Annual Report
Atradius CyC

Content
Management Report ........................................................................................................................................................ 3
Consolidated financial statements ............................................................................................................................. 13

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

01
Management Report3All amounts in thousands of Euro, unless otherwise stated

Economic Environment
Global economic recovery remains volatile
The global economy entered its recovery phase in 2021, after a difficult 2020 dominated by the coronapandemic.
Economies reopened, as vaccination campaigns were rolled out and policymakers learned to adapt to the virus.
However, the pandemic is not over. More transmissible coronavirus variants triggered several new waves of infections,
forcing many governments to take new restrictions. At the same time, the global economy is challenged by supply
bottlenecks and higher energy prices, and currently also by geopolitical tensions between Russia and Western countries.
World GDP still expanded at a reasonably robust rate of 5.8% in 2021, more than offsetting the 3.5% decline of 2020.
Advanced Markets
Advanced economies showed a relatively strong recovery, thanks to the vaccination campaigns. What also helped therecovery was strong fiscal and monetary support. Many governments chose to continue pandemic related fiscal support
well into 2021, while central banks kept policy rates at record lows and continued their asset purchasing programmes.
Across advanced markets, GDP expanded by 5.0% in 2021, following on a 4.6% decline in 2020.
The United States began the vaccination rollout relatively early in the pandemic, allowing the economy to largely reopenin the first half of 2021. This, along with a large fiscal stimulus amounting to 12% of GDP, provided for a strong recovery
in 2021. Supply chain issues strained economic activity somewhat in the latter half of 2021, although GDP growth was
still a robust 5.6% year-on-year.
The Eurozone witnessed a resurgence of infections towards the end of 2021. Nevertheless, economic activity expanded
at a rate of 5.1%, with private consumption as the main growth driver. Like in the US, inflation was elevated in the second
half of the year, with higher energy prices as the main cause. Central banks in the Eurozone and the US remained very
accommodative in 2021. Policy rates were left unchanged at their zero lower bound, despite a strong rise in inflation.
Both the ECB and the Federal Reserve continued their asset purchasing programmes, but scaled them down a bit in Q4
of 2021 due to the better-than-expected economic recovery. Financial conditions remained broadly supportive.
Emerging Markets
Emerging markets have relatively low vaccination rates, and many emerging countries will only get broad access tovaccines in 2022. Moreover, as a group they already withdrew fiscal support in 2021, while in a number of major
markets central banks hiked the policy rate in response to higher inflation. Despite these growth constraints, GDP of
emerging markets still expanded by 6.8% 2021, more than offsetting the 1.6% decline of 2020.
The public health situation has improved in many emerging markets in 2021, though infections remain high in a
number of large markets, such as Russia. Emerging Asia remained the fastest growing region among the EME regions.
China’s GDP returned to its pre-Covid-19 levels already last year, and expanded by 8.1% in 2021.
Latin America’s GDP increased by 6.6% in 2021. Political uncertainty and structural issues weighted negatively on
economic growth. In Brazil, GDP growth expanded by 4.6%, meaning a return to its pre-Covid-level. Growth in Brazil
did slow down a bit in H2 of 2021 due to international supply-chain disruptions, rising political uncertainty ahead of the2022 elections and a tightening of policy rates. In Mexico, economic activity rose by 5.2%, but is still below pre-Covid
levels. The country benefitted from the strong US economic recovery, leading to higher demand for Mexican exports
and tourism expenditure in the country.
In Eastern Europe, GDP rose by 4.4% in 2021. Russia’s economy recovered to above pre-pandemic levels, as containment
measures were very mild. Moreover, oil and gas prices were supportive for public finances. In Turkey, GDP growth wasvery strong in 2021, but premature policy rate cuts by the central bank triggered a sell-off of the Turkish lira at the endof 2021.

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Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Global insolvencies: still very low
Contrary to our expectations at the start of the year, insolvencies remained very low in 2021 on a global level. In North
America and Asia-Pacific, we estimate that insolvencies have decreased, whereas there was a mild increase in Europe.
Two type of policies are responsible for the still low level of insolvencies. First, many countries amended theirinsolvency regimes to protect companies from going bankrupt. This includes temporary suspensions of insolvency
applications in bankruptcy courts. Second, governments provided fiscal support to companies whose revenues cameunder pressure as a result of the crisis.
In the Eurozone, Portugal, the Netherlands and Ireland stand out as countries with a strong decline in insolvencies,
thanks to the generous fiscal support packages. For Belgium and Germany, we saw a somewhat smaller, but still sizeable
decrease of insolvencies. In contrast, in Spain and Italy, bankruptcies increased as the economic recovery was relatively
weak and fiscal support somewhat less generous.
United States business insolvencies showed a mild decline in 2021 despite robust GDP growth. The United States did not
adjust its bankruptcy court proceedings and insolvencies have a high responsiveness to GDP growth. But declining fiscal
impulse and supply chain bottlenecks prevented a more significant decline in corporate failures there. The United
Kingdom witnessed an increase in insolvencies in 2021, as the economy only partially recovered from a deep recession
in 2020, due to the Covid pandemic and Brexit-related uncertainty.

Financial strength
In 2021 we maintained strong ratings from A.M. Best (A Excellent) and Moody’s (A2 outlook stable). The ratings agencies
have assessed Atradius as having a strong operating performance, favourable business profile and appropriate enterpriserisk management; good internal capital generation over the cycle and conservative capital management. They have also
viewed favourably our strong underwriting expertise and exposure management to allow us to maintain a strong
performance record.
The ratings reflect the strength of our balance sheet, which AM Best categorises as very strong, as well as our strong
operating performance, favourable business profile and appropriate enterprise risk management.
We maintain a strong capital position, building further our capitalisation thanks to high retained earnings in 2021.
Shareholders’ funds at the end of 2021 amounted to EUR 1,397.3 million, an increase of 22.2% from EUR 1,143.7 million at
year-end 2020.

Our 2021 performance at a glance
−
−
−
−
−
−
−

Insurance premium revenue increased by 9.4%.
The result for the year increased to EUR 128.2 million from EUR 84.9 million at year-end 2020.
Our prudent investment portfolio contributed EUR 14.4 million, in a difficult environment with low or negativeinterest rates.
ACyC achieved a 27.1% claims ratio in a challenging and future uncertain risk environment.
The expense ratio at 35.8%, impacted by several core projects.
The combined ratio ended at 62.9%.
Our shareholder’s equity increased by 22.2% to 1,397.3 million.

5All amounts in thousands of Euro, unless otherwise stated

Financial performance review
Credit insurance is our core product, comprising traditional credit insurance for both domestic and export trade and thestructured credit and political risk business of our Special Products team. The credit insurance business has continued its
good performance in 2021 with an operating segment result of EUR 162.5 million. We offer a wide variety of bonding
products designed for different roles and tailored to customer needs in Belgium, France, Germany, Italy, Luxembourg, theNetherlands, the Nordic region, Spain and Portugal. The bonding business has shown a positive operating segment resultof EUR 11.7 million in 2021.
Insurance revenue
The insurance revenue performed well in this challenging economic scenario with an increase of 8.9%. Bonding business’s
revenue showed stability with EUR 124.8 million in 2021 while Credit Insurance business has increased to EUR 1.483,9
million.
Claims development
Gross claims costs ended at EUR 448.2 million. The claims ratio ended at 27.1% over insurance revenue.
Operating expenses
Gross operating expenses in 2021 amounted to EUR 588 million. Direct brokerage costs increased by 8.7%. The expensedevelopment resulted in gross insurance expense ratio of 35.8%.
Reinsurance Result
Part of our premium and claims expenses are ceded to reinsurers who participated in ACyC’s results with EUR -447.8
million. In view of the Covid-19 pandemic crisis affecting the world economy, as a support to the national economy, 10 main
countries where the Group operates have supported the business of credit insurance in the form of specific government
reinsurance schemes with high cession rates, impacting negatively in the reinsurance result of the Company by EUR 253.1
million.
Net investment result
The net investment result ended at EUR 14.4 million.

Risk and capital management
Risk management
We refer to the description of the main risk and uncertainties and how these are managed to Note 4 Risk and capitalmanagement of the consolidated financial statements.
Capital management
ACyC seeks to maintain a strong capital position. This helps us to support the evolution of our insurance business, withstandfinancial stress in adverse business and financial markets, meet our financial obligations and ultimately deliver
shareholder value.
Shareholder funds and capitalisation
Shareholder funds at the end of 2021: EUR 1,397.4 million increased by 22.2% from EUR 1,143.7 million at year end 2020.

6

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Solvency II
Solvency II is the regulatory framework for insurance and reinsurance undertakings and groups domiciled in the EU; it
became effective on 1 January 2016. It replaced the former regulatory regime of 14 directives which were commonly known
as “Solvency I”.
In the course of 2017 Grupo Catalana Occidente in-house “Partial Internal Model” for calculating regulatory capital under
Solvency II was approved by the College of Regulators. This reinforced our risk management and risk quantification.
ACyC is subject to Solvency II and currently applies partial internal capital model for calculating their regulatory capitalrequirements. Under Solvency II guidelines Group supervision takes place at the ultimate parent Grupo Catalana Occidente
S.A.
The solvency position of ACyC is strong, being able to meet their financial obligations efficiently and to comply with local
legal and regulatory requirements.
Under Solvency II, ACyC is comfortably capitalised. We apply our internal capital model after regulatory approval.

Our People
ACyC offers products and services from located offices on six continents and employed 2,565 people as of December 31,
2021 (2020: 2,571).
This year our employees continued to show their flexibility and adaptability. It was a year where we worked from home,where we re-opened offices and sometimes had to close them again due to the changing landscape of Covid-19. At Atradius,
we have a dedicated Learning and Development team called the Atradius Academy, which has greatly expanded our(virtual) learning and development offer and reach. By actively promoting our offer, we have significantly increased thenumber of learning hours per employee. Due to the pandemic, we have developed our offer to include themes such as
conducting virtual customer meetings and efficient collaboration.
The Growth Program
The wellbeing of our employees remains of paramount importance for Atradius. This year we started the Growth Program,as we saw in our employees Pulse surveys that people were experiencing difficult times during the pandemic. We
encouraged the dialogue in the teams around energy management and stimulated open and honest conversations. We alsooffered some practical tips and theory around the topic of wellbeing. We are currently designing the program for 2022.
Giving a good virtual commercial presentation
We recognised that we needed to improve the way that we conduct our customer facing meetings virtually. We can now
use MS Teams to communicate with our customers in place of emails, phone calls and face-to-face meetings. Meeting
virtually has brought many advantages for our customers and for us. We can meet more often and also ensure that the rightpeople from different countries and expertise areas are in the virtual room. We developed the skills of our customer facing
employees to enable them to maintain our professionalism and offer excellent customer service in a virtual environment.
Efficient collaboration
We emphasized the broader and more effective use of Office 365. Office 365 has a lot of great tools and possibilities andpeople have shown a great interest in getting to know the possibilities. We continue to develop the skills of our employees
in the tools for the benefit of our customers, Atradius and each employee.
Compliance courses
All new employees must undertake our suite of compliance courses. To ensure important compliance topics stay ineveryone’s mind, we offer mandatory refresher courses every year. This year, we focused on refreshing the knowledge of
our Code of Conduct and the need for a safe and secure workplace.

7

All amounts in thousands of Euro, unless otherwise statedHybrid Working Model
The Hybrid Working Model is based on research, and the feedback from our employees. It provides a framework, while alsooffering flexibility for local adaptations linked to local legislation, Collective Labour Agreements and current local practices.
We implement the Hybrid Working Model only when local situations permit. Health and safety is the top priority for
Atradius. We do everything to make sure our people are safe, and our offices are safe places in which to work. We follow
the local governments’ advice, and will scale down immediately if required locally.
As a starting point we have asked our employees to be in the office for 60% of the time and be flexible for the remaining
40%. This allows our people to catch up with each other, create and collaborate in person. It also enables us to give our new
employees an optimal on boarding experience by meeting and learning from others face to face. In this way, we can protect
the strong Atradius culture of which we are proud.
This is a journey and we will evaluate it regularly. We will continue to conduct surveys to measure employee engagement
and our business results in 2022.

Atradius Business transformation - Shaping Tomorrow Together
To support the Atradius Business Transformation, in 2019 we started the ongoing initiative Shaping Tomorrow Together; acall to action for our employees. The initiative emphasises the importance of demonstrating a growth mind-set. It also helps
people to embrace new technologies and supports personal and team development.
The Shaping Tomorrow Together initiative will continue to be an important initiative for Atradius in 2022.

Evolving our Culture
To help the company during these challenging times we strengthened our culture via Evolve+, our multi-year
cultural program. In 2021 there was a strong emphasis on raising the awareness of the ongoing digitalisation andinnovation at Atradius. Another initiative was the Atradius Games. This was a company-wide habit building, team challenge
in which over 1,200 people actively participated.

Remuneration
Remuneration policy
The remuneration policy lays down the principles and key elements of sound and controlled remuneration of all employees.
The remuneration policy supports our business strategy, objectives, values and long-term interest and is aligned with thesize, organisational set-up, nature and complexity of the business activities. The remuneration policy is designed to
improve the performance and the value of ACyC, to motivate, retain and attract qualified employees and to contribute tosound and efficient risk management and not to encourage the taking of more risk than is acceptable.
Design principles of the remuneration policy
The design principles underlying the remuneration policy applicable to our staff consist of, amongst others:− Fixed and variable remuneration shall be used to align individual performance with both short and long-term
corporate strategy and objectives;−−−

Remuneration shall reward according to performance at company/entity and individual level as appropriate.
Individual objectives shall include a combination of financial and non-financial targets as appropriate to the role,
taking into account ethical behaviour and corporate responsibility; andPerformance criteria for employees will be objective, measurable and linked to individual, department and company
performance as appropriate.

8Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Environmental, Social and Governance Sustainability (ESG)
In the changing world environmental, social and governance topics are becoming increasingly important. Atradius isembracing these changes and aims to work together with our stakeholders to put ESG at the core of our business.
As a worldwide operating company, we are aware of our responsibility to do business in a way that is ethically andenvironmentally sound. Environmental, Social and Governance topics are more important than ever, as the urgency oftaking care of our planet for future generations and ourselves has further grown. We take up our responsibility as a globalorganisation. We work together with our stakeholders, with a goal of maximizing the sustainable social value andminimizing the negative impacts on social and environmental matters arising from our activities.
Continued commitment
Environmental, Social and Governance Sustainability is embedded in our culture and a key driver in our day-to-day
operations. As a credit insurer, we strongly support the management of our customers’ risks, enabling them to increase
their trade profitably, prosper in their respective industry segments, and thus create and maintain employment and reducepoverty. It is our objective to do this jointly with our customers in a transparent and ethical manner, allowing both parties
to grow sustainably. We place particular emphasis on the identification of risks and opportunities related to ESG parametersand criteria and embed them in our underwriting strategy. We are persistently improving and promoting the developmentof sustainable products and services that contribute to protection of the environment. We expect the same approach by our
suppliers, which is hard-coded in our procurement policy. Within the Atradius culture, a key building block is theencouragement of efficient and responsible use of resources, as well as behaviour supporting its responsible use.
A company consists of individual people and our employees are committed to putting ESG at the heart of their activities.
Initiated by individual employees all over the world, Atradius engages in local initiatives for the benefit of communities inthe different countries where we are located. From an employer perspective, Atradius provides a workplace environmentthat is based on an atmosphere of trust and mutual commitment, upholding people and guaranteeing the right to equalityof opportunities and treatment for all people.
Our ambitions for the future
The ESG Sustainability Policy of Atradius is closely aligned with the ESG Sustainability Plan of Grupo Catalana Occidente(GCO). In 2021, we continued to build on the foundations with the intention of further improving the full group’s business.
Key areas to be mentioned are our efforts in dealing with climate change and sustainability, human rights and diversity, as
well as digitization, innovation and employee experience. All relevant units in Atradius and GCO are brought together tocontribute to our ESG ambitions as a whole organisation, providing a scope and ambition that has been generated in theform of a three-year Master Plan (2020-2023).
The progress we have made, especially around our ESG programs, practices and policies, has been recognised by
Sustainalytics, a Global leader in ESG research with almost 30 years of experience around sustainability, which has inDecember 2021 significantly improved Grupo Catalana Occidente's ESG rating. GCO is now 12th out of 300 insurancecompanies evaluated. This recognition as a group is a further push for our obligation to manage the ethical, environmental
and social risks of our business and contribute to global efforts for making the world a better place to live, work and trade.

9All amounts in thousands of Euro, unless otherwise stated

Other information
Operations with own shares
The Company has not carried out operations with own shares or shares of the Parent Company during fiscal years 2021 and2020, nor has its own shares at the end of the fiscal year.
Average payment term
The average payment term to the Company's suppliers for operations in Spain does not exceed the legal maximum
applicable in fiscal year 2021 which, according to Law 3/2004, of December 29, through which measures are taken tocombat the late payment in commercial operations is established within 30 days, unless a different payment term is agreed
with the supplier, which in no case will exceed the maximum legal term of 60 days.
During 2021 the average payment term has been 18.60 days (15.68 days in 2020). For more detail, see Note 20 of thefinancial statements.
Subsequent events
The Company describes the significant events that have occurred after December 31, 2021 in Note 34 of the financial
statements.
Non-financial information
The Company is exempt from including the non-financial information indicated in Law 11/2018, of December 28, because
it is included in the Consolidated Management Report of Grupo Catalana Occidente, S.A., of which the Company is part ofthe consolidation scope. The Consolidated Annual Accounts of Grupo Catalana Occidente, S.A., together with its Consolidated
Management Report, will be deposited in the Mercantile Registry of Madrid.
Research and development
Digital Transformation is high on Atradius’ agenda. With the major digital programs that we are undertaking for Credit
Insurance, Bonding and IFRS17 around the corner, we see that change is the only constant factor.
Under the pillar of Growth and Customer Service, the major digital transformation programs we are undertaking for theCredit Insurance and Bonding business continue to dominate the agenda. Progress has continued, but at a slower pace thanoriginally planned due to the challenges of orchestrating such large programs while largely working on-line and fromhome. Both of these programs build on Atradius’ core strategic advantage of having a single and aligned IT platform for ourbusiness, which supports our core service proposition for global customers. In 2021, we have continued the expansion of
our API offering and extended the Atradius Flow service to Germany and the Netherlands. With Atradius Flow, ourcustomers will be able to access credit insurance processes directly in their ERP systems, in this case, in one of the market
leading applications Microsoft Dynamics. We have also continued to upgrade Atrium, our on-line customer tool, withnumerous enhancements to ensure our customers and brokers have the best user experience.
We have further expanded our capabilities, not only in connecting with our customers through APIs, but also inparticipating in new trading opportunities through platforms, such as our very own B2BSafe marketplace in Spain.
Also for our other business lines, we are exploring new means of improving the customer experience. Examples include
the development of a new online comparison platform for insured consumer credits by ICP, and our online collections portal
Agora.

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Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Outlook for 2022
In 2022, growth of the world economy is expected to moderate to 4.1%, as the gains from reopening economies have largely
been exploited and supply bottlenecks weigh on growth. Despite the continuing recovery, unemployment remains elevatedand bankruptcies are expected to increase as the pandemic related fiscal policy support provided in 2020 and 2021 islargely reversed. Moreover, an important new risk to global growth has emerged now that Russia has launched a full-scale
military invasion on Ukraine. In response, Western countries have imposed harsh sanctions on Russia and Belarus, which
are likely to push these economies in recession in 2022. This escalation will also have an effect on global economic growth,
although the exact effect is difficult to estimate at the moment.
Emerging markets as a group are forecast to grow by 4.6% in 2022. Vaccinations will become more widely available thisyear, which could help output growth and improve consumer confidence. Many emerging markets are likely to turn to aless supportive monetary and fiscal policy in 2022. While growth is moderating, Emerging Asia remains the fastest growing
region in 2022 (5.2%). In China, growth moderates to 5.0% in 2022, with constraints coming from the ailing property sector
and occasional tight restrictions to fight Covid outbreaks. In Eastern Europe, growth is expected to moderate sharply inTurkey, as the country continues to struggle with high inflation coming from commodity prices, supply chain disruptions
and geopolitical uncertainty.
Growth in the advanced economies is projected to slide to 3.8%. GDP growth in the United States is expected to moderate in
2022 due to a lower fiscal impulse and a stalling labour market recovery. Eurozone GDP growth is forecast to moderate
somewhat in 2022 due to supply chain disruptions and lockdowns resulting from a resurgence of Covid cases. While fiscal
support will weaken in 2022 compared to 2021, the fiscal position continues to be expansionary in most countries.
Our economic outlook for 2021 predicted a recovery to relatively high levels based on increasing vaccination rates andrelaxation of lockdown measures. What we did not foresee, was the severity of the impact of new Covid-19 variants andwaning vaccine immunity, resulting in a stop-starting mode to economic recovery – compounded by supply chain
challenges and energy price rises. The predicted rise in insolvencies for 2021 was held back by ongoing fiscal measures andinsolvency law amendments in a range of countries, resulting in a largely benign claims environment. However, we expect
a rise in insolvencies in virtually all markets in 2022, as measures that helped to suppress insolvency growth in 2020 and
2021 are gradually unwound. There remains a wide dispersion of insolvency projections between countries. In Singapore,
Australia and the Netherlands, the withdrawal of fiscal support is likely to lead to a strong increase of insolvencies, asinsolvencies come from a relatively low level. In the United Kingdom, the increase is also rather high, as high inflation anda withdrawal of fiscal support are weighing on GDP growth. Smaller increases of insolvencies are expected in for example
the United States, France, Germany and Spain. Brazil is the only covered market where insolvencies are expected to decline
in 2022.
Two years into the pandemic, it is clear that the uncertainty over the coronavirus has not receded. The possibility of newvariants emerging that force governments to take new lockdown measures, cannot be excluded. Given the sizable
government support, the economic damage of the pandemic to businesses and households is not fully felt yet, but it isexpected to gradually emerge over the coming years. Geopolitical risk is adding to the uncertain outlook.

Board of Directors
Xavier Freixes Portes (Chairman as per 1 of January 2022)
José Ignacio Álvarez Juste (Chairman until 31st of December 2021)
Francisco José Arregui Laborda (Vice-Chairman)
Désirée María van Gorp
Juan Ignacio Guerrero (as per 1 of January 2022)
Carlos Halpern Serra
John Patrick Hourican
Bernd Hinrich Meyer
Hugo Serra Calderón
José María Sunyer Sendra

11

All amounts in thousands of Euro, unless otherwise stated

02
Consolidated Financial
Statements

12Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Consolidated financial statements 2021
Contents
Consolidated financial statements .............................................................................................................................. 14
Notes to the consolidated financial statements
1

General information .............................................................................................................................................. 18

2

Summary of significant accounting policies ................................................................................................... 19

3

Critical accounting estimates and judgements in applying accounting policies .................................. 36

4

Risk and capital management ............................................................................................................................ 38

5

Segment information ............................................................................................................................................ 63

6

Intangible assets .................................................................................................................................................... 66

7

Property, plant and equipment and Investment property ......................................................................... 68

8

Subsidiaries.............................................................................................................................................................. 71

9Financial investments ........................................................................................................................................... 71

10

Receivables...............................................................................................................................................................73

11

Deferred acquisition costs ................................................................................................................................... 74

12

Miscellaneous assets and accruals .................................................................................................................... 74

13

Cash and cash equivalents ...................................................................................................................................75

14

Capital and reserves ...............................................................................................................................................75

15

Employee benefit assets and liabilities ............................................................................................................ 77

16

Insurance contracts............................................................................................................................................... 83

17

Provisions ................................................................................................................................................................ 88

18

Deferred and current income tax ...................................................................................................................... 88

19

Payables .................................................................................................................................................................... 91

20 Other liabilities ........................................................................................................................................................ 91
21

Net premium earned ............................................................................................................................................. 92

22 Service and other income .................................................................................................................................... 93
23 Net income from investments ............................................................................................................................ 93
24 Insurance claims .................................................................................................................................................... 94
25 Net operating expenses ........................................................................................................................................ 95
26 Finance expenses .................................................................................................................................................. 95
27

Income tax ............................................................................................................................................................... 96

28 Dividends per share .............................................................................................................................................. 96
29 Assets not freely disposable................................................................................................................................ 96
30 Capital commitments and contingencies ........................................................................................................ 96
31

Personnel ................................................................................................................................................................. 97

32 Related party transactions .................................................................................................................................. 98
33

Auditors fees ........................................................................................................................................................... 99

34 Events after the reporting period ...................................................................................................................... 99

13

All amounts in thousands of Euro, unless otherwise stated

Consolidated financial statements
Consolidated statement of financial position
AssetsNote

31.12.2021

31.12.2020

Intangible Assets

6

127,818

151,134

Property, plant and equipment

7

133,758

143,406

Investment property

7

2,298

2,595

Financial investments

9

1,857,006

1,471,479

Reinsurance contracts

16

935,652

1,013,353

Deferred income tax assets

18

21,69535,630Current income tax assets

18

18,167

16,075

Receivables

10

323,123

294,511

Accounts receivable on insurance and reinsurance business

218,917

184,593

Other accounts receivable

104,206

109,918

Other assets

518,924

420,965

33,75429,560

Deferred acquisition costs

11

Other assets and accruals

12

485,170

391,405

Cash and cash equivalents

13

324,508

225,565

4,262,949

3,774,713

1,397,356

1,143,666--

1,397,356

1,143,666

Total
EquityCapital and reserves attributable to the owners of the Company

14

Non-controlling interests
Total
Liabilities
Employee benefit liabilities

15

98,753

137,173

Insurance contracts

16

1,575,495

1,397,951

Other provisions

17

2,620

2,781

Deferred income tax liabilities

18

81,49967,565Current income tax liabilities

18

27,63936,234

Payables

19

474,644393,357

Accounts payable on insurance and reinsurance business

382,947

324,499

Trade and other accounts payable

91,697

68,858604,943595,986

Total

2,865,593

2,631,047

Total equity and liabilities

4,262,949

3,774,713

20

Other liabilities

14

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Consolidated income statement
Note

2021

2020

Insurance premium revenue

21

1,608,734

1,470,817

Insurance premium ceded to reinsurers

21(1,030,572)(1,038,126)

578,162432,691

Net premium earned
Service and other income

22

56,692

59,907

Net income from investments

23

14,40910,977649,263503,575(448,211)(892,054)

Total income after reinsurance
Insurance claims and loss adjustment expenses

24

Insurance claims and loss adjustment expenses recovered from reinsurers

24

163,328

631,516(284,883)(260,538)(174,212)(122,249)

Total expenses after reinsurance(459,095)(382,787)

Operating result before finance costs

190,168

120,788

492

1,950

5,066

(7,493)

195,726

115,245(67,545)(30,321)

128,181

84,924

128,181

84,924

Net insurance claims
Net operating expenses

25

Finance income
Finance expenses

26

Result for the year before tax
Income tax expense

27

Result for the year
Attributable to:
Owners of the Company
Non-controlling interests--

Total result for the year

128,181

84,9242021

2020

128,181

84,92438,936(10,587)(8,159)5,467

Consolidated statement of comprehensive income
Note
Result for the year
Other comprehensive income:Items that will not be reclassified to the income statement:
Actuarial gains/(losses) on defined benefit pension plans

14.5

Income tax relating to items that will not be reclassified
Items that may be subsequently reclassified to the income statement:
Net fair value gains/(losses) on available-for-sale financial investments

14.3

32,609(8,406)

Exchange gains/(losses) on translating foreign operations

14.4

10,919(13,031)

Income tax relating to items that may be reclassified(8,795)

266

Other comprehensive income for the year, net of tax

65,510(26,292)

Total comprehensive income for the year

193,691

58,633

193,691

58,633--

193,691

58,633Attributable to:
The owners of the company
Non-controlling interests
Total comprehensive income for the year15

All amounts in thousands of Euro, unless otherwise stated

Consolidated statement of changes in equity

Note

Attributable to the owners of the Company
Revaluation
Currency
PensionRetainedreservetranslation
reserveearnings
reserve

Share capital

Share
premium
reserve

24,87024,192

67,636(26,073)(163,000)

-

-

-

-

Acquisitions

-

-

-

Total comprehensive income for the year--

Appropriation of prior year result-

Result for the year-

Balance at 1 January 2020
Dividends

14

Result for the
year

Total

Noncontrollinginterests

Total
equity1,079,093

181,173

1,187,892-

1,187,892-(102,859)-(102,859)-(102,859)

-

-

-

-

-

-

-

(9,884)(11,287)(5,121)

181,173(96,249)

58,633-58,633----

181,173(181,173)

-

-

-

-

-

-

-

-

84,92484,924-84,924

Other comprehensive income--(9,884)(11,287)(5,121)--(26,292)-(26,292)

Balance at 31 December 2020

24,87024,19257,752(37,360)(168,121)

1,157,408

84,924

1,143,666-

1,143,666

Balance at 1 January 2021

24,87024,19257,752(37,360)(168,121)

1,157,408

84,924

1,143,666-

1,143,666

-

-

-

-

-

-

-

-

-

-

Acquisitions-

60,000

-

-

-

-

-

60,000-60,000Total comprehensive income for the year--

24,576

10,15830,77784,924

43,257

193,691-

193,691

Appropriation of prior year result

-

-

-

-

-

84,924(84,924)---

Result for the year

-

-

-

-

-

-

128,181

128,181-

128,181--

24,576

10,15830,777--65,511-

65,511----80,992(80,992)

-

-

-

-

24,87084,19282,328(27,202)(56,352)

1,161,339

128,181

1,397,356-

1,397,356

Dividends

14

Other comprehensive income
Pension plan de-risking
Balance at 31 December 2021

14.5
14.6

16

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Consolidated statement of cash flows
2021

2020

195,726

115,245

Realised capital (gains)/losses on investments(4,178)(4,094)

Dividends received from financial investments
Impairment Loss

(9,580)40,982(6,138)19,374

Depreciation, impairment and amortisation

40,106

31,430Net interest income(13,001)(15,861)

Other non-cash items

7,664

20,816Note
I. Cash flows from operating activities
Result for the year before tax
Adjustments for:

Changes in operational assets and liabilities:
Insurance contracts

17

177,544

150,222

Reinsurance contracts

17

77,701(201,286)

Deferred acquisition costs

12

Accounts receivable and payable on insurance and reinsurance business(4,194)

3,756

24,124

206,136

Changes in other assets and liabilities(29,149)

32,680Pensions and other long-term employee benefit net contributions(55,932)(24,108)

Cash generated from operations

447,813

328,172

Income tax paid

(50,354)(33,973)

Interest paid

(1,040)(1,036)396,419

293,163(172,155)(113,789)

Net cash (used in)/generated by operating activities
II. Cash flows from investing activities
Investments and acquisitions (cash outflows):
Short-term investments(645,169)(514,117)

Property, plant and equipment and intangible assets

Financial investments available-for-sale10(45,681)(49,711)

Divestments, redemptions and disposals (cash inflows):
Investment property
Short-term investments

340
99,792

263
123,899375,964

389,195

691

65

Financial investments available-for-sale

10

Property, plant and equipment and intangible assets
Dividends received from financial investments

9,580

6,138

Interest received

14,275

17,298(362,363)(140,759)-(102,859)

Net cash (used in)/generated by investing activities
III. Cash flows from financing activities
Dividend paid

29

Other cash flows

60,000-Net cash (used in)/generated by financing activities

60,000(102,859)

Changes in cash and cash equivalents (I + II + III)

94,05549,545225,565

181,754

4,887(5,735)324,508

225,565

Cash and cash equivalents at the beginning of the year

14

Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year
The cash and cash equivalents are presented net of bank overdrafts (see Note 13).

17

All amounts in thousands of Euro, unless otherwise statedNotes to the consolidated financial statements
1

General information

Atradius Crédito y Caución S.A. de Seguros y Reaseguros (‘ACyC’), with its office at Paseo de la Castellana 4, Madrid,
Spain, and its subsidiaries is a global credit insurer and aims to support its customers’ growth by strengthening their
credit and cash management through a wide range of credit insurance management products and services. These
services include credit insurance, bonding, instalment credit protection and information services.
The Company is registered in the Commercial Registry of the province of Madrid in Volume 10836 of Section 8, Page 1,
Sheet M-171,144, Entry 308, with Legal Entity ID Code number 9598002U9BK2VP1RTG14 issued by the Registry; it isalso registered in the Administrative Registry of Insurance Companies of the General Direction for Insurance andPension Funds, under reference C-0046, and is authorized to operate in the following industries: Credit (commercial
risks in the domestic and foreign markets) and Sureties.
The main shareholder of ACyC is Atradius Insurance Holding N.V. The parent company of Atradius Insurance Holding
N.V. is Atradius N.V. (together with its subsidiaries referred to as Atradius), which is a company incorporated anddomiciled in Amsterdam, the Netherlands. The parent is Grupo Compañía Española de Crédito y Caución, S.L., whichowns 64.23% (2020: the same) of the shares in Atradius N.V. The ultimate parent and the ultimate controlling party ofAtradius is Grupo Catalana Occidente, S.A., which holds 73.84% of the shares in Grupo Compañía Española de Crédito y
Caución, S.L. and 35.77% (2020: the same) of the shares in Atradius N.V. The financial statements of Atradius N.V. areconsolidated within Grupo Catalana Occidente, S.A., which is a listed company in Spain and has its Consolidated
Accounts deposited in the Commercial Registry of the province of Madrid.
ACyC has decided to voluntarily prepare consolidated IFRS financial statements. The ACyC accounting principles are
fully aligned with the accounting principles that are applied at Atradius. For more detail we refer to Note 2 and Note 3.
The ACyC Consolidated financial statements have been approved by the Board of Directors on 2 March 2022 andsubjected to the approval of the General Shareholders Meeting.

18

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2

Summary of significant accounting policies

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

2.1

Basis of preparation

The ACyC consolidated financial statements are prepared in accordance with International Financial ReportingStandards (IFRS) as adopted by the European Union. These have been prepared under the historical cost convention as
modified by the revaluation of available-for-sale financial investments. The ACyC consolidated financial statements areprepared based on going concern.
The financial statements have been prepared in accordance of the following local regulation:--

Code of Commerce (Código de Comercio).
The international financial reporting standards adopted by the European Union through Community
Regulations, in accordance with Regulation 1606/2002 of the European Parliament and of the Council, ofJuly 19, 2002, and its subsequent amendments.
Royal Decree 1060/2015, dated 20th of November, for Ordering, Supervising and Solvency of Insurance
and Reinsurance Companies (ROSSEAR).
Law 20/2015, dated 14th of July, for Ordering, Supervising and Solvency of Insurance and Reinsurance
Companies
The applicable regulatory framework includes the various requirements established in Spanish legislation,
including those specific to the insurance activity. In particular, for the preparation of these consolidated
annual accounts, the provisions of the Framework Document of the General Directorate of Insurance andPension Funds on the accounting regime of insurance entities relating to IFRS 4, published on December
22, 2004.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of applying ACyC accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to theconsolidated financial statements are disclosed in Note 3.
All amounts in the notes are shown in thousands of Euro (EUR), rounded to the nearest thousand, unless otherwise
stated. Due to rounding, numbers presented throughout this and other documents, may not add up precisely to the totals
provided.

2.2

New and revised standards

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

2.2.1

Standards, amendments and interpretations effective in 2021

The following relevant standards, amendments and interpretations have been adopted in 2021, but have had no material
effect on the consolidated financial statements:--

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2 (effective 1
January 2021). The amendments ensure that companies will not have to derecognise or adjust carrying amountsof financial instruments for changes required by the reform, will not have to discontinue existing hedge
relationships solely because it makes changes required by the reform and will be required to disclose information
about new risks arising from the reform and how it manages transition to alternative benchmark rates. In theabsence of any hedge relationships it is expected that these amendments will not have a material impact on the
consolidated financial statements.
Amendment to IFRS 16 for COVID-19-related rent concessions beyond 30 June 2021. The amendment permits
lessees, as a practical expedient, not to assess whether particular COVID-19-related rent concessions are leasemodifications. Instead, lessees that apply the practical expedient can account for those rent concessions as if they
were not lease modifications. The Amendment increases the eligibility period for the application of the practical
19

All amounts in thousands of Euro, unless otherwise stated

expedient by 12 months from 30 June 2021 to 30 June 2022. This amendment has no material impact on the
consolidated financial statements.

2.2.2

Standards, amendments and interpretations not yet adopted

The following relevant standards and amendments are effective for annual periods beginning after 31 December 2021
and have not been early adopted by ACyC:
-

-

-

-

-

-

IFRS 9 Financial Instruments (effective 1 January 2018) replaces the existing guidance in IAS 39 Financial
Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification andmeasurement, impairment of financial instruments and the new general hedge accounting requirements. In
September 2016, the IASB issued amendments to IFRS 4 to address issues arising from the different effective datesof IFRS 9 and the forthcoming new insurance contracts standard (IFRS 17). The amendments introduce twoalternative options for entities that issue insurance contracts within the scope of IFRS 4: a temporary exemption
from applying IFRS 9 and an overlay approach. The temporary exemption is available for entities whose activities
are predominantly connected with insurance. ACyC performed an assessment of the amendments to IFRS 4 andconcluded that its activities are predominantly connected with insurance as at 31 December 2015 based on theassessment that the predominance ratio i.e. ratio total carrying amount of its liabilities connected with insurancecompared with total carrying amount of liabilities criteria was greater than 90%. ACyC decided to apply the
temporary exemption in its reporting period starting on 1 January 2018 and expects to adopt IFRS 9 in combination
with the adoption of IFRS 17 Insurance contracts on 1 January 2023. In case of a significant change in operating
activities, ACyC will reassess whether its activities are predominantly connected with insurance. Please refer to the‘Temporary exemption from IFRS 9’ section included in Risk and Capital management for the related disclosures.
It is not expected that these amendments will have a material impact on the consolidated financial statements.
IFRS 17 Insurance contracts (effective 1 January 2023), IFRS 17 Insurance Contracts (issued on 18 May 2017);
including Amendments to IFRS 17 (issued on 25 June 2020): During 2021, ACyC has continued with theimplementation of the standard, in accordance with the action plan and the defined milestones. The different areas
involved (Actuarial, Accounting and Consolidation, Accounting Regulations and Policies, Systems, etc.) havefocused their efforts on adapting the systems and the processes to the IFRS 17 standard. In the overall project, theareas of work that have stood out in 2021 are among other: the continuation of the modelling of actuarial tools, theimprovement of accounting policies, the development of accounting and management information models, as wellas the testing of the partial results that have been generated. ACyC has committees that ensure compliance with therequirements of IFRS 17. The Project Committees, made up mainly of those responsible for the areas mentioned
above and who monitor the development of the project and its adaptation to the requirements of the standard. It is
expected that the first application of the standard will have a significant financial impact on insurance contracts
measured according to the General Measurement Model (commonly known as "Building Block Approach”), whichis intended to be applied for all our products. Progress has been made in estimating the impact of the standard on
ACyC’s financial statements, although, given the scope and interdependence of its implications, the preliminary
quantitative results are partial and are in the process of continuous analysis. The activities planned for the year
2022 are among others: the refinement of the IFRS 17 information and processes; the construction and validationof the transition balance as per 1 January, 2022; the execution of the parallel runs under IFRS 17 during the year
2022 in order to present the comparative information for reporting for the year 2023, to advance with theformalization of the operational processes impacted by IFRS 17 and to align the system of governance with it. These
activities will ensure the adoption of IFRS 17 in a timely manner.
Amendments to IFRS 3 Business Combinations (effective 1 January 2022). The IASB has updated references in IFRS
3 to the Conceptual Framework without changing any of the accounting requirements. These amendments will nothave a material impact on the consolidated financial statements.
Amendments to IAS 16 Property, Plant and Equipment (effective 1 January 2022). The amendments prohibit
deducting from cost of property, plant and equipment amounts received from selling items produced while thecompany is preparing the asset for its intended use and requires it to recognise the amounts received as sales
proceeds and related costs in profit or loss. It is expected that these amendments will not have a material impact on
the consolidated financial statements.
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets (effective 1 January 2022). These
amendments require a company to include both incremental costs as well as an allocation of other costs of fulfillinga contract when assessing whether that contract will be loss-making. It is not expected that these amendments will
have a material impact on the consolidated financial statements.
Annual Improvements 2018-2020 (effective 1 January 2022). The annual improvements make minor amendments
to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41
Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. These amendments will not have a20

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

material impact on the consolidated financial statements.
The European Union has not yet endorsed the following relevant standards and amendments and as such these havenot been adopted by ACyC:--

Amendments to IAS 1 Presentation of Financials Statements: classification of liabilities as current or non-current
and IFRS Practice statement 2: Disclosure of accounting policies. These amendments will not have an impact on the
consolidated financial statements.
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates. These amendments will not have an impact on the consolidated financial statements.
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction. These amendments will not have an impact on the consolidated financial statements.

2.3

Consolidation

All the entities that are consolidated have the 31st December 2021 as end closing date.
The following principles of consolidation and measurement are applied to the financial statements:

2.3.1

Subsidiaries

Subsidiaries are all entities over which ACyC has control. ACyC controls an entity when it is exposed to, or has rights tovariable returns from its involvement with the entity and has the ability to affect those returns through its power overthe entity. Subsidiaries are fully consolidated from the date on which control is transferred to ACyC. They are deconsolidated from the date on which control ceases.
Intragroup transactions, balances and unrealised gains on intragroup transactions are eliminated. Unrealised losses arealso eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries’
accounting policies are changed where necessary to ensure consistency with the policies adopted by ACyC except for
the accounting for insurance contracts (see Note 2.16).
When the group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any
related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest
retained in the former subsidiary is measured at fair value when control is lost.

2.3.2

Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a businesscombination is measured at fair value, which is calculated as the sum of fair values of the assets (at the acquisition date)transferred to ACyC, liabilities incurred by ACyC to the former owners of the acquiree and the equity interests issued by
ACyC in exchange for control of the acquiree. Acquisition-related costs are generally recognised in the income statement
as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value atthe acquisition date, except that the deferred tax assets or liabilities and assets or liabilities related to employee benefit
arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits
respectively.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) overthe net amount of the identifiable assets acquired and the liabilities assumed. If the net amount of the identifiable assets
acquired and the liabilities assumed exceed the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree and the fair value of ACyC’ previously held equity interest in the acquiree (if any), then theexcess is recognised immediately in profit or loss as a bargain purchase.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of theentity’s net assets in the event of liquidation, may be initially measured either at fair value or at the non-controllinginterests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice ofmeasurement method is made on a transaction-by-transaction basis. Other types of non-controlling interests aremeasured at fair value or, when applicable, on the basis specified in another IFRS.
21

All amounts in thousands of Euro, unless otherwise statedWhen the consideration transferred by ACyC in a business combination includes assets or liabilities resulting from acontingent consideration arrangement, the contingent consideration is measured at the fair value and included in theconsideration transferred in a business combination. Changes in the fair value of the contingent consideration that
qualify as measurement period adjustments, are adjusted retrospectively, with a corresponding adjustment to goodwill.
Measurement period adjustments are adjustments that arise from additional information obtained during the‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances thatexisted at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. A contingent considerationthat is classified as equity is not re-measured at subsequent reporting dates and its subsequent settlement is accounted
for within equity. A contingent consideration that is classified as an asset or a liability is re-measured at subsequent
reporting dates in accordance with IAS 39 Financial Instruments: Recognition and Measurement or IAS 37 Provisions,Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognised in
profit or loss.
When a business combination is achieved in stages, ACyC’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e., the date when ACyC obtains control) and the resulting gain or loss, ifany, is recognised in the income statement. Amounts arising from interests in the acquiree before the acquisition datethat have previously been recognised in other comprehensive income are reclassified to profit or loss where suchtreatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, ACyC reports provisional amounts for the items for which the accounting is incomplete. Those
provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities arerecognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that,
if known, would have affected the amounts recognised at that date.

2.4

Segment reporting

IFRS 8 requires operating segments to be identified on the basis on which the Board of Directors regularly reviews
components of ACyC in order to allocate resources to the segments and to assess their performance. Operating segments
are reported in a manner consistent with the internal reporting provided to the Board of Directors. For more information
related segment please see Note 5.

2.5

Foreign currencies

2.5.1

Functional and presentation currency

Items included in the financial statements of each of ACyC’ entities/branches are measured using the currency of the
primary environment in which these entities/branches operate (the ‘functional currency’).
All amounts in the notes are shown in thousands of Euro (EUR).

2.5.2

Transactions and balances

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

22

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2.5.3

Group companies and branches

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

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

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

Currency

End rate

Average rate

GBP

USD

AUD

GBP

USD

AUD

At 31 December 2021

1.190

0.883

0.640

1.174

0.880

0.629

At 31 December 2020

1.112

0.815

0.629

1.113

0.835

0.616

2.6

Goodwill and other intangible assets

2.6.1

Goodwill

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) overthe net amount of the identifiable assets acquired and the liabilities assumed. If the net amount of the identifiable assets
acquired and the liabilities assumed exceed the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree and the fair value of ACyC’ previously held equity interest in the acquiree (if any), then theexcess is recognised immediately in profit or loss as a bargain purchase. Goodwill arising on an acquisition of a businessis carried at cost as established at the date of acquisition of the business (see Note 2.3.2) less accumulated impairment
losses, if any. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the
profit or loss on disposal.
For the purpose of impairment testing, goodwill is allocated to ACyC’ relevant cash-generating units. The CGU’s where
Goodwill is allocated are the lowest identifiable level possible. Cash-generating units to which goodwill has been
allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be
impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, theimpairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to theother assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
For more information related to intangibles please see Note 6.

23All amounts in thousands of Euro, unless otherwise stated

2.6.2

SoftwareAcquired computer software licenses 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 ACyC, and that will probably generate economic benefits exceeding costs beyond one year, are recognised
as intangible assets. Direct costs include the software development team’s employee costs and an appropriate portionof relevant overhead. The research costs associated with developing identifiable and unique software products as wellas 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 softwaredeveloped 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.

2.6.3

Other intangible assets

Other intangible assets are recognised at fair value at the acquisition date. Amortisation charges are included in net
operating expenses and are calculated using the straight-line method over the expected life of the asset which isestimated to be between 5 and 15 years. Other intangible assets relate to agent networks, non-patented technology, trade
names and insurance.
For more information related intangibles please see Note 6.

2.7

Property, plant and equipment

2.7.1 Owned property, plant and equipment
Land and buildings comprise offices occupied by ACyC (‘property for own use’). Land and buildings are stated at the costof acquisition or construction, less any subsequent accumulated depreciation and subsequent accumulated impairment
losses. For analysis of the residual value, the fair value is assessed based on active market prices, adjusted if necessary,
for any difference in the nature, location or condition. All other property, plant and equipment are stated at historicalcost less accumulated depreciation and subsequent impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to ACyC and the cost of the item canbe reliably measured. All other repairs and maintenance are recognised as an expense in the income statement during
the financial period in which they are incurred.
Some of ACyC’ properties comprise a part that is held as investment property to earn rentals or for capital appreciation
and another part that is held for own use. If these parts could be sold separately or leased out separately under a financial
lease, ACyC accounts for the parts separately as investment property and property for own use, respectively.
The depreciation period is based on the estimated economic useful life of the asset. Leasehold improvements are
depreciated over the shorter of the estimated useful life of the improvements and the respective lease terms. Land is notdepreciated. All other assets are depreciated using the straight-line depreciation method over the estimated economic
useful lives: buildings over 50 years, fixtures and fittings over 3-10 years and information systems hardware over 3-5
years.

2.7.2 Leased property, plant and equipment
At inception of a contract, ACyC assesses whether it is a lease. A contract is a lease if it involves the use of an identified
asset and conveys the right to control the use the asset for a period of time in exchange for consideration – i.e. ACyC has
the rights to obtain substantially all of the economic benefits from using the asset, and direct the use of the asset.

24Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

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

2.8

Investment property

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

2.9

Fair value measurements

For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree towhich the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
Level 1: Quoted prices in active markets. This category includes financial instruments for which the fair value isdetermined directly by reference to published quotes in an active market. A financial instrument is regarded as quoted
in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group,
pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on
an arm’s length basis;
Level 2: Valuation techniques based on observable market data. This category includes financial instruments for which
the fair value is determined using a valuation technique (a valuation model), where inputs in the valuation model aretaken 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 ofsimilar instruments, but for which the prices are (more than insignificantly) modified based on other market observable
external data;25

All amounts in thousands of Euro, unless otherwise stated

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 level ofthe input is not supported by a current observable market transaction. This category also includes the financial
investments for which the fair value is based on brokers quotes or pricing services. These valuations are for 100% of thefair value verified with an external independent valuation company.
The fair values of financial instruments traded in active markets are based on quoted market prices at the end of thereporting period. The quoted market price used for financial investments held by ACyC is the current bid price.
Transaction costs on initial recognition of financial investments are expensed as incurred.
The fair values of financial instruments in markets that are not active are determined using valuation techniques. ACyC
uses a variety of methods and assumptions that are based on market conditions existing at the end of the reporting
period.
The fair values of property for own use and investment property are determined, every two years, by independent realestate valuators registered in the relevant countries and who have appropriate qualifications and experience in thevaluation of properties.
See Note 4.4.1.1 for further details regarding the determination of the fair value of financial investments.

2.10

Recognition and derecognition of financial investments

All purchases and sales of financial investments that require delivery within the time frame established by regulationor market convention (‘regular way’ purchases and sales) are recognised at trade date, i.e. the date that ACyC commits
to purchase or sell the asset. Loans and receivables are recognised and derecognised at settlement date, the date ACyC
receives or delivers the asset.
Financial investments are derecognised when the rights to receive cash flows from the financial investments have
expired or where ACyC has transferred substantially all the risks and rewards of ownership. If ACyC neither transfers
nor retains substantially all the risks and rewards of ownership of a financial investment and does not retain control
over the investment, it derecognises the financial investment. In transfers where control over the asset is retained, ACyC
continues to recognise the asset to the extent of its continuing involvement. The extent of continuing involvement isdetermined by the extent to which ACyC is exposed to changes in the value of the asset.

2.11

Classification of financial investments

ACyC classifies its financial investments into two categories: investments available-for-sale and loans and receivables.
The classification depends on the purpose for which the investments were acquired. ACyC determines the classificationof its investments at initial recognition and re-evaluates this at the end of each reporting period.

2.11.1 Available-for-sale financial investments
Available-for-sale financial investments are non-derivative financial assets that are either designated in this categoryor not classified in other categories.
Financial investments are initially recognised at fair value plus transaction costs that are directly attributable to theiracquisitions. Unrealised gains and losses arising from changes in the fair value of financial investments classified asavailable-for-sale are recognised in other comprehensive income net of tax. When financial investments classified asavailable-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as
net gains or losses on financial investments.

2.11.2 Loans and receivables
Loans and receivables (including deposits) are non-derivative financial investments with fixed or determinable
payments that are not quoted on an active market, other than those that ACyC intends to sell in the short term, or that it
has designated as available-for-sale. Deposits withheld by ceding companies and receivables arising from insurance
contracts are also classified in this category. Loans and receivables are initially recognised at fair value plus transaction
costs and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
26

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Interest income is recognised by applying the effective interest rate, except for short-term receivables where therecognition of interest would be immaterial.

2.12

Impairment of assets

2.12.1 Financial assets - general
At the end of each reporting period ACyC assesses, whether there is objective evidence that a financial asset or group offinancial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of one or more events that have occurred after the initialrecognition of the asset (a ‘loss event’) and that loss event has a negative impact on the estimated future cash flows of
the financial asset or group of financial assets that can be reliably estimated.
ACyC first assesses whether objective evidence of impairment exists for financial assets that are individually significant.
If ACyC determines that no objective evidence of impairment exists for an individually assessed financial asset, whether
significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and assesses
them collectively for impairment. Assets that are individually assessed for impairment and for which an impairment
loss is or continues to be recognised are not included in a collective assessment of impairment.

2.12.2 Financial investments - carried at amortised cost
ACyC assesses, at the end of each reporting period, whether there is objective evidence that a financial asset carried atamortised costs is impaired. Objective evidence that loans and receivables are impaired can include significant financial
difficulty of the counterparty, default or delinquency by a counterparty, restructuring of a loan or advance by ACyC on
terms that ACyC would not otherwise consider; indications that a counterparty will enter bankruptcy; or economic
conditions that correlate with defaults.
Where such evidence exists that an impairment loss has been incurred on loans and receivables, the amount of the loss
is measured as the difference between the asset’s carrying amount and estimated future cash flows. The carrying
amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in theincome statement. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is thecurrent effective interest rate determined under contract. As a practical expedient, ACyC may measure impairment on
the basis of an instrument’s fair value using an observable market price.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively toan event occurring after the impairment was recognised, the previously recognised impairment loss is reversed byadjusting the allowance account. The amount of the reversal is recognised in the income statement.

2.12.3 Financial investments - carried at fair value
ACyC assesses, at the end of each reporting period, whether there is objective evidence that an available-for-salefinancial investment is impaired. Objective evidence that available-for-sale financial investments (including debt andequity securities) are impaired can include default or delinquency by an issuer, indications that an issuer will enter
bankruptcy and/or the disappearance of an active market for a security. In addition, for an investment in an equity
security, management assesses whether there has been a significant or prolonged decline in its fair value below its
acquisition cost.
In this assessment, ACyC uses the following indications to decide whether a loss on an equity instrument position
qualifies for impairment:-

significant: The market value of the equity instrument dropped below 60% of its average historical cost price (i.e.
the unrealised loss is larger than 40% of the average historical cost price); or
prolonged: The market value of the equity instrument has been below its average historical cost price for aconsecutive period of 18 months.

Where such evidence exists for available-for-sale financial investments, the cumulative net loss that has beenpreviously recognised directly in other comprehensive income is recycled from other comprehensive income (therevaluation reserve) and recognised in the income statement.

27

All amounts in thousands of Euro, unless otherwise statedIf, in a subsequent period, the fair value of debt securities classified as available-for-sale increases and the increase canbe objectively related to an event occurring after the impairment loss was recognised in the income statement, theimpairment loss is reversed through the income statement, but only to the amortised cost price. Subsequent increases
above the amortised cost price are credited against the revaluation reserve as a component of other comprehensive
income.
Impairment losses recognised in the income statement on equity securities cannot be reversed in subsequent periods.

2.12.4 Impairment of other non-financial assets
Assets that have an indefinite useful life, for example land, are not subject to amortisation or depreciation and are tested
annually for impairment. Assets that are subject to amortisation and depreciation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
If, when evaluating, there is any indication that the asset value may have been impaired, the Group will consider, at aminimum, the following factors:••

There is evidence from internal reports that indicates the economic asset performance is, or is going to be, notaligned with the expectation.
There is evidence of the obsolescence or physical deterioration of the asset.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes ofassessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows(cash-generating units). Investment properties are not allocated to cash-generating units, but are tested for impairment
on an individual basis.
If in a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment loss was recognised in the income statement, the carrying amount of the asset (orcash-generating unit) is increased to the revised estimate of its recoverable amount, provided that the increased
carrying amount does not exceed the carrying amount that would have been determined had no impairment loss beenrecognised for the asset (or cash-generating unit) in previous years. The amount of the reversal is recognised in theincome statement. However, impairment losses recognised for goodwill are not reversed in subsequent periods.

2.13

Offsetting financial instruments

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

2.14

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held on call with banks and other short-term highly liquid
investments with original maturities of three months or less that are subject to an insignificant risk of changes in theirfair value, and are used by ACyC in the management of its short-term commitments. Bank overdrafts which are
repayable on demand form an integral part of ACyC’ cash management and are included as a component of cash andcash equivalents for cash flow purposes. In the statement of financial position, bank overdrafts which do not meet thecriteria for offsetting, are presented separately as liabilities under borrowings.
Deposits pledged for regulatory and other purposes as well as cash held for investments are not available for use in
ACyC’ day-to-day operations and are therefore not included within cash and cash equivalents. These assets are included
within financial investments.

28

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2.15

Capital and reserves

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

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

2.15.3 Revaluation reserve
The revaluation reserve comprises the unrealised gains/losses of the securities available-for-sale after the deduction ofincome tax, except for impairments that are charged directly to the income statement.

2.15.4 Currency translation reserve
The net exchange difference, after the deduction of income tax that is recognised in the currency translation reserve ineach period represents the following:---in respect of revenue, expenses and capital transactions, the difference between translating these items at actual or
average exchange rates and using the exchange rate at the end of the reporting period, which is the case forrecognised assets and liabilities;
in respect of the net assets at the beginning of the reporting period, the difference between translating these items
at the rate used at the end of the previous reporting period and using the rate at the end of the current reporting
period; andin respect of the net assets acquired during the reporting period, the difference between translating these items at
the rate of acquisition date and using the rate at the end of the current reporting period.

2.15.5 Pension reserve
The pension reserve relates to the various defined benefit schemes and consists of:-actuarial gains and losses, after the deduction of income tax, that arise in calculating ACyC’ pension obligations andfair value of the plan assets in respect of a defined benefit plan in the period in which they occur; andthe non-recognition of assets (‘asset ceiling’) that can occur when the plan assets are higher than the projected
benefit obligation and where ACyC cannot recover any surplus through refunds from the pension’s vehicle due tosolvency and/or control requirements.

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

2.15.7 Non-controlling interests
Non-controlling interests represent the proportion of shareholders’ equity and of total comprehensive income
attributable to minority shareholders.
Non-controlling interest are initially measured on the net fair value of the acquiree’s identifiable assets, liabilities andcontingent liabilities at the date of the acquisition. The calculation of the percentage attributable to the non-controllinginterest includes any equity interest that is not held indirectly through subsidiaries.

29

All amounts in thousands of Euro, unless otherwise statedNon-controlling interest is presented within equity separately from the equity attributable to the equity holders of theCompany. Similarly, the statement of recognised income and expenses presents total income and expenses for theperiod showing separately the amounts attributed to the equity holders of the Company and non-controlling interests.

2.16

Insurance contracts

An Insurance contract is a contract under which one party (the insurer) accepts significant insurance risk from anotherparty (the policyholder) by agreeing to compensate the policyholder or its beneficiary if a specified uncertain future
event (the insured event) affects the policyholder.
The insurance contracts issued by ACyC can be classified into two main categories:--

credit insurance contracts: contracts that provide for specific payments to be made to reimburse the holder for theloss it incurs because a specified debtor fails to make a payment when due under the original or modified terms ofthe contract between the debtor and ACyC’ insured customers; andbonding contracts: contracts that provide compensation to the beneficiary of the contract if ACyC’ bonding customer
fails to perform a contractual obligation relative to the beneficiary.

The company applies IFRS 4.25, which allows existing insurance accounting practices to continue. The main difference
relates to the accounting of local business in Spain and Portugal that applies existing earnings and related provisioning
practices. The differences in application lead to different allocations of unearned premium and provision foroutstanding claims. Further reference is made to specific information included in Note 4.3.6 and Note 16.

2.16.1 Deferred acquisition costs
Commission costs that vary with and are related to securing new contracts and renewing existing contracts arecapitalised as deferred acquisition costs. All other costs are recognised as expenses when incurred. The deferredacquisition costs are subsequently amortised over the life of the policies as premium is earned.

2.16.2 Provision for unearned premium
The UPR is established for the different types of business as follows (see note 4.3.6.1):--

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;
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;for bonding, instalment credit protection and reinsurance, the UPR relates to risk taken on; andfor 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.

2.16.3 Provision for outstanding claims
Claims and loss adjustment expenses are charged to the income statement as incurred based on the estimated liability
for compensation owed to contract holders. They include direct and indirect claims settlement costs and arise from therisks ACyC has assumed up to the end of the reporting period. ACyC does not discount its liabilities (other than therecoveries on the Instalment Credit Protection (ICP) product) given the short-term nature of its liabilities. Liabilities for
unpaid claims are estimated using the input of assessments for individual cases reported to ACyC and statisticalanalyses for the claims incurred but not reported. When appropriate, deductions are made for salvage, subrogation andother expected recoveries from third parties. For reinsurance business the provisions are determined treaty-by-treaty,
based on premium and loss information supplied by the ceding companies. Estimates of expected losses are developed
using historical claims experience, actual versus estimated claims experience and other known trends anddevelopments.
Additional information on the measurement of the provision for outstanding claims is provided in Note 4.3.6.

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Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2.16.4 Liability adequacy test
At the end of each reporting period, a liability adequacy test is performed to ensure the overall adequacy of the total
insurance contract liabilities, net of related deferred acquisition costs. In performing this test, current best estimates of
future contractual cash flows and claims handling expenses are used. Any deficiency on consolidated level isimmediately charged to the income statement by first writing down the related deferred acquisition costs and then by
establishing a provision for losses arising from the liability adequacy test.

2.16.5 Reinsurance contracts
Contracts entered into by ACyC with reinsurers, under which ACyC is compensated for losses on one or more contracts
issued by ACyC and that meet the classification requirements for insurance contracts, are classified as reinsurance
contracts held. Contracts that do not meet the classification requirements are classified as financial assets. Insurance
contracts entered into by ACyC under which the contract holder is another insurer (reinsurance business) are included
in insurance contracts.
The benefits to which ACyC is entitled under its reinsurance contracts held are recognised as reinsurance assets. Theseassets consist of short-term balances due from reinsurers (classified within loans and receivables), as well as longer
term receivables (classified as reinsurance contracts) that are dependent on the expected claims and benefits arisingunder the related reinsurance contracts. Amounts recoverable from or due to reinsurers are measured consistently withthe amounts associated with the reinsured insurance contracts and in accordance with the terms of each reinsurance
contract. Reinsurance liabilities are primarily premium payable for reinsurance contracts and are recognised as an
expense when due.
ACyC assesses its reinsurance assets for impairment on a quarterly basis. If there is objective evidence that thereinsurance asset is impaired, ACyC reduces the carrying amount of the reinsurance asset to its recoverable amount andrecognises that impairment loss in the income statement. ACyC gathers the objective evidence that a reinsurance asset
is impaired by applying similar procedures adopted for financial assets held at amortised cost. The impairment loss iscalculated under similar method used for these financial assets.
Reinsurance commission related to ACyC’ quota share treaties is calculated and accounted for at a provisional rate but
reviewed against the development of the ultimate loss ratio as soon as an underwriting year matures. The sliding scalecommission (an additional income or expense on top of the provisional commission) is based on an estimate bymanagement of the ultimate loss ratio for an underwriting year.
ACyC recognises the gains and losses from reinsurance contracts directly in the income statement.

2.16.6 Receivables and payables related to insurance contracts
Receivables and payables are recognised when due. These include amounts due to and from agents, brokers andinsurance contract holders.
If there is objective evidence that the insurance receivable is impaired, ACyC reduces the carrying amount of theinsurance receivable accordingly and recognises that impairment loss in the income statement. ACyC gathers theobjective evidence that an insurance receivable is impaired by applying similar procedures adopted for loans andreceivables. The impairment loss is also calculated under similar method used for these financial assets.

2.16.7 Salvage and subrogation reimbursements
Some insurance contracts permit ACyC to sell goods acquired in settling a claim (i.e., salvage). ACyC may also have theright to pursue third parties for payment of some or all costs (i.e., subrogation).
Estimates of salvage recoveries and subrogation reimbursements are included as an allowance in the measurement of
the provision for claims. The allowance is the amount that can reasonably be expected to be recovered.

31All amounts in thousands of Euro, unless otherwise stated

2.16.8 Insurance portfolios
Acquired insurance portfolios are initially recognised at fair value by estimating the net present value of future cash
flows related to the liability arising from insurance contracts, being the provision for unearned premium and theprovision for outstanding claims at the date of acquisition. The difference between the carrying value and the fair valueof the insurance contracts is recognised as an intangible asset.
The Group subsequently amortises this asset based upon the duration of the underlying cash flows. The carrying amountafter initial recognition is adjusted for accumulated amortisation and any accumulated impairment losses.

2.17

Provisions

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

2.18

Deposits received from reinsurers

Deposits received from reinsurers represent amounts received from reinsurance companies in respect of ceded claims
and premium provisions and are stated at amortised cost using the effective interest method. Interest expense isrecognised on an effective yield basis, except for short-term deposits where the impact of interest would be immaterial.

2.19

Employee benefits

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

32Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

into account any changes in the net defined benefit liability (asset) during the period as a result of contributions andbenefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in the income
statement.
The non-recognition of assets (‘asset ceiling’) can occur when the plan assets are higher than the projected benefit
obligation and ACyC cannot recover any surplus through refunds from the pension vehicle due to solvency and/or
control requirements.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised immediately in the income statement. ACyC recognises gains
and losses on the settlement of a defined benefit plan when the settlement occurs.
Defined benefit costs are categorised as follows:-

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

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

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

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

33

All amounts in thousands of Euro, unless otherwise stated

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

2.20

Taxation

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

2.21

Consolidated income statement

2.21.1 Income
Revenue comprises the fair value for services, net of value added tax, after eliminating revenue within ACyC. Revenue
is recognised as follows:
Premium earned
Written premium includes both direct business and reinsurance business and is defined as all premium and policyrelated fees invoiced to third parties and reinsurance premium, excluding tax.
Written premium includes an estimate of premium not yet invoiced for which ACyC has already accepted the contractual
risk. Accruals for premium refunds and cancellations are charged against premium written. Premium earned includes
an adjustment for the unearned share of premium.
Premium ceded under reinsurance contracts is reported as a reduction of premium earned. Amounts for ceded unearned
premium under cession agreements are reported as assets in the consolidated statement of financial position.
Service and other income
Service and other income includes the income from:credit information services, consisting of providing up-to-date credit information on buyers for which a customer
requires a credit limit application under the insurance policy. This performance obligation is satisfied over time
during the policy period. Revenue is recognised based on the credit limit applications requested by and invoiced tothe customer, against fixed prices stated in the contract. If a contract includes a separate charge for monitoring, thiselement is recognised evenly over time;business information is provided online to customers on a subscription basis. Revenue is recognised evenly overtime based on the consideration in the contract, reflecting the constant effort required to acquire and prepare34Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

business information.
Net income from investments
Investment income comprises interest income on funds invested (including available-for-sale financial investments),
dividend income, gains on the disposal of available-for-sale financial investments and rental income from investment
property that are recognised in the income statement. Interest income is recognised as it accrues in the income
statement, using the effective interest method. Dividend income is recognised in the income statement on the date that
ACyC’ right to receive payment is established, which in the case of quoted securities is the ex-dividend date.
Investment expenses comprise impairment losses recognised on financial investments and investment property.
Realised gains or losses on investment property recognised in the income statement represent the difference between
the net disposal proceeds and the carrying amount of the property.

2.21.2 Expenses
Net insurance claims
Claims charges include claims paid, the change in provision for outstanding claims, and the claims handling expenses.
Claims ceded under cession contracts are recorded as reductions of gross claims.
Net operating expenses
Net operating expenses comprise administrative expenses and commissions. Total administrative expenses are
expenses associated with selling and administrative activities after reallocation of claims handling expenses toinsurance claims.
Finance income and expenses
Finance income consists of interest received on loans, receivables and cash and cash equivalents.
Finance expenses includes interest, amortisation of discount on the subordinated debt, foreign exchange results andthe net interest on the net defined benefit liability (asset) related to defined benefit plans (see also Note 2.19). Foreign
currency gains and losses are reported on a net basis and consist of transaction and translation results.
Interest income and expenses are calculated using the effective interest rate method based on market rather than
nominal rates, at the date that the instrument is recognised initially or modified.

2.22

Consolidated statement of cash flows

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

cash flows are inflows and outflows of cash and cash equivalents;
operating activities are the principal revenue-producing activities of ACyC and other activities that are not investingor financing activities;
investing activities are the acquisition and disposal of long-term assets and other investments not included in cash
equivalents; andfinancing activities are activities that result in changes in the size and composition of the contributed equity andborrowings of ACyC.

35

All amounts in thousands of Euro, unless otherwise stated

3 Critical accounting estimates and judgements in applying accounting
policies
ACyC makes estimates and assumptions that affect the reported financial statements (balance sheet, profit and loss andcontingent assets and liabilities). Estimates and judgements are continually evaluated. These are based on historicalexperience and other factors, including expectations of future events that are believed to be reasonable under thecircumstances. The most significant areas for which management is required to make judgements and estimates that
affect reported amounts and disclosures are detailed below.

3.1

Measurement of fair value

ACyC measures some of its financial instruments at fair value for financial reporting purposes. The fair value of financial
instruments that are not traded in an active market is determined by using valuation techniques. ACyC uses its
judgement to select a variety of methods and make assumptions that are mainly based on market conditions existingat the end of each reporting period. When market observable inputs are not available (Level 1), ACyC engages an external
independent valuation company to perform the valuation. ACyC works together with the external independentvaluation company to establish the appropriate valuation techniques and inputs to the model.
Information about the valuation techniques and inputs used in determining the fair value of various instruments aredisclosed in Note 4.4.1.1 and Note 7.

3.2

Insurance and reinsurance related estimates

The ultimate liability arising from claims made under insurance contracts
The estimate of the ultimate liability arising from claims including recoveries made, or to be made, under insurance
contracts is ACyC’s most critical accounting estimate, due to impact these has on income statement or othercomprehensive income. Although management has endeavoured to adequately take all facts into account, including
COVID 19, by their very nature estimates remain uncertain and the eventual outcome may differ significantly from the
projected amount (see section 4.3.6).
Pipeline premium
Pipeline premium relates to shipments made by ACyC’ policyholders for which AcyC is at risk but has not invoiced thepremium. Pipeline premium is estimated as the part of insurance premium earned but not yet invoiced at the end of thereporting period. Although the calculation of the pipeline premium is derived from the core business systems andcalculated at policy level, considering all policy specific features that might impact the assessment, the calculation does
involve the use of management estimates. The main reason is that premiums for risks taken on depend on the amountof business insured during the reporting period, whereas at the end of the reporting period not all business has been
declared yet. A secondary reason is that for part of the policies the final premium depends on claims related to the policy.
As the final performance of the policy is not known at reporting date, this also means that part of the pipeline premiums
results from estimates. The assumptions are based on recent trends in insured business, client specific information,knowledge of pending claims, and when relevant, macroeconomic information. It is this current changing
macroeconomic information, under an unprecedented pandemic, which requires a quantification of the additional
uncertainty over the business as usual process followed in the pipeline estimates, to ensure that potential future
developments of pipeline are not impacting negatively the financial statements in the coming years. Historical positive
development derived from this process shows that, any potential deviation on unknown shipments under thisunprecedented pandemic and uncertain economic environment would be covered without significant impacts on
insurance premium. However, the Company performs detailed analysis of the different components included in theautomatic modelled pipeline calculations, adjusting those which the Company estimates could be more uncertain due
to the present low claim environment (bonus pipeline) or from deviation in insured turnovers estimates (reconciliation
invoices). (see note 12).
Reinsurance sliding scale commission
The reinsurance sliding scale commission (an additional income or expense on top of the provisional commission) isbased on an estimate by management of the ultimate loss ratio for an underwriting year. Recognition of this reinsurance
sliding scale commission is based on the observed claims ratio by underwriting year and the expected development.

36

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The above mentioned concepts are the most relevant and significant on the financial statements related to estimatesjudgements.

3.3

Impairment of available-for-sale equity financial investments

ACyC determines that an available-for-sale equity financial investment is impaired when there has been a significant(40% of the decrease) or prolonged decline (18 consecutive months) in the fair value below its cost. This determinationof what is significant or prolonged requires judgement.
Had all the declines in fair values below cost been considered significant or prolonged ACyC would have a cumulative
additional EUR 1 million loss before tax (2020: EUR 2.9 million), being the transfer of the total revaluation reserve forunrealised losses on equity financial investments to the income statement.

3.4

Estimated impairment of goodwill

In accordance with its accounting policy, ACyC annually tests whether goodwill of subsidiaries and associatedcompanies has suffered any impairment. The recoverable amounts of cash-generating units have been determinedbased on value in use calculations. These calculations require the use of estimates.
In order to test the value in use against the recognised goodwill, ACyC has stress-tested the main assumptions (discountrate, combined ratio and capital requirement ratio) which have been applied when determining the value in use for the
related cash-generating units.
The discount rate used varies depending on the location and industry of the company to analyse, using customised RiskFree Rates, Market Betas and Country Risk Premiums. The terminal value is calculated based on the dividend flow/freecash flow of the normalised period through a perpetuity, which applies a long-term growth rate of 2% and the specificdiscount rate.
The projection period is 10 years, where the first 1-4 year projections are based on financial budgets and/or forecasts. In
the budgets and forecasts, the impact of the changed macroeconomic situation due to the COVID-19 pandemic situation
is taken into account. The remaining years are estimated using ratios and growth rates that converge towards theirnormalised term value.
For further details see Note 6.

3.5

Pension and post-retirement benefits

The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis
using a number of assumptions. The main assumptions used in determining the net cost (income) for pensions includes
the discount rate and the inflation rate. Any change in these assumptions will impact the carrying amount of pension
obligations.
ACyC determines the appropriate discount rate at the end of each year. This is the interest rate that should be used todetermine the present value of estimated future cash outflows expected to be required to settle the pension obligations.
In determining the appropriate discount rate, ACyC considers the interest rates of high-quality corporate bonds that are
denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the termsof the related pension obligation. Other key assumptions for pension obligations are based in part on current market
conditions.
Additional information, including a sensitivity analysis for the main (actuarial) assumptions, is disclosed in Note 15.

37All amounts in thousands of Euro, unless otherwise stated

4

Risk and capital management

4.1

Integration in the Atradius risk management framework

ACyC is part of Atradius and relies for its risk and capital management on the Atradius risk management framework.
The information found in this note, therefore, is consistent, where relevant for ACyC, with the note on risk and capitalmanagement found in the 2021 annual report of Atradius N.V. The corporate bodies and committees as described in
Notes 4.2.2, 4.3.1 and 4.4.1 operate at Atradius level. The General Manager of ACyC, who is also the CEO and Chairman of
the Management Board of Atradius N.V., is participating in the Risk Strategy Management Board (RSMB), the highest
risk governance body of Atradius, as described in Note 4.2.2.

4.2

Risk management

As a global insurance provider, ACyC recognises the importance of risk management. ACyC maintains a strong
governance and associated internal control system within the organisation. As a self-learning organisation, and basedon additional regulatory requirements, ACyC continues to strengthen its risk management capabilities by broadening
risk management scope and enhancing existing risk management tools.
The relationship between risk and capital is fundamental for Atradius. Understanding how risk-taking consumes capitalallows management to steer Atradius and take strategic decisions with the interdependence of risk and capital in mind.
These decisions are substantially informed by the outcomes of Atradius’ economic capital model. This internallydeveloped model, which has received supervisory approval for use in calculating regulatory capital requirements,
contributes to a multitude of risk assessment activities, as well as risk profile measurement, and enhances Atradius’
ability to monitor and manage risk levels within the organisation through the allocation of risk-based capital and thedefinition of an appropriate risk appetite.

4.2.1 The risk landscapeThe state of the global economy greatly influences the risks that Atradius faces. Economic deterioration may result inincreased insolvencies thereby causing more frequent and severe claims expenses. The return on our investment may
also deteriorate and defaults on our holdings of debt instruments may occur. A severe deterioration of all the abovementioned may affect the credit rating of Atradius. A downgrade of our credit rating could have a potential negative
impact on the number of customer policies held by Atradius and thereby lower revenues. Understanding of thislandscape, anticipating developments and preparation for mitigating actions is a key expertise of Atradius.
In addition to the risks arising from exposures under customer policies, which we refer to as underwriting risk, Atradius’risk landscape contains other types of risk. Atradius faces market risk related primarily to our assets, credit risk fromreinsurers and third-party receivables, and operational risks such as cyber risk and legal risks. In addition, strategicrisks exist, such as the rapidly changing technological environment, possible adverse impacts from geopolitical conflict,and uncertainty around the breakup of supranational entities. Atradius has structures, systems and processes in place
to identify, evaluate, monitor, and control or mitigate internal and external sources of material risk in the landscape.
In 2021, as in 2020, the most significant developments in the risk landscape were related to the worldwide effects of the
COVID-19 pandemic. The pandemic has affected all risk areas – from underwriting risk (impact on buyers (credit
insurance) and customers (bonding)) to financial risk and operational risk (impact on Atradius’ ability to maintain its
standard of service and to ensure that the needs of employees are adequately addressed).
A key part of our underwriting strategy during the COVID-19 crisis beginning in 2020 – and continuing in 2021 - hasbeen supporting our customers in insuring their receivables, and, at the same time, protecting them against losses in aheightened risk environment in an explainable and comprehensible way. While COVID-19 risks were spread broadly,
the risks were not uniform across all countries, sectors and portfolios. We analysed the nature and sources of the risks
and how they constantly shifted, e.g. supply chain problems, commodity shortages and price developments, fluctuations
in consumer and purchasing manager confidence, willingness of governments to continue support of struggling
companies, potential interest rate increases. We continually analysed all trade sectors for relevant risk factors, such as
how they might be influenced by governmental response and readiness, and changing infection rates in different
countries and regions. Using segmentation tools, extensive data and analytics, dedicated COVID-19 response teams
coordinated our worldwide risk and commercial organisations to rigorously review and take action on portfolios. Mostof our underwriting algorithms were re-parameterised in the COVID-19 environment. These continuous underwriting
actions were performed in alignment with commercial strategies on (re)pricing, policy restructuring and prudent sales,
underpinned by a deliberate and transparent communication with the market.
38

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Atradius has taken the appropriate steps to manage its exposure to the effects of the pandemic.
Climate-related risks - More frequent and severe weather events are damaging infrastructure and disrupting supply
chains. Transition to a lower carbon economy is bringing new policies, regulations and changes to market dynamics.
There is a risk that such changes could have a negative impact on Atradius by affecting our operations and/or ourcustomers and their buyers. Focus on carbon footprint / CO2 emissions may require manufacturers to adapt or go out
of business, in turn having a knock-on effect on their suppliers. Doing business in certain trade sectors may become
undesirable and attract negative publicity. At the same time, interest in climate change / ethical practices, such as ESG(Environmental, Social & Governance) and CSR (Corporate Social Responsibility) considerations, may create
opportunities to enhance the Atradius offerings. Developments are monitored and discussed in various forums within
Atradius. Aspects of Atradius’ approach to ESG are described in this Report.

4.2.2 The risk management and internal control framework
The Board of Directors of ACyC has ultimate responsibility and accountability for risk management and internal control
within the company. Atradius N.V.’s Management Board owns, implements and oversees Atradius’ group-wide risk
governance through the Risk Strategy Management Board (RSMB). The RSMB consists of all members of theManagement Board, as well as the Directors of Group Risk Management, Strategy and Corporate Development and
Finance.
The RSMB’s responsibilities include the development and maintenance of the framework to manage risk and the ongoing overview of the largest risks. The RSMB establishes the internal risk management framework by approving risk
policies, risk boundaries, and by prescribing risk mitigation activities. In addition, the RSMB ensures that there areprocesses and systems to review the effectiveness of risk management and the internal control system.
Atradius N.V.’s Supervisory Board is responsible for overseeing that the Management Board implements, amongst otherthings, a suitable risk management and internal control system. In this respect, the Management Board, alongside its
risk management functions, periodically presents results, developments and plans to the Supervisory Board andrelevant committees thereof. One of these committees, the Audit Committee, supervises, monitors and advises theManagement Board on the effectiveness of internal risk management and control systems. The Audit Committee is
assisted in this role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management
controls and procedures, the results of which are reported to the Audit Committee.
Atradius’ risk management policies are established to formalise the identification and analysis of risks faced by
Atradius, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and Atradius’ activities. Through its
training, management standards and procedures, Atradius maintains a disciplined and constructive control
environment in which all employees understand their roles and responsibilities.
Central to the company’s system of governance is the Atradius risk governance structure. The risk governance structure
comprises a framework of committees (which support RSMB in specific risk areas), approval authorities, roles andresponsibilities, and risk boundaries, which combine to define the process by which Atradius decides what risks it takes
on and how it manages those risks.
By applying the Atradius risk governance structure, the company is able to:- Communicate risk-related norms and values across the organisation;- Provide clarity over the various responsibilities and accountabilities in the management of risk;- Manage the Group’s risk profile and development of the business over time;- Ensure that Atradius adheres to an approved risk appetite;
Ensure appropriate ownership of decisions; and- Provide the Management Board with clear insight into decision-making and risk-management processes.
To achieve reliability over financial information and solvency reporting, the following controls are implemented andquarterly tested:
Key controls required to manage the risk of a material error in financial and non-financial reporting; andEntity-level controls that detect material misstatement due to failures in controls within business processes

39All amounts in thousands of Euro, unless otherwise stated

4.2.3 Risk classification
ACyC classifies its main risk types as insurance, financial and operational. Insurance risks are the risks of financial loss
as a direct result of providing insurance; these arise predominantly from the risk of default-related non-payment by abuyer covered by a policy (credit insurance) or the risk of non-performance by a customer (bonding). Financial risks
include market risk, counterparty credit risk and liquidity risk. Operational risks arise from inadequate or failed internal
processes, people, systems, or from external events.
Environmental, Social and Governance (ESG) refers to the three central factors in measuring the sustainability andsocietal impact of an investment in a company or business. ESG concerns are increasingly used in the evaluation ofcompanies; by investors, the media, other companies and the public in general. The image of a company is increasingly
defined by the level of concern for ESG criteria:-

Environmental concerns: The threat of climate change and depletion of natural resources. The main question
becomes the sustainability of products, services and therefore companies.
Social concerns: How the company affects the wider social environment. This includes diversity, human rights,
and consumer protection.
Corporate governance concerns: The rights and responsibilities of the management of a company.

ESG risks are included under Insurance Financial and Operational risk as described below.

4.3

Insurance risk

4.3.1 Insurance products, their characteristics, sensitivity to insurance risk, risk mitigation and controls
ACyC operates with two main direct insurance product lines: credit insurance and bonding. Credit insurance can bedivided into three subcategories: traditional credit Insurance, instalment credit protection and special products. Each ofthese sub-categories has particular risk characteristics.
The starting point for the management of insurance risk is that all staff have well-defined authorities specifying thelevel of risk they can accept and that all risk acceptance must take place within the framework of the risk governancestructure described in Note 4.2.2. 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 so-called‘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 cover nonpayment of trade receivables due to commercial disputes. Each policy stipulates a maximum credit period that thepolicyholder can offer to its buyers without prior approval from ACyC. ‘Buyers’ are the customers of the ACyC’s insured
customers, i.e., the parties that ACyC insures trade credit risk on. In order to mitigate the risk of adverse selection, thetraditional credit insurance products of ACyC usually cover the entire portfolio of buyers of a policyholder.
For traditional credit insurance, there are two underwriting processes: policy underwriting and buyer underwriting.
Policy underwriting is the process by which ACyC decides which companies to accept as policyholders and the terms
and conditions of cover that are offered to those policyholders. Buyer underwriting is the process by which the ACyC
sets a risk capacity for each buyer and issues credit limits for buyers under existing policies. Policy underwriting andbuyer underwriting are carried out by Commercial and Risk Services units respectively.
Policies are issued for a fixed period: usually no longer than two years and with a break clause after one year. Within
traditional credit insurance, customers retain some of the risk for their own account to protect ACyC from the risk ofmoral hazard. That self-retention can take the form, for example, of an uninsured percentage, a deductible on each claim,
an aggregate first loss amount or a combination of these. All policies stipulate ACyC’s maximum liability. A customer iscovered for the credit risk on a buyer after a credit limit on the buyer has been established. Most policies allow customers
to establish credit limits themselves for smaller amounts, under strict conditions specified in the policy. Larger credit
limits must be issued by ACyC. Credit limits are an important risk management instrument for ACyC as they limit theamount that ACyC would have to pay to a customer in the event of a claim. Moreover, ACyC can withdraw the credit limit
on a buyer at any time if circumstances demand. Credit limits may be subject to specific conditions and ACyC can also40Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

set conditions for cover on a country or withdraw cover on a country altogether. These tools are important to manage
insurance risk exposure in a dynamic way.
Staff in Commercial units have well-defined authorities specifying who can underwrite which policies. Authorities
typically require the approval of two people and conditions become stricter as the maximum liability under a policy
becomes larger, with the largest policies needing sign-off by both the Director of a Commercial unit and the responsible
Executive Committee member. The pricing of credit insurance policies (new, amended and renewed) is also subject togovernance and the models and methodologies used to establish a technical price require the approval of the
Quantitative Model Committee, a committee responsible for approving the quantitative models that are used within
ACyC.
Staff in Risk Services have well-defined authorities specifying the level of decisions that an underwriter can take forthe approval of credit limits, and the definition of capacity in the system. As credit amounts grow, decisions require theapproval of one or more cosignatories of increasing seniority. The largest credit amounts require the approval of acommittee with the appropriate authority level and, in exceptional cases, the approval of the (leaders of the) reinsurance
panel.
The special products business offers a range of bespoke policies to insure against various credit and political risks. This
product line includes policies that cover single transactions, single trade relationships and asset confiscation. A
distinguishing feature of special products policies is that, unlike traditional credit insurance, credit limits typicallycannot be readily withdrawn. The conditions of special products policies tend to place a greater onus on risk monitoringand due diligence on the insured.
All policies are bound within clearly defined authorities issued to the policy underwriters who report ultimately to theChief Market Officer. All buyer risk is signed off by a dedicated Risk Services team which reports ultimately to the Chief
Risk Officer. In addition, a dedicated 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 compliancewith the terms of the reinsurance treaty.
Bonding
ACyC issues surety bonds for customers in a number of European countries including Italy, France, Spain, Portugal,
Germany, the Nordic and the Benelux countries. Surety bonds insure beneficiaries against the risk of our customer not
meeting contractual, legal, or tax obligations. Beneficiaries include national, regional, local governments and tax
authorities as well as companies.
While our customer may fail to meet its obligations either because it is unable to perform to an agreed or required levelor because it is insolvent, there is also the risk that the customer may intentionally fail to meet its obligations. Therefore,
our assessment of both the customer’s financial strength and its ability to perform plays an important part in theunderwriting process. Unlike traditional credit insurance, exposure related to issued bonds cannot be unilaterally
cancelled by ACyC.
When a bond is called by the beneficiary, 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 is taken
against the customer who remains ultimately liable. If ACyC does incur an irrecoverable loss it is almost always becauseof the customer’s financial distress, making the triggers for loss similar to those of traditional credit insurance.
The spread of customers over industry sectors varies by country as a result of differing legal and market environments.
The type of bonds issued include bid bonds, performance bonds, maintenance bonds, advance payment bonds andvarious types of administrative bonds. These are issued with tenors ranging from a few weeks to years, but only rarely
in excess of five years.
All bonding facilities 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 bonding wordings and other technical aspects.
Financial underwriters, who are not part of the Commercial units, focus on the credit risk-related aspects of customers;
the must approve the acceptance of facilities and individual bonds over certain thresholds. There is an authority
structure in which decisions are escalated depending on the amounts involved. The largest amounts require theapproval of a committee with the appropriate authority level.

41

All amounts in thousands of Euro, 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 and Luxembourg.
Policy underwriting is performed within the Commercial units. Policies are generally issued for a fixed period with
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. Credit decisions are made for each individual operation
based on an automated decision model. The model, without human intervention, can refer the case to an underwriter
for manual assessment. Authorities are granted to underwriters according to their seniority and expertise. Cases are
escalated according to pre-determined thresholds to the local ICP credit committees, then to the ICP credit committee
and finally to the Executive Committee member responsible for ICP.

4.3.2 Insurance risk management tools
ACyC monitors exposure across various dimensions such as counterparty, industry sector and geographic location. We
maintain records of all credit insurance policies, credit limits and buyers in various connected systems. These systems
enable ACyC to set system specific limits by buyer or buyer group. Management information derived from thesesystems enables ACyC to monitor aggregate exposure by country, customer industry sector and other dimensions.
All buyers with significant exposure are reviewed at least annually. ACyC continually receives information on buyers
through on-line connections with business information providers and from customers reporting negative payment
experiences. Buyers are reviewed whenever pertinent new information is received. ACyC assigns an internal rating tobuyers and the review process takes into account exposure on a buyer through direct business, including exposure for
special products and bonding. The authority structure for approval of new exposure referred to in this note also applies
to buyer reviews.
The main system includes an integrated risk and cost-based pricing system. Most new policies and renewals are priced
starting from a price suggested by the pricing system.
For ICP, consumer credit risk underwriting relies on the databases of the relevant national authorities. In Belgium, theNational Bank of Belgium maintains two databases: a negative database, listing every credit non-payment incident, anda positive database, listing every credit granted to any individual. In addition, ICP maintains and uses its own internal
consumer credit database.
Both Bonding and ICP have their own pricing systems and guidelines, which reflect the specifics of their businesses.

4.3.3 Reinsurance programme
Atradius transfers a significant portion of its insurance risk to external reinsurers, through a number of reinsurance
arrangements that include quota share and excess of loss treaties covering either the entire portfolio of Atradius or
specific risks. The reinsurance treaties are renewed annually, usually in December of the preceding year. During 2021,
Atradius decided to renew its reinsurance arrangements for 2022. This trend continued with the renewal of thereinsurance arrangements for 2023 in early 2022. 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 capital requirements and Atradius’ SCR appetite
For the underwriting year 2021 one quota share reinsurance treaty is in place covering the majority of ACyC’s business.
The retention under this treaty is 63% (2020: 63%).
In addition, there are two separate quota share treaties, which cover a limited number of policies, where the retention
percentage is 25%, and a single excess of loss programme, covering the own retention under these quota share treaties,
consisting of a series of excess of loss treaties (per buyer group). The top of the excess of loss layers is chosen so that, inthe 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 coverage purchased.
The attachment point of the excess of loss treaties has been set such that the net retention for business ceded underthese treaty structures for any buyer group does not exceed EUR 26.25 million for ACyC. The top of the excess of loss
42

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

layers is chosen so that, in the judgement of management, there remains only a very remote possibility that failure ofany single buyer/buyer group will exceed the top end of the excess of loss coverage.
With regard to the reinsurance panel, it is Atradius’ policy to select only reinsurers that have a high rating. The normal
minimum requirement is an ‘A-’ level rating. The treaties also include a provision that if a reinsurer is downgraded
during the period of the reinsurance below an ‘A-‘ rating then security can be requested and if not provided thereinsurance agreement with that reinsurer can be terminated.
It is currently expected that Atradius Reinsurance DAC will be merged into ACyC through a cross-border merger to becompleted in 2022. The transaction remains subject to the necessary board, shareholder, court and regulatory approvals.
Upon effectiveness of the merger, Atradius Reinsurance DAC’s assets and liabilities, including all of its reinsurance
obligations, would be transferred to ACyC, through its Irish branch, which would conduct Atradius Reinsurance DAC’s
reinsurance business as its legal successor, with Atradius Reinsurance DAC being dissolved without going into
liquidation.
Government Agreements
The Covid-19 pandemic crisis has strongly affected the world economy.
In view of this situation and, as a support to the national economy, 10 main countries where the Group operates havesupported the business of credit insurance in the form of specific government reinsurance schemes with high cession
rates.
The government schemes were part of an overall package of measures and aimed to ensure that sufficient liquidity wasavailable in the market, to counteract the damage inflicted on companies affected by the outbreak and to preserve thecontinuity 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. All contracts applied to direct business (gross reinsurance).
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 for the firstsemester of 2021, except for France where the covered period was extended to 31 December 2021. In general terms, allgovernment schemes cover 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 provides an additional cession to theprivate cession). All government schemes are risk attaching, the cession rates are different per country.
The table below details the impacts of the agreements in the consolidated statement of financial position (in thousand
euros):(EUR thousand)

Total

Total

Balance Sheet:

2021

2020

Technical Provision Ceded

106,766

217,781

Premiums Provision Ceded

26,117

6,452

Cash in Bank

(297,805)(78,565)

Accounts Receivables/Payables(125,754)(195,371)(7,307)

4,845

Insurance premium ceded(323,805)(412,662)

Insurance claims recovered(35,527)

266,688

Reinsurance commission

Income statement:

Reinsurance commission

106,204

101,118

Government Scheme's Result(253,128)(44,856)43

All amounts in thousands of Euro, unless otherwise stated

4.3.4 Concentration risk
Atradius is exposed to concentration risk in a number of ways: primarily by buyer, buyer’s country or buyer’s industry.
The following tables illustrate the exposure at the end of 2021 and 2020 in terms of the sum of credit limits registeredby Atradius on individual buyers. This is referred to as total potential exposure or TPE.
TPE is an approximate upper boundary to real exposure, in the sense that a limit that Atradius has issued does notnecessarily give rise to underwriting risk at a specific point in time. Atradius normally does not know the real
outstanding exposure under its limits on any specific buyer. The ‘usage’ of limits is, on average, much smaller than theamount of the limit. At the portfolio level, real outstanding exposure tends to be in the range of 10% to 30% of TPE, on
top of which customers still have their own retention. In addition to the TPE, customers are often allowed to bring
exposure under the policy through discretionary limits and potential exposure resulting from a discretionary limit on
any buyer is not held on Atradius’ system. Each policy specifies the maximum discretionary limit allowed under thepolicy. For most policies this is no more than EUR 20 thousand per buyer. This illustrates that TPE is a crude measureof exposure and that, in aggregate, real exposure will be far lower.
The TPE details below show TPE gross of reinsurance. Due to the non-linear nature of the excess of loss cover in
Atradius’ reinsurance programme, which has a finite number of reinstatements for each layer, there is no natural way
to show TPE net of reinsurance.
The following tables, show aggregated TPE for credit insurance (including special products) and assumed reinsurance.
Buyer country

TPE 2021(EUR million)%

TPE 2020(EUR million)%

Germany

107,241

16.5%

93,113

16.7%

Spain, Portugal

86,56013.3%

78,895

14.1%

Central and Eastern Europe

70,374

10.8%

58,916

10.5%

France50,033

7.7%

44,881

8.0%

United Kingdom

49,675

7.6%

41,388

7.4%

Italy

48,861

7.5%

40,636

7.3%

USA, Canada, Mexico and Central America

35,9095.5%

24,612

4.4%

The Netherlands

32,861

5.0%

29,545

5.3%

Nordic31,9194.9%28,030

5.0%

Other

137,52921.2%

118,848

21.3%

Total

650,962100%

558,864100%

44Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The following table shows the distribution of TPE over buyer industry sector.

Industry sector

TPE 2021(EUR million)%

TPE 2020(EUR million)%

Chemicals

87,047

13.4%

73,638

13.2%

Electronics

73,422

11.3%

62,181

11.1%

Consumer durables

72,042

11.1%

61,736

11.0%

Metals70,552

10.8%

55,662

10.0%

Food

65,536

10.1%

59,100

10.6%

Transport

57,315

8.8%

49,586

8.9%

Construction

50,052

7.7%

43,898

7.9%

Machines

43,255

6.6%

37,337

6.7%

Construction materials

32,525

5.0%

27,586

4.9%

Agriculture

32,4205.0%

28,1965.0%

Services

23,276

3.6%

21,672

3.9%

Other

43,5206.6%

38,272

6.8%

Total

650,962100%

558,864

100%

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

TPE 2021(EUR million)%

TPE 2020(EUR million)%

0 - 20338,65552.0%

304,283

54.4%

20 - 100

115,537

17.7%

95,02917.0%

100 - 250

71,13910.9%61,377

11.0%

250 - 500

54,2608.3%

40,675

7.3%

500 - 1000

35,782

5.6%

30,7845.5%1000 - and more

35,5895.5%

26,716

4.8%

Total

650,962100%

558,864

100%(EUR million)

Exposure for bonding and for instalment credit protection has different characteristics and therefore has not been
included in these tables. The bonding exposure is EUR 25.6 billion (2020: EUR 24.1 billion). Exposure for instalment
credit protection amounts to EUR 3 billion (2020: EUR 3 billion).

4.3.5 Factors affecting the frequency and severity of claims
The frequency and severity of claims are affected by several factors. These include all factors that affect credit risk ingeneral. Thus, the state of the economy is a major driver of the frequency and severity of claims. Its effect may vary bycountry and sector. For trade credit risk, the behaviour of customers may also affect the frequency and severity ofclaims, for instance through risks inherent to their business activities and their risk management practices. Specific
events (e.g. natural disasters) or structural changes in the economy (e.g. easier access to developed markets for
producers in low cost countries), may impact the frequency and severity of claims. What specific events or structuralchanges are relevant in this respect will vary over time. In addition, the political risk cover that Atradius provides has
its own dynamics of frequency and severity of claims.
As result of COVID-19, the state of the economy in the near future is, and has been, significantly more uncertain thanusual. This, in turn, impacts uncertainty related to the frequency and severity of claims. In light of COVID-19,
governments all around the world have taken measures to support the economy. During 2021, governments in most of
our markets have already started rolling back the fiscal support. Though there is still uncertainty with respect to the45All amounts in thousands of Euro, unless otherwise statedtiming and speed with which those measures are rolled back completely, as well as the extent to which the economy
relied on the support, are still major factor of uncertainty.
The bonding business usually only incurs irrecoverable losses when, after a bond call, any payments to beneficiaries
cannot be reclaimed from the bonding customer, or its guarantors. This is usually due to either the insolvency orbankruptcy of the bonding customer. Thus, in the end, the frequency and severity of claims is affected by similar factors
as those affecting credit insurance.
All forms of credit insurance and bonding 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.

4.3.6 Sources and assumptions
4.3.6.1

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 factors that
affect the frequency and severity of claims in general, as described in Note 4.3.5.
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 the provisions
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 ACyC:

-

-

-

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 thathave 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, for which noclaims notification has been received and for which the underlying invoices are overdue at the end of thereporting period;for bonding, instalment credit protection and reinsurance, the UPR relates to risk taken on; andfor 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, bonding, instalment credit protection and reinsurance when interpreting theclaims development tables in Note 18 to evaluate the accuracy 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., the period
in which the insured shipment has taken place). Large cases are provisioned separately, at expected loss.
In the case of traditional credit insurance, the main sources of uncertainty for estimates of future claims payments
include:-the amounts that will be paid out as a percentage of the claim amount;the speed with which customers submit claims, as measured from the moment that the insured shipment took
place, the expected average claims payment and the expected percentage of cases that do not lead to a payment;
the expected number of claims for risks taken on during the most recent months since very few claims will
have been reported for the most recent four to six months (depending on the country of the customer);46

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros-

the inflow by number and size of large case; andthe estimation of the expected recovery percentages.

Estimates for future claims payments for bonding have a greater uncertainty than estimates for future claims payments
for credit insurance. Bonding is a ‘longer tail’ business; i.e., the time between issuance of the bond and receipt of thebond call tends to be much longer than that of traditional short-term credit insurance. For example, most credit
insurance covers credit periods up to 180 days, while around half the number of bonds written has tenors of over two
years. After receipt of a bond call, it usually takes longer to settle the claim and litigation is not uncommon, either
following the bond call or when trying to realise recoveries. Especially in Italy, litigation tends to be a lengthy process.
Outcomes of litigation cannot be predicted with certainty. For bonding, 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 casespecific 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 business oriented evaluation is integrated with a statistical and actuarialmodel. This model based on the exposure of active bonds applies probability of defaults and loss given default. Booked
recovery provisions for bonding are periodically reviewed and adjusted to experience.

4.3.6.2

Assumptions, change in assumptions and sensitivity

The risks associated with credit insurance and bonding 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 2022 would be around 20% above the level of end 2021. The main methodologies for
estimating claims provisions for traditional credit insurance combined underpin 71% (2020: 79%) of the claims
provisions for traditional credit insurance.
In light of the increased uncertainty as result of the current circumstances, however, we take a similar approach for2021 closing as we did for 2020 closing. During the second half of 2020, the number of reported claims dropped
significantly compared to the first half of 2020. At the time, this partly related to a drop of insured business as result of
the lock-downs early 2020 and partly because of government’s support for the economy. However, whilst the insured
shipments have recovered since, the number of claims registrations in 2021 have remained at the same low level as thelatter half of 2020, which is 40 – 60% lower than the claims reported during the first half of 2020 depending on the
country. The 2021 provisions have been set based on the assumption that this drop is temporary and imply a strong
increase in expected claim received count during the first six to eight months of 2022 at the level of the first half of 2020
plus 10 – 40% depending on the country, due to uncertainty in the current economical environment. If this strong
increase in claims registrations does not materialize, then this leads to a significant favourable runoff on provisions forunderwriting year 2021.
An indication of the sensitivity to projected ultimate number of claims, inclusive of the expected increase mentioned in
the previous paragraph, would be the following: if the estimated ultimate number of claims for the most recent six
months of risk were to change by 10%, the claims provisions would change by EUR 33 million, gross of reinsurance(2020: EUR 33 million). As in essence provisions for most recent months are set as estimated number times estimatedclaims size, this also describes the sensitivity to assumed claims size. This sensitivity is approximately 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 is feature 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. This is also the case as at year end 2021. There is one material
exception to this; for the Spain and Portugal portfolios, the average claim size observed during 2021 has beensignificantly smaller than our parameter for claims not reported indicates. In this portfolio, particular sectors in thetravel and leisure industry (e.g., restaurants and hotels) were disproportionally affected by COVID-19, hence therelative contribution of these sectors in the total claim count increased. Moreover, the average claim sizes in these
sectors tends to be lower. Hence, we consider these recent observations the result of a temporary bias towards smaller
claims. As our reserving stance is a return to normality, we have chosen not to lower this parameter to the level of theobserved values during 2021.

47

All amounts in thousands of Euro, unless otherwise stated

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 32
million (2020: 32 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 be seenthat the correlation between the ultimate aggregate losses arising from large claims by underwriting year and theattritional 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 current level of uncertainty and experience from prior financial crisis (2008-2009, which showed ahigher proportion of large losses over total losses) leads to setting a ratio aligned to the historic one observed in priorfinancial crisis. The selected ratio implies estimated ultimate large loss amounts (as opposed to the ratio with attritional
losses) to be in the ranges of those observed under normal circumstance, like underwriting years 2012 to 2019. If thesefractions were chosen 10% higher, then the claims provisions for traditional credit insurance would increase by EUR 60
million (2020: 69 million). The case by case estimates are specific to the individual facts and circumstances of the case.
As such, no meaningful overall insight to the sensitivity can be given.
Claims provisions are presented net of recoveries from salvage and subrogation. Realised recoveries can deviate fromexpected recoveries. Expected recoveries amount to EUR 361 million (2020: EUR 476 million). The largest twocomponents of the expected recoveries are the recoveries for traditional credit insurance of EUR 137 million (2020: EUR
211 million), and for instalment credit protection of EUR 134 million (2020: EUR 154 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 a mere
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 14 million (2020: EUR 21 million). For instalment credit protection, for which similar
margins for uncertainty are introduced, impact of setting recovery provisions lower by 10% is EUR 13 million (2020 15
million).

4.4

Financial risk

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

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

4.4.1.1

Fair values of financial assets and liabilities

The estimated fair values of ACyC’s financial assets and liabilities equal their carrying value.
48

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The fair values correspond with the price, at our best estimate, that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date. Wheneverpossible, the fair values are based on quoted market prices. If there is no quoted market price available, we use
valuation techniques which are based on market prices of comparable instruments or parameters from comparable
active markets (market observable data). If no observable market inputs are available, valuation models are used(non-market observable data). These valuation techniques are subjective in nature and involve various assumptions
about the relevant pricing factors. Changes in these assumptions could significantly affect the 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 specific point in time and may not be indicative of future
fair values.
The fair values are subject to a control framework designed to ensure that they are either determined or validated by afunction independent of the risk taker. To this end, ACyC establishes the accounting policies and processes governing
valuation and is responsible for ensuring that these comply with all relevant accounting pronouncements. Within thisgovernance structure, non-quoted investments or illiquid investments in which ACyC invests are valued by an
external independent valuation company or the asset manager of illiquid investment fund. That company uses its own
proprietary valuation systems to value the securities supported by 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 at the asset manager is audited and approved by its external auditor.

Debt and equity securities available-for-sale
The fair value of debt and equity securities available-for-sale is based on quoted market prices, where available. For
those securities not actively traded, fair values are provided by an external independent valuation company or by thefund’s asset manager.

Loans and short-term investments
For loans and other short-term investments, carrying amounts represent a reasonable estimate of their fair values.

Other financial assets
The carrying amount of other financial assets, including cash and cash equivalents, is not materially different to theirfair value, given their short-term nature.

Other financial liabilities and deposits received from reinsurers
The carrying amount of other financial liabilities and deposits received from reinsurers is not materially different totheir fair value, given their short-term nature.

49

All amounts in thousands of Euro, unless otherwise stated

The following tables present the fair values and the hierarchy of the financial instruments carried at fair value (note
2.9):
Financial instruments measured at fair value
Assets 2021

Level 1

Level 3

Total

Available-for-sale:
Equity securities

370,004

27,123397,127

Government bonds

194,259-

194,259

Corporate bonds

1,091,082-

1,091,082

1,655,345

27,123

1,682,468

Debt securities:

Total
Financial instruments measured at fair value
Assets 2020

Level 1

Level 3

Total

Available-for-sale:
Equity securities

272,060

22,910294,970

Government bonds

179,887-

179,887

Corporate bonds

899,783-

899,783

1,351,730

22,9101,374,640

Debt securities:

Total

At 31 December 2021 the Company is mainly exposed to securities traded in active markets (level 1), however due toreclassifications and new investments there is also exposure to illiquid markets (level 3).

Reconciliation of Level 3 fair values
The following table details the changes in the fair value of Level 3 financial investments (valuation techniques
incorporating information other than observable market data):
Financial investments Level 3

Debt securities

Balance at 1 January

2021

2020

22,91017,097--

Total gains or losses:
In income statement (net income from investments)
In other comprehensive income

(103)

324

Acquisitons/Sales

4,316

5,489

Balance at 31 December

27,123

22,9104.4.1.2

Equity price risk

Equity price risk is the risk that the fair value of the assets that are sensitive to movements in equity prices decreases
due to adverse movements in equity prices. ACyC exposes itself to equity price risk by investing in equity instruments
issued by corporations and equity instruments issued by investment funds. These risks are measured and analysed byusing value at risk techniques and capital models from the external credit assessment institutions. The value-at-riskmeasures the potential maximum loss on ACyC equity instruments due to adverse movements in equity prices in the
short-term while the capital models measures the potential maximum loss in the long-term, (see Note 4.4.1.4 for more

50

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

information). ACyC invests in a portfolio of diversified equity instruments to manage these risks to minimize theidiosyncratic risk of individual assets.
Individual equities instruments
ACyC invests in individual equities via a segregated mandate in which the asset manager has discretion to select theequity portfolio in accordance with investment restrictions set in the investment management agreement. This
diversified portfolio consists of EUR denominated large capitalization equities. Per the end of December 2021, themarket value of these equities is EUR 89.7 million (2020: EUR 76.3 million).
-

Investment funds: the investment funds in which ACyC invests are exposed to market risk, counterparty risk,
liquidity risk and currency risk (i.e. general investment fund risks). The risks of an investment fund are mainly
driven by the nature of the assets in which it invests. As investment funds are offered to multiple investors, theinvestment restrictions of a fund are stated in the fund’s prospectus. ACyC only selects investment funds that have
similar investment restrictions stated in their prospectus as stated in the Atradius Investment Policy.

-

Equity instruments issued by investment funds: the portfolio of equity instruments issued by investment funds
are shown in the following table:

Investment funds

Weight in %2021

Passive equities exchange traded funds

Weight in %2020

205,04466.7%

168,689

77.2%

Active money market funds

75,20524.5%

26,991

12.3%

Real estate funds

24,646

8.0%

22,910

10.5%

2,477

0.8%

-

-

307,372

100.0%

218,590

100.0%

Infrastructure funds
Total-

Passive equities exchange traded funds: the portfolio of passive equities exchange traded funds mainly consistsof an exchange traded fund which passively tracks the Dow Jones EURO STOXX 50 Index.

-

Active money market funds: the portfolio of active money market funds consists of money market funddenominated in British pound, US dollar and Brazilian real.

-

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

-

Infrastructure funds: the infrastructure fund is a fund-of-funds investment denominated in EUR. The underlying
funds have different focus, e.g. from renewable energy towards more traditional infrastructure sectors likeutilities, transport, energy or telecommunications, but all with a global approach, resulting in a multi-currency
exposure of the underlying assets. A significant characteristic of such an individual infrastructure asset is that it
requires relative large investment amounts. The fund-of-funds investment mitigates that part by adding an
additional layer of diversification in exposure towards certain individual infrastructure assets or projects.

4.4.1.3

Interest rate risk

Interest rate risk is the risk that the fair value of assets and liabilities, that are sensitive to movements in interest rates,
decreases or increases due to adverse movements in interest rates. ACyC exposes itself to this risk by investing in debt
instruments and equity instruments issued by investment funds that invest in debt instruments.

51

All amounts in thousands of Euro, unless otherwise statedProfileAt the end of the reporting period the interest rate profile of ACyC interest-bearing financial instruments was:Fixed rate instruments carrying amountFinancial assets (1) (3)Financial liabilities

2021

2020

2021

2020

1,285,341

1,079,670

499,046

322,404--(11,556)(66,016)

1,285,341

1,079,670

487,490

256,388(2) (4)

Total

Variable rate instruments
carrying amount

1) Fixed rate financial assets include debt securities;2)There are no financial liabilities at fixed rate;3) Variable rate financial assets include cash and cash equivalents, loans, short-term investments;
4) Variable rate financial liabilities include borrowings and deposits received from reinsurers.

Duration
Duration demonstrates the dependability of a bond’s market value to a change in the underlying discount rate of thatbond. The duration figure depicts the percentage change of the market value of a bond investment if the underlying
discount rate is parallel shifted by 100 basis point or 1.00%. The higher the duration figure, the more a bond is sensitive
to movements in the underlying discount rate.
ACyC uses the duration to assess its interest rate risk exposure and monitors whether the duration remains between theminimum and maximum duration limit (between one to five years for government bonds and one to three years forcorporate bonds) as set in the Atradius Investment Policy. The duration is calculated as the weighted average of the
discounted future cash flows to be received measured in years. The duration as per 31 December 2021 is 3.1 years (2020:
2.9 years) and the average maturity for 2021 is 3.4 years (2020: 3.3 years).

4.4.1.4

Value-at-Risk

ACyC measures equity price and interest rates risk by analysing the value-at-risk (VaR) of its financial instruments.
This risk metric measures the potential maximum loss on those financial instruments due to adverse movements inequity prices and interest rates within a specified time frame and probability (confidence level). The VaR is based on
variance-covariance methodology that uses the historical volatility of the fair values of the financial instruments andthe correlation between these as main inputs. These volatilities and correlations are provided by financial information
providers or financial institutions.
The risk of using the variance-covariance methodology or any other historical methodology is that it may underestimate
the riskiness of the financial instruments. This is because these methodologies assume that the historical volatility ofand correlation between the financial instruments will be repeated in the future. Therefore, it is not intended torepresent or to guarantee any future price movements but rather to be used as guidance for information purposes andcomparison of historical developments only.
The VaR provides insight into the maximum expected loss per asset category and on portfolio level. The fair values andpercentages presented are calculated with a given confidence level of 99% for a period of 12 months. This implies that
there is 1% probability of underestimating the potential maximum loss for the coming 12 months.

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Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The following table shows the VaR of ACyC equity securities and debt securities on portfolio level.
Value-at-Risk

EUR million% of themarket value2021

EUR million% of themarket value

2020

Equity securities:
Shares (including equity and real estate funds)

113.0

35.1%

203.5

76.0%

Government bonds

2.0

1.0%

4.4

2.4%

Corporate bonds

13.1

1.2%

39.7

4.4%

108.1

5.7%

201.7

13.5%

Debt securities:

Total portfolio

The classification of financial investments in the VaR table stated above are based on the actual financial risks that theindividual securities present in the investment portfolio carry. For instance, within debt securities a separation between
government bonds and corporate bonds is maintained to capture the actual exposure to corporate bonds that carryadditional credit risk above the risks that government bonds bring along. When individual securities are classified tothe asset class that fits their actual risk profile, the volatility of that asset class is calculated using the volatility to thefinancial markets of the underlying securities in that asset class. The volatility of each asset class as a whole serves as
input for the VaR calculation of that asset class. In case of an investment fund, the volatility of the fund (driven by thecharacteristics of its underlying securities) serves as input for the calculation of the VaR on that specific investment
fund and is subsequently included in the VaR calculation of the asset class. Total portfolio VaR is less than the sum of
the VaR of the individual portfolio components because the correlation between these components is less than one andforms the basis of portfolio diversification. The VaR percentage decreased from 13.5% at the end of 2020 to 5.7% at theend of 2021 and the VaR value decreased from EUR 201.7 million at the end of 2020 to EUR 108.1 million at the end of
2021. During 2021, the global economy continued its recovery after the volatile year of 2020. This recovery resulted ina reduced expected risk from a VaR perspective.

4.4.1.5

Currency risk

Movements in exchange rates may affect the value of consolidated shareholders’ equity, which is expressed in Euro.
Foreign exchange rate differences taken to other comprehensive income arise on the translation of the net investment
in foreign entities. During 2021, the Euro apreciated in value against some of the non-Euro functional currencies (seeNote 2.5.3) resulting in a foreign currency gain in other comprehensive income of EUR 10.1 million, net of tax (2020: again of EUR 11.3 million, net of tax).
However, the impact of these fluctuations is limited as revenue, expenses, assets and liabilities within our non-Euro
operations are generally denominated in the same currencies.
ACyC exposure to foreign currency exchange rate risk, arising from monetary financial assets and liabilities
denominated in non-functional currencies as at 31 December 2021 and 31 December 2020, is presented in the following
table, in EUR:

53

All amounts in thousands of Euro, unless otherwise stated

FinancialassetsFinancialliabilities

Net position

Financialassets2021

Financialliabilities

Net position

2020

EUR

417,958

389,132

28,826248,219240,201

8,018

GBP

4,738

1,181

3,558

3,852

110

3,742

USD

324,318

205,723

118,595

206,758

140,553

66,205

AUD

1,326

1,733

(408)

1,723

804

919

Other

18,98332,853(13,870)

24,273

41,583(17,310)

Total

767,322630,621

136,701

484,824

423,250

61,574

Sensitivity analysis
As an indication of the currency exposure, a 10% strengthening of these foreign currencies against the Euro as at the endof the reporting period would have increased/(decreased) the result for the year by an amount equal to the net position
as presented above, calculated against that 10%. This analysis assumes that all other variables, and in particular interest
rates, remain constant and is performed on the same basis as for 2020. A 10% weakening of the aforementioned foreign
currencies against the Euro as at the end of the reporting period would have had an equal but opposite effect.

4.4.2 Credit risk
Credit risk is the risk that customers or counterparties are unable to repay their debt towards ACyC in full when due.
ACyC exposes itself to credit risk mainly by reinsurance contracts and holding financial assets.
Reinsurance is used to manage insurance risk. This does not, however, discharge ACyC’s liability as primary insurer. If
a reinsurer fails to pay a claim for any reason, ACyC remains liable for the payment to the policyholder. ACyC’s policy
is to select only reinsurers that have a well-established investment grade credit rating. The normal minimum
requirement is an ‘A-’ level rating, although there are some minor exceptions. In the event that the reinsurer’s rating isfound to be below this threshold, ACyC has the right to either terminate the reinsurance relationship during the courseof the reinsurance year or else seek collateral if the relationship is to continue. Deposits received from reinsurers
mitigate the credit risk.
Individual operating units maintain records of the payment history for significant contract holders with whom they
conduct regular business. The exposure to individual counterparties is also managed by other mechanisms, such as
the right of offset where counterparties are both debtors and creditors. Management information reported to ACyC
includes details of provisions for impairment on loans and receivables and subsequent write-offs.
Credit exposure to business partners, such as insured customers and brokers, is closely monitored. Potential
impairments on receivables are reviewed monthly and updated.
With regard to managing the credit risks of the financial investments, the investment policy of ACyC is to hold a,
principally Euro-centric, internationally diversified portfolio and to avoid large risk concentrations. From a Standard& Poor’s rating scale or comparable perspective, the minimum allowed average rating of the overall fixed income
portfolio is A-, whereas investments in individual fixed income securities are allowed a minimum issue rating of BBBat purchase. If a debt security in which ACyC 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 and (per legal entity) is 5% of the market value of thefinancial investments of the legal entity. The concentration per issuer is evaluated by aggregating the exposure to asingle issuer through both debt investments and equity securities. The Atradius Investment Committee monitors thislimit and takes action if necessary.
As a result of the COVID-19 pandemic starting in 2020 with a continuation in 2021, some corporate sectors have really
suffered, while other sectors benefitted significantly. In contrary to 2020, this resulted in both downgrades andupgrades of corporate bonds within the corporate bond investment portfolio in 2021 . Regarding the downgrades, theimpacted corporate bonds mainly observed an one-notch downgrade with a total of 8.9% of the market value of its
2021 corporate bond portfolio. With regard to upgrades, 7.5% of the market value of the 2021 corporate bond portfolio
observed an upgrade. Despite the improving, but continuous difficult market circumstances the fixed income
portfolio remains healthy with its average credit rating of ‘A’ in Standard & Poor’s rating scale.

54

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The main objectives of the investment portfolio concentrate on the capital preservation and liquidity, in order tosupport Atradius strategic and operational needs at any given moment in time. Despite the outbreak of the Covid-19
pandemic, the annual review of the investment policy did not lead to any changes in the concentration risk settings, as
the existing restrictions were considered to be sufficient. Atradius has no investment exposure to sectors directly
impacted by the pandemic, however as a precaution the Group Investment Committee closely monitored any
downgrades on the BBB-rated bonds and any major changes in the concentration exposure by issuer throughout theyear.
The counterparty ratings of receivables, short-term investments, claims, commissions and deposits arising fromreinsurance, cash and cash equivalents and the rating of debt securities as at 31 December 2021 and as at 31 December
2020, are presented in the following tables:
At 31 December 2021

AAA

AA

A

BBB

Other andNon-rated

Total

Receivables, claims and commissions arising fromreinsurance

29

250

502

18

17

816

Deposits received from reinsurers

-

-3

-8

0

0

-12

Government bonds

58

118

9

-

8

194

Corporate bonds

13

77

656

344

2

1,091

Deposits withheld by ceding companies

-

3

-

-

-

Bank deposits under short-term investments

40

13

104

14

-

-

41

260

15

9

325

Total

140

499

1,523

391

36

2,589

At 31 December 2020

AAA

AA

A

BBB

Other andNon-rated

Total

62

248

435

27

26

798

-

(19)

(34)

(13)

-

(66)

Government bonds

64

101

5

2

8

180

Corporate bonds

11

87

438

357

6

900

(EUR million)
Receivables, claims, commissions and deposits
arising from reinsurance:

Debt securities:

Short-term investments:

Cash and cash equivalents(EUR million)

3
171

Receivables, claims, commissions and deposits
arising from reinsurance:
Receivables, claims and commissions arising fromreinsurance
Deposits received from reinsurers
Debt securities:

Short-term investments:
Deposits withheld by ceding companies
Bank deposits under short-term investments
Cash and cash equivalents
Total

-

3

-

-

-

3

39

12

21

22

-

93

-

30

155

34

6

226

176

462

1,019

429

46

2,133

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

4.4.2.1 Disclosures about the temporary exemption from IFRS 9
ACyC has decided to apply the temporary exemption for the application of IFRS 9 to its financial assets (see Note 2.2.2‘Standards, amendment and interpretation not yet adopted’). The financial assets for financial year ending 31

55

All amounts in thousands of Euro, unless otherwise statedDecember 2020 are still classified and measured based on IAS 39 (see Note 10 ‘Financial investments’ and Note 2.2.2‘Standards, amendment and interpretation not yet adopted’). The disclosure below provides information required forthe application of the temporary exemption. IFRS 9 classification of financial assets is based on assessment of thebusiness model and the contractual cash flows of the instruments. Contractual cash flows are assessed to check if theasset gives rise to payments on specified dates that are solely payments of principal and interest (“SPPI”) on theprincipal amount outstanding. Contractual cash flows that are SPPI on the principal amount outstanding are
consistent with basic lending arrangements. Interest is the consideration for the time value of money and the credit
risk associated with the principal amount outstanding during a particular period of time. It can also include
consideration for other basic risks (e.g. liquidity risk) and costs (e.g., administrative costs) associated with holding thefinancial assets for a particular period of time, and a profit margin that is consistent with a basic lending agreement.
The table below presents an overview of the fair values of financial assets based on SPPI criteria as at 31 December
2021, as well as the changes in the fair values during the year. The asset classes are divided into two categories:--

SPPI: Assets of which cash flows represent solely payment of principal and interest on an outstanding
principal amount, excluding any financial assets that meet the definition of held for trading in IFRS 9, or thatare managed and whose performance is evaluated on a fair value basis;other: all financial assets other than those specified in SPPI financial assets:-With contractual terms that do not give rise on specified dates to cash flows that are solely payment ofprincipal and interest on the principal amount outstanding;-That meet the definition of held for trading in IFRS9 or that are managed and whose performance are
evaluated on a fair value basis.

(EUR million)

Change in fair
value

Fair Value at
2021

2020

Debt securities:(Government bonds + Corporate bonds)

1,285

1,080

205

SPPI

1,282

1,076

206

Other

3

4

(1)

Equity securities:

397

295

102

SPPI

-

-

-

Other

397

295

102

Short-term investments and Cash held for investments:

175

97

78

SPPI

175

97

78

Other

-

-

-

Cash and cash equivalents

325

226

99

SPPI

325

226

99

Other

-

-

-

Total

2,182

1,698

484

The credit ratings of the financial assets included the SPPI test (debt securities, bank deposits under short-term
investments and cash and cash equivalents) are included in the counter party rating table in section 4.4.2.
No impairment allowance was recorded for those financial assets as at 31 December 2021 and as at 31 December 2020.
For information on credit exposure of ‘Other accounts receivables’, see Note 10.

4.4.3 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 to cash flows, such as adecline in incoming cash or a rise in outgoing cash, or a combination of both.
Liquidity risk is managed at Atradius level, in close coordination with local operations. The Atradius policy is tomonitor and measure ongoing cash flow patterns and control liquidity by maintaining sufficient cash and highly56

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

marketable securities to reduce liquidity risk to acceptably low levels. The investment policy states that ACyC should
mainly invest in financial instruments that can be liquidated in less than three business days. ACyC is able to accesscredit facilities to prevent certain liquidity shortages which may arise due to short-term cash flow variances. ACyC
maintains one uncommitted credit lines in excess of EUR 1 million. These are in the form of an overdraft facility for a
total amount of EUR 50 million (2020: EUR 50 million). The credit line provides liquidity to cover infrequent peaks inshort-term liquidity requirements while also permitting ACyC to reduce its cash balances and to benefit from a more
substantial and stable investment portfolio. Finally, ACyC has in place a simultaneous claims payment clause in themain reinsurance treaties. This clause allows ACyC to ask the reinsurers to anticipate the payment of a large claim
upon ACyC’s request instead of the usual payment terms agreed in the reinsurance treaties.
Liquidity and interest risk tables
The following tables indicate the estimated amount and timing of the main cash flows at the end of the reporting
period of interest and non-interest bearing liabilities and assets. The tables include both interest and principal cash
flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves
at the end of the reporting period. ACyC has considered the impact of the cross-border cash pooling arrangement inthis overview.
The tables have been drawn up based on the undiscounted contractual cash flows of financial liabilities based on theearliest contractual repayment date. When ACyC has a choice of when an amount is paid, the financial liability isallocated to the latest period in which ACyC can be required to pay. When the lender has a choice of when an amount ispaid, the financial liability is allocated to the earliest period in which ACyC can be required to pay.
At 31 December 2021

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest
rate %

On demand

Less than 1
year

1 to 5 years> 5 years

0.60%

Carrying
amount-11,556--

11,556-

11,556--

11,556

Insurance contracts-

1,139,821

438,177(19,749)

1,575,495

Payables-474,644--474,644

Total-

1,614,465

438,177(19,749)

2,050,139

At 31 December 2020

Contractual cash flows (undiscounted)
Carrying
amountInterest bearing liabilities
Deposits received fromreinsurers
Total
Non-interest bearing liabilities

Weighted
averageeffective
interest
rate %

On demand

Less than 1
year

1 to 5 years> 5 years

0.17%

-

66,016--

66,016-

66,016--

66,016

Insurance contracts-

973,554

340,087(26,532)

1,397,951

Payables-393,357--

393,357

Total-

1,366,911

340,087(26,532)

1,791,308

Interest bearing liabilities
Deposits received fromreinsurers
Total
Non-interest bearing liabilities

57

All amounts in thousands of Euro, unless otherwise stated

At 31 December 2021

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest
rate %

On demand

Less than 1
year

1 to 5 years> 5 years

Carrying
amountDebt securities
Investments: deposits and cash
held for investments

0.16%

-

167,034

1,079,290

60,215

1,285,341

0.11%

38,286

136,387--

174,533

Cash: Cash and bank deposits-0.01%

322,867

1,641

-

-

324,508

361,153

305,062

1,079,290

60,215

1,784,382

Other financial assets-

397,051--

397,051

Reinsurance contracts-

684,406

263,103(11,858)

935,652

Receivables-

323,123--

323,123

Total-

1,404,580

263,103(11,858)

1,655,826

At 31 December 2020

Contractual cash flows (undiscounted)

Interest bearing assets

Other financial assets
Total
Non-interest bearing assets

Weighted
averageeffective
interest
rate %

On demand

Less than 1
year

1 to 5 years> 5 years

Carrying
amountDebt securities
Investments: deposits and cash
held for investments-0.02%-

289,553

719,350

83,125

1,079,670

0.30%

11,65487,857--

96,839Cash: Cash and bank deposits-0.01%

223,370

2,195

-

-

225,565Interest bearing assets

Other financial assets

-

-

-

-

-

235,024

379,605

719,350

83,125

1,402,074

Other financial assets-

294,894--

294,894

Reinsurance contracts-

766,488

267,754(20,889)

1,013,353

Receivables-

294,511--294,511

Total-

1,355,893

267,754(20,889)

1,602,758

Total
Non-interest bearing assets

1)

It includes shares and investments in group non consolidated entities

4.5

Operational risk

4.5.1 Operational risk management
Operational risk means the risk of loss arising from inadequate or failed internal processes, personnel or systems, orfrom external events. This definition is in line with industry practice as well as with the European Solvency II Directive.
It is therefore present within all activities undertaken by Atradius, at all levels and across all locations.
The Operational Risk and Control (ORC) unit is part of the Atradius Risk Management department and is responsible fordeveloping methods for the identification, assessment and response to risks, and for monitoring and further enhancing
the overall risk management and control framework. The ORC unit works closely with both Internal Audit and the Legal

58

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

and Compliance unit. At the highest level, operational risk is overseen by the Operational Risk Committee, which has areporting line through to the Chief Risk Officer.
The ORC unit uses a framework for management of operational risk, which is based on the Committee of Sponsoring
Organisations’ Enterprise Risk Management (COSO ERM) Integrated Framework. Identification and monitoring
activities continue to be developed and enhanced, including the maintenance of risk registers, facilitation of risk andcontrol self-assessments, capture of risk indicators and testing and review of business continuity plans. Additionally,risks and the related controls are discussed at all levels, locations and units across the business, including theManagement Board and Supervisory Board of Atradius N.V.. High-level information on crystallised risks has been
captured for several years, with separate records of information technology risk events stretching back even further. To
provide oversight and assurance in an auditable and efficient manner, the ORC unit employs a dedicated governance,risk and compliance software platform (the ’GRC portal‘) that integrates existing risk management activities across thebusiness.
Fraud risk - In respect of external fraud, the Fraud Control Group, composed of employees across various locations,monitors the activity of customers and buyers to detect indications of fraud. Atradius also provides fraud awarenesstraining and advice to employees and customers to help identify fraudulent buyers. Internal fraud is addressed throughmanual and automated operational controls such as the segregation of duties, application of signing authorities androle-based system privileges and authorities.
Cyber risk – refers to the risk of financial loss, disruption or damage to reputation due to failure of IT systems.
Risks include: an event impacting the data centre (covered via Business Continuity / IT Disaster Recovery), security
incidents, network vulnerabilities, unauthorised activity, malicious code changes, application specific vulnerabilities
and unauthorised software. The Atradius Information Security team monitors and addresses threats and coordinates
the management of cyber risk across the Group.
Within the cyber risk realm, “ransomware” variant malware (viruses) is observed as a growing threat. The current threat
landscape highlights the importance of education for end users on topics such as, phishing, maintaining software andthe dangers of unsupported or non-authorised software. To minimise this risk cyber risk awareness is included in staff
training. Further mitigation of this risk includes protections for critical Atradius applications and Multi-Factor
Authentication for remote access. A medium-term Cyber Security Strategy is in place to increase Atradius governance,
protection, resilience and vigilance.
More details on certain operational risk management activities are provided below.

4.5.1.1

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 the registers provides input to local
management meetings and is also reviewed by an Operational Risk Committee and during meetings of the Management
Board of ACyC. This ensures that operational risks are evaluated 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 identify and assess risks and any control weaknesses inherent in business processes.
On a quarterly basis, Atradius 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 committeewith representatives from Group Risk Management, Finance and Internal Audit.

4.5.1.2

Business continuity management

ACyC recognises the importance of being able to recover its critical business processes in the event of any major
operational disruption. A Business Continuity Management (BCM) programme is embedded in the organisation toensure the continuity of the Business in the event of severe disruptions. The BCM programme is aligned with theInternational Standard ISO22301. The Group Business Continuity manager co-ordinates the documentation,
maintenance and continual testing of practical plans for recovering key business activities within acceptable
timeframes.

59All amounts in thousands of Euro, unless otherwise stated

COVID-19 – Following the initial ‘lockdowns’ in most countries and travel bans, actions were taken to ensure humanresource and IT capabilities were sufficient to maintain the expected level of customer service and to manage the risk
exposure. During 2021 many employees were still working remotely and will continue to do so as necessary as we moveinto 2022. Atradius has adapted its business continuity arrangements to address new ways of working such as the
hybrid working model which involves a mixture of in-office and remote working. As of the end of 2021, IT systems arestable and collaboration tools have been enhanced for the whole workforce. Overall service to customers and all otherparties is being maintained at a high standard.
In early 2020, the Group Incident Management Team (GIMT) (comprised of the Management Board and additional senior
management from relevant departments) launched regular monitoring, reporting and meetings in order to steer the
COVID-19 response on a global level. At the end of October 2021, it was agreed that the company has passed the mostdifficult part of the crisis; severity of impacts may increase and decrease, but it is expected that it will not revert to thesituation in 2020. While regular monitoring and reporting on the situation in local offices continues, the GIMT ceased
its regular meetings. If needed, the GIMT will be reconvened.

4.5.1.3

Legal Risk / Compliance Framework

At Atradius we believe that compliance with relevant laws, rules and regulations, and maintaining a high standard of
ethics and integrity, leads to lower operational risk and more-stable business processes. The Atradius Code of Conduct
outlines the basic corporate, legal and ethical compliance principles and guidelines that apply to all our employees andthat govern the Atradius operations and business conduct towards customers, brokers and all parties involved in
Atradius business.
Atradius has set up several additional compliance policies for more specific areas which set out the requirements that
Atradius’ employees must adhere to. For example, the Policy on Customer Due Diligence and Policy on Sanctions
address potential sanctions risks. 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 areavailable to employees an are reviewed on a regular basis.
The Compliance Function –led by the Group Compliance Function- supports the management of Atradius in meeting
its objective of being compliant with applicable 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.

4.5.1.4

BrexitBrexit affects, amongst others, regulations, including passporting rights and financial reporting. The UK left the EU on
31 of January 2020 and, on 1 January 2021, all legal and regulatory arrangements permitted under a transition period
ceased – for financial services the passporting rights (Freedom of Services & Freedom of Establishment) ended.
To mitigate the impact of this change, Atradius applied to the UK’s Prudential Regulatory Authority [PRA] for
authorisation as a UK Third Country Branch. In December, 2021, the PRA approved the application. From 1 January2022, Third Country Branch status is authorised for both credit insurance and suretyship. This brings to a close any
uncertainty about what structures and controlling measures Atradius needs to adopt to be compliant.

4.5.1.5

Information regarding the environment

Given the activities that the Company dedicates itself to, it does not have environmental liabilities, expenses, assets orprovisions or contingencies that may be significant in relation to its equity, financial situation and profits or losses. For
this reason, specific breakdowns are not included in this Report. For specific environmental information reference ismade to the CSR/ESG chapter of the Annual Report of Atradius N.V.

4.6

Capital management

4.6.1 Guiding principles
Capital management is guided by the following principles:60

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros-

to ensure that ACyC is sufficiently capitalised to have the ability to survive by maintaining sufficientavailable capital after meeting its financial obligations;
to meet the local regulatory capital requirements of all ACyC entities, including branches and subsidiaries
worldwide;
to manage the capital adequacy of ACyC and its entities, taking into account the economic and accounting
views along with the external rating agencies and regulatory capital requirements;
to optimise capital structure by allocating funds across ACyC’s entities;
to minimise the overall cost of funding while preserving financial flexibility.

4.6.2 ACyC's objectives, policies and processes with regard to capital
ACyC shows a robust capital and solvency position.
Per year-end 2021 the capital managed by ACyC includes shareholders’ funds of more than EUR 1.4 billion.
In addition to the internally developed capital model, ACyC considers the solvency calculation models of the relevant
regulatory authorities and credit rating agencies in its process of managing capital to ensure capital adequacy. In orderto ensure capital adequacy, a capital buffer above the regulatory solvency capital required is maintained, such that large
loss events would not impair the ability of ACyC to carry on its normal course of business and the ambition to maintainan ‘A’ rating level is sustained.
ACyC has embedded processes and procedures to ensure compliance with externally imposed regulations and internallyimposed requirements for capital adequacy. Such compliance is ensured by:-a regular assessment of solvency needs, taking into account the business strategy, resulting risk profile
and applied risk appetite levels;
incorporating a view on expected future investments in new businesses, revenues, claims, reinsurance
expectations and dividends as these impact both available and required capital;
monitoring duration of assets and liabilities; andtaking into consideration capital market expectations such as expected returns, volatilities andcorrelations as these may impact earnings and the shareholder equity reserves.

4.6.3 Regulatory capital requirements
In each country in which ACyC has insurance companies established according to local laws, and also where prescribedfor branches, the local insurance regulator specifies the minimum amount and type of capital that must be held by eachof the subsidiaries or branches. The minimum required capital must be maintained at all times throughout the year. In
addition, the local insurance regulators have the discretionary right to impose additional capital requirements in excessof the required minimum.
In 2021, 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.

4.6.4 Solvency II
Solvency II is the regulatory framework for insurance and reinsurance undertakings and groups domiciled in the EU.
ACyC is one of the two regulated entities of Atradius, which is subject to Solvency II regulation. Under Solvency II
guidelines Atradius Group supervision takes place at the ultimate parent Grupo Catalana Occidente S.A..
ACyC applies a Partial Internal Model to calculate its regulatory capital requirements. An internal model, which reflects
our business better than the regulatory “standard formula”, is used to calculate capital requirements for Underwriting
Risk. We use the standard formula for Market, Counterparty Default and Operational Risk, as the characteristics of theserisk types do not warrant an internal model approach. Approval for use of our Partial Internal Model was received
during 2017.
As per year end 2021 the eligible own funds under Solvency II for the Company amounts to EUR 1,593 million (2020:
EUR 1,270 million).

61

All amounts in thousands of Euro, unless otherwise stated5

Segment information

Operating segments are identified on the basis of internal reports about components of ACyC that are regularly reviewed
by the Management Board in order to allocate resources to the segment and to assess its performance. The company has
identified two operating segments, insurance and services. Within the insurance segment there are different businessactivities: Credit insurance including related information income, Instalment credit protection (ICP) and Bonding. The
segment Services includes non-insurance related information income and other service related business. The corporate
costs relate to corporate operations, after cost allocations to the other business segments.
The accounting policies of the reportable segments are the same as described in Note 2.
ACYC revenue has no dependency on any large customer.

62

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Information regarding these segments is presented in the following tables:
Business segment

Creditinsurance

Bonding

Total
insurancebusiness

Services

Group costs

Total

Insurance premium revenue

1,483,923

124,811

1,608,734--

1,608,734

Service and other income

46,921-

46,921

9,771-

56,692

Total revenue

1,530,844

124,811

1,655,655

9,771

-

1,665,426

Insurance premium ceded to reinsurers(960,258)(70,314)(1,030,572)--(1,030,572)

Total segment income after reinsurance

570,586

54,497625,083

9,771-

634,854

Insurance claims and loss adjustment
expenses(407,124)(41,087)(448,211)--(448,211)

Insurance claims and loss adjustment
expenses recovered from reinsurers

139,955

23,373

163,328--

163,328

Net insurance claims(267,169)(17,714)(284,883)--(284,883)

Gross operating expenses(535,807)(55,605)(591,412)

3,826(6,226)(593,812)

Commission received for business ceded
to reinsurers

389,090

30,510419,600--

419,600

Net operating expenses(146,717)(25,095)(171,812)

3,826(6,226)(174,212)

Operating segment result

156,700

11,688168,388

13,597(6,226)

175,760

2021

Share of income of associated companies-

Net income from investments

14,409Finance income

492

Finance expenses

5,066

Result for the year before tax

195,726

Income tax expense(67,545)

Result for the year

128,181Business segment

Creditinsurance

Bonding

Total
insurancebusiness

Services

Intersegment
elimination

Total

Reinsurance contracts

724,407211,245935,652--

935,652

Receivables

334,995

17,911

352,906

5,215(2,418)355,7032021

Unallocated assets

3,004,175

Total assets

1,059,402

229,156

1,288,558

5,215(2,418)4,295,529

Insurance contracts

1,227,919

347,576

1,575,495--

1,575,495

Payables

465,466

39,787505,253

13,157(11,186)

507,224

-

-

-

-

-

815,454

1,693,385

387,3632,080,748

13,157(11,186)

2,898,173

2,343

149

2,492

211

-

2,703

Unallocated liabilities
Total liabilities
Total year end number of employees(full-time equivalent)63All amounts in thousands of Euro, unless otherwise stated

Business segment

Creditinsurance

Bonding

Total
insurancebusiness

Services

Group costs

Total

Insurance premium revenue

1,346,987

123,830

1,470,817--

1,470,817

Service and other income

49,897-49,897

10,010-59,907

Total revenue

1,396,884

123,830

1,520,714

10,010-1,530,724

Insurance premium ceded toreinsurers(962,699)(75,427)(1,038,126)--(1,038,126)

Total segment income after
reinsurance

434,185

48,403

482,588

10,010-492,598

Insurance claims and loss
adjustment expenses(853,858)(38,196)(892,054)--(892,054)

2020

Insurance claims and loss
adjustment expenses recoveredfrom reinsurers

608,439

23,077

631,516--

631,516

Net insurance claims(245,419)(15,119)(260,538)--(260,538)

Gross operating expenses(467,070)(43,111)(510,181)(7,215)(8,421)(525,817)

Commission received for businessceded to reinsurers

372,183

31,386

403,569--

403,569

Net operating expenses(94,887)(11,725) -(106,612)(7,215)(8,421)(122,248)

Operating segment result

93,87921,559115,438

2,795(8,421)

109,812

Share of income of associatedcompanies-

Net income from investments

10,976

Finance income

1,950

Finance expenses(7,493)Result for the year before tax

115,245

Income tax expense(30,321)

Result for the year

84,924

Business segment

Creditinsurance

Bonding

Total
insurancebusiness

Services

Intersegment
elimination

Total

Reinsurance contracts

805,213208,140

1,013,353--

1,013,353

Receivables

270,582

21,280291,8625,664(3,015)294,5112020

Unallocated assets

-

-

-

-

-

2,466,849

Total assets

1,075,795

229,4201,305,215

5,664(3,015)

3,774,713

Insurance contracts

1,075,278

322,673

1,397,951--

1,397,951

358,257

32,841

391,098

15,730(13,469)

393,359

-

-

-

-

-

839,737

1,433,535

355,514

1,789,049

15,730(13,469)

2,631,047

2,334

143

2,477

241

-

2,718

PayablesUnallocated liabilities
Total liabilities
Total year end number of employees(full-time equivalent)64Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

6

Intangible assets

2021

Goodwill

SoftwareInsurance
portfolios

Total

At cost at 1 January

78,192296,222

16,968391,382

Additions-30,960-30,960

Disposals(169)(8,857)-(9,026)

-

7,878

81

7,959

At cost at 31 December

78,023326,203

17,049421,275

Accumulated amortisation and impairments at 1 January

Effect of movements in foreign exchange rates(30,209)(193,071)(16,968)(240,248)

Amortisation charge for the year-

(14,930)-(14,930)

Disposals

-

8,847

-

8,847

Impairment-(40,983)-(40,983)

Effect of movements in foreign exchange rates
Accumulated amortisation and impairments at 31 December(1)(30,210)(6,060)(246,197)(81)(17,049)(6,142)(293,456)

Balance at 1 January

47,983103,151-

151,134

Balance at 31 December

47,81380,005-

127,818

2020

Goodwill

SoftwareInsurance
portfolios

Total

At cost at 1 January

78,196

273,527

17,060368,783

Additions-

33,924-33,924

Disposals-(5,253)-(5,253)

Effect of movements in foreign exchange rates(4)(5,976)(92)(6,072)

At cost at 31 December

78,192296,222

16,968391,382

Accumulated amortisation and impairments at 1 January(30,209)(173,068)(17,060)(220,337)

Amortisation charge for the year-

(12,700)-(12,700)

Disposals

-

4,949

-

4,949

Impairment-(16,559)-(16,559)

Effect of movements in foreign exchange rates
Accumulated amortisation and impairments at 31 December(30,209)

4,307(193,071)

92(16,968)

4,399(240,248)

Balance at 1 January

47,987

100,459-

148,446

Balance at 31 December

47,983103,151-

151,13465

All amounts in thousands of Euro, unless otherwise stated

Goodwill
If applicable, impairment of goodwill is recognised as a separate item in the income statement. During 2021 there was
no impairment charge (2020: no impairment charge).
The goodwill allocated to the main cash-generating units or groups of units (CGU’s) is presented in the following table:
Cash-Generating Units

2021

2020

ACyC branch France

9,003

9,003

1)

2,386

2,556

ACyC branch Germany

31,02631,026

ACyC branch Switzerland

3,243

3,243

ACyC other 2)

2,155

2,155

Total

47,81347,983

ACyC branch Nordic

1) The Nordic Bonding unit goodwill includes Atradius’s bonding business in Denmark, Norway, Sweden and Finland,. and the movement in 2021 is driven byforeign exchange movements.
2) Including Iberinform and Collections.

The value in use of an individual CGU is determined using a dividend discounted model (DDM). The dividend flows are
estimated using a projection period and a normalised period. The projection period is 10 years towards covering athrough-the-economic cycle performance, where the first 1-4 year projections are based on financial budgets and/or
forecasts. In the budgets are forecasts the impact of the changed macro-economic situation due to the pandemic
situation is taken into account. The remaining years are estimated using ratios and growth rates that converge towards
their normalised term value. The discount rate used varies depending on the Risk-Free Rate and the Country Risk
Premium of the country where the CGU is located. For the main portion of the goodwill the discount rate used is 3.60%(2020: 3.70%); the terminal value is calculated based on the dividend flows of the normalised period through a perpetuity
which applies a long-term growth rate of 2.0% (2020: 2.0%) and the specific discount rate. Any profits, after fulfilling
minimum capital requirements, are assumed to be distributable dividends. Minimum capital requirements arecalculated based on the Solvency II Partial Internal Model and minimum shareholders equity required (nondistributable).
CGU are defined by line of business according to the way we manage and steer the operational business.
An approximation of the sensitivity of the following assumptions would impact the CGU market values by thepercentages shown below (other CGU not included due to inmaterial goodwills):

Cash-Generating Units
2021

Discount rate
+50bp -50bp

Growth rate
+50bp -50bp

ACyC branch France-18.3%

31.2%

26.3%

-15.4%

-3.4%

3.4%

-4.2%

21.0%

ACyC branch Nordic-17.4%

27.9%

23.0%

-14.3%

-3.7%

3.7%

-4.4%

4.4%

ACyC branch Germany-21.4%

40.5%

35.0%

-18.3%

-5.7%

5.7%

-7.9%

7.9%

ACyC branch Switzerland-20.0%

36.5%

31.3%

-17.0%

-2.7%

2.7%

-1.5%

1.5%

Cash-Generating Units
2020

Discount rate
+50bp -50bp

Growth rate
+50bp -50bp

ACyC branch France-17.6%

28.3%

23.4%

-14.5%

-6.5%

6.5%

-3.0%

14.3%

ACyC branch Nordic-13.6%

21.6%

17.5%

-10.8%

-5.0%

5.0%

-2.9%

2.8%

ACyC branch Germany-32.4%

59.8%

51.9%

-28.3%

-2.4%

2.4%

0.0%

0.0%

ACyC branch Switzerland-22.6%

47.1%

41.3%

-19.7%

-6.2%

6.2%

-1.7%

36.3%

1)

Combined ratio+50bp -50bp

Combined ratio+50bp -50bp

Solvency ratio 1)
+50bp
-50bp

Solvency ratio 1)
+50bp
-50bp

With the same required capital.

No sensitivity analysis mentioned above, both individually and combined, would assume that the carrying amount of
the GCUs would exceed their market value.
66

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Software
ACyC assessed all capitalised software to determine if the criteria for capitalisation are being met (see note 6.2.6). Basedon this assessment ACyC decided to impair EUR 41 million (2020 EUR 16.6 million) of self-developed software mainly
related to need of redesigning part of the solutions in their transformation programmes, including data models, user
journeys, utilization of shared components, new functionalities and multichannel/omnichannel integrations to deliver
the best customer experience. In addition, during 2021, ACyC has also capitalised EUR 32.8 million mainly due thoseAtradius Business Transformation projects (2020: EUR 31.0 million).
Insurance portfolios
Amortisation charges of insurance portfolios are included in the insurance premium revenue and insurance claims andloss adjustment expenses for which the allocation is based on the discounted impact related to the provision forunearned premium and the provision for outstanding claims.

7

Property, plant and equipment & Investment property

2021

Land &
buildings

Total
property,plant &
equipment

Investment
property

At cost at 1 January

55,99858,672

46,464

103,790

264,925

7,142

-

8,941

5,780

9,366

24,087-(317)(12,128)(5,922)(2,160)(20,527)

(340)

8

1,099

1,394

1,605

4,106

-

At cost at 31 December

55,68956,58447,716112,601

272,590

6,802

Accumulated depreciation andimpairments at 1 January(14,642)(37,812)(35,388)(33,679)(121,520)(4,546)

Depreciation charge for the year

(668)

(7,993)(7,482)(18,300)(34,445)(66)

Disposals

99

11,874

5,733

1,705

19,411

87

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

32

-

(53)

-

(21)

22

(2)

(709)

(1,080)(466)(2,257)-(15,181)(34,640)(38,270)(50,740)(138,832)(4,504)

Balance at 1 January

41,356

20,86011,077

70,112

143,406

2,595

Balance at 31 December

40,50821,944

9,446

61,861

133,758

2,298

Additions
Disposals
Effect of movements in foreignexchange rates

Fixtures & IT hardware Right of Use
fittings
assets67

All amounts in thousands of Euro, unless otherwise stated2020

Land &
buildings

Fixtures & IT hardware
fittings

Right of Use
assetsTotalproperty,plant &
equipment

Investment
property

At cost at 1 JanuaryFirst time adoption as per 1st
January 2020

58,37854,471

43,59987,786244,233

4,481

-

-

-

-

-

-

Additions

365

6,647

6,848

20,42034,280-

Disposals-(1,705)(2,725)(2,630)(7,060)(65)

Reclassification
Effect of movements in foreignexchange rates(2,726)---(2,726)

2,726

(19)

(741)

(1,257)(1,786)(3,803)-

At cost at 31 December

55,99858,672

46,464 -103,790

264,925

7,142

Accumulated depreciation andimpairments at 1 January(15,967)(36,217)(33,599)(17,896)(103,678)(2,567)

Depreciation charge for the year(678)

(3,849)(5,344)(18,107)(27,978)(73)

Disposals

-

1,615

2,648

1,903

6,166

52

Impairment / reversal impairment

13

-

-

-

13

27

1,986

-

-

-

1,986

(1,986)

Reclasification
Effect of movements in foreignexchange rates
Accumulated depreciation andimpairments at 31 December

5

639

907

421

1,971

-

(14,642)(37,812)(35,388)(33,679)(121,520)(4,546)

Balance at 1 January

42,411

18,253

10,00069,891

140,555

1,914

Balance at 31 December

41,356

20,86011,077

70,112

143,406

2,595

The increase in the depreciation charge for the year under Fixtures & fittings is driven by the change on Madrid's
headquarters.
The depreciation charge on property for own use is reported as part of net operating expenses. The depreciation
charge on investment property is reported as part of net income from investments.
The fair value of land and buildings for own use and of investment property is presented in the following table:
Property own use

Investment property

2021

2020

2021

2020

Spain

77,89077,796

21,25921,259Italy

20,65020,650

443

681

Other

244

1,064

Total

98,784

99,51021,702

21,940Fair value measurement
Land and buildings are independently appraised by real estate valuers, which are registered in the relevant countries
and have appropriate qualifications and experience in the valuation of properties. ACyC usually revalues land andbuildings every two years.
All significant inputs used in the measurement are market observable and the fair value is therefore classified in
Level 2 in the fair value hierarchy (as in 2020). Valuation techniques used are: Market (comparison) approach,
Income approach (discounted cash flow method) and Cost approach. Significant valuation inputs used to determine
the fair value measurements based on techniques used are construction features, location (and/or conditions) andtransport utilities.

68

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The estimated fair value of the properties is directly dependant on the changes of the inputs used. There has been nochange in the valuation techniques used compared to prior year.
The investment property can be classified as follows: 100% office (2020: 100%).
Direct operating expenses (including repairs and maintenance) arising from investment property are EUR 30
thousand (2020: EUR 0 thousand). During the year an amount of EUR 291 thousand (2020: EUR 293 thousand) has
been recognised as rental income from investment property for lease contracts. These contracts have remaining
terms of between 1 and 10 years. Expected rental income arising from these contracts for next year is EUR 262
thousand for non-cancellable contracts (In 2020, expected rental income for next year was EUR 310 thousand for
non-cancellable contracts).
Leases: Right of Use Assets
Right of Use assets consist of office space (94%) (in 2020: 95%), including parking and vehicles under a number ofoperating lease agreements. The most significant lease contracts relate to the offices in our locations in Western Europe.
The remaining terms of these office rentals vary between 2 to 11 years (in 2020: between 2 to 12 years) and most of thecontracts contain extension options. The extension options are taken into account in the measurement of lease liabilities
when the Group is reasonably certain to exercise these options.
Further information about the leases for which ACyC is a lessee is presented below:
2021

2020

63,70970,836

Interest expenses on lease liabilities(1,757)(1,733)

Expenses relating to short-term leases

(454)

(509)

Expenses relating to low-value assets

(27)

(25)

18,33521,003

Lease liability included in statement of financial position at 31 December (see Note 20)
Amounts recognised in income statement :Amounts recognised in the statement of cash flows :Total cash outflow for leases

69All amounts in thousands of Euro, unless otherwise stated8

Subsidiaries

The following table sets forth as at 31 December 2021, the name and country of incorporation of the main subsidiaries of ACyC.
Subsidiaries are fully consolidated from the date on which control is transferred to ACyC. All companies are, directly or
indirectly, wholly owned unless otherwise indicated.
Name
Atradius Crédito y Caución S.A. de Seguros y Reaseguros
Australia branch
Bulgaria branch
Austria branch
Belgium branch
Canada branch
Czech Republic branch
Denmark branch
Finland branchFrance branch
Germany branch
Greece branch
Hong Kong branch
Hungary branch
Ireland branch
Italy branchJapan branch
Luxembourg branch
Netherlands branch
New Zealand branch
Norway branch
Poland branch
Portugal branch
Romania branch
Singapore branch
Slovakia branch
Sweden branch
Switzerland branch
Turkey branch

Country
Spain
Australia
Bulgaria
Austria
Belgium
CanadaCzech Republic
Denmark
FinlandFranceGermany
GreeceHong Kong
Hungary
Ireland
Italy
Japan
Luxembourg
Netherlands
New Zealand
NorwayPolandPortugal
Romania
Singapore
Slovakia
SwedenSwitzerland

Ownership

TurkeyUnited Kingdom branch
Atradius Crédito y Caución Seguradora S.A.

United Kingdom
BrazilCrédito y Caución do Brasil Gestao de Riscos de Crédito e Serviços LTDA
Iberinform Internacional S.A.U.

BrazilSpain

Iberinmobiliaria, S.A.U.
B2B SAFE, S.A.

Spain
Spain

Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden N.V.
Verenigde Assurantiebedrijven Nederland N.V.

Netherlands
Netherlands

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

70

0.50%
0.65%

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

9 Financial investments
Financial investments classified
by measurement category andnatureAvailable-for-sale
2021

2020

2021

2020

2021

2020

Equity securities

397,127

294,970--

397,127

294,970

Debt securities

1,285,341

1,079,670--

1,285,341

1,079,670

Loans

-

-

5

-

5

-

Short-term investments--

139,448

88,643

139,448

88,643

Cash held for investments--

35,085

8,196

35,0858,196

1,682,468

1,374,640

174,538

96,8391,857,006

1,471,479

Total

Loans and receivables 1)

Total1) There are not bank deposits tacitly renewable in 2021 and 2020

Movements in available-for-salefinancial investments

Equity securities

Debt securities

Total

2021

2020

2021

2020

2021

2020

294,970

268,808

1,079,670

1,005,736

1,374,640

1,274,544

Additions

61,53897,687

583,631

416,430

645,169

514,117

Disposals(8,588)(56,041)(367,376)(333,154)(375,964)(389,195)

Balance at 1 January

Amortisation charge for the year
Revaluations through othercomprehensive income and income
statement--(8,967)(8,786)(8,967)(8,786)

46,571(14,884)(10,497)

7,466

36,074(7,418)

Effect of movements in foreignexchange rates

2,636

(600)

8,880

(8,022)

11,516(8,622)

397,127

294,970

1,285,341

1,079,670

1,682,468

1,374,640

Balance at 31 December

For disclosures about the temporary exemption from IFRS 9, please refer to Note 4.4.2

71

All amounts in thousands of Euro, unless otherwise stated

10 Receivables
2021

2020

Accounts receivable on insurance and reinsurance business

218,917

184,593

Amounts owed by policyholders and direct insurance operations

126,249

119,542

Receivables arising out of reinsurance

92,66865,051Other account receivables

104,206

109,918

Total

323,123

294,511The outstanding receivables are substantially all current and consequently their fair values do not materially differ fromtheir carrying amounts.
There is no concentration of credit risk in respect of receivables as ACyC has a large number of internationally dispersed
debtors (see Note 4.4.2).
Receivables arising out of reinsurance increase due to a late settlement from ACyC Hong Kong and amounts owed bypolicy holders in ACyC Italy and ATCI.
An amount of EUR 76.8 million (2020: EUR 65.2 million) relates to past due receivables on insurance and reinsurance
business for which no impairment loss has been recognised, 91.3% (2020: 90.5%) relates to receivables ageing less than
three months.
All receivables are considered for impairment testing. As of 31 December 2021, receivables of EUR 25.8 million (2020:
EUR 25.3 million) were considered to be partially impaired. The amount of the impairment taken related to thesereceivables was EUR 12.4 million (2020: EUR 10.9 million), of which EUR 1.2 million is related receivables coming frominformation activities. This balance takes into account that a portion of the impaired receivables will be recovered. ACyC
does not hold any collateral over these balances.
The ‘Other accounts receivable’ are short term balances which consist of individually immaterial balances. The
provision for impaired ‘Other accounts receivable’ for 2021 is EUR 1.2 million (2020: EUR 1.2 million)
Movements on the provision for impairment of receivables are presented in the following table:
2021

2020

Balance at 1 January

10,888

11,634

Impairment of receivables

10,393

8,203

Receivables written off during the year as uncollectable(8,959)(8,500)38(449)

12,36010,888

Unused amounts reversed
Balance at 31 December

The movement in the provision for impaired receivables for the insurance business, mainly credit insurance, isaccounted for on the premium line. Amounts charged to the allowance account are generally written off when there is
no expectation of recovery.
For disclosures about the temporary exemption from IFRS 9, please refer to Note 4.4.2

72

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

11 Deferred acquisition costs
2021

2020

Balance at 1 January

29,56033,316

Deferred in the year

21,94818,771

Amortisation change for the year

(18,083)(21,458)329(1,069)Balance at 31 December

33,75429,560Current

20,60418,043

Non-current

13,15011,517

2021

2020

Pipeline and ceded return premium

359,161

303,520

Prepayments and accrued interest

21,14317,096

Net plan pension asset

88,37053,667

Reimbursement rights

6,924

8,408

Other

9,572

8,714

Total

485,170

391,405

Effect of movements in foreign exchange rates

12 Other assets and accruals

Pipeline premium relates to shipments made by ACyC’s policyholders for which ACyC is at risk but has not invoiced thepremium. The increase in 2021 is due to the increase of the premiums on the year.
Prepayments and accrued interest, relate to payments in advance for which the Company has received and invoice for
future services or goods, and interest of financial investments for which Atradius is entitled but has not received yet.
The other assets and accruals are substantially all current and consequently the fair values of these assets do notmaterially differ from their carrying amounts.
The reimbursement rights relate to the Spanish pension plans. Since the related policies do not qualify as an insurance
policy under IAS 19, the fair value cannot be netted with the related pension liability (see Note 15).
The net plan pension asset concerns the surplus of the pension plan in the UK as per 31 December 2021 is EUR 88.4
(2020: EUR 53.7 million) (see Note 15).

73

All amounts in thousands of Euro, unless otherwise stated

13 Cash and cash equivalents
2021

2020

Cash at bank and on hand

322,867

223,370

Short-term bank deposits

1,641

2,195

Cash and cash equivalents

324,508

225,565

Cash and cash equivalents

324,508

225,565

Cash and cash equivalents in the statement of cash flows

324,508

225,565

ACyC manages the cash by using a cross-border cash pooling agreement. This provides for a notional pool structure withinterest compensation per currency. The cash pool arrangement allows for offsetting of cash balances of branches
within a legal entity. However, it does not allow offsetting between different legal entities.

14 Capital and reserves
14.1

Share capital

The authorised share capital of ACyC amounts to EUR 24,869,770.65 and is divided into 4,138,065 nominal shares witha par value of EUR 6.01 each (2020: the same). The nominal shares were all issued and fully paid, with identical economic
and voting rights (2020: the same).

14.2

Share premium reserve
2021

2020

Balance at 1 January

24,192

24,192

Capital reallocation

60,00084,192

24,192

Balance at 31 December

The cancellation of the intra-group cession from ACyC to Atradius Reinsurance DAC from underwriting year 2022
results into an increase of the reinsurance self-retention of ACyC. To partially compensate for that effect a capitalreallocation has been executed before year-end 2021: EUR 60m have been up-streamed from Atradius Reinsurance DAC(via a distribution of retained earnings) to Atradius Insurance Holding and down-streamed to ACyC via a capital
contribution to the share premium (reserve) from its shareholders: Atradius Insurance Holding and Atradius NV (1share).

14.3

Revaluation reserve
2021

2020

Balance at 1 January

57,752

67,636

Change in revaluation reserve - gross

37,037(4,563)

Change in revaluation reserve - tax(9,251)(2,381)

Net (gains)/losses transferred to net profit on disposal - gross(4,428)(3,843)

Net (gains)/losses transferred to net profit on disposal - tax
Balance at 31 December

74

1,218

903

82,32857,752

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

14.4

Currency translation reserve
2021

2020

Balance at 1 January(37,360)(26,073)

Change in currency translation reserve - gross

10,919(13,031)

(761)

1,744

(27,202)(37,360)

Change in currency translation reserve - tax
Balance at 31 December

ACyC’s significant foreign currencies and sensitivity to fluctuations are set out in Note 4.4.

14.5

Pension reserve
2021

2020

(168,121)(163,000)

Recognised actuarial gains/(losses)

30,777(5,121)

Change in pension reserve - gross

38,936(10,587)

Change in pension reserve - tax(8,159)5,466

Pension plan de-risking reclassification to Retained earnings

80,992-

Change in pension reserve - gross

107,927-

Change in pension reserve - tax(26,935)-

Balance at 31 December(56,352)(168,121)

2021

2020

1,157,408

1,079,093

Appropriation of prior year result

84,924

181,173

Pension plan de-risking(80,992)--(102,859)

1,161,339

1,157,408

Balance at 1 January

The main drivers of the pension reserve variance are explained in Note 15.

14.6

Retained earnings

Balance at 1 January

Dividends
Balance at 31 December

The NL Pension Plan de-risking has had an impact in retained earnings due to the reclassification of accumulated
actuarial losses net of taxes (previously shown under pension reserve) of EUR 80.9 million.

14.7

Dividend distribution

ACyC and its subsidiaries are subject to legal restrictions regarding the amount of dividends they can pay to theirshareholders. The Spanish Companies Act contains the restriction that dividends can only be paid up to an amount equal
to the excess of the Company’s shareholders’ equity and reserves required by law. Additionally, certain subsidiaries are
subject to restrictions on the amount of funds they may distribute in the form of dividends or otherwise and also inrespect of minimum capital requirements that are imposed by industry regulators in the countries in which thesubsidiaries operate.

75

All amounts in thousands of Euro, unless otherwise stated

15 Employee benefit assets and liabilities
2021

2020

Retirement benefits

91,477130,498

Other long-term employee benefits

7,276

6,675

Total

98,753

137,173(*)(*) 2020 Retirement benefits figures include the defined benefit Dutch pension plan, that has been transferred to a defined contribution pension plan in 2021 and is no longer included
under employee benefit assets and liabilities

15.1

Retirement benefits

The employee benefit assets and liabilities relate mainly to pension assets and liabilities for defined benefit plans.
In 2021 a substantial change took place regarding the Dutch defined benefit pension plan, an agreement between thelegally involved stakeholders to change this defined benefit plan, as of 31 December 2021 to a new defined
contribution plan.
The assets (EUR 459 million) and accrued pension liabilities (EUR 430 million) have been fully transferred to a third
party insurance company by way of a buy-in, followed by a buy-out. This operation has been approved by the Dutch
Central Bank. The external insurance company is fully responsible for future execution of the pension plan as of 27thof October 2021 (buy-in). Atradius has decided to provide the curtailment gain (EUR 29 million) as a contribution to thedefined benefit plan. All liquidation costs will be assumed by Atradius NV. In addition, due to this operation there has
been a reclassification of the respective accumulated actuarial losses of EUR 108 million (EUR 81 million net of tax)
from Pension reserve to Retained earnings. Further details of this change is disclosed in the table below.
The main defined benefit plans as of December 31, 2021 are in the United Kingdom and Germany and these represent
respectively 100% (2020: 100%) of the net pension plan assets booked in the assets, and 74% ((2020: 78%) of thedefined benefit obligation booked in the liabilities. Other plans are related to Spain, Italy, Switzerland, Sweden,
Belgium, Norway and France . The DBO of these plans are between the EUR 2 million – EUR 10 million (2020: DBO(EUR 0.7 million -9.8 million), and the number of particpants are between 13 and 451 (2020: 18 and 470).
Within ACyC there are also defined contribution plans. The contributions to these plans are recognised as expenses in
the income statement. The total contributions amounted to EUR 10.2 million in 2021 (2020: EUR 9.3 million).
Pension assets and liabilities
The following table presents the change in the value of the net defined benefit liability:76Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Defined benefit
obligation

Fair value of plan assets

Net defined benefit(asset) liability

2021

2020

2021

2020

2021

2020

987,936

929,503857,438

811,972

130,498

117,531

-

-

-

-

-

-

15,05914,259--15,05914,259

(228)

279

-

-

(228)

279

Past service cost - Curtailment(29,180)---(29,180)-

Settlement (Gain)/ Loss

(429,992)-(459,172)-

29,180-Interest cost / income

10,941

11,705

10,833

11,714108(9)Administration costs

661

630

-

-

661

630

(432,739)

26,873(448,339)

11,714

15,60015,159- demographic assumptions(9,228)(8,141)--(9,228)(8,141)- financial assumptions

7,277

85,899

-

-

7,277

85,899- experience adjustments(17,120)(7,508)--(17,120)(7,508)--20,602

61,143(20,602)(61,143)(19,071)

70,25020,602

61,143(39,673)

9,107

Contributions paid by the employer(3,568)(3,233)

41,928

11,219(45,496)(14,452)

Plan participants contributions

1,965

2,010

1,965

2,010

-

-

(21,162)(20,762)(21,162)(20,762)--

21,987-(16,705)-

26,143(34,704)(19,584)(274)(4,156)
34,704

2,879
274

(778)

(38,690)

14,170(27,391)(14,948)(11,299)535,348

987,936443,871857,438

91,477130,498

Balance at 1 January (*)
Additions
Included in the income statement:
Current service cost
Past service cost - Plan Amendment

Total included in the income statement

Included in OCI:
Remeasurement loss (gain):
Actuarial loss (gain) arising from:Return on plan assets excluding interest income
Total included in OCI

Other:

Benefits paid
Effect of movements in foreign exchange rates
Reclassification of surplus plan assets
Total other
Balance at 31 December(*)

The opening balance includes the Dutch pension plan (DBO: EUR 452 million; Fair Value of plan assets EUR 420 million)

Plan assets
ACyC has pension related assets which under IAS 19 do not meet the criteria to qualify as plan assets. In Germany, for
one of the plans, assets of EUR 14.3 million (2020: EUR 14.3 million) are classified as financial investments since in theevent of bankruptcy, these assets are not fully secured for the members of the pension plan. In the UK, EUR 38.0 of
financial investments (2020: EUR 38.2 million) is on an escrow account to support the UK pension fund. In the event of
insolvency, the Trustee of the pension fund has the right to those investments, provided certain conditions are met.
The surplus of one of the UK pension plans as per 31 December 2021 is EUR 88.4 million (2020: EUR 53.7 million) is
disclosed as net plan pension assets as part of Note 12.
In Spain, the defined benefit plans are partially insured with Seguros Catalana Occidente S.A.. These insurance policies
do not qualify as insurance policies under IAS 19, therefore the fair value is treated as reimbursement rights, which are
77All amounts in thousands of Euro, unless otherwise statedrecorded as part of other assets for an amount of EUR 6.5 million (2020: EUR 7.7 million). At the end of 2021, the defined
benefit obligation related to the reimbursement rights amounts to EUR 15.5 million (2020: EUR 15.8 million). This samedefined benefit obligation has in addition plan assets of EUR 13.2 million ((2020: EUR 13.8 million).

78

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Characteristics of the main defined benefit plans
Characteristic
Entitlement

United Kingdom
Pension entitlements are basedon a percentage of final salary(closed to new employees).

Germany
Pension entitlements are basedon a percentage of the averagesalary of the last 10 years.

Number ofparticipants

101 active members (2020: 114
active members).
539 inactive members (2020:
530 inactive members).

432 active members (2020: 436
active members).
360 inactive members (2020:
354 inactive members).

Defined benefit
obligation
Plan assets

EUR 299 million (2020: EUR 297
million).
EUR 387 million (2020: EUR 351
million).

Remeasurement
gain (loss) through
OCI
Fundingarrangement

EUR 30.7 million - gain (2020:
EUR 3.3 million - gain).

EUR 136.6 million (2020: EUR
136.2 million).
EUR 70 million (2020: EUR 66
million). Assets of EUR 14 million(2020: EUR 14 million) arerecognised as part of the financial
investments.
EUR 0.5 million - gain (2020: EUR
6.1 million - loss).

Employeecontributions

In 2021 contributions amounted
to 7.1 % (2020: 7.1%) of theeligible salary.
A Cash Driven Investment
portfolio has been implemented
that combines Buy & Maintain
Credit with a Liability Driven
Investment, to provide
contractual income that aligns
with the timing of the pension
liability cash flow payments
together with a 100% interest
rate and inflation rate liability
hedge to maintain Self-sufficiency

ALM-strategy

Regulatory
Framework

The basis of the funding
agreement lies in the Trust Deed
and Rules. The pension fundperforms triennial actuarial
valuations to determine employer
contributions.

The UK pension plan is subject toUK pensions legislation andguidance issued by the Pensions
Regulator in the UK

A Contractual Trust Agreement isestablished as a financing vehicle
to cover part of the pension
liabilities. There is no specificfunding arrangement although
the assets must exceed theinitially funded amount of EUR 30
million.
None; all contributions are madeby the employer.
The investment objectives andpolicies are developed based on
an ALM-study.
The investment policy limits theinterest rate risk by restricting theinvestment in bonds to fixed ratebonds. Equity price risk iscontrolled by investing according
to the Dow Jones Euro Stoxx 50
Index.
The German pension plan issubject to German pensions
legislation and guidance issued by
the Pensions Regulator in
Germany(*) The amounts and figures disclosed for 2021 are as of 27 of October 2021, when NL Pension Plan ended

79

The Netherlands(*)
Pension entitlements werebased on a percentage of theaverage salary (maximum of
EUR 0.1 million - closed to new
employees) .
261 active members in 2021
(2020: 275 active members).
1,221 in 2021 (2020: 1,364
inactive members).
EUR 0 in 2021 (2020: EUR 452
million).
EUR 0 in 2021 (2020: EUR 420
million).

EUR 0.9 million gain in 2021
(2020: EUR 7.4 million - loss).
The employer paid a yearlybase premium as a percentageof the total sum of eligible
salaries of all active participants
which could not be below thecost-effective premium for thatyear in 2021 and 2020.
Employees contributed in 2021
7.5% (2020:7.5%) of the eligible
salary.
At least once every three years
an ALM-study was performed
in which the impact of thestrategic investment policies
were analysed.
The interest rate risk waspartially hedged within theinvestment portfolio by the useof debt instruments incombination with liability
driven investment funds.
The Dutch pension plan was
subject to The Dutch pension
legislation and guidance issued
by the Pensions Regulator in
The Netherlands

All amounts in thousands of Euro, unless otherwise statedFair value of plan assets
The fair value of plan assets at the end of the reporting period is analysed in the following table:

Cash and cash
equivalents

Equityinstruments

Debt
instruments

Investment
funds

Insurance
contractsRealestateTotal

Belgium

-

-

-

-

33,576-33,576

France

-

-

-

-

-

-

-

Germany(391)

25,71644,653---69,978

Norway

-

-

-

-

2,899

-

2,899

Spain

-

-

-

-

13,160-13,160Sweden

-

366

1,604

507

-

338

2,815

Switzerland

-

-

-

-

4,001

-

4,001

The Netherlands

-

-

-

-

-

-

-

United Kingdom

3,766

-

299,052

14,624--317,442

Total

3,375

26,082

345,309

15,131

53,636338

443,871

Cash and cash
equivalents

Equityinstruments

Debt
instruments

Investment
funds

Insurance
contractsRealestateTotal

Belgium

-

-

-

-

36,052-

36,052

France

-

-

-

-

-

-

-

Germany

1,491

23,182

41,271---

65,944

Norway

-

-

-

-

3,416

-

3,416

Spain

-

-

-

-

13,781-

13,781

Sweden

-

381

1,670

527

-

351

2,929

Switzerland

-

-

-

-

3,359

-

3,359

The Netherlands

6,575

152,544-260,751--

419,870

United Kingdom

8,213

-

278,412

13,038-12,424

312,087

Total

16,279176,107

321,353274,316

56,608

12,775

857,438

Plan assets 2021

Plan assets 2020

All equity and debt securities have quoted prices in active markets. The plan assets do not include any of ACyC’s own
financial instruments, nor any property occupied or other assets used by ACyC. Due to the operation described above,
the plan assets for The Netherlands associated to the Dutch Pension fund plan have been liquidated and transfered tothe insurance company.
The return on plan assets is determined by multiplying the fair value of the plan assets by the discount rate as
determined at the start of the annual reporting period, taking account of any changes in the plan assets held during theperiod as a result of contributions and benefit payments. The actual return on plan assets (including reimbursement
rights) was EUR 30.2 million gain (2020: EUR 71.5 million gain).

80

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Actuarial assumptions
The principal assumptions used for the purpose of the actuarial valuations are reviewed country by country by anindependant external consultant and approved by the managment. In the following table are presented the ones related
the three main defined benefit plans:
Principal actuarial assumptions

United Kingdom

Germany

2021

2020

Discount rate

2.00%

Price inflation rate

3.50%

Expected increase of future salaries
Expected increase of future benefit levels
Mortality table

Duration in years

2021

2020

1.50%

1.00%

0.75%

2.75%

2.00%

1.75%

3.25%

2.50%

2.55%

2.30%

3.36%

2.67%

CMI 2020(1.25% LTR)

CMI 2019(1.5% LTR)

1.75%
Heubeck
Richttafeln
2018 G

1.50%
Heubeck
Richttafeln
2018 G

19

20

16

16

An approximation of the sensitivity of the relevant actuarial assumptions, holding other assumptions constant, would
impact the total defined benefit obligation of the main pension plans by the amounts shown below:
Defined benefit obligation

2021

2020 (*)

Increase

Decrease

Increase

Decrease

Discount rate (1% movement)(73,210)95,563(77,601)

103,306

Price inflation rate (1% movement)

75,236(64,217)83,606(60,855)

Future salary growth (1% movement)

13,478(12,028)

15,229(13,616)

Future pension growth (1% movement)

65,903(54,149)

68,415(55,887)

Future mortality (+1 year)

20,631n/a

20,080n/a(*) For comparability purposes of the sensitivity analysis, the 2020 comparative values do not include the NL pension plan settled in 2021, as such, these figures do not reconcile withthose presented in the 2020 Annual Report

15.2

Defined benefit costs

A total defined benefit cost of EUR 15.2 million (2020: EUR 14.7 million) is recognised in the income statement under net
operating expenses (see Note 25). EUR 15.0 million (2020: EUR 14.4 million) relates to pension plans and EUR 0.2 million(2020: EUR 0.2 million) to other long-term employee benefits.

81All amounts in thousands of Euro, unless otherwise stated

16 Insurance contracts
Credit insurance

Gross

Reinsurance
asset
2021

Net

Gross

Reinsurance
asset
2020

Net

Claims reported and loss
adjustment expenses

152,446(165,393)(12,947)

142,180(164,235)(22,056)

Claims incurred but not reported

811,470(451,345)

360,125

692,975(495,655)

197,320

Claims provisions

963,916(616,738)

347,178

835,154(659,890)

175,264

Provision for unearned premium

264,002(107,668)

156,334

240,123(145,323)

94,801Total

1,227,918(724,407)

503,512

1,075,278(805,213)

270,065

Bonding
Claims reported and loss
adjustment expenses

120,829(76,345)

44,485130,335(83,619)

46,717

Claims incurred but not reported

49,281(30,235)

19,04531,696(20,702)

10,994Claims provisions

170,110(106,580)

63,530162,032(104,321)

57,711

Provision for unearned premium

177,466(104,665)

72,801

160,642(103,819)

56,822

Total

347,576(211,245)

136,332

322,673(208,140)

114,533

Total insurance contracts

1,575,495(935,652)

639,843

1,397,951(1,013,353)

384,598

Current

1,124,331(684,406)

439,924992,290(766,488)

225,801

Non-current

451,164(251,245)

199,919405,661(246,865)

158,796

The liabilities for gross claims reported, loss adjustment expenses and claims incurred but not reported are net of
expected recoveries from salvage and subrogation and contain reinsurance business.

16.1

Claims development tables

The claims development tables provide an overview of how the Atradius’s recognised claims costs for underwriting
years 2012-2021 have changed at successive financial year-ends. This overview also provides a breakdown of theclaims provisions (claims reported and loss adjustment expenses and claims incurred but not reported) that are held
against each underwriting year as at 31 December 2021. Underwriting year here means the year in which the risks were
accepted (‘risk attachment’).

82Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Credit Insurance – Gross
Claims development per underwriting year – (EUR million)
Year when risk was
taken

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Estimate of grossclaims incurred:at the end of theyear when risk was
taken

766.1

639.7

702.9

764.7

688.7

697.7

765.5

766.4

882.4

867.4

one year later

704.3

547.2

644.4

676.6

603.4

672.5

798.5

755.7

459.1

-

two years later

647.8

502.1

614.3

639.4

575.4

618.0

727.6

702.5

-

-

three years later

618.8

488.3

608.2

614.2

567.5

611.6

718.2

-

-

-

four years later

610.3

486.4

605.4

607.6

565.0

613.0

-

-

-

-

five years later

606.3

479.7

597.6

612.6

576.4

-

-

-

-

-

six years later

602.0

473.0

592.2

614.5

-

-

-

-

-

-

seven years later

599.3

474.9

589.8

-

-

-

-

-

-

-

eight years later

596.8

474.5

-

-

-

-

-

-

-

-

nine years later

595.0

-

-

-

-

-

-

-

-

-

Current estimate of
cumulative claims

595.0

474.5

589.8

614.5

576.4

613.0

718.2

702.5

459.1

867.4

6,210.4

593.9

477.3

580.1

615.8

592.4

619.9

711.6

667.6

320.7

72.9

5,252.4

1.2

(2.8)

9.7

(1.3)

(16.0)

(6.9)

6.5

34.9

138.4

794.4

958.0

Cumulative
payments to date
Claims provision at
31 December 2021 inrespect of 2012 2021
In respect of prioryears (before 2012)

Total

5.9

Total

963.9

The table contains recognised claims costs only. It excludes the impact of losses from risks that have been accepted forwhich the premium has yet to be earned. The consequence of this is that the claims expense for a particular underwriting
year can increase in future financial years as both the premium and losses are recognised in the income statement. Thisis relevant for the credit insurance business written in Spain. The premium earned for underwriting years 2018-2020
in the current financial year for these blocks of business was EUR 84.1 million.
Results for underwriting year 2020 show a significant favourable development on claim cost resulting from the low
entry of claims during 2021 compared to much higher expectations at year end 2020, for claims registrations in 2021,
which did not materialize (see 4.2.6.2).
The claims development table is presented on a gross basis. The effect of risk mitigation is in line with our reinsurance
treaties, quota share and Government schemes, as included in Note 4.3, detailing further disclosures on insurance risk.
The overall impact of risk mitigation on claims provisions (for all underwriting years combined) is approximately 63.9%.
Risk mitigation for gross claims incurred as shown in this table varies between 54% and 79% (2020: 72% and 80%). These
differ from the quota share treaties due to the private instalment credit protection, which are not ceded, and theGovernment Schemes.

83All amounts in thousands of Euro, unless otherwise stated

Bonding - Gross
Claims development per underwriting year – (EUR million)
Year when risk was
taken

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Total

Estimate of grossclaims incurred:at the end of theyear when risk was
taken
one year later

10.18

14.94

11.20

8.65

8.73

6.60

4.16

22.92

22.67

22.56

31.94

19.73

12.30

8.69

9.33

19.16

22.07

21.76

13.08

-

two years later

34.26

20.39

17.96

11.21

12.20

19.96

28.28

33.76

-

-

three years later

34.40

20.25

19.26

16.25

14.24

21.59

29.32

-

-

-

four years later

35.57

19.29

16.31

17.68

14.26

20.98

-

-

-

-

five years later

36.42

18.07

15.49

14.17

19.00

-

-

-

-

-

six years later

34.92

20.43

19.90

20.09

-

-

-

-

-

-

seven years later

35.38

23.34

19.73

-

-

-

-

-

-

-

eight years later

35.72

21.54

-

-

-

-

-

-

-

-

nine years later

38.31

-

-

-

-

-

-

-

-

-

Current estimate of
cumulative claims

38.31

21.54

19.73

20.09

19.00

20.98

29.32

33.76

13.08

22.56

238.37

29.4

13.9

12.8

5.3

18.3

11.4

19.9

13.0

5.5

0.3

129.8

8.91

7.64

6.93

14.79

0.70

9.58

9.42

20.76

7.58

22.26

108.57

Cumulative payments
to dateClaims provision at
31 December 2021 inrespect of 2012 2021
In respect of prioryears (before 2012)

61.5

Total

170.1

The claims costs do not include an estimate for future claim payments on cases where ACyC does not yet have adverse
information. This explains the increase in claims costs over time. For bonding, ACyC typically earns premium inproportion to the length of time involved, over the tenor of the bond, meaning that while an increase in the claims
incurred can be seen, premium will also be recognised and this cannot be seen in the table above. The premium earned
for underwriting years 2018-2020 in the current financial year was EUR 54.1 million.
The claims development tables are presented on a gross basis. The effect of risk mitigation is in line with our reinsurance
treaties, quota share and Government schemes, as included in Note 4.3, detailing further disclosures on insurance risk.
The overall impact of risk mitigation on claims provisions (for all underwriting years combined) is approximately 62.7%.
Risk mitigation for gross claims incurred as shown in this table varies between 58% and 48%. (2020: 57% and 59%). Thisis due to a relatively higher retention in recent years.

84Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

16.2

Insurance liabilities and reinsurance assets

16.2.1 Changes in insurance liabilities and reinsurance assets
Credit insurance

Gross

Reinsurance
asset
2021

Net

Gross

Reinsurance
asset
2020

Net

Balance at 1 January

835,155(659,890)

175,264

658,245(464,293)

193,952

Claims paid in the year
Increase/(decrease) in liabilities
arising from claims
Foreign exchange rate and othermovements(252,486)

191,963(60,522)(616,740)

397,612(219,129)

367,757(139,956)

227,802816,690(608,440)

208,251

13,490(8,855)

4,634(23,040)

15,231(7,810)

Balance at 31 December

963,916(616,738)

347,178

835,155(659,890)

175,264

Claims reported and loss adjustment
expenses

152,446(165,393)(12,947)

142,180(164,235)(22,056)

Claims incurred but not reported

811,470(451,345)

360,125

692,975(495,655)

197,320

Total

963,916(616,738)

347,178

835,155(659,890)

175,264

Balance at 1 January

162,031(104,321)

57,710156,227(102,063)

54,164Claims paid in the year
Increase/(decrease) in liabilities
arising from claims
Foreign exchange rate and othermovements(30,943)

21,147(9,797)(30,615)

20,774(9,841)

38,973(23,373)

15,60136,530(23,077)

13,454

49

(33)

16

(111)

45

(67)

Balance at 31 December

170,110(106,580)

63,530162,031(104,321)

57,710Claims reported and loss adjustment
expenses

120,829(76,345)

44,485130,335(83,619)

46,716Claims incurred but not reported

49,281(30,235)

19,04531,696(20,702)

10,994

Total

170,110(106,580)

63,530162,031(104,321)

57,7101,134,026(723,318)

410,708

997,186(764,211)

232,974

Bonding

Claims provisions

85All amounts in thousands of Euro, unless otherwise stated

16.2.2 Provision for unearned premium
Credit Insurance

Gross

Reinsurance R
asset e
2021

Net

Gross

Reinsurance
asset
2020

Net

Balance at 1 January

240,123(145,323)

94,801

260,070(130,211)

129,859

Movement in the period
Foreign exchange rate and othermovements

21,90439,02260,926(11,879)(21,962)(33,841)

1,975(1,368)607(8,068)6,851(1,218)264,002(107,668)

156,334

240,123(145,323)

94,801

Balance at 1 January

160,642(103,819)

56,822

173,186(115,500)

57,686

Movement in the period
Foreign exchange rate and othermovements

16,429(593)

15,836(12,138)

11,390

(748)

396

(253)

143

(406)

290

(116)

Balance at 31 December

177,466(104,665)

72,801

160,642(103,819)

56,822

Provision for unearned premium

441,469(212,334)

229,135

400,765(249,142)

151,623

Balance at 31 December
Bonding86

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

17 Other provisions
2021

Restructuring

Litigation

Total

Balance at 1 January

1,782

999

2,781

Additional provisions

-

112

112

(198)

-

(198)

-

(73)

(73)

1,584

1,036

2,620

-

-

1,584

1,036

2,620

Restructuring

Litigation

Total

Balance at 1 January

1,485

1,135

2,620

Additional provisions

297

173

470

-

(264)

(264)

Unused amounts reversed
Utilised
Balance at 31 December
Current
Non-current
2020

Unused amounts reversed
Utilised
Balance at 31 December
Current
Non-current

-

(45)

(45)

1,782

999

2,781

-

-

-

1,782

999

2,781

Restructuring
The restructuring provision is recognised when management has approved a detailed and formal restructuring plan,and the restructuring has either commenced or has been announced to the parties concerned. Costs relating to theongoing activities of Atradius are not provided for.
Litigation
The litigation provision is related to disputes with third parties that are not related to the insurance business of ACyC.
Insurance business related litigation provisions are included in the provisions for outstanding claims. The provision
relates to the estimated cost including the costs of legal proceedings of any non-insurance claims against ACyC. These
provisions have not been discounted to reflect present value since the effect of discounting is not material.

18 Deferred and current income tax
Current income tax
2021

2020

Current income tax assets

18,167

16,075Current income tax liabilities

27,63936,234

Net(9,472)(20,159)

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

87All amounts in thousands of Euro, unless otherwise stated

Atradius Crédito y Caución S.A. de Seguros y Reaseguros, Spanish branch, is included in the fiscal unity (nº173/01) for
corporate income tax in Spain, which includes Grupo Catalana Occidente, S.A. (as parent company) and othersubsidiaries entities: (i) Atradius Collections, S.L.; (ii) Atradius Crédito y Caución S.A. de Seguros y Reaseguros; (iii)
Atradius Information Services BV Sucursal en España; (iv) Catalana Occidente Capital, Agencia de Valores, S.A.; (v)Cosalud Servicios, S.A.; (vi) Funeraria Merino Díez, S.L. (vii) GCO Gestora de Pensiones, EGFP, S.A.; (viii) GCO Reaseguros,
S.A.; (ix) Grupo Catalana Occidente Gestión de Activos, S.A. S.G.I.I.C.; (x) Iberinform Internacional, S.A.; (xi)
Iberinmobiliaria, S.A.; (xii) B2B SAFE, S.A.; (xiii) Nortehispana, de Seguros y Reaseguros, S.A.; (xiv) Plus Ultra, Seguros
Generales y Vida, S.A. de Seguros y Reaseguros; (xv) Seguros Catalana Occidente, S.A. de Seguros y Reaseguros; (xvi);
Sociedad Gestión Catalana Occidente, S.A.; (xvii) Tecniseguros, Sociedad de Agencia de Seguros, S.A.; y (xviii)
Nortehispana Mediación Agencia de Seguros, S.A. (xix) Atradius Participations Holding S.L..
All companies included in the fiscal unity are jointly and severally liable for the corporate income tax payable in Spainby the fiscal unity.

Deferred income tax
2021

2020

Deferred income tax assets before set-off

179,192

193,521

Set-off of deferred tax positions(157,497)(157,891)

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

21,69535,630

Deferred income tax liabilities before set-off

238,996

225,456

Set-off of deferred tax positions(157,497)(157,891)

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

81,49967,5652021

2020

Balance at 1 January(31,935)(53,940)

Credit (charge) to other comprehensive income for the year

(16,193)

3,989

Charge to the income statement for the year

15,26017,168

Movements with no impact on OCI nor P&L(26,935)

-

-

847

(59,804)(31,935)

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

Effect of movements in foreign exchange rates
Balance at 31 December

The movement in the deferred tax assets and liabilities is presented in the following table:
2021

Balance at
1 January

Recognised inothercomprehensive
income for theyear

Tax losses carried forward

12,764-

18,486-29

31,279Technical balances

54,340-14,565-(118)

68,787Pensions

35,377(8,159)10,657(26,935)(515)

10,425

Fiscal goodwill

2,117

-

(270)

-

52

1,899

Allowance accounts receivable

3,162

-

(383)

-

(1)

2,778

Financial investments(17,454)(8,034)(1,251)-(82)(26,821)Equalisation provisions(108,970)-(32,879)-

4(141,845)

130

-

1,795

-

23

1,948

(13,403)

-

4,539

-

608

(8,255)

Property, plant and equipment
Other

88

Recognised Movements
Effect ofin thewith no movement
incomeimpact on s in foreignstatement OCI nor P&L
exchange
for the year

Balance at 31
DecemberConsolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Total(31,935)(16,193)

15,260(26,935)-(59,804)

2020

Balance at
1 January

Recognised inothercomprehensive
income for theyear

Recognisedin theincomestatement
for the year

Movements
Effect ofwith no movement
impact nor s in foreign
OCI or P&L
exchange

Balance at 31
DecemberTax losses carried forward

6,730

-

6,083

-

(49)

12,764

Technical balances

43,326-

11,064-(49)

54,340Pensions

31,971

5,467(2,728)-668

35,377

Fiscal goodwill

3,071

-

(934)

-

(20)

2,117

Allowance accounts receivable

3,711

-

(539)

-

(9)

3,162

Financial investments(19,935)(1,478)

3,642

-

317

(17,454)

Equalisation provisions(108,251)

-

(720)

-

1

(108,970)

Property, plant and equipment(7,901)

-

8,066

-

(34)

130

Other

(6,661)-(6,765)-

23(13,403)

Total(53,940)

3,989

17,168-847(31,935)

Deferred income tax assets are recognised for tax losses carried forward, unused tax credits, and deductible temporary
differences, to the extent that it is probable that taxable profits will be available against which the unused tax losses
carried forward, unused tax credits, and deductible temporary differences can be utilised.
ACyC has unrecognised tax losses carried forward balances amounting to EUR 34.0 million (2020: EUR 38.5 million).
The expiration of these unrecognised tax losses carried forward is included in the following table:
Expiration unrecognised tax losses carried forward

2021

2020

1 - 3 years

230

1,889

4 - 9 years

1,262

3,112

Indefinite

32,52633,488

Total

34,01838,489The deferred and current income tax charged or credited to other comprehensive income during the year is presented
in the following table:
Deferred tax

Current tax

2021

Deferred tax

Current tax

2020

Revaluation reserve in shareholders equity related to:
Available-for-sale financial investments(8,034)-(1,477)-(8,159)

-

5,467

-

-

(761)

-

1,744

(16,193)

(761)

3,989

1,744

Pension reserve in shareholders equity related to:
Recognised actuarial gains/(losses)
Currency translation reserve in shareholders equity related to:Currency translation reserve
Total

89

All amounts in thousands of Euro, unless otherwise stated

19 Payables
2021

2020

Accounts payable on insurance and reinsurance business

382,947

324,499

Payables arising out of reinsurance operations

324,475

268,443

Amounts due to policyholders

41,515

41,170

Amounts due to intermediaries and current account Dutch State

16,957

14,886

Trade and other accounts payable

91,697

68,858

Accounts payable

9,270

10,342Other accounts payable

82,42758,516474,644393,357

Total
The payables are substantially all current.

The increase on payables arising out of reinsurance operations is coming from the cancelation of Deposits received
from reinsurance in ACyC Spain.

20 Other liabilities
2021

2020

Ceded pipeline premium¹ and return premium²

267,537

240,108

Deposits received from reinsurers

11,556

66,016

Unearned reinsurance commission

80,85491,547

Payroll and bonus accruals

49,76137,008

Reinsurance accruals

30,78911,918Other accruals

80,144

59,669Other taxes

20,593

18,884

Lease liabilities

63,70970,836604,943595,986

Total1) Ceded pipeline premium: Ceded accrued premium which has not been invoiced but for which Atradius is on risk
2) Return Premium — amount due the insured because the actual cost of a policy is less than the insured has previously paid

The main variations are coming from the cancelation of Deposits received from reinsurance in ACyC Spain, bonus
accrual increase because of the better performance of the year and Reinsurance accruals increase due to draft
agreements (when the agreements become live, these amounts are transfer to payables arising from reinsurance
operations).

20.1

Information regarding the deferements of payments to providers

The information required by the Second Final Provision of Spanish Act 31/2014, of December 3, through which theConsolidated Text of the Spanish Companies Act is amended for the improvement of corporate governance and Spanish
Act 15/2010, of July 5, which amends Spanish Act 3/2004 of December 29, is detailed below. Said information has been
prepared by the Company’s Directors whilst applying the Resolution of the Spanish Accounting and Audit Institute dated
January 29, 2016. This information is limited to the operations carried out by the ACyC subsidiary based in Spain.

90

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

2021

2020

Days

Days

Average term of payment to providers

18.60

15.68

Ratio of paid operations

18.69

15.68

Ratio of outstanding operations

16.48

16.64

AmountAmountTotal payments

37,46530,729Total outstanding payments

1,543

852

According to ICAC Resolution, the business operations corresponding to the delivery of goods or provisions of services
accrued from the date of the entry into force of Spanish Act 31/2014, December 3, have been taken into account for the
calculation of the average term of payment to providers.
For the sole purposes of providing the information stipulated in this Resolution, providers are deemed as the tradecreditors through debts with suppliers of goods or services, included in the “Debits and payables – Other debts-Rest ofother debts” items of the balance sheet’s current liabilities.
The "Average term of payment to providers" is deemed as the period between the delivery of the goods or the provisionof the services by the provider and the material payment of the operation.
Lease liability maturity analysis
Lease liability maturity analysis (undiscounted cash flows)

2021

2020

Less than one year

20,45818,399Between one and five years

49,91845,943More than five years

17,941

17,967

Total

88,31782,30921 Net premium earned
Credit insurance

Gross

Reinsurers'
share
2021

Net

Gross

Reinsurers'
share
2020

Net

Written premium

1,507,065(921,805)

585,260

1,335,017(984,597)

350,420(21,904)(39,022)(60,926)

11,87921,962

33,841

Change in provision forunearned premium
Other movements(1,237)

569

(668)

91

(64)

27

1,483,923(960,258)

523,665

1,346,987(962,699)

384,288

Written premium

141,182(70,863)

70,318111,754(64,078)

47,676

Change in provision forunearned premium(16,429)593(15,836)

12,138(11,390)

748

58

(43)

15

(62)

42

(20)

124,811(70,314)54,497

123,830(75,427)

48,404

1,608,734(1,030,572)

578,161

1,470,817(1,038,126)

432,692

Total
Bonding

Other movements
Total
Total premium earned

The written premium and change in provision for unearned premium contain reinsurance business.

91All amounts in thousands of Euro, unless otherwise stated

22 Service and other income
2021

2020

Credit Information services

46,92149,898Business information services

9,771

10,00956,692

59,907

Total

Credit information services are part of the insurance segment. Business information services are part of the service
segment.
Characteristics of service contracts and income:--The contracts of credit information and business information services mostly have a duration of one year. The
contract period of credit information contracts is linked to the insurance policies, which can be up to two years.
But the credit limits are renewed on an annual basis, which requires additional credit information that is
separately invoiced to the customer.
The agreed performance obligations and transaction prices, included in the contracts, are clear and contain nojudgements that significantly affect the determination of the amount and timing of revenue.
The contracts contain no financing elements, warranties or obligations for returns or refunds.
The service contracts contain no variable consideration.
All costs for obtaining and fulfilling contracts are recognised as expenses. Atradius does not incur costs thatmeet the criteria to create assets for obtaining or fulfilling specific contracts.
Applying the practical expedient in paragraph 121 of IFRS 15 Atradius does not separately disclose theremaining performance obligations for service contracts at year end, since the contracts either have a durationof one year or Atradius is allowed to recognise revenue in an amount to which it has a right to invoice.

23 Net income from investments
Net investment income by type of investment

2021

2020

Debt securities available-for-sale

8,841

6,849

Equity securities available-for-sale

10,09312,75720

295

18,954

19,901

292

555

19,246

20,456

Debt securities available-for-sale

(286)

(386)

Equity securities available-for-sale(1,636)(6,492)

Handling expenses(2,622)(2,555)

Other investments

(196)

-

(4,740)(9,433)

(97)

(46)

Total investment expenses(4,837)(9,479)Net income from investments

14,40910,977

IncomeOther investments
Total income from financial investments
Investment property
Total investment income
Expenses

Total expenses from financial investments
Investment property

92

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Net investment income by nature of income/(expense)

2021

2020

Interest

4,195

5,896

Dividends

9,580

6,138

Realised gains

5,179

8,117

IncomeRental income from investment property

292

305

19,246

20,456

Handling expenses(2,620)(2,555)

Realised losses(1,001)(4,023)

Impairment loss

(942)

(2,828)Depreciation of investment property

(274)

(73)

Total

(4,837)(9,479)Net income from investments

14,40910,977

Total
Expenses

Net income from investments
In interest income and expenses reported above, the component related to financial investments available-for-sale is
net EUR 4.2 million (2020: EUR 5.6 million); this is derived from government and corporate bonds.
Net gains/(losses) by category

Impairments

Realised
gains/(losses)
2021

Investment property
Financial assets classified as available-for-sale

Realised
gains/(losses)
2020

22

(54)

27

250

(964)

4,428

(2,855)

3,844

Other investments
Total

Impairments

-

(196)

-

-

(942)

4,178

(2,828)4,094

24 Insurance claims
Credit insurance

Gross

Reinsurers'
share
2021

Net

Gross

Reinsurers'
share
2020

Net

Claims paid in the year

252,485(191,962)

60,523616,740(397,612)

219,128

Change in claims provisions

115,272

52,007167,279

199,950(210,827)(10,877)

Claims handling expenses

39,365-39,36537,167-

37,167

Total

407,122(139,955)

267,167

853,857(608,439)

245,418

Claims paid in the year

30,944(21,147)

9,797

30,615(20,774)

9,841

Change in claims provisions

8,030(2,226)

5,804

5,915

(2,304)

3,611

Claims handling expenses

2,115

-

2,115

1,667

-

1,667

Total

41,089(23,373)

17,71638,197(23,078)

15,120Total insurance claims

448,211(163,328)

284,883

892,054(631,516)

260,538

Bonding

For more detail on the change in claims provisions, see Note 16.2.1.

93

All amounts in thousands of Euro, unless otherwise stated

25 Net operating expenses
2021

2020

Total administrative expenses

412,557

359,114Acquisition costs

185,121164,016

Change in deferred acquisition costs(3,865)2,687

Gross operating expenses

593,813525,817

Commissions received for business ceded to reinsurers(419,600)(403,569)

Total net operating expenses

174,213122,248

2021

2020

445,784

382,312Administrative expenses by type of businessInsurance and information expenses
Other service expenses(3,826)

7,215

Group costs

12,0798,421

Total gross administrative expenses

454,037

397,948

Claims handling expenses allocated to insurance claims(41,480)(38,834)

Total administrative expenses

412,557

359,114

In the gross administrative expenses are included:- Depreciation, amortisation and impairment charges for intangible assets and property, plant and equipment amountto EUR 90.4 million (2020: EUR 57.3 million). See Note 6 and Note 7.
- Short term and low value leases amount to EUR 0.5 million

Employee benefit expenses

2021

2020

269,104

255,956

Restructuring costs and termination benefits

(198)

297

Pension costs - defined contribution plans

10,166

9,288

Pension costs - defined benefit plans

15,183

14,672294,255

280,213

2021

2020

Net interest on the net defined benefit liability

110

19

Other interest expense

809

821

Foreign exchange (income)/expense(7,742)

4,920

Interest expense on lease liabilities

1,757

1,733

Total

(5,066)

7,493

2021

2020

Salaries and wages (including social security costs)

Total employee benefit expenses
For an explanation of the employee benefit details see Note 15.

26 Finance expenses

27 Income tax

94Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Current tax

82,80447,489Deferred tax(15,260)(17,168)

Income tax expense/(income) for the year

67,54530,321

The reconciliation from the expected tax rate to the actual tax rate is provided in the following table:
2021

2020

Result before tax

195,725

115,246

Tax calculated at domestic tax rates applicable to results in the respective countries

49,252

31,152

1,119(4,798)Tax exempt (income)/loss
Write down/(reversal) of deferred tax assets

(868)

173

Reassessment of prior year local tax positions

4,825

2,270

Impact of change in tax rate

5,962

2,449

Other

7,254

(924)

Income tax expense/(income) for the year

67,54530,321

The weighted average applicable tax rate was 25.2% (2020: 27.0%).
Deferred tax assets relating to losses carried forward in certain entities have been impaired. This is included in ‘write
down (reversal) of deferred tax assets’.
The impact of the change in tax rate in 2021 mainly reflects the effect of changes in income tax rate in the Netherlands,
UK and Turkey.
The category "Other" includes non-deductible expenses, regional taxes such as IRAP in Italy and withholding taxes

28 Dividends per share
No dividends were paid in 2021. The didivends paid in 2020 were EUR 102.9 million (EUR 24.86 per share).

29 Assets not freely disposable
The financial assets not freely disposable in 2021 are EUR 235.9 million (2020: EUR 201.2 million). Assets that are notfreely disposable consist of financial investments, properties and cash that have been held mainly for local regulatory
purposes and can be used to cover technical provisions. The amount of pledged assets not covering technical provisions
is EUR 75 million (2020: EUR 67 million).

30 Capital commitments and contingencies
Capital commitments of EUR 11.1 million (2020: EUR 11.4 million) are related to contracted obligations for future
payments for outsourcing, networking, imaging and licences.
ACyC has contingent liabilities in respect of matters arising in the ordinary course of business. It is not anticipated thatany material liabilities will arise from the contingent liabilities. The company has given guarantees to third parties
amounting to EUR 2.1 million (2020: EUR 2.0 million).

31 Personnel
The number of employees working for ACyC are included in the following table:95All amounts in thousands of Euro, unless otherwise statedSenior Management

2021

2020

92

92

473

476

1,903

1,918

Other

243

245

Total

2,711

2,732

Technical staff and middle managers
Administrative staff

During the 2021 financial year, the number of employees with a disability greater than or equal to 33% is 57 people(2020: 22 people).
The distribution by gender at the close of the fiscal years 2021 and 2020, of the full time equivalent number of
employees, distributed by professional category, is the following:
2021
Men

2020
Women

Men

Women

Senior Management

75

14

79

14

Technical staff and middle managers

321

145

335

140

Administrative staff

929

972

968

940

Other

53
1,379

193
1,324

56
1,437

187
1,281

Total

The Board of Directors, at the end of 2021 is integrated by 9 members (Men:8 , Women:1), (2020 : 9 members (Men:8 ,Women:1)).
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 andto the duty to avoid situations of conflicts of interest, pursuant to articles 227 to 231 of the Spanish Companies Act, as
amended by Spanish Act 31/2014 of December 3 for the improvement of corporate governance.
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, the persons linked to them have notbeen in this situation either. Lastly, in compliance with the aforementioned Act, they have indicated that they would
promptly inform of any change that may occur with regard to the detailed information.

96

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

32 Related party transactions
The following table provides the total value of transactions which have been entered into with related parties in thefinancial year:
2021

2020

Parent 1)
Receivables from parent

288

2,003

Rendering of services

50,43047,386Outward insurance premiums, claims, commissions(62,982)

32,925(3)(5)

98,482

86,97585,22061,949Other related parties

2)

Investment expenses
Receivables from other related parties

3)

Payables to other related parties
1) Parent – Atradius Insurance Holding N.V..
2) Other related parties – transactions with other subsidiairies of Atradius.

3) Receivables from other related parties: includes transactions on Accounts Receivable on Insurance and Reinsurance business, Other Accounts Receivable,
Purchase of Receivables with other subsidiairies of Atradius.

Terms and conditions of transactions with related parties
No guarantees have been provided or received for any related party receivables for 2021 or 2020. For the years ending
31 December 2021 and 2020, ACyC has not raised any provision or expenses for doubtful debtors relating to amounts
owed by related parties.
All relationships with related parties are at arm’s-length.

Compensation of ACyC Board of Directors and Executive Committe
The Board of Directors did not receive any remuneration as members of the Board, nor any pension or life insurance
obligations contracted on their behalf.
The following table provides details on the remuneration for members of the Executive Committee, which have assumed
senior management functions:
Remuneration

2021

2020

Short term employee benefits 1)

1,025

1,010

Long - term employee benefits

677

364

Post-employment benefits

148

147

1,850

1,521

Total compensation(1)

Short-term employee benefits include salaries, housing, social security, medical expenses, lease cars and other.

There is a D&A insurance policy premium, that covers liability indemnity, with a cost of EUR 0.2 million (2020: EUR
0.2 million).
From the total compensation detailed in the table above, EUR 1.2 million (2020: EUR 1.2 million) has been paid at theend of the reporting period. The remaining balance payable is subject to meeting the variable pay conditions. Apartfrom this they do not have other relationships with the Company or its subsidiaries.

97All amounts in thousands of Euro, unless otherwise stated

33 Auditor fees
The following expenses were made for audit and non-audit services rendered by the Group’s external auditor:
PwC 1)
Accountants
Spain

Other PwC 1)
Networkorganisations

Total PwC 1)
Network

Audit financial statements

827

953

1,780

Other audit services

392

76

468

Fiscal advisory services

-

-

-

Non-audit services

-

6

6

1,218

1,036

2,254

PwC 1)
Accountants
Spain

Other PwC 1)
Networkorganisations

Total PwC 1)
Network

Audit financial statements

683

788

1,471

Other audit services

324

63

387

Fiscal advisory services

-

-

-

Non-audit services

-

5

5

1,007

856

1,862

2021 including VAT

Total

2020 including VAT

Total*Restated (2020 reporting was in accrual basis)

These amounts relate to the fees agreements incurred for the audit of the related financial year, and other services(expenses and non-recoverable VAT costs are included). The amounts on other audit services include services related toaudit reviews on Solvency II and other regulatory requirements. The amounts reported on non-audit services lines are
related to projects where external auditor is involved.

34 Events after the reporting period
The Board of Directors proposes to the General Meeting to allocate the result for the year to the retained earnings.
Regarding the events occurred after the end of 2021 and are significant for the formulation of these annual accounts,
we are closely monitoring the situation in Ukraine and taking actions where needed. We are engaging with ourcustomers to assess the current exposure profile and to identify areas of attention. In addition we are communicatingwith other stakeholders such as brokers, reinsurers and regulatory bodies. Given the rapid developments with respect
to sanctions, we are especially diligent in this area to ensure compliance. Although we do not expect a significant
impact on the going concern for the Company.

98Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

The Board of Directors of ATRADIUS CRÉDITO Y CAUCIÓN S.A. DE SEGUROS Y REASEGUROS, in the meeting
held today, 2 March 2022, has formulated the Consolidated Annual Accounts (IFRS) and the Consolidated
Management Report of the Company, corresponding to the financial year ended 31 December 2021. They consist
of ____ consecutively numbered pages, in addition to this and the following signature pages numbered from (i)to (ix), both included.
And as an evidence thereof, in compliance with the provisions of article 253 of the Spanish Companies Act, theDirectors referred to in the following pages sign this statement, on 2 March 2022.

The Board of Directors

Xavier Freixes Portes

Francisco José Arregui Laborda

Désirée Maria van Gorp

Juan Ignacio Guerrero

Carlos Halpern Serra

John Patrick Hourican

Bernd Hinrich Meyer

Hugo Serra Calderón

99

José María Sunyer Sendra

All amounts in thousands of Euro, unless otherwise stated

ANNEX. DETAIL OF REAL ESTATE AT 31 DECEMBER 2021
(Figures in euros)
Location

Address

Country

Year ofpurchase Gross value

2021
Accumulated
amortization

Net value

Date of last
Impairment valuationOWN-USE REAL ESTATE
ALCALA DE H. Comp.Inmob. Garena Plaza pl 9 B Spain

2005

1,031,468(268,918)

762,550(157,071)

13-Nov-20

ALICANTE

C/ San Fernando , 19 Principal

Spain

2002

429,024(49,083)

379,942-

13-Nov-20

BILBAO

Gran Vía, 17 2º Planta Of.1 y 3

Spain

2004

2,931,093(663,369)

2,267,723-

13-Nov-20

CASTELLON

Ruíz Zorrilla, 1 5º

Spain

1999

414,097(113,311)

300,786-

13-Nov-20

GERONA

Avda. Jaime I, 1

Spain

1990

335,248(169,743)

165,505-

18-Nov-20

LA CORUÑA

Real, 85 6º

Spain

1975

495,743(349,709)

146,033-

17-Nov-20

LAS PALMAS

Plaza de España, 6

Spain

2020

365,013(5,488)359,525(23,788)

7-Sep-21

LEON

Avda. Independencía, 2 3º

Spain

1974

36,998(26,987)

10,036-13-Nov-20

MADRIDPº de la Castellana, 4

Spain

1995

21,739,237(7,265,313)

14,473,924-

13-Nov-20

MALAGA

Avda. Andalucia, 19 L-A2

Spain

1981

160,619(99,357)

61,262-13-Nov-20

MALAGA

Avda. Andalucia, 19 L-A5

Spain

1987

119,346(64,521)54,825-13-Nov-20

MURCIA

Avda. Libertad, 2

Spain

1988

252,571(132,280)

120,291-

13-Nov-20

MURCIA

Avda. Libertad, 2 Local C

Spain

2001

115,755(37,808)

77,947-13-Nov-20

OVIEDO

Conde de Toreno, 4

Spain

1967

134,614(107,691)

26,923-13-Nov-20

PAMPLONA

Avda. Carlos III, 13-15

Spain

1984

110,902(63,625)

47,278-13-Nov-20

SEVILLA

Plaza Nueva, 8 Dpdo. 5

Spain

1971

494,036(395,228)

98,807-17-Nov-20

SEVILLA

Plaza Nueva, 8

Garaj. 63

Spain

1971

6,842

(5,052)

1,790-

17-Nov-20

SEVILLA

Plaza Nueva, 8

Garaj. 50

Spain

1973

6,540

(4,829)1,711-

17-Nov-20

TARRASA

Gutemberg, 3 3º F

Spain

1976

143,451(98,475)

44,977-13-Nov-20

VALENCIA

Avda. Jacinto Benavente, nº 14

Spain

2004

2,284,661(457,045)

1,827,617-

13-Nov-20

VALLADOLID

Duque de la Victoria, 4

Spain

1978

247,596(165,891)

81,705-13-Nov-20

ZARAGOZA

Plaza Salamero, 14 3º A

Spain

1975

285,300(199,536)

85,764-17-Nov-20

1989

4,608

(3,127)

1,481-

17-Nov-20

2017

3,970,100(257,839)

3,712,261(3,375)21-Sep-21

ZARAGOZALISBOA

Plaza Salamero, 14 Trasteros 12
Spain
y 13
Av. Columbano Bordalo Pinheiro
Portugalnº 75

LISBOA

Avda. la Liberdade, 245

Portugal

2001

1,444,953(460,972)

983,981-13-Nov-20

OPORTO

Plaza Buen Suceso, 61

Portugal1905

977,169(300,737)

676,432(40,300)

13-Nov-20

ROMA

Via Crescenzio

Italy

1972

15,823,758(2,939,020)

12,884,738(17,929)

10-Dec-21

ROMA

Via Cassiodoro 9

Italy

1993

1,328,200(234,028)

1,094,172

55,688,942(14,938,982)

40,749,986

Total own use properties

100-

10-Dec-21(242,463)

Consolidated financial statement 2021 Atradius Crédito y Caución S.A. de Seguros y Reaseguros

Location

Address

Country

Year ofpurchase Gross value

2021
Accumulated
amortization

Net value

Impairment

Date of last
valuation

THIRD PARTIES´USE REAL ESTATEALBACETE

Tesifonte Gallego, 4

Spain

1982

59,865(36,112)23,753-17-Nov-20

ALMERIA

Lachambre, 2 2º

Spain

1996

102,998(42,531)60,467-17-Nov-20

BADAJOZ

Avda. Ramon y Cajal, 13 1º

Spain

1992

64,119(30,005)

34,114-13-Nov-20

BARCELONA

Provenza, 216

Spain

1965

2,394,648(1,915,718)

478,930-

13-Nov-20

BILBAO

Gran Vía, 53

Spain

1967

146,093(116,874)

29,219-13-Nov-20

BURGOS

P. Alonso Martinez, 8

Spain

1987

80,510(43,287)

37,222-18-Nov-20

CORDOBA

Ronda de los Tejares, 32

Spain

1986

127,910(70,647)

57,263-16-Nov-20

GRANOLLERS Avda. San Esteban, 9

Spain

1999

201,270(80,128)

121,142-

13-Nov-20

JAEN

P. Constitución, 10

Spain

1989

76,541(39,467)

37,074-17-Nov-20

JEREZ

Cmte. Paz Varela, 21 2º L-8

Spain

1988

41,184(21,551)

19,632-16-Nov-20

LA CORUÑA

Alameda, 34 5º C

Spain

1974

82,324(59,367)

22,957-13-Nov-20

LERIDA

Avda. del Segre, 1

Spain

1990

109,392(54,383)

55,008-13-Nov-20

MADRID

R. Fdez. V. , 57

Spain

1978

1,093,837(706,718)

387,119-

13-Nov-20

MADRID

Dulcinea, 47 Bajo L-1-2

Spain

1969

213,572(170,858)

42,714-13-Nov-20

P. MALLORCA Pª del Borne, 15

Spain

1975

137,568(97,284)

40,284-13-Nov-20

S. C.
TENERIFE

Villalba Hervas, 9 1º C

Spain

1987

190,727(102,431)

88,296-13-Nov-20

SABADELL

Plaza de Cataluña,16

Spain

1997

222,201(85,293)

136,908-

17-Nov-20

SANTANDER

Cuesta, 2 4º Dcha.

Spain

1985

132,231(74,351)

57,880-13-Nov-20

SEBASTIAN

Fuenterrabía, 2 2º D

Spain

1975

68,460(48,884)

19,577-

10-Sep-20

SEVILLA

Plaza Nueva, 8 Garaj. 61

Spain

1971

6,842

(5,053)

1,790-

17-Nov-20

SEVILLA

Plaza Nueva, 8 Garajes

Spain

1973

32,699(24,146)

8,553-

17-Nov-20

TARRAGONA

Rambla Nova, 76 1º 2

Spain

1976

110,509(76,817)

33,692-17-Nov-20

VIGO

Uruguay, 2 2º

Spain

1967

205,884(164,708)

41,176-13-Nov-20

VITORIA

Manuel Iradier, 24 L-1

Spain

1986

71,875(39,470)

32,405-13-Nov-20

ZARAGOZA

Plaza Salamero, 14 3º B

Spain

1975

116,558(81,481)

35,077-17-Nov-20

ZARAGOZA

Coso, 98-100 7º 6

Spain

1972

41,409(32,673)8,736-

13-Nov-20

LEON

Avda. Independencía, 2 3º

Spain

1974

38,462(27,990)

10,445-13-Nov-20

OVIEDO

Conde de Toreno, 4

Spain

1967

21,914(17,531)4,383-

13-Nov-20

GENOVAVia di Sottoripa 1/A

Italy

1991

249,333(62,412)

186,921(48,921)10-Dec-21

UDINE

Via Manzini 8-9

Italy

1992

184,416(51,388)

133,028(44,028)

10-Dec-21

ROMA

Via Padre Semeria 29

Italy

1985

176,406(31,577)

144,829

6,801,757(4,411,135)

2,390,594

Total Investment properties

101-

10-Dec-21(92,949)