24 L-1

Spain

1986

71,875(41,949)

29,92618-mar.-22

ZARAGOZA

Plaza Salamero, 14 3º B

Spain

1975

116,558(86,348)

30,2107-abr.-22

ZARAGOZA

Coso, 98-100 7º 6

Spain

1972

41,409(32,814)8,595

1-abr.-22

LEON

Avda. Independencía, 2 3º

Spain

1974

38,462(29,641)

8,811

8-abr.-22

OVIEDO

Conde de Toreno, 4

Spain

1967

21,914(17,531)

4,383

GENOVAVia di Sottoripa 1/A

Italy

1991

249,333(69,388)

179,945(41,945)10-dic.-23

UDINE

Via Manzini 8-9

Italy

1992

184,416(57,248)

127,168(28,168)

10-dic.-23

ROMA

Via Padre Semeria 29

Italy

1985

176,406(34,827)

141,579

13-abr.-22

10-dic.-23

11,091,91 (3,960,699) 7,131,209(70,113)9 in Sweden acquired in 1993 for an acquisition price of 345,000*** The "PROPERTIES FOR OWN USE" table does not include a fully depreciated property
Total Leased Properties

Swedish Krona (EUR 33,643)

83

All amounts are in millions of Euros, unless otherwise stated

ANNEX. Merger Balance sheet
ATRADIUS REINSURANCE DACBALANCE SHEET 31 DECEMBER 2022 AND 31 DECEMBER 2021
Assets31.12.2022

31.12.2021(Thousands of Euros)(Thousands of Euros)--

Intangible assets
Property, plant and equipment

20

14

Investment property--

Financial investments

856,408

937,600

Deposits in cedent companies

21,76533,840

Reinsurance share on technical provisions

110,962

83,379Claims pending

93,21365,968Earned premium provision

17,74917,411Loans and receivables

184,764

183,340

Ceded acquisition costs

69,09869,284

Earned income

3,842

4,393

Other assets

6,484

1,341

Cash and cash equivalents
Total Assets

55,22866,973

1,308,571

1,380,164

EquityShare capital presented as Equity
Capital contributions

635

635

279,054

279,054

Revaluation reserve(20,777)

27,019Result for the year

226,056

248,879

Total Equity

484,968

555,587

Technical provisions

718,320724,878

Underwriting provision-assumed

687,556

703,304

Underwriting provision-direct

30,763

21,574

Liabilities

Deferred tax liabilities

-

2,029

Debits and payables

105,283

99,699

Payables on reinsurance operations

86,302

90,919Unearned reinsurance commission

4,611

4,156

Other liabilities including taxes and Social Security

14,3704,624

Total Liabilities

823,603824,577

Total Equity and Liabilities

1,308,571

1,380,164

84

Annual accounts 2023 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

ATRADIUS CRÉDITO Y CAUCIÓN S.A. DE SEGUROS Y
REASEGUROSBALANCE SHEET 31 DECEMBER 2022 AND 31 DECEMBER 2021
Assets31.12.2022

31.12.2021(Thousands of Euros)(Thousands of Euros)

Cash and cash equivalents

399,682

347,323

Available-for-sale financial assets

1,781,248

1,671,196

Equity instruments

303,803

394,133

Debt securities

1,477,445

1,277,063

Loans and receivables

480,646457,747

Deposits in credit institutions

43,07360,015

Deposits made for accepted operations

2,320

3,201

Receivables on insurance operations

119,394

108,351

1. Policyholders

98,23789,067

2. Brokers

21,157

19,284

Receivables on reinsurance operations

111,881

91,092Other receivables

203,978

195,088

1. Tax receivables

717

316

2. Rest of receivables

203,261

194,772

Reinsurance share on technical provisions

888,962

944,539

Provision for unearned premiums

272,430

300,417

Provision on claims

616,532

644,122

Property, plant and equipment and investment property

68,82273,987

Property, plant and equipment

61,631

71,689Investment property

7,191

2,298

105,985

97,471

13,71318,319Intangible assets
Goodwill
Other intangible assets

92,272

79,152

Holdings in Group companies and associates

16,493

16,493

Holdings in Group companies
Tax assets

16,493

16,493244,884

187,226

Current tax assets

51,38817,261

Deferrad tax assets

193,496

169,965

Other assets

366,695

307,700

Assets and reimbursement rights for long-term staff remuneration

88,505

95,157

Accrual accounts

278,190

212,543

4,353,417

4,103,682

Total Assets

85

All amounts are in millions of Euros, unless otherwise stated

ATRADIUS CRÉDITO Y CAUCIÓN S.A. DE SEGUROS Y
REASEGUROSBALANCE SHEET 31 DECEMBER 2022 AND 31 DECEMBER 2021
Liabilities and Equity
Debts and payables

31.12.2022

31.12.2021(Thousands of Euros)(Thousands of Euros)

396,137

579,668

Deposits received for ceded reinsurance

9,903

11,556

Payables on insurance operations

74,08969,482

1. Payables to insureds

41,92541,515

2. Payables to brokers

18,532

15,194

3. Conditional payables

13,632

12,773

Payables on reinsurance operations

182,534

376,670

Other accounts payable:

129,611

121,960

7,616

6,813

1. Tax payables
2. Other accounts payable to Group companies and associates

49,31541,314

3. Rest of other accounts payable

72,68073,8332,004,525

1,637,764

701,723

641,731

Technical provisions
Provision for unearned premiums
Claims provision

1,238,688

959,898

Provision for profit sharing and for return premiums

64,11436,135

Non-technical provisions

60,450101,260

Provision for pensions and similar obligations

59,47598,752

Tax liabilities

252,199

251,512Current tax liabilities

43,51927,026

Deferred tax liabilities

208,680

224,486

Other liabilities

173,345

183,703

Accrual accounts

65,926

63,961

Commissions and other acquisition costs of ceded reinsurance

107,419

119,742

Total Liabilities

2,886,656

2,753,907

Equity1,530,666

1,289,148

24,87024,870

1,231

1,231

1,398,101

1,072,317

17,40917,409

2. Equalization reserve

800,488630,530

3. Other reserves

580,204

424,378

Capital or mutual fund
Share premium
Reserves
1. Legal and bylaws reserves

Other shareholder contributions

60,00060,000Result for the year

216,422

132,372(Interim dividend and intern equalization reserve)(169,958)(1,642)

Valuation adjustments:(63,905)

60,627

Exchange and translation differences(26,673)(19,376)

Available-for-sale financial assets(37,232)

80,003

Total Equity

1,466,761

1,349,775

Total Liabilities and Equity

4,353,417

4,103,682

86

Management Report87Management Report
CONTENTS
1

Economic Environment ....................................................................................................................................................... 89

2

Financial Situation ................................................................................................................................................................ 91

3

Management of Risks, Financial Instruments and Capital ...................................................................................... 91

4Group Companies ...................................................................................................................................................................95

5

Other Information ................................................................................................................................................................. 96

6

Outlook for 2024 ................................................................................................................................................................. 104

88

1

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 from the 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 the conflict would escalate regionally.
Advanced markets
Across advanced markets, GDP growth slowed to 1.4% in 2023, from 2.6% in 2022. Advanced economies continue todrive the decline in world GDP growth from 2022 to 2023, with stronger services activity offset by weaker
manufacturing. Many governments kept supportive fiscal policies in 2023, resulting from fiscal support given becauseof the energy 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 as well.
Growth in the United States surprised to the upside at the beginning of 2023, but GDP performance was worse in thesecond half of the year, as wage growth slowed, savings accumulated during the pandemic was running out, andmonetary policy remained tight. 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 in a 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 but paused its hiking cycle in September, as inflation started to comedown. The ECB also continued to build down its balance sheet, as principal payments on assets under the Asset
Purchasing Programme were no longer reinvested.
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 from the COVID lockdowns in early 2023. The consumption recovery in emerging
markets, however, was slower than in advanced markets post-COVID, due an 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 post-COVID, while Latin America,
which struggles with structural weaknesses and political 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, and spending remains below the prepandemic 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 wasunderpinned 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.

89

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 bank rapidly tightened the monetary policy inresponse 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.
Global insolvencies: adjusting back to pre-pandemic levels
Insolvencies continued to increase in 2023, driven by normalisation after the pandemic and the bankruptcy of zombie
firms. The phasing out of fiscal 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 at different 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 in full 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 these markets, the insolvency levelalready 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 prepandemic 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. Due to the phasing out of government support and thepoor recovery since Brexit, the strongest rise in insolvencies in the UK already occurred in 2022.

90

2

Financial Situation

Credit insurance is our core business and includes traditional credit insurance for both domestic and export trades, aswell as coverage of political risks and consumer finance. The credit insurance business continued to perform well in
2023 with profit net of reinsurance of EUR 256.6 million. The Company offers a wide range of surety products
designed to cover the varying needs of our customers in Belgium, France, Germany, Italy, Luxembourg, theNetherlands, the Nordic region, Spain and Portugal. The surety line posted profit net of reinsurance of EUR 45.1
million. The reinsurance business assumed, resulting from the merger with ARE, has generated a result of EUR 28.0
millionInsurance Revenue
Insurance revenue performed well, posting moderate growth of 19.2%. The surety business' revenue was up 10.1%, toreach EUR 147.3 million in 2023, while credit insurance revenue rose to EUR 1,868.6 million.
ClaimsClaims ended the year at EUR 892.1 million, 23.2% more than in 2022. The claims ratio reached 40.5%.
Operating Expenses
Operating expenses totalled EUR 776 million in 2023. Insurance brokerage commissions increased 47.8%. The
Company ended 2023 with an expense ratio of 35.2%, in comparison with the previous year's figure of close to 32%.
Reinsurance Result
Part of our business is ceded to our panel of reinsurers, whose aggregate share of the Company's results was EUR
192.2 million (2022: EUR 270.2 million). The reinsurance treaties arising from government support measures had anegative impact of EUR 16.7 million on the results.
Net Investment Result
The net investment result rose to EUR 57.8 million for 2023 from the EUR 17.6 million recorded in 2022.

3

Management of Risks, Financial Instruments and Capital

Risk Management
Note 16.2 to these financial statements describes the main risks and uncertainties and how they are managed by theCompany.
Financial Instruments Management
The most important components of financial risk are market risk, credit risk and liquidity risk.
The Company invests in a diversified portfolio of capital instruments to mitigate those risks.

91Market Risk

Market risk is the risk that the fair value of assets and liabilities that are sensitive to movements in market prices will
decrease or increase due to adverse movements in equity prices, interest rates or exchange rates. The Company is
exposed to these risks by holding assets and liabilities whose fair value is sensitive to movements in those prices.
These risks are measured using the mismatch between assets and liabilities whose fair value is denominated inforeign currency, Value at Risk, capital models of credit risk rating institution and the duration of interest rates,
among others.
ACyC uses the capital approach available under the Solvency II Directive to define strategic asset allocation and assess
the impact of investment decisions to ensure sufficient capital under Solvency II.
The estimates of the fair value of ACyC's financial assets and liabilities are their carrying amount.
The assets are exposed to increases in inflation and/or in inflation forecasts, which could accompany increases ininterest rates and lead to a decrease in the market value of bonds held in our investment portfolio. Increases in
inflation could also have an impact on the creditworthiness of bond issuers and could result in an increase in credit
spreads. All of these factors could lead to a decline in the value of the bonds.
Inflation in the costs of claims, labour costs, cost of energy and raw materials, and/or inflation due to disruptions in
the global supply chain could impact the industry. The impact of inflation on claim costs could be more pronounced forcertain of our claims that are indexed to inflation and for surety business which is considered “long tail”.
The fair values are based on the price, as best estimate, which would be received on selling an asset or paid ontransferring 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, valuation
techniques are used that are based on market prices of comparable instruments or on observable market observable
data. If no observable market inputs are available, valuation models are used (non-market observable data). Thesevaluation techniques are subjective in nature and rely on pricing assumptions. Deviations in those assumptions may
significantly affect the estimated fair values. Consequently, the fair values presented may not be indicative of the net
realisable value. In addition, the calculation of the estimated fair value is based on market conditions at a specificpoint in time and may not be indicative of future fair values.
The fair values are subject to a control environment designed to ensure that they are determined or validated by afunction that is independent of the owner of those risks. Toward this end, ACyC defines the accounting policies andprocesses that govern the measurements and at the same time ensure compliance with the applicable accounting
legislation. Within this governance structure, non-quoted investments or illiquid investments in which ACyC invests
are measured by an external independent valuation company or the asset manager of the illiquid investment fund.
Those firms use their own proprietary valuation systems to measure the securities based on economic and market
assumptions from financial information providers. The valuations are provided on a monthly basis and are reviewed
and approved by ACyC. The valuation process of the asset manager is audited and approved by its statutory auditor.


Credit Risk

With regard to managing the credit risks of its financial investments, the investment policy of ACyC is to hold aprincipally euro-centric, internationally diversified portfolio and to avoid large risk concentrations. From a Standard& Poor’s rating scale or comparable perspective, the fixed income portfolio is almost completely invested ininvestment grade debt securities with an ‘A-‘ rating or stronger. If a debt security bond in which ACyC has invested
falls below the minimum credit rating or is not rated, it must be reviewed by the Atradius Investment Committee todecide whether the investment fund is still a suitable investment. The maximum concentration limit per issuer is 5%of the market value of the financial investments of the entity. Concentration per issuer is evaluated by aggregating theexposure to a single issuer through both debt investments and equity securities. The Atradius Investment Committeemonitors this limit and the appropriate actions are taken if a concentration limit is breached.
The counterparty credit ratings and the credit rating of the debt instruments are predominantly based on Standard &Poor’s rating. In the absence of a Standard & Poor’s credit rating, the Atradius uses Moody’s or Bloomberg Composite
ratings.

92

Liquidity Risk

ACyC is exposed to liquidity risk if there is insufficient cash available to meet its financial obligations, when due, at areasonable cost. For ACyC, liquidity risks may arise if large-scale short-term fluctuations occur in cash flows, such as adecline in cash inflows or a rise in cash outflows, or a combination of both.
Liquidity risk is managed at Atradius level, in close coordination with local operations. The Atradius policy is tomonitor and measure ongoing cash flow patterns and control liquidity by maintaining sufficient cash and highlymarketable securities to reduce liquidity risk to acceptably low levels. The investment policy states that ACyC should
only invest in financial instruments that can be liquidated within three business days or less. ACyC is able to accesscredit facilities to prevent liquidity shortages that can arise due to short-term cash flow variances. ACyC maintains
uncommitted credit lines in excess of EUR 1 million. It is an overdraft facility for a total of EUR 50 million (2022: 50
million euros). The credit line provides liquidity to cover infrequent peaks in short-term liquidity requirements while
also permitting ACyC to reduce its cash balances and to benefit from a broader and more and stable investment
portfolio. Lastly, ACyC has in place a simultaneous claims payment clause in the main reinsurance treaties. This clauseallows ACyC to ask the reinsurers to accelerate the payment of a large claim upon ACyC’s request instead of the usual
payment terms agreed in the reinsurance treaties.
Capital Management
Capital management is guided by the following these basic principles:a) Ensure the Company is sufficiently capitalised so that it has ample available capital after meetings its financial
obligations;b) Comply with the local regulatory capital requirements of all ACyC branches;c) Manage capital adequacy in ACyC and it branches, taking into account the economic conditions and accounting
regulations and standards together with the external rating agencies and regulatory capital requirements;d) Optimise the capital structure by allocating funds across ACyC branches; ande) Minimise funding costs while preserving financial flexibility.
In each country in which ACyC has insurance companies established under local laws, as well as where prescribed forbranches as well, 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 maintained at all times throughout theyear. 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 ACyC has been managed according to the Atradius guidelines and in close cooperation with theunits involved in managing the different factors related to capital. ACyC entities were able to meet their financial
obligations efficiently and to comply with local legal and regulatory requirements.
Own Funds
The Company's own funds at year-end 2023 amounted to EUR 2,107.0 million, with a positive contribution of EUR
325.4 million from the result recorded for the year.
The equalization reserve reached EUR 1,001.7 million, demonstrating the Company's strong financial capacity toconfront potential adverse scenarios in the future.
Solvency II Directive
Solvency II is the regulatory framework for (re-)insurance undertakings and groups domiciled in the EU. It came into
effect on 1 January 2016, replacing the former regulatory regime of 14 directives which were commonly known as“Solvency I”.
ACyC is one of two regulated entities in Atradius subject to Solvency II. Under Solvency II, supervision of the AtradiusGroup is conducted by Grupo Catalana Occidente, S.A., the primary parent company.

93

ACyC applies a partial internal model to calculate its regulatory capital requirements. That internal model reflects thecharacteristics of our business more precisely than would be the case applying the regulatory “standard approach” andis used to calculate capital requirement for underwriting risks. The Company continues to use the standard approachfor market risks, counterparty default risk and operational risk, as the nature of those risks is such that the internal
model approach cannot be assured to be more effective. Approval for the use of our partial internal model wasreceived in 2017.
ACyC's capital adequacy is solid, allowing it to meet its financial obligations efficiently and comply with its legal andregulatory requirements.

94

4Group Companies

4.1

Iberinform Internacional, S.A.U.

Iberinform Internacional, S.A.U. (‘Iberinform’) has firmly established itself in the commercial and financial
information market, offering online international information on more than 37 countries that in aggregate account70% of the export destinations of Spanish businesses.
It also offers debt collection services that cover more than 200 countries. Iberinform continues developing its strategic
agreements with other companies, allowing it to bring to market innovative, value-added information-based services.
The business has performed well and recorded growth over the previous year, mainly lifted by a substantial rise inbusiness from foreign customers. Technological advances and the innovative nature of its business intelligencesolutions are the main drivers of this growth. The company's expansion has contributed to consolidate its overallprofit margins in recent years.
In 2020, Iberinform took over Iberinform Portugal S.A. and set up a branch in Portugal under the name "IberinformInternacional S.A.U. Sucursal em Portugal" to continue the business carried on by Iberinform Portugal S.A. before themerger.

4.2

Entities in Brasil

Insurance revenue in Brazil decreased 9.8% (EUR 25 million 2022).

95

5

Other Information

5.1

Our People

ACyC offers products and services from offices located on six continents and had 2,623 employees at 31 December
2023 (2022: 2,569).
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 the foundation of our work.
Our employees are at the centre of our business. We have stood strong despite change thanks to our employees'
expertise and reliability. Their resilience and commitment to our company meant that we could see the challenges in2023 as opportunities to gain experience and grow. As an employer, we aim to provide a positive employee
experience, focusing on keeping our people motivated and engaged. 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 oftoday – talented employees leaving the company, 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 tomorrowand 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 rightemployees, 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 the needs 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 ouralready high retention rate. Thus, indicating that our efforts to attract and retain our employees and keep a 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.
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 wascreated to facilitate and streamline the onboarding process internally. We piloted a Buddy Programme in 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 this programme 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 anddevelopment opportunities. We focus on the opportunities that fit with the changing context in which we operate. This
helps us become an enabling employer.

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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 in one’s development andcareer highly contributes to the satisfaction of employees.
At Atradius, we encourage employees to determine their own set of personal goals and work on their development andcareer 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 orteam meetings to review their performance. They can discuss the challenges they face and set new goals.
The results of our Employee Engagement Survey in 2022 showed that career development and personal development
were one of the few topics we scored below 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 2,300 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 to career development” scored 7.9. These
results indicate that we all find career development 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 such as 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 of compliance courses.
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 offered various in-house webinars on thevarious internal IT systems and apps we developed as part of the Digital Ambassador Programme. These webinars
have each 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 are offered a large variety of learning opportunities per year. This year the average learning
hours per employee was 20.3 hours (compared to 16.6 hours in 2022), with males (19.4 hours) and females (21.2 hours)
spending a similar amount of time developing themselves. Three years ago we set an internal target to ensure each
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 our employees so that together we are fit for the
future. We do this considering societal and demographic changes.
Our employees’ well-being and vitality are of primary importance. We offer various organisation-wide well-being andvitality initiatives to ensure our employees take the time to focus on themselves and keep a positive work-life balance.
We believe that continuous efforts to evolve our company culture have a positive impact on the mental health andwell-being of our employees.
In 2023, we continued the third year of our Growth Programme with two sessions: one on personal development andthe other about feedback. This is 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 and building strong teams in the new hybrid-working world. Topics included managing workload,
goal setting and how to create a dream team. As the well-being of our employees is extremely important to us, wellbeing initiatives will continue 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 environment that
stimulates life-long learning, provides flexibility and is in line with the company’s ESG initiatives. The action planaddresses this topic in recruitment, hiring, training, salary development and promotions.

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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 as a 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 also have piloted a
Female Sponsorship Programme to help improve female career progression and expand the talent pool available forsenior 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.

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 - agroup-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 winningteams from 2022. The teams were recognised for their contribution, commitment, and dedication to the winning of
new business, and the significant contribution they made to our Strike targets.
Another Evolve+ initiative is the Happy Holidays Video – a yearly Atradius-branded Seasons Greetings video to sharewith 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 to share our resources charitably and give back tosociety. This applies to our commercial stakeholders and the wider community and the environment. Over the 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 also broadens personal horizons. Detailed information
can be found in the ESG chapter.

5.2

Our Network of Brokers

Our commercial network comprises a renowned network of agents and brokers of the Company who receive
continuous support and offer a high level of professional advising throughout the entire process of offering our
products and services.

5.3

Reinsurance

On 31 October 2023, the intra-Community cross-border merger by absorption between ACyC, as the absorbing
company, and Atradius Reinsurance DAC (ARE), as the absorbed company, was completed. ARE was dissolved without
going into liquidation and all of its assets and liabilities, including all its reinsurance obligations, were transferred byuniversal succession to ACyC and assigned to its branch in Ireland, which since that date has carried out thereinsurance activities of ARE as its legal successor.
The Group's reinsurance includes a quota-share treaty with retention of 37% and an excess of loss contract adapted to
the needs of our business.
The reinsurance business made a negative contribution of EUR 126.9 million (EUR 270.2 million in 2022) to theCompany's total result.
As indicated in Note 1(e) to the accompanying financial statements, during 2021 reinsurance treaties were signed withdifferent Governments that had a negative impact in 2023 of EUR 16.7 million in the Company's overall results.
The experience, technical support and financial strength of our panel of reinsurers are essential assets for ourbusiness and we continue to deepen our professional collaboration with our reinsurers' teams of people.

5.4

Trading with Own Shares

The Company engaged in no transactions with its own shares or with shares of the parent company during 2023 or
2022 and held none of its own shares as treasury stock at those year-ends.

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5.5

Average Payment Period

The average payment term to the Company's suppliers for transactions in Spain did not exceed the legal maximumthat applied in 2023 which, according to Law 3/2004 of 29 December 2004 on measures to combat late payments incommercial operations, is set at 30 days, unless a different payment period is agreed with the supplier, which may inno case exceed the legal maximum of 60 days.
During 2023 the average payment period was 28 days as indicated in Note 11 to the financial statements.

5.6

Financial Instruments

The information on financial investments and on management of liquidity and market risk is included in Note 8 to theaccompanying financial statements.

5.7

Subsequent Events

The Company describes the significant events that have occurred after 31 December 2023 in Note 20 to the financial
statements.

5.8

Non-Financial Information

The Company is exempt from including the non-financial information indicated in Law 11/2018 of 28 December 2018,
because it is included in the consolidated Management Report of Grupo Catalana Occidente, S.A., the head company of
the consolidated tax group with which the Company is consolidated. The consolidated Financial Statements of Grupo
Catalana Occidente, S.A., together with its consolidated Management Report, will be deposited in the Commercial
Registry of Madrid.

5.9

Research and Development

Our large, multi-year programmes together with separate innovation initiatives cover key areas of our business incommercial and risk. Our agenda continues to be dominated by the digital transformation programmes for the Credit
Insurance and Surety. 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, inhouse built secure system. This new working environment offers unprecedented levels of functionality andconnectivity between our online systems that will allow us to maximise the value of our products and services to all
our customers, brokers and market partners.

5.10

Environment, Society and Governance (ESG)In 2022, we created a dedicated ESG Committee chaired by our CFO Claus Gramlich-Eicher. The Committee iscomposed of members of our leadership team 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 it to 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.

Sustainability Master Plan 2024-2026
In 2022, we formalised our sustainability ambitions based on three pillars - People, Planet and Prosperity, which haveguided our actions in the current year.

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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 impact that 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 well as internal and external surveys,
complemented by global peer, trend, and regulatory analyses.
The outcome was integrated into a 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.

Promoting sustainability awareness
Atradius has developed several programmes including education sessions for senior management to promote a
culture of sustainability within the organisation 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, theenvironment and anti-corruption and reports on this annually, via our parent company GCO. As part of GCO, Atradiusis 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 in recognition 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).

Environmental responsibility
Atradius has a global presence operating in more than 50 countries through a network of 98 offices varying indifferent 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 to lower our carbon footprint and support our sustainability goals.
Atradius has developed Corporate Real Estate Standards (CRES), which include ESG goals for energy saving measuresand new procurement procedures when sourcing for new office locations. Atradius has also introduced hybrid
working, reducing the amount of office square meters from 102,629 square meter in 2019 to the 84,972 square meterin 2023 already, and in progress to future optimalisation.
Energy consumption and energy efficiency measures
Currently, 9 buildings where Atradius has offices hold sustainable building certificates. When sourcing new officelocations, our specifications always include criteria to maximize sustainability, seeking certifications such as ENERGY
Star, BREEAM, and LEED.

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In an effort to reduce energy consumption, Atradius is implementing various energy efficiency measures. These
include replacing existing lighting with more energy-efficient and environmentally friendly LED bulbs, installing
motion-sensitive lighting systems, and adjusting lighting schedules to align with 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 byfacilities through stationary combustion, amounted to 548 tonnes of CO2.
Local actions have also been developed to promote sustainable practices, for example in France an energy challenge
was organised on each floor of the building throughout 2022, with rewards distributed to the floor that had used thelowest amount of energy in 2023.
Paper and waste
We have put measures in place to assess and minimize the resources we purchase. 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, and other 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 fromrecycled materials in the coming years, ensuring they hold eco-certifications such as the Forest Stewardship Council(FSC).
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
3,025 tonnes from air travel and 80 tonnes from train travel. Additionally, our company car fleet contributed to 1,162
tonnes of CO2 emissions.
The Group Company lease car policy is expected to be published in early 2024 with 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% increasein the lease amount at the time of replacement, respectively.
In terms of commuting journeys, a sustainable mobility model will continue to be promoted with the installation ofelectric 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 new alternative 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
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.

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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 thewomen within Atradius are equally representative of the high calibre of human capital within the company, we expectthat within four years they shall represent at least 22% of the Supervisory Board (11% in 2023), 17% of the Management
Board (0% in 2023) and 26% (25% in 2023) of our sub-top-level positions.
We continued to monitor the gender pay gap. Several factors come into play when measuring pay gaps such as yearsof experience or the different average salary by country. 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, andunconscious bias to raise further awareness on the topic.
Employee well-being program
Atradius is promoting new ways of working and is implementing measures aiming 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 andthe other on feedback.
Since July 2021 Atradius introduced a hybrid working model that combines the advantages of working in the officeand of working at home, allowing employees to work 40% of the working week remotely. The model provides agroupwide common framework, while also offering flexibility for local adaptations linked to local legislation,
Collective Labour Agreements, and current local practices.
Contribution to local communities
In 2023 Atradius’ employees coordinated various local campaigns and activities to support local causes throughpartnerships with local charities and employee volunteer programmes.
HealthAtradius actively engages in charity races to raise funds and awareness for disease prevention. For example, in 2023
Atradius Italy participated to “Race for 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 cardiovasculardiseases. 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 fund the research into treatments for the ALS (Lou Gehrig's disease).
Toy collection and donation were organized by the employees of Atradius France 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 clean-up 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 ofwaste.
Atradius Belgium has launched a new trend of end-of-year gifts for its employees and donated 5 trees for eachcolleague in the Atradius forest in Evelette. A total of 1,500 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-tall trees 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, Atradiusdelivers water filters to the NGO The Social Water, for the purification of polluted waters.

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Solidarity and social inclusion
Atradius Vietnam donated used computers to Thien An Shelter (MATA), a social protection institution established tohelp the visually impaired youth access education 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 foodbanks.

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 termsof investment management:
Exclusion principles:
Exclusion of companies in which part of their activity is carried out in certain economic sectors, which are involved incontroversial activities or in those companies 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 andmore 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 to sustainability 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 andtopics 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 ESGlinked credit risks.
The pilots conducted also highlight that, considering the limited availability of 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 morecompanies will start gathering data in 2024 already so they can publish sustainability disclosures and reports as of2025 following coming into effect of 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.

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6

Outlook for 2024

We predict global economic activity to slow to 1.9% in 2024. This marks the weakest growth profile since the global
financial crisis (excluding the COVID-19 virus-driven downturn in 2020). Weak GDP figures are expected in several
major economies, such as the United States and China, in early 2024, followed by a barely slow recovery.
Growth in advanced economies is projected to slow down to 0.6%. Several key advanced markets – US, UK and eurozone– are 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 stable (0.8%), mainly due to a weak export
volume and inflation that continues to weigh on private consumption. Governments in advanced markets will continue
to provide fiscal support in 2024, although the fiscal position is less expansionary than last year. Central banks are
expected to continue maintaining a relatively tight monetary policy, despite the expectation that inflation will continue
to decline. Only when inflation has convincingly returned to its target, central banks are expected to ease monetary
policy somewhat. This could happen in 2024, but is probably more likely in the second half of the year.
Emerging markets are forecast to slow their GDP increase rates during 2024. Emerging Asia remains the fastest growing
region in 2024 (4.6%). In China, the extended zero-COVID policy are impacting consumption and investment. The
current crisis in the real estate sector will also continue to slow down the economy in 2024. In Eastern Europe, growthis likely to remain stable in 2024 compared to last year, but with divergences between countries. The outlook for thisregion remains clouded by the war in Ukraine. For Latin America, we predict a slow down in growth in 2024, due to theweak external environment and the lagging effects of high inflation and tightening monetary policy.
For 2024, we still predict increases in insolvencies for most markets, but the rate increase is generally smaller than in
2023. The picture across markets is more heterogeneous than in 2023. Several markets are still likely to see a substantial
increase in insolvencies. In Italy, the Netherlands and the United States the adjustment process to return to prepandemic levels began in 2023 and we expect this to continue until 2024. But there will also be markets with expected
negative growth in insolvencies in 2024 or relatively contained increases, such as Finland, Austria, Belgium and theUnited Kingdom.
While global economic activity has proven to be more resilient than expected, there are still risks that could change theglobal economy trend in 2024. Some of these risks are (geo)political, such as the war in Gaza, which has the potential toescalate to regional level. Economic, such as persistently high inflation that could trigger further interest rate increases
by central banks, a possible further slowdown in growth in China or debt problems in emerging markets. The current
risk environment remains challenging, especially for companies still recovering from the COVID pandemic.

Board of Directors
Xavier Freixes
Hugo Serra
Désirée van Gorp
John Hourican
Carlos Halpern
José María Sunyer
Juan Ignacio Guerrero
Joaquín Guallar104