Resilience inchallenging times
Annual Report 2022 Atradius N.V.

Contents
This isAtradius

Management report3This is Atradius........................................................................................................ 3
4
Resilience in challenging times.................................................................................... 4
Our performance at a glance.......................................................................................... 5
Ten years in figures............................................................................................................ 7
A message from the Management Board.................................................................... 8
Business profile.........................................................................................................
11
Products and services..................................................................................................... 12
Global footprint................................................................................................................. 16

Business
profileGeneral Atradius Group organisation........................................................................ 18

11

Corporate governance ..............................................................................................
19
Report of the Supervisory Board............................................................................... 20
Shareholder structure..................................................................................................... 22
Building trust..................................................................................................................... 25
Company information ......................................................................................... 00
34
The global economic environment ........................................................................... 35
Robust performance and a steadfast presence for our customers ................. 39
Our people .......................................................................................................................... 47
Risk and Capital – managing and adapting to changes...................................... 52

Corporate
governance

19

Environmental, social and governance sustainability ...................................... 56

Financial statements ........................................... 60
Consolidated financial statements 2022 ................................................................ 61
Company financial statements 2022 ..................................................................... 162

Other information .................................................. 170
Statutory appropriation of result ............................................................................... 171
Independent	
auditor’s report ..................................................................................... 173

Glossary .......................................................................... 180
2Company
information

34

This isAtradius
At Atradius we remain dedicated toour commitment to enable trade anddevelop resilient solutions during thesechallenging times.

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Atradius Management report | This is Atradius

Resilience inchallenging times
We are living in challenging times.
2022 was the third year in which theworld was confronted by the realityof COVID-19. For many of us the rollout of vaccines provided a pathway
to living with COVID-19 and a way for
the world to return to a more stableenvironment. But Russia’s invasionof Ukraine has sparked further
uncertainty, setting off a chain of
events that rippled through the global
economy, forcing us to adapt to thechanging risk environment.
Despite these disruptions to economic stability, one thing is certain:
sustainability issues are climbing higher on the agenda as the world
takes on the enormous challenge to achieve net zero by 2050. We all
have a part to play in sustainability, as individuals, as organisations,as nations, as international institutions. We are all connected. Only
collective action will get us where we need to be, curbing the greenhousegas emissions that are causing global warming.
Trade will undoubtedly need to be part of the solution. Trade is at theheart of people’s livelihoods and drives the economic development thatwill be crucial for governments as they invest in clean energy transition.
As one of the world’s largest credit insurers, we are aiming to strengthen
our capacity to provide support to our customers on their journey.
At Atradius we remain dedicated to our commitment to enable trade anddevelop resilient solutions during these challenging times. After almost
100 years in business, we can count ourselves as experts in managing
risk. This is what we do, and we do it well. 2022 has been another year,
during which we worked alongside our customers and business partners
to navigate uncertain times.

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Atradius Management report | This is Atradius

Our performanceat a glance
Supporting our customers during themost challenging of times• The	 result of the year grew to EUR 332.2 million, a 38.3% increase
compared to 2021
	
• Totalrevenue reached EUR 2.4 billion, with insurance premium increasing
by 17.1%• Atradius gross claims ratio increased to 38.7% compared to 27.8% in 2021
• The expense ratio for the year, improved from 37.2% to 33.8%• The gross combined ratio ended at 72.5%
	 positive contribution of EUR 42.3 million came from our prudent• A
investment portfolio• Solid solvency ratio exceeded 200% (1)• Total Potential Exposure (TPE) increased by 18.6%• Customer
retention achieved 93.5%, demonstrating unwavering customer	
confidence in Atradius along with steady demand for Atradius’
best-in-class services(1)

Subject to finalisation of any audit procedures.

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

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

Supervisory Board Committees
Audit Committee
Remuneration, Selection and Appointment Committee

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Atradius Management report | This is Atradius

Total Revenue

In EUR million

2022
2021
2020
2019
2018

2,450
2,151
1,979
2,012
1,898

1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500

Net Investment Result (1)In EUR million
42

2022
2021
2020
2019
2018

36
14
26
22
0

5

10

15

20

25

30

35

40

45

Gross Claims Ratio
2022
2021
2020
2019
2018

38.7%

27.8%
58.6%
42.8%
43.7%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Expense Ratio
2022
2021
2020
2019
2018

33.8%
37.2%
35.7%
35.9%
35.5%

30%

31%

32%

33%

34%

35%

36%

Result for The Year
2022
2021
2020
2019
2018

38%

In EUR million
332
240

44
228
203

0

(1)

37%

50

100

150

200

250

	Net Investment Result consists of net income from investments and share of associated companies (excluding realised gains& losses, and impact of valuation of associated companies in 2017).

6

300

350

Atradius Management report | This is Atradius

Ten years in figures
Financial information(in EUR million)

2022

2021

2020

2019

2018

2017

2016 (1)

2015

2014

2013

Insurance premium revenue

2,224.5

1,900.3

1,727.4

1,759.5

1,648.5

1,588.1

1,557.6

1,537.0

1,458.2

1,412.1

Service and other income

225.7

250.6

252.0

252.5

249.5

249.1

203.1

180.8

169.0

166.4

2,450.2

2,151.0

1,979.4

2,012.0

1,898.0

1,837.2

1,760.7

1,717.8

1,627.2

1,578.4

42.3

35.6

14.3

25.9

22.1

24.7

22.8

36.0

37.8

35.1

2,492.5

2,186.5

1,993.7

2,037.9

1,920.2

1,861.9

1,805.6

1,753.8

1,665.0

1,613.5

332.2

240.2

44.2

227.7

202.7

186.2

211.8

178.2

161.2

134.5

2,175.4

2,142.3

1,913.3

2,008.7

1,821.4

1,753.2

1,625.5

1,500.2

1,393.0

1,286.9

Total assets

6,291.0

5,918.8

5,380.2

5,067.4

4,725.3

4,519.2

4,391.5

4,250.2

4,130.9

3,697.8

Insurance contracts

2,565.6

2,134.4

1,902.7

1,706.2

1,619.9

1,530.3

1,561.2

1,648.8

1,572.2

1,486.3

15.4%

11.2%

2.3%

11.9%

11.3%

11.0%

13.6%

12.3%

12.0%

10.8%

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

79.1

79.1

79.1

79.1

79.1

79.1

79.1

79.1

79.1

79.1

Dividend paid (in EUR million)

164.6

91.0

102.9

91.8

83.9

76.7

71.2

64.9

53.8

43.5

Gross claims ratio (4)

38.7%

27.8%

58.6%

42.8%

43.7%

41.7%

41.6%

43.5%

40.7%

45.6%

Gross expense ratio

33.8%

37.2%

35.7%

35.9%

35.5%

35.7%

36.4%

37.1%

36.6%

35.9%

Total revenue
Net investment result (2)Total income
Result for the year
Balance sheet information(in EUR million)
EquityShareholders information
Return on equity (3)Technical ratios

Gross combined ratio

72.5%

65.0%

94.3%

78.7%

79.2%

77.4%

78.0%

80.6%

77.3%

81.5%

Net claims ratio

41.3%

37.3%

55.9%

43.3%

44.7%

41.4%

42.0%

42.0%

42.6%

46.4%

Net expense ratio

31.7%

35.9%

36.7%

30.0%

32.0%

34.2%

35.4%

35.9%

35.8%

37.4%

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

3,310

3,497

3,503

3,531

3,545

3,596

3,586

3,161

3,139

3,107

Financial strength ratings
Moody’s (5)A2, outlook positive

A.M. BestA (Excellent), outlook stable

(6)

(1)

Including Graydon (until February 2022), Iberinform Portugal, Gestifatura and Informes Mexico since Q3 2016.

(2)

	Net Investment Result consists of net income from investments and share of associated companies (excluding
realised gains & losses and impairments on associated companies).

(3)

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

(4)	2019 Gross Claims Expenses and the Gross Claims Ratio shown in the management report exclude a single
large claim of 83.9m which was 100% reinsured and had zero impact on the net insurance result.

(5)

	Moody’s affirmed the A2 financial strength rating of the Atradius rated entities with a positive outlook since
October 2022 (outlook changed from stable to positive).

(6)	In 2022 A.M. Best reaffirmed the Financial Strength Rating of A (Excellent), outlook stable and the Long-TermIssuer Credit Ratings (Long-Term ICRs) of the Atradius rated entities as “a+”.

7Atradius Management report | This is Atradius

A message from theManagement Board

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

In this dynamic setting where uncertainty
remains at unprecedented levels, withpersistent risk challenges across the globe,
our company and our people aroundthe world have delivered an exceptional
performance.
Our Gross Insurance Revenues reached EUR 2,224.5 million, which represents 17.1
percent growth compared to last year. Overall, Atradius produced a Result afterTax of EUR 332.2 million. Amid a benign claims environment, slowing global
economic growth and decelerating world trade, this remarkable result reflects thestrong confidence in our strategy to put our clients first and help them navigate

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Atradius Management report | This is Atradius

the uncertain times ahead. Unlocking the power of our excellent customer
service continues to drive growth. The unique value proposition that webring to the market is made possible through our robust risk management
discipline, constant investment in our systems and ongoing development ofour people and distribution partners.
Looking back, 2022, was a year dominated by the war in Ukraine. However,we were able to effectively contain the impact of the war on our business in
Russia, Ukraine and elsewhere. In Credit Insurance, we have provisioned
sufficiently for potential claims from exposure relating to the war. The
value of our business in Atradius Russia has been significantly reduced andactual claims remain modest for the time being. Our mission as a company ispromoting the safety of trade and we are deeply concerned for the safety of
millions of people because of the war. Our community, through the Atradius
Cares initiative, arranged a donation of EUR 345 thousand to the UNHCR(United Nations High Commissioner for Refugees) comprising company andemployee contributions.
As our people are pulling together to work with our clients, brokers, agents,
business partners and reinsurers to mitigate the consequences of theadverse global economic developments, we stay committed to advancing ourambitious internal agenda.
Sustainability, as one of our key strategic priorities, continued to gain
momentum in 2022. We have the ambition to contribute to a sustainable
future and have values and initiatives that will help us achieve that. As one of
the world’s largest credit insurers, we are aiming to strengthen our capacity toand provide support to our customers on their journey.
Three pillars form the foundation of our sustainability ambition: Planet,
People & Prosperity. We promote trade that is planet positive, we empower
people and communities across genders, races, cultures and personalities,
and we foster sustainable prosperity. Under each pillar, we have a range ofinitiatives, which are detailed in the Environmental, Social and Governance
Sustainability section of this annual report.
We understand the full scale of the challenge ahead to meet these goals, which
requires building new capabilities, extending our existing ones and investing
in innovation. We do not expect this transformation journey to be an easy one,but we recognise the need to build a sustainable future and we are committed
to doing our part.
One of the highest priorities of our internal agenda, was to ensure compliancewith the new accounting standard for insurance contracts, IFRS 17, in 2023.
The programme delivered several components, all based on new technologythat will be used as a springboard for future programmes, and for our data
strategy and governance. We expect that, during 2023, the programme
will still take significant effort in preparing the systems for management
information, including reporting, forecasting and budgeting under IFRS 17.
Our unique value proposition is based on putting our clients first andproviding exceptional customer service. We remain true to this strategy andcontinue to invest and progress our major digital transformation programmes
for the Credit Insurance and Bonding business. This includes the continued
expansion of our connectivity offering to allow online integration of ourservices with our customers, business partners, online marketplaces andplatforms. In 2022, our focus shifted to expediting the delivery timelineof these programmes. As a result, during 2022 we had several major
releases and business rollouts on core system functionalities. Both of these9Atradius Management report | This is Atradiusprogrammes build on Atradius’ core strategic advantage of having a single
and aligned IT platform for our business, which supports our core service
proposition for our global customers. Additional automation, upgrades andenhancements on our online systems continued, ensuring that our customers
and brokers can extract maximum value from using our online services.
We expect this year to be very different from 2022. We remain cautious
as 2023 is expected to pose significant and ongoing challenges. A slowly
deteriorating claims environment may change rapidly, or suddenly. Persistentand broadening inflation pressures and aggressive tightening from central
banks are increasingly weighing on the outlook for advanced economies. This
comes on top of the uncertainty surrounding Russia’s invasion of Ukraine
and its destabilising effect on energy supply. Atradius expects the Global GDP
growth to slow down in 2023, as inflation will continue to squeeze consumer
spending, supply-chain issues limiting trade will persist and monetary
tightening will continue to increase the cost of borrowing.
We expect global trade to continue losing steam further to 1.5% in 2023.
We forecast increases in insolvencies in the United States and other major
European economies as surging prices and rising interest rates dragon economic activity and are expected to bring the world economy into
recession.
Despite the negative outlook, we have confidence in our underwriting,
dynamic risk management, our unique culture and people to navigate
through the challenges ahead. As we look forward to 2023, we want to thankour clients and business partners for putting their trust in us and our people
for their extraordinary commitment to Atradius. We find ourselves in a strong
position after two consecutive record years. Our leadership team is focused on
maintaining our strong track record of delivering exceptional performance.
The core of our strategy remains always to put our clients first and supporting
their businesses and growth ambitions. We continue to invest in the future of
Atradius and our people, while allowing for moderate increases in our staff
headcount, and we are excited by the opportunities ahead.

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

10

Business
profileThe benefit of purchasing credit
insurance from Atradius comes fromthe day-to-day credit management andrisk assessment support that we provide
alongside our credit insurance policy.

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Atradius Management Report  |  Business profile Atradius N.V.

Products and services
Credit Insurance
A modular approach to ensure every policy is tailoredto the needs of the customer
Credit insurance provides protection against losses arising from non-payment
for goods and services sold on credit (whether this results from insolvency,
default, or political risks).
Our credit insurance products are based on a concept called ‘Modula’. This isa worldwide-aligned catalogue of modules (or policy conditions), which canbe combined in a flexible way for each customer to meet the requirementsof their business. This means that every policy is tailored to the needs of thecustomer. These products are designed to provide protection for a customer’s
whole turnover.
We have solutions for all types of business: multinationals, medium-size andlarge companies and SMEs.
For multinationals, we offer a sophisticated and tailor-made credit
management solution in the form of our Global policy. As a market leader
and pioneer with 25 years of experience in this segment, Atradius Global has
developed an excellent understanding of the needs, structure and geographiesof multinationals. The structure of our modular cover and service footprint
is uniquely designed to mirror the requirements of our customers, whether
they have centralised or local credit management. This customer-focused
approach is supported by dedicated Global Account Teams and Key AccountUnderwriters, located around the world to allow us to provide extensive
cross-border customer service, consistent high-quality decision making andaccurately anticipate the needs and requirements of our Global customers.
For medium-size and large local companies we offer policies tailored to thecustomer’s needs using the Modula concept. In this way, cover can be adapted
to fit all kinds of businesses, in any sector, doing business domestically orinternationally.
For SMEs we have created a range of products built from the Modula concept
but packaged to make them easy to understand and simple to administer, andoften tailored to specific markets or industries, such as Modula First in several
European countries, Modula Kompakt in Germany, or Modula Smart in Italy.
In Spain and Portugal, the Agile Policy breaks new ground in allowing ouragents to fully steer the underwriting process.
The benefit of purchasing credit insurance from Atradius comes from the
day-to-day credit management and risk assessment support that we provide
alongside our credit insurance policy. Each policy is supported by an accountmanager, credit limit underwriting and our online tools and services,which includes credit risk information and data on markets and businesses
throughout the world.

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Atradius Management Report  |  Business profile Atradius N.V.

Our Account Managers provide an on-demand contact point to help customers
to navigate their policies and give credit management support.
Hundreds of experienced underwriters carry out credit limit underwriting
across the globe. They assess the risk of buyers and set safe trading limits.
They are based in the country of the buyer, so they bring local knowledge andlanguage skills to provide the best possible risk assessments on their behalf.
Our online tools provide additional credit management support services
such as ‘Insights’ which provides portfolio risk analysis. ‘Atrium’ enables
customers to perform administrative tasks for their policy such as applying
for a credit limit or submitting a claim.
In Atradius Spain, Portugal and Brazil we offer additional value-added
services as a reward for customer loyalty, including, very recently, B2BSafe
marketplace.
In addition to more traditional credit insurance, which covers a customer’s‘whole turnover’, we also offer a range of structured credit risk solutions for
specific large and complex transactions. These solutions address a range ofcircumstances, from enhanced credit protection for single contracts or buyers
to pre-export finance, which can be combined to meet multiple needs.  
With the rise of digital trading, we have also developed a single transaction
credit insurance product which can be digitally integrated with platforms sothat credit insurance can be purchased online, in the moment when trading
decisions are being taken.

Reinsurance
Specialised solutions for credit and bonding
Atradius Reinsurance DAC (Atradius Re) is a leading monoline credit andbonding reinsurer, offering reinsurance solutions for credit insurance
and bonding primary insurers around the globe. Through our team ofunderwriters in Dublin, Ireland, Atradius Re supports over 110 clients in
51 countries. Our strength of Atradius Re is in the combination of access to
the Atradius underwriting skills in key business credit and bonding, andhighly specialised reinsurance skills for the needs of credit and bonding
underwriters.

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

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Atradius Management Report  |  Business profile Atradius N.V.

Debt Collection
Professional and reliable collections backed by aglobal network
With worldwide expertise, and staff in 34 countries, Atradius Collections
helps businesses - both insured and uninsured - collect domestic andinternational trade receivables, whilst maintaining sound business
relationships with their clients. We have built a strong reputation as abusiness-to-business specialist, using the strength of Atradius Credit
insurance, combined with our own integrated international network ofcollectors, lawyers and insolvency practitioners, in addition to our on-line
capabilities. Since 2015, Atradius Collections has also offered a first-party
collections service, which allows customers to outsource their reminder
process immediately after the invoice due date. We have created a range ofservices for the financial industry, including back-up servicing, cross-bordercollection, and invoice verification, allowing factoring companies and assetbased lenders to investigate whether the business transactions or invoicesfrom clients are acknowledged by the buyer. Our on-line platform Agora is
now live in 16 countries and being transformed from an on-line debt recovery
platform to an accounts receivable platform.

Instalment Credit Protection
Risk protection for instalment-based credit
agreements
Atradius Instalment Credit Protection (ICP) covers short-term and mediumterm risks mainly involved in instalment-based credit agreements withprivate individuals and businesses. We offer our services to financial andcorporate policyholders in Belgium and Luxembourg. The main productoffering covers consumer credit, leasing and renting risks. We have extended
our ICP product range to offer residential real estate insurance products forco-ownerships and for rental guarantees, as well as products for private-car
leasing arrangements.

Dutch State Business
The export credit agency of the Netherlands
Atradius Dutch State Business (ADSB) is the export credit agency of theNetherlands. To minimise the risks of non-payment not covered by theprivate market, and to enable the financing of Dutch export, we offer a wide
range of insurance and guarantee products to Dutch exporters of capital
goods, internationally operating construction companies, and their financiersor investors. We work on behalf of the Dutch state, making sure that exporttransactions can be completed successfully. In 2021 we launched a new
product, Green Cover, to accelerate the green energy transition. It has been
designed to support Dutch entrepreneurs in acquiring the finance they needso they can develop or scale up sustainable projects or green capital goods. Asfrom 1 January 2023 Green Cover stopped supporting finance of new projects
with fossil fuels.

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Atradius Management Report  |  Business profile Atradius N.V.

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

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Atradius Management Report  |  Business profile Atradius N.V.

Global footprint
EuropeAustria

ViennaBelgium

Namur, Antwerp

Bulgaria
Czech Republic

Sofia
PragueDenmark

Copenhagen, Århus

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

Germany

Berlin, Bielefeld, Bremen, Dortmund, Frankfurt, Freiburg,
Hamburg, Hannover, Köln, München, Nürnberg, Stuttgart

GreeceAthensHungary

Budapest

Iceland

Reykjavik (1)IrelandDublinItaly

Rome, Milan

Lithuania

Vilnius (1)Luxembourg

Leudelange

Netherlands

Amsterdam, Ommen

NorwayOslo

PolandWarsaw, Krakow, Poznan, Jelena Gora

Portugal

Lisbon, PortoRomania

Bucharest

RussiaMoscow

Slovakia

Bratislava

Spain

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

SwedenStockholm

Switzerland

ZurichTurkeyIstanbul

United Kingdom

Cardiff, Belfast, Birmingham, London, Manchester

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

Riyadh (1)Asia

United ArabEmirates

Dubai (1)

China

Guangzhou, Shanghai (2)Hong Kong

Hong Kong

India
Indonesia

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

Japan

Tokyo

Malaysia

Kuala Lumpur (1)Philippines

Manila (1)Americas
Argentina

Buenos Aires (1)BrazilSão Paulo

CanadaMississauga (Toronto), Pointe Claire (Montreal)

Chile

Santiago de Chile

MexicoMexico City, Guadalajara, Monterrey

Peru

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

(1)

16

AfricaKenya

Nairobi (1)South Africa

Johannesburg (1)Tunisia

Tunis (1)Atradius offices

Credit Insurance
Collections

Singapore

Singapore

Information

South Korea

Seoul (2)Bonding

TaiwanTaipei (1)Oceania

Thailand

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

DSB

VietnamHanoi (1)New Zealand

AucklandReinsurance(1)

Associated	company, minority interestor reinsurance agreement with orwithout a co-operation agreement withlocal partner(2)	Service establishment and co-operationagreement with local partner

Instalment Credit

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Atradius Management Report  |  Business profile Atradius N.V.

General Atradiusgroup organisation
General overview of the main holding andoperating companies as at 31 December 2022

Atradius Collections
Holding B.V.
The Netherlands
Office locations:
Italy
Australia
MexicoBelgium
Netherlands
BrazilPolandCanadaPortugal
China
Czech Republic Spain
Singapore
Denmark
TurkeyFranceUnited Kingdom
Germany
United ArabHong Kong
Emirates
HungaryUSA
IrelandAtradius N.V.
The Netherlands

Atradius Insurance
Holding N.V.
The Netherlands

Atradius Finance B.V.
The Netherlands

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

Branches:Japan
Australia
Luxembourg
Austria
Netherlands
Belgium
New Zealand
Bulgaria
NorwayCanadaCzech Republic Poland
Portugal
Denmark
Romania
FinlandSingapore
FranceSlovakia
Germany
SwedenGreeceSwitzerland
Hong Kong
TurkeyHungary
United Kingdom
Ireland
Italy

Atradius Reinsurance DAC
IrelandAtradius Trade Credit
Insurance, Inc. USA
Atradius Credit Insurance
Agency, Inc. USA
Atradius Rus Credit
Insurance LLC Russia

Atradius Seguros
de Crédito S.A. Mexico
Operating companies& branches:
Belgium
China
Denmark
FranceGermany
India
Indonesia
IrelandItaly
Japan
MexicoAtradius Information
Services B.V.
The Netherlands

18

NorwayRussiaSouth Korea
Spain
SwedenSwitzerland
TaiwanThailand
United Kingdom
Vietnam

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

Corporate
governance
The Supervisory Board would like to thankthe Management Board and all employeesof Atradius for their personal dedicationand ongoing commitment during yet
another challenging year.

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

Report of theSupervisory Board
In 2022 Atradius delivered an outstanding
performance, despite another year full ofsignificant and unprecedented challenges.
Atradius has once again demonstrated resilience by delivering exceptional
financial results in the face of a range of global challenges. These include war andgeopolitical turbulence, continued disruption from the pandemic, and faltering
global economic growth amid higher inflation, rising energy costs and interest
rates. The war in Ukraine has had a significant impact on safety and stability at aninternational level. While our primary concern remains with the personal safety andwellbeing of those affected by the conflict, we also needed to take action to containits effects on our business. Against these complex and extraordinary challenges,
the claims environment remained benign. Our strong value proposition continued
to attract more business from our customers. A commercial strategy of cautiously
selecting new opportunities, supported by rigorous risk management, produced
good levels of new business, given the circumstances. All of these, together with thecommitment and hard work of our colleagues, produced a remarkable performance:a total revenue of EUR 2.4 billion and a profit of EUR 332.2 million. Solvency wasstrengthened by an increase in the equity of 6% to more than EUR 2.6 billion. In acomplex environment, Atradius did very well to deliver these results, which is firstand foremost a compliment to all of our employees worldwide.
Despite the challenges in the external environment, the focus on an ambitious
strategic agenda continued undiminished in 2022. Sustainability is a key priority. Our
vision is founded on three intersecting areas of impact: planet, people and prosperity.
We are currently exploring execution strategies for a range of goals in this area.
Other key priorities that met their objectives in 2022 were compliance with the new
accounting standard IFRS 17, effective 1 January 2023, and expediting our major
digital transformation programmes for our Credit Insurance and Bonding businesses,
through several major releases and significant upgrades.With regard to corporate
governance, the Supervisory Board has continued to ensure that Atradius runs its
business and manages risk for stakeholders in a transparent and ethical way.
In 2022, the full Supervisory Board convened five times. The Supervisory Board has
established two Committees, the Audit Committee and the Remuneration, Selection
and Appointment Committee that discuss specific issues in depth and prepare items
on which the full Supervisory Board makes decisions. In 2022, the Audit Committee
convened four times and the Remuneration, Selection and Appointment Committee
convened twice.
Key topics discussed during the 2022 Supervisory Board meetings include thereview of Atradius’ results and strategy, including the implications of the war in
Ukraine, the developments on the commercial area, the review and monitoring of
the risk management framework, the review of investment and rating aspects andthe renewal of the reinsurance programme. The Supervisory Board also received
updates on the compliance and IT security matters, and was informed on the key

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Atradius Management report | Corporate Governance Atradius N.V.

developments around the implementation of the IFRS 17 accounting standards
and the large business transformation programmes. In December 2022, theSupervisory Board approved the budget for 2023 and was involved in the selection
and recommendation process relating to the appointment of a new member of theSupervisory Board, as further indicated below.
Key topics discussed during the 2022 Audit Committee meetings included; the reviewof Atradius’ results and annual report, the external auditor’s reports and updates, theevolution and sufficiency of technical provisions, the internal audit reports and theinternal audit plan, the re-appointment of the external auditor and the review of theexternal auditor’s independence and non-audit services provided. These topics werediscussed in the presence of the external auditor, PricewaterhouseCoopers.
During 2022, the Remuneration, Selection and Appointment Committee discussed
the functioning of the members of the Management Board and the Supervisory
Board, evaluated the scope and composition of the Management Board and theSupervisory Board, including the result of the yearly self-assessments undertakenby the Supervisory Board. It also reviewed the variable pay, targets and performancefor the members of the Management Board, the remuneration of the Supervisory
Board, the updates to the remuneration policy of Atradius, as well as gender diversity
topics. The Remuneration, Selection and Appointment Committee further maderecommendations on the appointments of members of the Supervisory Board, theAudit Committee and the Remuneration, Selection and Appointment Committee.
As in previous years, both the Supervisory Board and the Management Board
participated in Atradius’ annual Permanent Education programme. In 2022, thisprogramme covered a session including, amongst other topics, training in relation to
the new IFRS 17 accounting standards.
At the end of 2022, Mr. Francisco Arregui stepped down as member and Deputy Chairof the Supervisory Board, as well as member of the Audit and the Remuneration,
Selection and Appointment Committees of Atradius, to enjoy his retirement after
being a member of the Supervisory Boardfor the last 13 years. The Supervisory Board wishes to sincerely thank Francisco
Arregui for his insight, his valuable contributions and commitment to Atradius overthe many years.
With effect 1 January 2023, Mr. Joaquín Guallar was appointed as a new member of
the Supervisory Board, bringing deep knowledge on corporate, legal and compliancematters in the insurance field to the Supervisory Board. Also with effect 1 January2023, Mr. Juan Ignacio Guerrero has been appointed as the new Chair of the Audit
Committee and Messrs. Xavier Freixes and Carlos Halpern have been appointed as
members thereof. Furthermore, with effect 1 January 2023, Mr. Hugo Serra has been
appointed Chair of the Remuneration, Selection and Appointment Committee and Mr.
Joaquín Guallar has been appointed as a new member thereof.
The Atradius N.V.’s Annual Report contains the financial statements for the financial
year 2022, audited by PricewaterhouseCoopers Accountants N.V., and has beenpresented to the Supervisory Board by the Management Board. The Supervisory
Board has approved the Annual Report and advised the General Meeting to adopt thefinancial statements for 2022.  
The Supervisory Board would like to thank the Management Board and all employeesof Atradius for their personal dedication and ongoing commitment during yet
another challenging year, which has allowed Atradius to achieve excellent results,
as well as to thank the customers for continuing to trust their business to us. The
Supervisory Board is convinced that the Atradius management team, employees andstakeholders will contribute to another successful year in 2023.

The Supervisory Board
Xavier Freixes
Chair

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Shareholder structure
Atradius is part of Grupo Catalana Occidente.
It is the international brand of the credit
insurance business.
Shareholders structure of Atradius N.V., unchanged since 2011:

Shareholders structure of Atradius N.V.

Percentage ofShares

Grupo Catalana Occidente, S.A.

35.77%

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

64.23%

Grupo Catalana Occidente, S.A.

73.84%

Consorcio de Compensación de Seguros

9.88%

Nacional de Reaseguros

7.78%

España, S.A. Compañía Nacional de Seguros

5.00%

Ges Seguros y Reaseguros

3.50%

Total

100.00%

Grupo Catalana Occidente is the main shareholder with an economic stake of 83.2% (35.77% directly and 47.43%
indirectly through the holding company Grupo Compañía Española de Crédito y Caución, S.L.).
The shares of Grupo Catalana Occidente are listed on the Continuous Market of the Barcelona and Madrid stock
exchanges as part of the IBEX Medium Cap Index. Currently, 33.54% of its capital is floating and the main
shareholder is INOC, S.A., holding 61.94% of the capital of Grupo Catalana Occidente.
Thanks to the stability of the results and the prudent investment policy, Grupo Catalana Occidente has a solid
solvency position.

Key figures(EUR million)

2022

2021

Long-term capital market value

4.916,3

5,191.5

Equity4.374,0

4,667.70

Subordinated debt

191,3

194.9

Return on long-term capital

12,9%

10.5%

Funds under management

14.991,1

15,712.2

Total revenue

5.245,6

4,882.5

542,6

468.3

Consolidated result

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Atradius Management report | Corporate Governance Atradius N.V.

Grupo Catalana
Occidente
One of the leaders in the Spanish insurance sector and inglobal credit insurance. Founded more than 150 years ago,
it has experienced constant growth, thanks to its capacity toadapt to change and remain loyal to its principles, which are
truly insurance oriented.
The Grupo Catalana Occidente is committed to the professional development of its employees and insurance agents,
its personalised customer service and the trust its shareholders have in the organisation.

More than 15,000Intermediaries

More than 1,518
branches

Presence inmore than 50
countries

More than
7,100 employees

More than€4,800 million
turnover

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

Profitability

GrowthRecurrent and sustained profitability
based on technical and actuarial
rigour, investment diversificationand processes that allow tight cost
ratios and quality service.

Defining markets targeted by
the group, appropriate productand service development andestablishing suitable distribution
channels to reach the customer.

Solvency
Prioritise own resources generation andcontinued growth in order to support thegroup’s expansion, ensuring compliancewith commitments and ensuring appropriate
shareholders returns.

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Atradius Management report | Corporate Governance Atradius N.V.

Traditional BusinessCharacteristics

Lines of Business

Focused on Spain

Multi-risk

Families and small and medium sizedcompanies

Automobile

Professional agency network

Other non-life

1,405 offices

Life and financial products
HealthFuneralCredit Insurance
Business

Service offered in more than 50 countries

Credit insurance

Business to businessBonding

Agents and brokers

Credit and bonding reinsurance
Debt collection
Instalment credit protection
Business information

Fundación Jesús Serra
Fundación Jesús Serra, named after the founder of the Grupo Catalana
Occidente, was created in 2006 in order to channel the philanthropic actionsof the Group and to drive the human and professional values that werecharacteristic of its founder. For this reason, the foundation participates inmore than seventy projects in the areas of business, education, investigation,
culture, sport and social action. Through this platform, the Group contributes
to the construction of a fairer, more united and more developed society, inwhich values such as initiative, effort, healthy competition and continuous
improvement prevail.

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

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

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Andreas Tesch - Chief Market Officer(1969, German nationality)
Andreas Tesch was appointed Chief Market Officer (CMO) in November 2011.
Andreas is responsible for the credit insurance operations, as well as Special
Products, Dutch State Business and Group Marketing and Communications. He
is the Chairman of Atradius Trade Credit Insurance, Inc., a Board member ofAtradius Dutch State Business N.V. and Atradius Participations Holding S.L.U, anda member of the Supervisory Board of Credit Guarantee Insurance Corporation
Limited, amongst others. He has also been President of the International Credit
Insurance and Surety Association (ICISA). Andreas has worked for Atradius andits predecessor companies since 2001. From January 2007 to October 2011, he
was Director of Global, Oceania and New Markets and, before that, Director of
Risk Services for Central and Eastern Europe. Prior to joining Atradius, he was a
Director at Simon Kucher & Partners, advising clients on strategy and mergers andacquisitions. Andreas has a degree in Business Administration from the Universityof Cologne.
Christian van Lint - Chief Risk Officer(1960, Dutch nationality)
Christian van Lint was appointed Chief Risk Officer (CRO) in November 2012.
Christian is responsible for Group Risk Management, Group Buyer Underwriting,
Risk Services and Outward Reinsurance. He has worked for Atradius and its
predecessor companies since 1983. From February 2006 to November 2012, he was
Director of Group Risk Management and, before that, Director of Risk Services for
the Netherlands and Nordics. He has held various positions in the areas of claims
and recoveries, buyer underwriting, and special risk management. Christiangraduated in Business Administration and Economics in Utrecht.
Claus Gramlich-Eicher - Chief Financial Officer(1965, German nationality)
Claus Gramlich-Eicher was appointed Chief Financial Officer (CFO) in May 2013.
Claus is responsible for Group Finance, including Finance ProgrammeManagement, as well as Group Control and Corporate Finance & Tax. He is alsoa Board member of Atradius Finance B.V. and Compañía de Seguros de Crédito
Continental S.A., as well as a member of the Advisory Board of Kemiex A.G. He
has more than 30 years of experience in the financial services sector. Before
joining Atradius, he worked for Allianz in various senior financial and investment
management roles in Germany, Spain, Italy and the Czech Republic. He has also
held non-executive Board member positions in insurance, investment management
and pension fund management companies. Claus studied Economics and Business
Administration at the University of St. Gallen and ESADE in Barcelona and holds
both a Master’s Degree from the University of St. Gallen and a CEMS Master’s inInternational Management.
Marc Henstridge - Chief Insurance Operations Officer(1968, British nationality)
Marc Henstridge was appointed Chief Insurance Operations Officer (CIOO) in
January 2017.
Marc is responsible for Project and Process, IT Services (CIO and CTO roles),Bonding, Collections, Inward Reinsurance, and Instalment Credit Protection. He is
the Chair of Atradius Reinsurance DAC and a Board member of Atradius Collections
Holding B.V. and Atradius Participations Holding S.L.U. Marc has worked for
Atradius and its predecessor companies since 1997. Before his appointment as
CIOO, he served as Director of Risk Services in the UK and Ireland, and Special
Products worldwide. Prior to joining Atradius, he spent 10 years at HSBC Corporate
as an analyst in the retail and aerospace sectors. Marc graduated in BusinessStudies from Oakwood College of H&FE in Kent.

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Atradius Management report | Corporate Governance Atradius N.V.

Role and procedures
The Management Board as a whole is responsible for the management andthe general affairs of Atradius and is supervised by the Supervisory Board.
The Management Board determines Atradius’ operational and financial
objectives, and the strategy designed to achieve these objectives. It ensures
Atradius has an effective risk management system, internal control system
and internal audit function in place. It submits the annual business plan andbudget of Atradius to the Supervisory Board for approval. The Management
Board rules describe the allocation of duties and the decision-making processof the Management Board.
The General Meeting has the authority to appoint the members of theManagement Board on the recommendation of the Remuneration, Selection
and Appointment Committee of the Supervisory Board. A Management Board
member may be suspended or dismissed by the General Meeting at any time.
The Management Board shall consist of at least three members. Management
Board members are appointed for an undefined term. In the event of avacancy, the management of Atradius N.V. will be conducted by the remaining
members or sole remaining member of the Management Board.
Remuneration
The Supervisory Board determines the remuneration and further
employment conditions of each member of the Management Board,
based on the recommendation of the Remuneration, Selection andAppointment Committee of the Supervisory Board and in accordance withthe remuneration policy adopted by the General Meeting. You can findinformation regarding the amount of remuneration received by Management
Board members in the explanatory notes to the consolidated financial
statements of the Annual Report 2022.
Conflict of interest
A member of the Management Board with a potential conflict of interest with
the Company will immediately report this to the Chair of the Management
Board, who will determine whether the reported case qualifies as a conflictof interest. A member of the Management Board will not participate in any
deliberations or decision-making of the Management Board if that member
has a direct or indirect personal interest that conflicts with the interest of theCompany or its business. In such a case, the other non-conflicted membersof the Management Board will pass the resolution. If all members of theManagement Board are conflicted, then the Supervisory Board will pass theresolution.

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Atradius Management report | Corporate Governance Atradius N.V.

The Supervisory Board
Composition
The Supervisory Board of Atradius N.V. currently consists of nine members.
Xavier Freixes - Chair(1969, Spanish nationality)
Xavier is Founder and Director of Ashtree Strategic Advisors Ltd and iscurrently the Chair of the Board of Atradius Crédito y Caución S.A. de Seguros
y Reaseguros and a Board member at Corporación Químico Farmacéutica
Esteve, S.A. Xavier started his career in 1995 as a practising lawyer at
Cuatrecasas in Barcelona, where he became a partner in 2005. He moved
to London in 2007 to become a Senior Mergers and Acquisitions Specialistat Deephaven Capital Management International Ltd, and later, Founding
Partner, General Counsel and Chief Executive Officer of Tyrus Capital S.A.M.
in Monaco. Former positions include General Counsel of the Barcelona Stock
Exchange and external consultant at Generalitat de Catalunya, lecturer at
the Universitat Pompeu Fabra and the ESADE Business School in Barcelona.
Xavier has a degree in Law from Universitat Autònoma in Barcelona anda Master’s degree in Corporate Law from Universitat Pompeu Fabra inBarcelona.
Bernd H. Meyer(1946, German nationality)
Bernd worked in Gerling-Konzern in Cologne for 25 years, 22 of them incredit insurance. He is a Board member of Atradius Crédito y Caución S.A. de
Seguros y Reaseguros as well as Deputy Chair of the Supervisory Board of Carl
Spaeter GmbH, Duisburg. Former positions include Chair of the Management
Board of Gerling NCM Credit and Finance AG. Bernd graduated in Law from
Hamburg University and passed his second state examination in Law, also in
Hamburg.
Hugo Serra(1975, Spanish nationality)
Hugo is currently Vice-Chairman and CEO of Grupo Catalana Occidente,
S.A. and has been a member of the Board of Grupo Catalana Occidente, S.A.
and Seguros Catalana Occidente, S.A. de Seguros y Reaseguros since 2006.
Other current positions include, among others, Board member of Grupo
Compañía Española de Crédito y Caución, S.L., CEO of Co Sociedad de Gestióny Participación, S.A., Chairman of the Board of Grupo Catalana Occidente
Gestión de Activos, S.A., SGIIC and Board member of Atradius Crédito y
Caución S.A. de Seguros y Reaseguros and INOC, S.A. He is also a trustee at
Fundación Jesús Serra. Before joining Grupo Catalana Occidente, S.A., heworked at Deutsche Bank in product development and marketing. Hugo has a
BSBA from the University of Wales, a degree in Business Administration fromthe Polytechnic University of Catalonia in Barcelona, and an Executive MBAfrom IESE Business School in Barcelona.

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Atradius Management report | Corporate Governance Atradius N.V.

Désirée van Gorp
(1965, Dutch nationality)
Désirée joined Nyenrode Business Universiteit in 1999, where she is currently
Professor of International Business and Chair of the International Advisory
Board. She is also is Visiting Professor at MIP Politecnico di Milano, Italy;
Renmin University in Beijing, China; and University of Montevideo, Uruguay.
Other positions include Board member of Atradius Crédito y Caución S.A.
de Seguros y Reaseguros, Advisory Board member of the World Trade
Organization Chairs Programme and ECP NL. She is also a Supervisory
Board member of NBTC Holland Marketing. She is founder and serves on the
Board of the Young & Bold Foundation and is member of the Committee ofRecommendation of AMREF Flying Doctors. Désirée graduated in Law from
Leiden University; is design thinking educated at Stanford University and has
a PhD in Business Administration from Nyenrode Business Universiteit.
John Hourican(1970, Irish nationality)
John has more than 20 years’ experience in the financial sector. He iscurrently CEO of NewDay Ltd, a Board member of UK Finance and Board
member of Atradius Crédito y Caución S.A. de Seguros y Reaseguros. He
was Group Chief Executive Officer of Bank of Cyprus from 2013 to 2019 andChief Executive of The Royal Bank of Scotland Group’s (RBS) Investment
Bank (Markets & International Banking) from 2008 to 2013. Between 2007
and 2008, he served on behalf of a consortium of banks (RBS, Fortis andSantander) as Chief Financial Officer and member of the Management Boardof ABN AMRO Group. He joined RBS in 1997 as a leveraged finance banker.
John held various senior positions in RBS’ wholesale banking division,
including on the division’s Board as Finance Director and Chief Operating
Officer. He also ran the bank’s leveraged finance business in Europe andAsia. He started his career at Price Waterhouse where he held various
Corporate Finance and Audit roles in Dublin, London and Hong Kong. He isa Fellow of the Institute of Chartered Accountants in Ireland. John graduatedin Economics and Sociology from the National University of Ireland and in
Accounting from Dublin City University.
Carlos Halpern(1970, Spanish nationality)
Carlos has more than 20 years’ experience in the insurance and financial
sectors. He has been senior advisor with several consulting firms including
Roland Berger Strategy Consultants and has been involved in several digitaltransformation projects. He currently acts as Lecturer in Finance in several
business schools including IESE and ICADE. He is a Board member of Atradius
Crédito y Caución S.A. de Seguros y Reaseguros, Grupo Catalana Occidente,
S.A. and Grupo Compañía Española de Crédito y Caución, S.L. From 2004 until
2014 he held various senior positions with Liberbank, including leading amajor integration project, and several Board positions in different financial
companies. From 1996 until 2004, he worked at Europraxis Consulting where
he was involved in management consulting projects in several European
countries. Carlos has a Master’s degree in Business Administration from IESE
Business School and a Master’s Degree in Physics (Information Technology)
from the Complutense University of Madrid. He has also completed theAdvanced Management Program at Harvard Business School.

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José María Sunyer(1969, Spanish nationality)
José María has 28 years’ experience in the insurance sector and is currently Chairof Ges Seguros y Reaseguros, S.A. (formerly CEO from 2010 to 2018). He is also
Chair of Nacional de Reaseguros, S.A. and Vice-Chair of Almudena Seguros, S.A.
He is a Board member of Atradius Crédito y Caución S.A. de Seguros y Reaseguros
and of Corporación Europea de Inversiones, S.A., as well as Asitur, S.A. Up
until 2022 José María was a member of the Advisory Board of ICEA (Spanish
Institute for Cooperation and Investigation between Insurance and Pension FundManagement Companies) and is currently member of the Governing Board of
UNESPA (Spanish Association of Insurance and Reinsurance Institutions). In thepast, he has been a Board member of Audatex, Calculo, Gesnorte and Sersanet.
José María has a degree in Economics from Universidad Pontificia de Comillas in
Madrid.
Juan Ignacio Guerrero(1958, Spanish nationality)
Juan Ignacio has more than 35 years’ experience in the insurance sector. He
is a Board member at Domasa Inversiones, S.L. and has been an independent
member of the Board of Grupo Catalana Occidente, S.A. since 2011. Between 1984
and 2006, Juan Ignacio was Deputy Director General and later CEO and Managing
Director at Aresa, Seguros Generales, S.A., a Spanish insurance company. He
is currently Chair of the Audit Committee of Atradius N.V., Board member ofAtradius Crédito y Caución S.A. de Seguros y Reaseguros and a Board memberof Grupo Compañía Española de Crédito y Caución, S.L. Former positions in theinsurance sector include member of the Governing Board of UNESPA (Spanish
Association of Insurance and Reinsurance Institutions) between 1996 and 2006
and Vice-President of the Advisory Committee on Health Insurance Companies of
the Government of Catalonia between 1985 and 2006. Juan Ignacio has a degree
in Economics and Business Studies from the University of Barcelona. He is also
qualified as an Insurance Actuary and holds a Doctorate in Financial Mathematics
and Actuarial Studies (pending reading of the doctoral thesis) from the same
university, where he is also a lecturer on a Master’s Degree course on InsuranceManagement.
Joaquín Guallar(1975, Spanish nationality)
Joaquín is currently a member of the management board (Comité de Dirección)of Grupo Catalana Occidente, S.A., as well as Secretary Non-Director of the Boardof Directors of Grupo Catalana Occidente, S.A. Before joining Grupo Catalana
Occidente, S.A. in 2013, Joaquín was a Senior Associate at Cuatrecasas, theSpanish law firm that he had joined in 2001. Between 2008 and 2009 he wasseconded to Cravath Swaine & Moore LLP in New York as a foreign associate
lawyer. Other current positions include, among others, Board member of Atradius
Crédito y Caución S.A. de Seguros y Reaseguros, Grupo Compañía Española deCrédito y Caución, S.L., Grupo Catalana Occidente Gestión de Activos S.A.U. SGIIC
and Inversions Catalana Occident, S.A. (Andorra), and Secretary Non-Director of
the Board of Seguros Catalana Occidente, S.A.U. de Seguros y Reaseguros. Joaquín
has a degree in Economics from the University of Barcelona and a Law degreefrom Abat Oliba CEU (University of Barcelona), as well as a Master’s degree inInternational Business Law at ESADE and a Certificate of Research Sufficiency Doctorate in International Studies from the University of Barcelona. He has also
taken the General Manager Program (PDG) at IESE Business School in Barcelona.
Former member of the Supervisory Board (until 31 December 2022):
Francisco Arregui.

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

Name

Position

Date of initial
appointment

Year of next
re-appointment

Xavier Freixes

Chair

01 September 2011

2023

Bernd H. Meyer

Member

22 December 2003

2025

Hugo Serra

Member

01 September 20112023

Désirée van Gorp

Member

16 May 2013

2025

John Hourican

Member01 June 2016

2024

Carlos Halpern

Member19 January 20172024

José María Sunyer

Member19 January 20172024

Juan Ignacio GuerreroMember

01 January 2022

2023

Joaquín Guallar

member

01 January 2023

2025

A resigning Supervisory Board member may be reappointed. A Supervisory
Board member will resign early in the event of inadequate performance or inother circumstances in which resignation is deemed necessary by the othermembers of the Supervisory Board.
The composition of the Supervisory Board
The composition of the Supervisory Board shall be such that the combined
experience, expertise and independence of its member enables it to best
carry out its various responsibilities. The current members of the Supervisory
Board have extensive experience in insurance and reinsurance, investmentbanking, strategic consulting and regulatory matters.

31

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

Audit Committee
The Audit Committee supports the Supervisory Board in fulfilling its
supervisory and monitoring duties for the assurance of the integrity of theCompany’s financial statements, the external auditor’s qualifications, andthe performance of internal and external auditors. The Audit Committeemonitors, independently and objectively, the financial reporting process
within Atradius and the system of internal controls. The Audit Committee
also facilitates ongoing communication between the external auditor, theManagement Board, the internal audit department and the Supervisory Board
on issues concerning the Company’s financial position and financial affairs.
In 2022, the Audit Committee met four times. The Audit Committee currently
consists of Juan Ignacio Guerrero (Chair), Xavier Freixes and Carlos Halpern.

Remuneration, Selection and Appointment
Committee
The Remuneration, Selection and Appointment Committee supports theSupervisory Board in fulfilling its supervisory and monitoring duties for
proposals for the appointment of members of the Management Boardand the Supervisory Board, the remuneration policy, the remunerationof senior management and other corporate governance matters. In 2022,
the Remuneration, Selection and Appointment Committee met twice. The
Remuneration, Selection and Appointment Committee currently consists of
Hugo Serra (Chair), Xavier Freixes and Joaquín Guallar.
The General Meeting determines the remuneration of the members of theSupervisory Board based on the recommendation of the Remuneration,
Selection and Appointment Committee, and in accordance with the
remuneration policy adopted by the General Meeting. The expenses ofmembers of the Supervisory Board are reimbursed. You can find information
regarding the amount of remuneration received by Supervisory Board
members in the explanatory notes to the consolidated financial statements of
the Annual Report 2022.

32

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

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

The internal and external auditor
Internal auditor
The internal auditor fulfils an important role in assessing and testing theinternal risk management and control system. The Director of Internal Audit
reports to the Chair of the Audit Committee and, with respect to day-to-day
activities, to the Chief Executive Officer of Atradius.
External auditor
The General Meeting appoints the external auditor on the recommendationof the Audit Committee of the Supervisory Board. The Audit Committee
evaluates the performance of the external auditor and also pre-approves thefees for audit services to be performed by the external auditor. The Audit
Committee ensures the external auditor is not appointed to render non-audit
services that are listed explicitly as prohibited services in the Atradius Policy
on Auditor Independence.
The General Meeting appointed PricewaterhouseCoopers Accountants N.V. as
the Company’s external auditor for the financial year 2022.

33

Company
information
With both the ability and appetite fortrade generally restored, overall volumesof insured business saw a return to strong
growth trends in most markets.

34

Atradius Management report | Business information

The global economic
environment
Geopolitical risk presents a new threat
to growth
Global economic growth slowed from 6.1% in 2021 to 3.1% in 2022. The
COVID-19 pandemic continued to influence the world economy, thoughless so than in 2021, as most markets emerged from their lockdowns after
the first quarter of 2022. A new threat came to the forefront when Russia
invaded Ukraine in February 2022. The war has enormous humanitarian andeconomic consequences for Ukraine, but also has important ramifications for
global energy markets. Energy shocks have pushed up inflation, weighing on
consumers’ purchasing power and firms’ profitability.

Global economic growth
Real and expected GDP growth, percent change y-o-y
9
6
3
0
-3
-6
2020

2021

Advanced economies

2022
Emerging markets

2023
World
Source:M acrobond

Advanced markets
Across advanced markets, GDP growth slowed to 2.6% in 2022, following on
a 5.4% expansion in 2021. High inflation was the main culprit to growth in
2022. Inflation in advanced markets rose to an average 7.1% in 2022, mainly
driven by high energy prices, but also core inflation (excluding energy andfood) was clearly above its historical average. Supply chain bottlenecks, suchas high shipping costs and semiconductor shortages, remained an issue in
2022. Many governments kept supportive fiscal policies in 2022, resulting
from pandemic-related support and support given because of the energy
crisis. Monetary policy, however, was tightened in many markets to combat
high inflation.

35

Atradius Management report | Business information

The United States entered a technical recession in the first half of 2022, but
performed better in the second half, with surprisingly good GDP performancein the fourth quarter. Pent-up demand and excess savings from the pandemic
period contributed to the economic resilience. However, private consumption
growth lost pace towards the end of 2022, showing the consumer is on aweaker footing. In response to high inflation, the US Federal Reserve began toshrink the size of its balance sheet and implemented several policy rate hikes
in 2022.
The eurozone experienced a relatively strong first half of 2022. Economies
emerged from their lockdowns after the first quarter, giving a growth boost
to the services sectors and to tourism. GDP growth weakened significantly,
however, in the second half of the year. This was mainly the result of highinflation, eating consumers’ purchasing power and negatively affecting
sentiment among both households and businesses. The European Central
bank, somewhat later than the Federal Reserve, moved on a more restrictive
monetary policy path. It implemented several rate hikes in 2022 and ended
net asset purchases under the pandemic emergency purchase programme.

Emerging markets
Growth in emerging market economies (EMEs) slowed from 7.0% in 2021
to 3.7% in 2022. They were confronted with headwinds from the COVID-19
pandemic as well as the fallout of the war between Russia and Ukraine.
EMEs in 2022 faced tighter financial conditions as central banks in advanced
markets raised interest rates in response to higher inflation. Some of themore indebted EMEs struggled with higher financing costs and threats of debt
instability.
Growth in Emerging Asia continued to cool down, though it remained thefastest growing region in 2022 (3.9%). In China, economic activity slowedfrom 8.1% in 2021 to 3.0% in 2022. COVID outbreaks and mobility restrictions
as part of the government’s zero-COVID policy have pulled down economic
activity. The Chinese real estate sector also experienced troubles due to thedeclining housing market and the bankruptcy of several large property
developers.
The economic recovery lost some steam in Latin America, with GDP growthslowing to 3.7%. Latin American economies faced ongoing challenges suchas high inflation and monetary tightening, which were further aggravatedby the economic repercussions caused by the war in Ukraine. In Brazil, GDP
expanded by 3.0% in 2022. Despite political uncertainty and tight monetary
policy, economic activity remained relatively resilient. Jobs growth andconsumer spending supported growth in the first half of 2022, but GDP
outturns weakened in the second half of the year. In Mexico, economic activity
rose by 3.1% in 2022, roughly bringing the GDP back to pre-pandemic levels. It
benefitted from employment and wage growth, record-breaking remittances,
and a strong recovery of US tourists.
In Eastern Europe, economic developments in 2022 were completely
dominated by the war in Ukraine. Western countries imposed massive
sanctions on Russia, resulting in an estimated 2.3% contraction of the Russian
economy in 2022. Turkey’s economic growth slowed considerably (from avery high 11.4% in 2021 to 5.1% in 2022), due to a weak external environment
as well as rampant inflation that weighed on consumers’ purchasing power.

36

Atradius Management report | Business information

Global commodity prices
Price index, 2010=100

160
120
80
40

CopperIron Ore

Aluminium

20
23

20
22

20
21

20
20

20
19

20
18

20
17

20
16

20
15

20
14

20
13

20
12

20
11

20
10

0

Brento il
Source: Macrobond, World Bank

Global insolvencies: reversing back to normal
In 2022, global insolvencies increased on an annual basis, though theyremained on the low side compared to the pre-pandemic levels. Fiscal support
measures and temporary changes to insolvency legislation helped to protect
companies from going bankrupt during the COVID-19 pandemic. As thesemeasures were phased out in 2022, we began to see an increase back to thenormal, pre-pandemic insolvency levels. Furthermore, the incomplete GDP
recovery since the pandemic, and negative growth effects from the war in
Ukraine, also gave upward pressure to bankruptcies.
In the eurozone, relatively high increases of insolvencies were recorded inAustria, France and Belgium, countries for which fiscal support was phased
out in the first half of 2022 and the adjustment back to normal insolvency
levels already began. However, there were also markets with relatively
small increases, such as Spain, the Netherlands and Italy. Italy and Spain
had already adjusted back to normal insolvency levels in 2021, whereas thenormalisation had not yet occured in the Netherlands in 2022.
In the United States, insolvencies trended upwards in 2022, but the increase
was relatively mild. We suspect this had to do with the relatively generous
government support given during the COVID-19 pandemic that has improved
the liquidity position of firms, preventing mass bankruptcies directly after
the support was phased out. By contrast, bankruptcies in the UK increased
relatively sharply in 2022, which can be attributed to the ending ofgovernment support measures and the weak economic recovery since Brexit.
UK bankruptcies by the end of 2022 even exceeded the pre-pandemic level.

37​​Macroeconomic o​utlook for 2023
We predict global economic activity to slow to 1.5% in 2023. This marks theweakest growth profile since the global financial crisis (excluding the
COVID-19 virus-driven downturn in 2020). Three critical factors weigh on
growth: monetary policy tightening in response to high inflation, the impactof the war in Ukraine, and the ongoing impact of lockdowns (particularly in
China) and supply chain disruptions. None of these factors is likely to be fully
resolved in 2023.
Emerging markets are forecast to show relative resilience in 2023, with GDP
growth forecast to go only a notch down, from 3.7% in 2022 to 3.2% in 2023.
This partly reflects idiosyncratic factors, such as a rebound in Chinese growth
as the economy emerges from COVID lockdowns and an easing in the paceof contraction in Russia. Emerging Asia remains the fastest growing regionin 2023 (4.5%). In China, growth is anticipated to improve to 4.5%, due to apartial reversal of the COVID lockdowns of last year, and further aided byexisting policy support and infrastructure spending. For Eastern Europe, we
forecast a recession in 2023, reflecting negative growth in Russia as well asa sharp slowdown of growth in Turkey. We do not expect the war between
Russia and Ukraine to be resolved soon.
Growth in advanced economies is projected to slow to 0.2%. Several key
advanced markets – US, UK and eurozone – are expected to fall into
recession in 2023. GDP growth in the United States is expected to decline
further as stubborn inflation and hawkish monetary policy take their toll on
consumption. Eurozone GDP growth is expected to remain more or less flat
(0.4%), mainly as a result of high energy prices. Governments in advanced
markets continue to provide fiscal support in 2023, though the fiscal positionis slightly less expansionary than last year. Central banks are expected tocontinue to keep monetary policy relatively tight as long inflation does notcome down.
In 2023, insolvencies in most markets continue to adjust to normal, prepandemic levels. There remains, however, a wide dispersion of insolvency
projections across countries. In South Korea, New Zealand, the United States
and the Netherlands, the withdrawal of fiscal support is likely to lead to astrong increase in insolvencies, after insolvencies stayed relatively low in
2022. There are, however, also countries with a relatively small increase in
insolvencies. The UK, for example, saw insolvencies already exceeding the
pre-pandemic level in 2022, putting a lid on insolvency growth in 2023. Threemarkets – Romania, Switzerland and Spain – are expected to see a decline inannual insolvency growth in 2023.
Risks to the world economy remain high. New disruptions to energy markets
resulting from the Russia-Ukraine war, policy mistakes in monetary
tightening, or new, more lethal COVID-19 virus variants, are all risks that
could further derail the global economy. The current risk environment
makes it even more challenging for companies to emerge stronger from the
COVID-19 pandemic.

38

Atradius Management report | Business information

Robust performance anda steadfast presence forour customers
P&L information (EUR thousands)
Insurance premium revenue
Information income
Gross insurance revenue

2022

2021

% change

2,224,480

1,900,319

17.1%

141,922

135,591

4.7%

2,366,403

2,035,910

16.2%(914,772)(566,413)(61.5%)

Gross insurance operating expenses(800,805)(757,184)(5.8%)

Reinsurance result(244,828)(419,753)

41.7%

Insurance result

405,998

292,560

38.8%

Gross insurance claims and loss adjustment expenses

(1)

(1)

86,248

117,994(26.9%)

Service expenses(77,405)(108,050)

28.4%

Service result

8,844

9,944

(11.1%)Net investment result

42,34335,57519.0%

Operating result before finance costs

457,184

338,079

35.2%

Result for the year (after tax)

332,212240,249

38.3%

3,310

3,497

(5.4%)

Service income

Employees (FTE)(1)

Overview includes inter-segment revenue and claims expenses

Gross

Net

2022

2021

2022

Claims ratio

38.7%

27.8%

41.3%

37.3%

Expense ratio

33.8%

37.2%

31.7%

35.9%

Combined ratio

72.5%

65.0%

73.1%

73.2%

Revenue by business segment

6.8%

5.4%

3.5%

84.3%

Credit Insurance (including ICP)
Reinsurance
BondingServices

39

2021

Atradius Management report | Business information

With the reduction in the reporting and severity of COVID-19 cases, many
trade sectors and geographical regions showed improved trade, logistics
and commerce during 2022. While not entirely abated, the overall impact of
COVID-19 in 2022 was substantially less, and in some regions, its impact wasvery limited. With both the ability and appetite for trade generally restored,
overall volumes of insured business saw a return to strong growth trends inmost markets. The growth in different regions along with high inflation (andthe subsequent increase in commodity prices) also contributed to notable
growth in insured turnover, resulting in gross insurance revenue increasing
by 16.2% during the year.
As government support measures implemented by many countries during
the pandemic have been progressively concluded or withdrawn, insolvencies
began increasing once again in several major markets. 2022 saw a yearon-year increase due to a combination the phasing out of fiscal support
measures, overall negative development of GDP and the turmoil resulting
from the invasion of Ukraine. Gross claims for the year ended at EUR 914.8
million, a 61.5% increase in absolute terms, with a gross claims ratio of 38.7%.
With political instability in many regions as well as high inflation generatinga new set of adverse shocks for the global economy, our Credit Insurance
business showed stable growth trends in all regions across the group. Our
Global unit and our local business in Germany and Spain, Portugal and Brazil
developed notably well, contributing substantially to overall growth alongwith our Asian markets where we continue to pursue our growth ambition.
Our Reinsurance, Bonding and Instalment Credit Protection businesses also
developed well, showing stronger growth trends than in 2021.
Brokerage fees increased by 20.9% with a stable brokerage ratio of 12.6%,
driven by the overall growth in insured business across geographical regions
and markets. While operating expenses decreased by 1.2%, leveraging all
opportunities for enhanced operational efficiency without compromising on
our renowned best-in-class service resulted in the operating expense ratio
decreasing to 33.8% (3.4%pts lower than 2021). This resulted in a healthy
Gross combined ratio of 72.5%. The reinsurance result in 2022 was EUR
244.8 million (41.7% better than last year) driven mainly by a return to more
traditional reinsurance treaties following the termination of the government
schemes measures which had impacted reinsurance during 2021. The overall
net insurance result ended at EUR 406.0 million, a 38.8% increase from 2021.
Services achieved a positive result, with an overall stable performancethroughout the different services.
The information services company, Graydon, was sold in the beginning of2022. This resulted in a reduction of 201 FTEs, which contributed to theoverall reduction of FTEs for Atradius from 3,497 to 3,310.
The net result from our investment portfolio was EUR 42.3 million. This
positive performance was a result of strong contributions from our associatedcompanies, from higher interest rates on our investment portfolio, and fromfavourable exchange rates.
Overall, the total result for the year reached EUR 332.2 million, in large partdue to organic growth, strong demand for Atradius’ products and services andthe impact of inflation on overall insured business volumes.

40

Atradius Management report | Business information

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

2022

2021

1,924,549

1,624,033

18.5%

Information income

141,922

135,591

4.7%

Insurance revenue

2,066,471

1,759,624

17.4%

Gross insurance claims and loss adjustment expenses (1)(789,011)(432,258)(82.5)%

Gross insurance operating expenses(671,122)(634,729)(5.8%)(1)

Result before reinsurance

606,339692,883(12.5%)

Reinsurance result(224,872)(398,748)

43.6%

Result after reinsurance

381,468

294,135

29.7%

38.2%

24.6%

(13.6% pts)

Total credit insurance and ICP gross claims ratio(1)

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

Credit insurance & ICP revenue by region
10.5%

10.3%

18.9%

Spain & Portugal
Northern & Central Europe

6.8%Western Europe
Southern Europe
Asia
21.5%

31.9%

Americas2022 was a positive year for our credit insurance business with positive
growth trends developing further across the markets. Our commitment toour customers and best-in-class service in all circumstances resulted in an
excellent customer retention rate of 93.5%. Gross insurance revenue grewby 18.5% (15.8% at constant foreign exchange rates). Our credit insurance
portfolio showed solid growth with units across the group generally
reporting very favourable development and collectively generating EUR
2,066.5 million in revenue, a 17.4% increase compared to 2021.
In 2022, business development in some regions, which continue to be
clouded by political or economic uncertainty, proved to be increasingly
challenging. However, almost every one of our local credit insurance units
grew versus the previous year. Asia maintained its strong growth of 35.7%
in 2022 as we continue to pursue our growth ambition in this region.
North America showed strong development despite price reductions in
the market, resulting in excellent growth of 35.5%. All countries in Europe
showed positive revenue development. Our markets in Germany andCentral & Eastern Europe showed notably strong growth (19.1% and 21.3%
respectively), along with Italy (29.1%), Netherlands (16.9%) and Oceania(15.4%). Spain our largest market showed a solid increase of 11.7% as overall
insured business continues to grow. Atradius’ Global unit maintained strong
performance and growth, further supported by the excellent customer baseretention thanks to Global’s first class service.

41

Atradius Management report | Business information

The Group’s risk exposure for credit insurance (total potential exposure, or
TPE) increased by 19.3%, to EUR 849.8 billion at year-end 2022. This is dueto the strong growth of insurable business volumes driven by new businessacquisition as well as increases in commodity prices and inflation. Europe
represents over 70% of total exposure, where Germany with 12.8% is thelargest market, followed by Spain with 10.9%.
The claims ratio for the year rose to 38.2%, which is 13.6% pts higher than theprevious year with a progressive increase in the overall number of claims.
This has been largely the result of a weaker economic outlook, high inflationand energy prices, some remaining supply chain issues and the withdrawal ofgovernment support mechanisms starting to have an impact. Increases
in overall claims inflow and claims expenses were observed acrossbusiness units.
The reinsurance result for 2022 improved substantially. This is mainly the
result due to no longer being impacted by the government pandemic support
schemes implemented by multiple countries during 2020 and 2021.
The technical result after reinsurance for our credit insurance & ICP businessincreased by 29.7% compared to 2021, placing it at EUR 381.5 million.

42

Atradius Management report | Business information

Reinsurance(EUR thousands)

2022

2021

Insurance revenue

166,555

152,124

Gross insurance claims and loss adjustment expenses(85,506)(93,112)8.2%

Gross insurance operating expenses(64,254)(58,377)(10.1%)

Result before reinsurance

16,796636

2,541.0%

Reinsurance result(3,851)(9,556)

59.7%

Result after reinsurance

12,945(8,921)(245.1%)Gross claims ratio

51.3%

61.2%

9.9% pts

Reinsurance revenue by region of cedent
16.4%

0.1%
35.6%

Europe

10.9%

Asia & Oceania
Africa & Middle East
South America
North America
37.1%

Atradius Reinsurance DAC (Atradius Re) is a leading market reinsurer providing
capacity to primary insurance companies in credit insurance and bonding.
Our reinsurance business currently supports business from 110 clients in over 51
countries, maintaining a balanced diversity within the portfolio. The underlying
business consists of 59% credit insurance and 41% bonding, based on premium
volume. A multilingual, highly trained and experienced international team, at
Atradius Re’s office in Dublin, Ireland, has underwritten the business.
We have long-standing relationships with our clients, 212 live contractual
agreements and we lead 35% of our treaties. In addition, we maintain close contacts
with specialist brokers. The quality of these client relationships is underscoredby our unique offering: combining the Group’s skills in the primary underwritingof credit insurance and bonding risks with our own distinctive approach andexpertise in structuring reinsurance solutions. At Atradius Re, we always strive toanticipate and respond to the specific and changing needs of our customers.
Total reinsurance revenue, of EUR 152.1 million in 2021, increased to EUR 166.6
million, in 2022. This increase in revenue is due to a combination of new business,
mainly bonding, and increased business from existing cedants.
The claims ratio has decreased from 61.2% in 2021 to 51.3% in 2022, partially due tothe favourable developments in claims activity from prior underwriting periods.
Gross insurance operating expenses showed an increase from €58.4 million to€64.2 million, mainly due to higher commissions payable as a result of increased
earned premium during the year, but also due to profit commissions paid as aresult of lower claims. The gross insurance operating expenses ratio has increased
from 35.9% to 36.2%.
The profitability during financial year 2022 was due to combination of a significant
increase in revenue and positive development of claims in respect of priorunderwriting years.

43

9.5%

Atradius Management report | Business information

Bonding(EUR thousands)

2022

2021

Insurance revenue

133,376

124,163

7.4%

Gross insurance claims and loss adjustment expenses(40,255)(41,043)

1.9%

Gross insurance operating expenses(50,116)(55,658)

10.0%

Result before reinsurance

43,004

27,461

56.6%

Reinsurance result(16,106)(11,449)(40.7%)

Result after reinsurance

26,89816,011

68.0%

Gross claims ratio

30.2%

33.1%

2.9% pts

Bonding revenue by region
10.8%

2.3%

32.7%

26.7%

Italy
FranceNordic & Germany
Spain
Other
27.4%

Our Bonding business in 2022 has again produced better results than theprevious year, recording a revenue of EUR 133.6 million (an increase of 7.4%
compared to 2021).
Our customer-centric approach and tailored services allowed us to show aconsistent growth in most of the bonding countries. Our knowledge of the surety
market, combined with a constant and dynamic analysis of the economic trends,
enabled us to build on our solid performance in 2021. This gives us a strong basefor our ambition to continue our growth into the European Surety market.
Since the pandemic outbreak in which the exposure dropped to EUR 24.1 billion,
we have been able to rebound and reach our new peak of EUR 27.5 billion,
with an overall growth of almost EUR 3.4 billion in two years (or 14.1% growth)with a better quality portfolio. This achievement has been obtained thanks to a
progressive recovery in our customer base and the consistent onboarding of
new business.
Governments are currently supporting the economies of our Bonding customer
base. This indirectly supports our customers, and has helped many ensurebusiness continuity. Consequently this has helped our business and we havebeen able to take advantage by underwriting more business. In particular,
Construction and Energy are the trade sectors benefiting from government
interventions.
We have paid close attention to controlling Bonding’s expenses and this has
enabled the unit to maintain a cost ratio of 39%, which is 7pts lower than theprevious year.
Our technical result has reached EUR 43 million (before reinsurance) or a grossmargin of 30%.
Our business continues to grow, reflecting a reasonable risk policy and highquality customer service, which we aim to pursue in the years to come.

44Atradius Management report | Business information

Services(EUR thousands)

2022

2021

Service income (1)86,248

117,994

Service expenses(77,405)(108,050)

28.4%

8,844

9,994

(11.1%)

Service result(1)

Overview includes inter-segment revenues.

Service revenue
19.6%

Information
servicesC ollections & Other
80.4%

Our services segment comprises our debt collection operations, the Dutch
State Business and our information service businesses. It achieved a positive
result in 2022, with an overall stable performance throughout the different
services. Our information services company, Graydon, (a 100% subsidiaryof Atradius from 2016) which represented approximately a 34% of total
revenues, was sold in 2022.

Debt Collection
Our collections services unit, Atradius Collections, helps our credit-insured
and non-insured customers recover domestic and international trade debts
while maintaining good business relationships with their clients. We havebuilt an enviable reputation, becoming the global trade invoice collector of
choice, leveraging the strength of our core credit insurance business with its
integrated international network. We offer a single point of contact for all debt
collection cases and worldwide collections expertise ‘on the ground’ through apresence in 30+ countries, covering 96% of all countries worldwide through a
global network of collectors, lawyers and insolvency practitioners.
Debt collection and credit insurance complement each other as they arecounter-cyclical, with the collection service picking up as the economy
deteriorates. In contrast, credit insurance prospers more in a benign
environment.
The challenging economic climate continued during 2022, whereby many
governments supported their economies by providing a high level of liquidity.
This resulted in artificially low levels of insolvencies and, as a consequence,a significant reduction in overdue accounts receivable and non-payments.
During the second half of the year, many governments started to phase out
their monetary support programmes leading to solid growth in the inflow of
uncollected amounts. In addition, we realised gains from the growth in debt
collections, in particular APAC.
Through a focus on product and risk diversification, Atradius Collections
has generated service revenues of EUR 49 million in 2022, representing adecrease of just 2% compared to 2021. Our efforts in the preventive services

45(26.9%)Atradius Management report | Business information

product(s) have proven viable and supported our growth. Our customers
are loyal and support our dedication to continuous improvement of service
delivery with an overall customer satisfaction score of 7.9 out of 10.
Atradius Collections enhanced overall group and unit efficiency andestablished a growth path through acquisitions. Efforts to support our
Global customers continued in 2022 and resulted in further expansion in
new markets.

Atradius Dutch State Business
The technical results for the account of the Dutch state were positive
throughout 2022 as Atradius Dutch State Business (ADSB) provided cover for
risks related to infrastructure projects, the export of capital goods, services tobuyers in countries outside the Netherlands, as well as cover for political risks
related to investments in other countries.
ADSB also continued to cover development-relevant investments andexport contracts in selected medium-income and lower-income countries,
which benefit (local) SMEs. We provide this service under the Dutch Good
Growth Fund.
The Dutch Trade and Investment Fund enables ADSB to provide cover oninvestments and export contracts up to EUR 5 million, for which financial
support by commercial banks is not available. By discounting bills of
exchange, ADSB can also finance these contracts.

Information Services
Iberinform, our information service companies in Spain and Portugal,
continued to support our insurance business in the Iberian markets,demonstrating stable revenue performance.
Graydon, provider of business information services, was a 100% subsidiary ofAtradius since 2016. In February 2022, Graydon was acquired by Creditsafe.
Atradius will continue cooperating with Creditsafe as one of our information
providers (via our Iberian information provider Iberinform).

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Atradius Management report | Business information

Our people
Our people are at the heart of ourbusiness. Their dedication andcommitment are what drives theperformance of our company.
Despite all the challenges these recent years have brought, our employees havecontinued to show enthusiasm and hard work in their day-to-day activities.
As an employer, we aim to provide a positive employee experience, with afocus on keeping our people motivated and engaged. We believe in creating anenvironment where everyone feels free to be themselves.
As our company keeps evolving and growing, we want to ensure that we offer
a workplace, where the well-being of our employees is prioritised. In the lastquarter of 2022, we made a company-wide one-off payment to our employees
below Director Level. This was in response to high levels of inflation and wasaimed at providing additional financial assistance to our employees.  
Our two main priorities of 2022 were the attraction and retention of talent andmaintaining the well-being of our employees.

Attracting and retaining talent
Global trends are shaping the future of talent retention and attraction. As aresult of the COVID-19 pandemic, people are reconsidering their job preferences
and labour markets are tightening on a global scale. As part of our 2022
priorities to attract and retain talent, we focused on our recruitment strategy,
development opportunities and improving the onboarding experience toaddress this challenge. We are proud of our retention levels with only 10%
turnover and we continuously invest in our people to keep this number up.
Hybrid-working model
In July 2021, we introduced the Hybrid-Working Model, which allows our
employees to split their time between working in the office and working fromhome. As a starting point, we asked our employees to be in the office for 60%of their time and be flexible for the remaining 40%. After more than a yearof working with the model, we conducted a pulse survey to gain insight into
our employees’ experiences working with the hybrid-working model and tounderstand where we can evolve hybrid working in the future.
The results of the survey have been encouraging: 71% of employees are satisfied
with the hybrid-working model. Additionally, we scored an 8.8 out of 10 onmanagerial trust in hybrid times, an 8.8 on enablement to work in a hybridmanner and an 8.3 on feeling connected to the organisation. These results give47

Atradius Management report | Business information

us the confidence that our people can work effectively both at home and in theoffice and that we can maintain our strong Atradius culture even in the hybrid
way of working.
Even though the survey showed a positive result, we will continue to adapt andevolve to become more successful with the Atradius Hybrid-Working Model.
Developing our people  At Atradius, we encourage our employees to take the lead in their personal
and professional development. We offer support at the local and unit level
and the Atradius Academy offers various (virtual) learning and development
opportunities. The courses on offer expand every year, ranging from financial
and compliance e-learning courses, to cybersecurity awareness campaigns,
diversity and inclusion webinars and soft skills taught through classroom
training. Development programmes were conducted online during the
COVID-19 pandemic, but during 2022 we have resumed in-person training.
We have additionally invested in training and development courses with Office
365 tools to show how they can be used to benefit our employees, but also ourcustomers and Atradius. We also provided practical ways to use Office365 todevelop healthy habits using technology. This is useful to counteract the effects
of us spending more of our time behind a screen.
Atradius business transformation – Shaping Tomorrow Together
In 2022, various training activities have taken place to prepare employees forthe roll out of newly developed internal IT systems for Credit Insurance andBonding, which are part of the Atradius Business Transformation programmes.
Multiple online resources have been created as a one-stop shop for all training
materials, step-by-step guides and questions. The Shaping Tomorrow Together
initiative was designed to ready employees for the transformation thatthese new systems would require and under this banner, we have continued
to emphasise the importance of demonstrating a growth mindset, andencouraging employees to embrace new technologies.
Compliance courses
All new employees must complete our suite of compliance courses. This year weoffered the following mandatory compliance courses: Anti-Money Launderingand Bribery & Corruption. Phishing Attacks and How to Protect Atradius andSustainability at Atradius are two other mandatory courses launched in 2022.
Diversity, equity and inclusion
As we have a presence in more than 50 countries worldwide and multinational
staff of whom many are multilingual, diversity is at the heart of our company.
These different backgrounds and ways of thinking enrich us. Our people are thekey to our success and we believe that collaboration between people with a mixof generations, genders and cultures brings the best results.
We strive to create a diverse and inclusive workplace. In the Employee
Engagement Survey, we outperformed the external benchmarks when it
comes to being an inclusive organisation (see table below). Additionally,as part of Global Diversity Awareness Month in October, five inspirational
webinars were organised for the whole organisation to improve our awarenessand understanding of diversity and inclusion and help foster an inclusive
workplace. We aim to continue the focus on increasing diversity and inclusion
at Atradius and bring more initiatives in 2023.

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Atradius Management report | Business information

Atradius

ExternalbenchmarkEqual treatment

8.0

7.2

Being accepted as oneself at work

8.2

7.5

Ability to be oneself at work

7.9

7.4

Employees have equal opportunities

7.6

7.3

Share opinions openly

7.1

6.9

Free from bullying

8.0

7.2

Diversity, equity and inclusion

Recruitment & onboarding  
The recruitment and onboarding process is essential to attract and retain
talent. Employees who are given greater insight into the company culture andhave opportunities to engage with others in the organisation have a greater
chance of success in their role. In February 2022, we launched a global
online onboarding journey to ensure all our new joiners experience the same
warm welcome, further reinforcing our company culture. This was delivered
within our HR Management System and takes new joiners through a series ofmodules during their first week, month and three months. This global journey
is followed by local onboarding initiatives in each country.
In terms of attracting talent, we have improved the candidate experienceon our career site making it easier for a candidate to search for a job. We
have introduced a recruitment system in all countries to streamline therecruitment process. For vacancies, we have connected LinkedIn to ourrecruitment system making it easier for a country to post their vacancy on thesocial media platform, increasing the visibility of the vacancy.

Well-being of our employees
Our employees’ well-being and vitality are of primary importance, especiallyin these uncertain times. We offer various organisation-wide well-being
and vitality initiatives to ensure our employees take the time to focus onthemselves and keep a positive work-life balance. Continuous efforts to evolve
our company culture can also have a positive impact on the mental health andoverall well-being of our employees.
Employee Engagement Survey 2022
To gain an insight into the well-being of our employees, we conduct an
Employee Engagement Survey every two years. In June 2022 together
with Effectory (Europe’s leading provider of Employee Listening solutions),
we conducted a survey and had a response rate of 80%. The results wereclustered into nine themes, including team leadership, engagement andinclusion. Overall, we scored higher than the external benchmark provided
by Effectory on most themes such as customer focus, inclusive organisationand trust. However, some scores within the strategic themes were lower than
external benchmark, such as workload and career development, and what wewould have hoped for, providing further motivation to address the areas for
improvement.

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People continue to enjoy and appreciate the basics such as; experience ofwork, a good team and a good manager. Camaraderie and collaboration
among colleagues is an absolute strength. Despite the past two years in
lockdown, we were still able to keep our collaboration and team productivity
high. Team leadership scored higher than the benchmark and is perceived to
be stronger than two years ago. We outperformed the external benchmark
for being an inclusive organisation and for trust. Additionally, the results
show a strong customer focus, indicating that we prioritise the needs of our
stakeholders and customers.
During this survey, commitment towards the organisation dropped comparedto the previous survey (which had an all-time high), as did alignment withthe organisation’s goals and objectives. However, we still scored higher thanthe external benchmark in this areas. The perceived workload was high andincreased over the last two years, affecting the well-being of our employees.
Lastly, career development opportunities remain an area of improvement,
greatly influencing engagement.

Strategic theme

Atradius

ExternalbenchmarkEmployership

7.6

7.0

Engagement

7.3

7.1

Alignment

7.6

7.3

Customer Focus

8.0

7.4

Team productivity

7.7

7.3

Team leadership

7.4

6.8

Inclusion

8.0

7.4

Psychological safetey

7.2

7.0

Trust

7.8

7.2

Retention

8.1

7.3

We are very happy with the overall results and will continue to address these
themes at the group, department and team levels.
The growth programme
In 2021, the Growth Programme focused on personal well-being and theimportance of having a good balance in a challenging environment. This year,
we focused on gaining an overview and focus and building strong teams in
the new hybrid-working world. Topics included managing workload, goal
setting and how to create a dream team. As the well-being of our employees
is extremely important to us, this programme will continue for the third year
in 2023.
Evolving our culture
To help our employees during these uncertain times, we have focused onstrengthening our culture via Evolve+, our multi-year cultural programme.
Since 2017, the Strike initiative has been taking place - a group-wide sales
competition helping build and support our growing competitive spirit andactively encouraging proactivity and agility. In May 2022, a winners’ event
was hosted in Madrid to celebrate the Strike League winning teams from2019, 2020 and 2021. The teams were recognised for their contribution,commitment and dedication to the winning of new business, and thesignificant contribution they made to our Strike targets.

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Atradius Management report | Business information

Another Evolve+ initiative is the Digital Ambassadors Programme – a yearlyprogramme that trains employees to play the role of navigator and sensemaker, providing a source of knowledge and expertise in guiding colleagues
through their digitalisation journey. In 2022, 47 colleagues participated fromall around the world and were motivated to increase their digital literacy andhelp their colleagues’ ongoing adoption of digitalisation.
Atradius Cares, under the Evolve+ initiative, was introduced in 2017 to share
our resources charitably and give back to society. This is applicable not only
for our commercial stakeholders but also for the wider community and theenvironment. Over the past few years, many events have been organised
locally by our colleagues around the world. Participating in these initiatives
encourages team spirit and reinforces positive and sustainable values while
contributing positively to society. It contributes to our direct community andenvironment, and it also broadens personal horizons. For example, in April
2022, Atradius matched the amount that our colleagues donated to UNHCR
and local initiatives to support Ukrainian refugees.
Other initiatives under Atradius Cares around the world this year haveincluded cleaning up the environment near our various offices for World
Clean-up Day, raising money for ALS via The Amsterdam City Swim, walking
for 24 hours to collect funds for the Cancer Foundation, and donating laptops
to the less privileged.

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Atradius Management report | Business information

Risk and Capital –managing and adapting
to changes
As a global insurance company, Atradius
is exposed to constantly evolving
risks, linked both to the nature of ourbusiness and to the always changing
environment. We address these with astrong, but adaptable approach to risk
and capital management.
We group the main types of risk that we face into insurance, financial, strategic,
and operational. Insurance risk, or underwriting risk, is predominantly therisk of non-payment by a buyer, covered by a policy (credit insurance), or therisk of non-performance of a customer (bonding). Financial risks arise out ofdevelopments in financial markets and with counterparties - including market
risk, credit risk and liquidity risk. Strategic risks are risks related to changes inthe business environment. Operational risk means the risk of loss arising frominadequate or failed internal processes, personnel or systems, or fromexternal events.
This high-level categorisation is not exhaustive. Within the above risk types, we
also focus on Environmental, Social and Governance (commonly referred to as
ESG) risks, for which we discuss in more detail in the respective section in thisreport. Concepts such as sustainability, integrity, transparency and a responsible
attitude to carrying out activities are important to our company.
During 2022, Atradius addressed developments in the global risk landscape
combined with an increased focus on ESG issues.

Risk management framework
The Boards of the group companies have ultimate responsibility andaccountability for risk management and internal control within their respective
companies. The Management Board implements and oversees Atradius’ groupwide risk governance through the Risk Strategy Management Board (RSMB) anda number of committees that support and report to the RSMB. These committees
operate in specific risk-related areas such as underwriting of buyer exposures,country risk, provisioning, asset management and investments, reinsurance,
quantitative modelling, and approval of new products and transactions. In

52Atradius Management report | Business information

addition, all employees have well-defined authorities specifying the level ofrisk they can accept. This framework ensures that we assume and manage risks
in a controlled way, and in line with the risk appetite of the company. For thedescription of the main risks and uncertainties, and how we manage them, pleaserefer to Note 4 of the consolidated financial statements.

Underwriting risk
In 2022, we ensured that we maintained sufficient commercial and risk
underwriting resources to address rapidly changing circumstances in thegeographies and trade sectors in which we provide services. We continuously
took measures to preserve the quality of our risk profile. At the same time,
we communicated and explained our actions to our stakeholders (customers,
brokers, reinsurers, regulators, shareholders and employees) to ensuretransparency and to steer as smooth as possible through turbulent conditions.

Financial risk
We maintained a diversified portfolio of investments, closely monitored andmanaged according to strategic asset allocation parameters. The portfolio
remained concentrated around high-quality fixed income assets. We ensured
sufficient cash liquidity for any given circumstance, and supported this with acredit facility for the unlikely event of a liquidity crunch. The impact of
exchange rate fluctuations has been limited as revenue, expenses, assets andliabilities within our non-Euro operations are generally denominated in thesame currencies.
Credit risk is low as we maintain a highly creditworthy reinsurance panel andother sources of credit risk (bank accounts, policyholders) are well spreadand limited.

Strategic risk
We define strategic risk as the risk arising from changes in the businessenvironment and from adverse business decisions, improper implementation ofdecisions or lack of responsiveness to changes in the business environment. It is
the risk related to strategic planning, market developments and reputation.
Atradius manages strategic risk exposures based on an estimation of thelikelihood of the risk materialising and the impact should that event occur. It
includes those risks that senior management consider to have the highest overallmagnitude.

Operational risk
An emerging operational risk is that certain units and functions within Atradius
have difficulties attracting and retaining people. This is partially driven bywhat the media has named as ‘The Great Resignation’, where employees are
re-evaluating personal values in terms of job satisfaction, work-life balance,
workload, salaries, working flexibilities, office location, etc.
Atradius recognises increasing external threats (from internet connected
services, for example), especially within phishing, fraud, and ransomware, that
we have seen materialise in our and other financial institutions in recent times.
The ongoing threat landscape highlights the increasing cyber threat against
financial services companies through insufficient technical controls and user
error. We have been alert to such risks for some time, and have correspondingly
and continuously increased our cyber risk management.

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Atradius Management report | Business information

Regarding fraud, a team comprised of employees from various locations across
our company, monitors the activity of customers and buyers to detect indicationsof external fraud. Atradius also provides fraud awareness training and advice
to employees and customers to help identify fraudulent buyers. Internal fraud
is addressed through, among other things, manual and automated operational
controls such as the segregation of duties, application of signing authorities androle-based system privileges and authorities.

Risk and capital
The relationship between risk and capital is fundamental, as taking risks
consumes capital. Strategic decisions are taken with the interdependence of risk
and capital in mind.
These strategic decisions are substantially informed by the outcomes of ourinternally developed, bespoke, economic capital model. This model contributes
to a multitude of risk assessment and measurement activities. It enhances ourability to monitor and manage risk levels within the organisation through theallocation of risk-based capital.
In 2022, given our internal model’s ability to react quickly to a changing portfolio
and environment, it’s use was important for the management of our risk profile.
In addition, the model continues to be used to calculate regulatory capitalrequirements under Solvency II.

Atradius compliance framework
At Atradius we believe that compliance with relevant laws, rules and regulations,and maintaining a high standard of ethics and integrity, leads to lower
operational risk and stable business processes. The Atradius Code of Conduct
outlines the basic corporate, legal and ethical principles and guidelines that
apply to all our employees, and that govern our operations and business conduct
towards customers, brokers and all parties involved in Atradius business. The
Atradius Speak-Up Procedure gives guidance on how to raise concerns regarding
a violation or breach of the Code of Conduct in a confidential manner. Atradius
has set up several additional compliance policies for specific areas, which set
out the requirements to which Atradius employees must adhere. For example,
the Policy on Customer Due Diligence and Policy on Sanctions address potential
sanctions risks. Atradius has a Data Protection Framework in place, which
includes controls, policies and procedures to comply with the applicable dataprotection legislation. All the compliance policies are available to employees andreviewed on a regular basis.
The compliance function supports the management of Atradius in meeting our
objective of being compliant with applicable laws, rules and external and internal
regulations. The Group compliance function is responsible for the maintenanceand overall effectiveness of the compliance framework at Group level. The local
compliance function monitors regulatory and compliance developments at local
country level.

54Atradius Management report | Business information

Capital management
We seek to maintain a strong capital position and well-capitalised operating
entities in line with our defined risk appetite. This helps to support the evolutionof our insurance business, withstand financial stress in adverse businessand financial markets, meet our financial obligations and, ultimately, createshareholder value.
Shareholders’ funds and Subordinated debt
We maintain a strong capital position, building further our capitalisation thanks
to high retained earnings in 2022. Shareholders’ funds at the end of 2022
amounted to EUR 2,175.4 million, an increase of 1.5% from EUR 2,142.3 million at
year-end 2021.
Subordinated debt at the end of 2022 amounted to EUR 250 million (nominal
amount), unchanged from year–end 2021. The EUR 250 million nominal amountrepresents subordinated notes listed on the Luxembourg Stock Exchange , which
qualify as Tier-2 basic own funds for Solvency II. For further details, please see
Note 16 of the consolidated financial statements of the Annual Report 2022.
Regulatory capitalAt the end of 2022, Atradius’ companies collectively held a solvency ratio
above 200%.(1)We apply a partial internal model (consisting of an internal model to measure
substantially all underwriting risk exposure and the regulatory standard formula
to measure other risk types) to calculate regulatory capital requirements under
Solvency II.
(1)

Subject to finalisation of any audit procedures.

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Atradius Management report | Business information

Environmental,social and governancesustainability
Atradius focused attention on
Sustainability in 2022, formalisingambitions and allocating resources todeliver them.
Atradius has been enabling trade for nearly 100 years. It is important for us
to now think about what the next 100 years will look like, and how we willcontribute to global economic growth and the global sustainability agenda.
We expect to see big changes in the way that trade will take place –especially as the world takes on the enormous challenge to be net zeroby 2050. Businesses are increasingly expected to consider criteria otherthan economic profitability, which means embedding sustainability in thedecision-making process.
We are fully committed to building sustainability within our own businessand supporting our customers to make their trade more sustainable.

We believe in a future built upon sustainableglobal trade with positive outcomes for people
and the planet.
In 2022, we formalised our sustainability ambitions and created a dedicated
ESG Committee chaired by our CFO Claus Gramlich-Eicher that meetsregularly. The Committee has been set up to structure our various ESG
initiatives. We have also recruited a Head of ESG to drive our actions in 2023
and beyond.
Atradius’ sustainability initiatives and reporting are aligned with our parent
company Grupo Catalana Occidente S.A.
Three pillars reflect the different aspects of our sustainability ambitions :Planet, People and Prosperity.

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Atradius Management report | Business information

Planet“We promote trade that is planet positive”
We aim to:• 	Shift our portfolio to Net Zero by 2050
• 	
Help our customers find planet positive trading partners• 	
Support our customers’ transitions to clean production and supply chains• 	Support our customers to lower their carbon footprint• 	
Invest responsibly• 	Achieve carbon neutrality in our own operations
Shifting our portfolio to Net Zero by 2050
We have signed up (alongside our parent company Grupo Catalana OccidenteS.A.) to the Net Zero Insurer’s Alliance (NZIA). As a member of NZIA we arecommitted to achieving greenhouse gas (GHG) emission neutrality by 2050.
In accordance with the NZIA Target-Setting Protocol, we will set our targets
for the next five years in 2023.
Shifting our operations to Net Zero
To become carbon neutral in our own operations we are implementing new
Corporate Real Estate Standards (CRES) with embedded ESG goals for energy
saving measures and new procurement procedures. We have reduced the2023 travel budget by more than 30% compared to 2019 and are promoting
the use of digital tools to substitute travel.
Responsible investment
In 2022 we achieved the target of ensuring 10% of our investments were
sustainable or delivered sustainable impacts.
Planet positive trading partners
To help our customers find planet positive trading partners – we haveinvested time to identify a suitable partner to support us with ESG ratings.
In 2023, we will kick off multiple pilots to investigate the possibilities of
embedding ESG ratings into our business processes.

People“We value the richness of genders, races, culturesand personalities”
We aim to:• 	
Ensure we are an equal opportunity employer regardless of genders, races
and cultures• 	
Deliver value through diversity and inclusion• 	
Enhance employability• 	Support the well-being of our employees• 	Give back to society and our local communities• 	
Strive for a good balance between the prosperity of communities and theimpact on the environment• 	Help / coach sustainable entrepreneurs• 	
Guide / train our colleagues to play their part in contributing to a moresustainable future
An equal opportunity employer
Our overall employee ratio is balanced at Atradius with 51:49 male to female.
However, this is not reflected in our senior management positions where57there is still room for growth. We believe that greater diversity at all levels
within the organisation facilitates better decision-making. Therefore, we arecommitted to improving the gender balance in our top management positions.
We monitor equal opportunities for employment, pay and training/learning
throughout Atradius. In 2022, 31% of all managers were women (including
top and sub-top management positions). However, the percentages ofwomen employed on the Supervisory Board and Management Board were
11% and 0% respectively. In addition, 24% of our sub-top level managers in
2022 were women.
It is our ambition to change this over the next five years through the
deployment of a multi-year action plan. The plan’s actions include: balancing
gender distribution when identifying potential senior profiles, launching
unconscious bias training for all our managers, organising a mentoring
programme for women, and developing a leadership programme for women.
Over the next five years we aim to see a greater percentage of our most senior
positions filled by women including: 22% of the Supervisory Board, 17% of theManagement Board and 26% of our sub-top level positions.
We also monitor the gender pay gap. The largest pay gap within our
professional categories across Atradius was 14% in 2021. In 2022, this gap
decreased to 12%. Several factors come into play when measuring pay gaps
such as country differences in salary, years of experience and complexityof the position. We aim to stay below a 12% pay gap for each professional
category at the Group level.
Progress in the areas of equal opportunities for employment, pay andlearning will be carefully measured and monitored through KPIs.
Delivering value through diversity and inclusion
We have hosted a series of webinars for our employees to explore the key
themes of Diversity, Equity and Inclusion (DEI). These included discussions
about and explorations of unconscious bias, trust, empathy, how to foster
psychological safety at work and allyship. This was a first step towards
raising awareness on these important themes and enabled colleagues to thenstart a dialogue within the company and take steps towards helping to make
Atradius an even more inclusive workplace. In our employee engagement
survey in 2022, we outperformed the external benchmark on being an
inclusive organisation with scoring a high 8.0 against 7.4 externally.

Prosperity“We foster sustainable prosperity”
We aim to:•	
Safeguard sustainable growth for the company through compliance with
relevant international ESG rules and regulations•	
Build ESG factors into our strategic decision framework•	
Become the insurer of choice, a trusted partner for sustainable global trade•	
Attract, motivate and retain the best talent to help us achieve oursustainability goals
Safeguard sustainable growth for the company through compliance with
relevant international ESG rules and regulations   Our sustainability reporting is aligned with our parent company Grupo
Catalana Occidente S.A. On a yearly basis, Atradius reports multiple nonfinancial topics relating to Human Resources , suppliers and the environment.  

58

In the fast-changing legislative landscape – and also to keep pace with newreporting and disclosure requirements and commitments for the Net Zero
Insurance Alliance - we are currently analysing the tools available. We
are specifically seeking to better enable the efficient collecting, collating
and reporting of information required for the current Grupo Catalana
Occidente S.A. Sustainability Report and any future reporting and disclosure
requirements.
Build ESG factors into our strategic decision framework
To build ESG factors into our strategic decision framework, we have refined
our governance processes and updated IT processes to take ESG factors into
consideration.
Attract, motivate and retain the best talent to help us achieve oursustainability goals
To help us attract, motivate and retain the best talent to achieve oursustainability goals, we have created a new ‘Head of ESG’ role to address
the growing importance of ESG and drive our sustainability agenda. The
Head of ESG is responsible for the ESG strategy, for enabling the deliveryof our sustainable business ambitions and for overseeing the operational
management of sustainability across our different international businesses.
Remain a trusted partner for sustainable global trade
To remain a trusted partner for sustainable global trade we have started a
dialogue with customers and business partners about sustainability topics.
In 2022 we held a virtual event titled ‘Clean energy transition: a new way
forward for global trade?’. The panel of experts included an energy economist
as well as Atradius partners and customers, who together helped us tohighlight and explore some of the key issues and risks facing businesses
in the areas of clean energy transition specifically and sustainability moregenerally. We acknowledge that achieving net zero requires new thinking
and we don’t have all the answers yet – but we are committed to supporting
our customers in this process.

59Consolidated financial
statements 2022
Contents
Consolidated statement of financial position .....................................................................................................................................................61
Notes to the consolidated financial statements
1		General information .......................................................................................................................................................................................... 66
2

		Summary of significant accounting policies .............................................................................................................................................. 66

3

		Critical accounting estimates and judgements in applying accounting policies ............................................................................. 95

4

		Risk and capital management ....................................................................................................................................................................... 97

5

		Segment information......................................................................................................................................................................................120

6		Intangible assets ............................................................................................................................................................................................. 125
7

		Property, plant and equipment and Investment property ..................................................................................................................1288

		Subsidiaries .........................................................................................................................................................................................................131

9

		Investments in associated companies ....................................................................................................................................................... 132

10

		Financial investments ..................................................................................................................................................................................... 134

11 		Receivables ........................................................................................................................................................................................................ 134
12 		Deferred acquisition costs ............................................................................................................................................................................. 135
13 		Miscellaneous assets and accruals ............................................................................................................................................................. 136
14 		Cash and cash equivalents ............................................................................................................................................................................ 136
15 		Capital and reserves ........................................................................................................................................................................................ 137
16 		Subordinated debt ........................................................................................................................................................................................... 138
17 		Employee benefit assets and liabilities ..................................................................................................................................................... 139
18 		Insurance contracts .........................................................................................................................................................................................144
19		Provisions ...........................................................................................................................................................................................................14820		Deferred and current income tax ................................................................................................................................................................149
21 		Payables .............................................................................................................................................................................................................. 152
22 		Other liabilities .................................................................................................................................................................................................. 152
23 		Net premium earned ....................................................................................................................................................................................... 153
24 		Service and other income .............................................................................................................................................................................. 153
25 		Net income from investments .....................................................................................................................................................................154
26 		Insurance claims................................................................................................................................................................................................ 155
27 		Net operating expenses ................................................................................................................................................................................. 155
28 		Finance expenses ............................................................................................................................................................................................. 156
29 		Income tax ......................................................................................................................................................................................................... 156
30 		Dividends per share ........................................................................................................................................................................................ 157
31 		Assets not freely disposable.......................................................................................................................................................................... 157
32 		Capital commitments and contingencies ...........................................................................................................................................157
33 		Held for sale ..................................................................................................................................................................................................157
34 		Personnel ...................................................................................................................................................................................................... 158
35 		Related party transactions ...................................................................................................................................................................... 159
36 		Auditor fees....................................................................................................................................................................................................16137 		Events after the reporting period ..........................................................................................................................................................161

60

All amounts in thousands of Euro, unless otherwise stated

Consolidated statement offinancial position
as at December 31, 2022
AssetsNote

31.12.2022

31.12.2021

Intangible assets

6

213,618

234,890

Property, plant and equipment

7

180,880

190,225

Investment property

725,94726,025Investments in associated companies

988,72675,623Financial investments

10

2,944,676

2,978,054

Reinsurance contracts

18

900,040

810,372

Deferred income tax assets

20

85,81339,935Current income tax assets

20

83,03536,284

Receivables

11

380,584

374,607

Accounts receivable on insurance and reinsurance business

258,156

210,884

Other accounts receivable

122,428

163,723

Other assets

737,306

653,359

Deferred acquisition costs

12

88,65377,575

Other assets and accruals

13648,653575,784

Cash and cash equivalents

14575,789

499,393

Assets held for sale

33

74,626-

6,291,040

5,918,767

2,175,450

2,142,323

2,175,450

2,142,323

249,600

249,383

Total
EquityCapital and reserves attributable to the owners of the Company

15

Total
Liabilities
Subordinated debt

16

Employee benefit liabilities

17

58,979100,005

Insurance contracts

18

2,565,569

2,134,434

Other provisions

19

4,087

5,026

Deferred income tax liabilities

20

100,983

100,977

Current income tax liabilities

20

73,194

40,699

Payables

21

328,525

521,968

Accounts payable on insurance and reinsurance business

184,339

347,983

Trade and other accounts payable

144,186

173,985

Other liabilities

22

667,209

623,953

Liabilities held for sale33

67,444-Total

4,115,590

3,776,444

Total equity and liabilities

6,291,040

5,918,767

54

61

Atradius | Consolidated financial statements 2022 Atradius N.V.

Consolidated profit and loss
statement
for the year ended December 31, 2022
Note

2022

2021

Insurance premium revenue

23

2,225,340

1,900,319

Insurance premium ceded to reinsurers

23(858,939)(945,461)

1,366,401

954,858

225,707250,649

Net premium earned
Service and other income

24

Share of income/ (losses) of associated companies

25

17,755

15,963

Net income from investments

25

24,588

19,613

1,634,451

1,241,083(912,309)(563,478)

Total income after reinsurance
Insurance claims and loss adjustment expenses

26

Insurance claims and loss adjustment expenses recovered from reinsurers

26

Net insurance claims
Net operating expenses

27

Total expenses after reinsurance
Operating result before finance costs
Finance income(1)

Finance expenses

28

Result for the year before tax
Income tax expense

29291,506

159,914(620,803)(403,564)(556,463)(499,440)(1,177,266)(903,004)

457,185

338,079

8,135

944

(7,255)(11,008)

458,065

328,015(104,220)(87,766)

353,845

240,249(21,633)-

332,212240,249

Owners of the Company

332,212240,249

Non-controlling interests--

Total result for the year

332,212240,249

Result for the year from continuing operations
Net result on held for sale operations

33

Result for the year
Attributable to:(1)Includes the effect of applying IAS 29 standard related to hyperinflation in Turkey for EUR 0.1 million

55

62

All amounts in thousands of Euro, unless otherwise stated

Consolidated statement ofcomprehensive income
for the year ended December 31, 2022
Note
Result for the year

2022

2021

332,212240,249

37,47140,291(11,388)(8,593)(214,510)

38,80155-

Other comprehensive income:Items that will not be reclassified to the profit and loss statement:
Actuarial gains/(losses) on defined benefit pension plans

15.5

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

15.3

Indexation Turkey Opening Balance Sheet
Exchange gains/(losses) on translating foreign operations and associatedcompanies

7,508

18,791

Income tax relating to items that may be reclassified

15.4

46,354(9,519)Other comprehensive income for the year, net of tax(134,509)

79,771

Total comprehensive income for the year

197,703

320,020

The owners of the Company

197,703

320,020

Total comprehensive income for the year

197,703

320,020

Attributable to:56

63Atradius | Consolidated financial statements 2022 Atradius N.V.

Consolidated statement of changes inequityfor the year ended December 31, 2022
SharecapitalAttributable to the owners of the Company
Share Revaluation
Currency
PensionRetained Result for thepremium
reserve translation
reserveearnings
year
reserve
reserve

79,122-

639,228-

80,811-(79,989) (166,607)---

30,04330,04318,03018,030

Balance at 31 December 2021

79,122

639,228

110,854

Balance at 1 January 2022
Acquisitions
Dividends

79,122-

639,228--

Balance at 1 January 2021
Acquisitions
Dividends

30

Total comprehensive income for the year
Appropriation of prior year result
Result for the year
Other comprehensive income
Pension plan de-risking

15.5
15.6

30

Total comprehensive income for the year
Appropriation of prior year result
Result for the year
Other comprehensive income(1)Pension plan de-risking

15.5
15.6

Balance at 31 December 2022
(1)

Total

Total
equity1,316,561(90,991)

44,167-

1,913,294(90,991)

1,913,294(90,991)

31,69931,69944,16744,167-

196,082(44,167)
240,249-

320,020240,249
79,771

320,020240,249
79,771(61,959)

79,826(55,082)(79,826)
1,189,911

240,249

2,142,323

2,142,323

110,854-(61,959)-(55,082)-

1,189,911(164,574)

240,249-

2,142,323(164,574)

2,142,323(164,574)-(168,290)
-

7,643
-

26,083-

240,304
240,249-

91,963(240,249)
332,212

197,703332,212

197,703332,212--(168,290)

7,643

26,083

55-(134,509)(134,509)

79,122

639,228(57,436)(54,316)(28,999)

1,265,640

332,2122,175,450

2,175,450

Includes the effect of applying IAS 29 standard related to hyperinflation in Turkey for EUR 0.1 million.

57

64

All amounts in thousands of Euro, unless otherwise stated

Consolidated statement ofcash flows
for the year ended December 31, 2022
I. Cash flows from operating activities
Result for the year before tax
Adjustments for:Realised capital (gains)/losses on investments
Dividends received from financial investments
Impairment loss
Share of income of associated companies
Depreciation and amortisation
Interest expense on subordinated debt
Net interest income
Other non-cash items
Changes in operational assets and liabilities:
Insurance contracts
Reinsurance contracts
Deferred acquisition costs
Accounts receivable and payable on insurance and reinsurance businessChanges in other assets and liabilities
Pensions and other long-term employee benefit net contributions
Cash generated from operations
Income tax paid
Interest paid
Net cash (used in)/generated by operating activities
II. Cash flows from investing activities
Investments and acquisitions (cash outflows):
Short-term investments
Financial investments available-for-sale
Property, plant and equipment and intangible assets
Divestments, redemptions and disposals (cash inflows):
Investment property
Short-term investments
Financial investments available-for-sale
Property, plant and equipment and intangible assets
Dividends received from associated companies
Dividends received from financial investments
Interest received
Net cash (used in)/generated by investing activities

Note

9
28

18
18
12

10
6/7
7
10
6/7
9

III. Cash flows from financing activities
Dividend paid
Interest paid on subordinated debt
Subordinated debt - redemption
Net cash (used in)/generated by financing activities

30

Changes in cash and cash equivalents (I + II + III)
Cash and cash equivalents at the beginning of the year
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 14).

58

65

14

2022

2021

458,065

328,015(4,918)(11,759)
2,100(17,755)
33,42013,352(30,749)(2,702)(5,443)(13,582)
44,624(15,963)
53,375
16,141(24,915)8,035

431,135(89,668)(11,078)(210,916)
70,975(26,705)
602,797(136,319)(16,844)449,634

231,708
40,133(8,607)(393)(2,498)(59,800)
590,830(67,617)(20,205)
503,007(112,646)(1,220,060)(31,918)(183,071)(1,121,530)(53,829)

6,380
157,025
941,372
15,793
7,890
11,75931,892(192,513)

134
105,854958,780691
13,582
27,979(251,410)(164,574)(13,125)(177,699)(90,991)(15,925)(75,000)(181,916)

79,422
499,393(3,026)575,789

69,681
424,741
4,970
499,393

Atradius | Consolidated financial statements 2022 Atradius N.V.

Notes to the consolidated financial statements
1

General information

Atradius N.V. (‘the Company’), with its office at David Ricardostraat 1, 1066 JS, Amsterdam, the Netherlands, and its
subsidiaries (together referred to as ‘Atradius’) is a global credit insurer and aims to support its customers’ growth bystrengthening their credit and cash management through a wide range of credit insurance management products andservices. These services include credit insurance, bonding, reinsurance, information services, collection services andinstalment credit protection. Atradius offers products and services from strategically located offices on six continents
and employed 3,426 people as at 31 December 2022 (2021: 3,639). The parent is Grupo Compañía Española de Crédito
y Caución, S.L., which owns 64.23% (equal to 2021) of the shares in Atradius N.V. The ultimate parent and the ultimate
controlling party of Atradius is Grupo Catalana Occidente, S.A., which holds 73.84% of the shares in Grupo Compañía
Española de Crédito y Caución, S.L. and 35.77% (equal to 2021) of the shares in Atradius N.V. The financial statementsof Atradius N.V. are consolidated within Grupo Catalana Occidente, S.A., which is a listed company in Spain.
The Atradius consolidated financial statements have been authorised for issue by the Management Board on 1 March2023 and have been reviewed by the Supervisory Board. On 1 March 2023 the consolidated financial statements wereapproved at the Annual General Meeting of Atradius N.V.

2

Summary of significant accounting policies 2022

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

2.1

Basis of preparation

The Atradius consolidated financial statements are prepared in accordance with International Financial ReportingStandards (IFRS) as adopted by the European Union and also comply with Part 9 of Book 2 of the Dutch Civil Code. The
Atradius consolidated financial statements are prepared based on going concern. These have been prepared under thehistorical cost convention as modified by the revaluation of available-for-sale financial investments.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Atradius accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements, are disclosed in Note 3.
The profit and loss statement of Atradius N.V. for 2022 is incorporated in the consolidated financial statements, whichallow for a presentation of a condensed company profit and loss statement in the company financial statements incompliance with Book 2, Article 402 of the Dutch Civil Code.
All amounts in the notes are shown in thousands of Euro (EUR), rounded to the nearest thousand, unless otherwise
stated.
Due to rounding, numbers presented throughout this, and other documents, may not add up precisely to the totals
provided.

2.2

New and revised standards

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

2.2.1

Standards, amendments and interpretations effective in 2022

The following relevant standards, amendments and interpretations have been adopted in 2022, but have had nomaterial effect on the consolidated financial statements:

59

66

All amounts in thousands of Euro, unless otherwise stated









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
have no 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. These amendments have no 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 offulfilling a contract when assessing whether that contract will be loss-making. These amendments have nomaterial 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 and IAS 41 Agriculture. These amendments have 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 2022
and have not been early adopted by Atradius:

2.2.2.1

IFRS 9 Financial Instruments: classification and valuation

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 and measurement,
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 dates of IFRS 9 and theforthcoming new insurance contracts standard (IFRS 17).
The amendments introduce two alternative 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. Atradius performed an assessment of theamendments to IFRS 4 and concluded that its activities are predominantly connected with insurance as at 31
December 2015 based on the assessment that the predominance ratio (i.e. ratio total carrying amount of its liabilities
connected with insurance compared with total carrying amount of liabilities) criteria was greater than 90%. Atradiusdecided to apply the temporary exemption in its reporting period starting on 1 January 2018 and will adopt IFRS 9 incombination with the adoption of IFRS 17 Insurance contracts on 1 January 2023.
There has not been a significant change in operating activities of Atradius since the assessment in 2015. Refer to the‘Temporary exemption from IFRS 9’ section included in Note 4 for the related disclosures.
Classification of financial instruments
IFRS 9 introduces a new classification approach, based on two concepts: the entity’s business model and thecharacteristics of contractual cash flows of assets and liabilities.
Atradius has assessed whether its financial assets are maintained to:Obtain contractual cash flows: The management of this type of business model aims to generate cash flows by
obtaining contractual payments over the life of the instrument. However, even if the objective of the businessmodel is to hold financial assets to collect contractual cash flows, the entity does not need to hold all instruments
until maturity. Thus, an entity’s business model may be to hold financial assets to collect contractual cash flows
even when sales of financial assets occur or are expected to occur in the future. Such sales should becircumstantial, infrequent, of negligible value or consistent with the objective of the business model.

Obtain contractual cash flows and sell such assets: The management of this type of business model aims both at
obtaining contractual cash flows and the sale of financial assets. There are several objectives that can beconsistent with this type of business model.
Sell the assets or manage their return through their fair value: The management of this type of business model
aims to evaluate it on a fair value basis. An entity focuses primarily on fair value information and uses that



60

67

Atradius | Consolidated financial statements 2022 Atradius N.V.

information to assess asset performance and make decisions. For these portfolios, obtaining contractual cash
flows is only secondary to achieving the business model objective.
Based on defined business models and cash flow characteristics, Atradius classifies its debt instruments into threevaluation categories (i) amortised cost, (ii) fair value through other comprehensive income (equity) and (iii) fair value
through profit and loss.
(i)

(ii)

(iii)

Financial assets at amortised cost: the objective of its business model is to maintain the financial asset inorder to collect contractual cash flows and, according to the terms of the contract, cash flows are received on
specific dates which constitute only payments of principal plus interest on principal. Interest, impairment andexchange differences are recorded in profit or loss.
Financial assets at fair value through changes in other comprehensive income: the business model aims bothat obtaining contractual cash flows and selling them and, according to the terms of the contract, cash flows
are received on specific dates which constitute only payments of principal plus interest on principal. Under
IFRS 9 Atradius changed from an impairment model to a model based on expected future credit losses.
Expected Credit Losses and exchange differences are recorded in profit or loss, as in the amortised cost model.
The remaining fair value changes are recorded in OCI. When the financial asset is derecognised, thecumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss.
Financial assets at fair value through profit or loss: A financial asset shall be measured at fair value throughprofit or loss unless measured at amortised cost or at fair value through other comprehensive income.
This category would include debt instruments for which Atradius has determined that the SPPI ("solely
payments of principal and interest") test is not met because of the existence of characteristics such as, interalia: (i) order of priority of payments; (ii) option to replace collateral; (iii) the option to replace or modify theterms of the instrument until it is converted into capital; (iv) option to defer interest payments; (v) option toconvert to interest-bearing bonds at any time or on each interest payment date; (vi) the timing of interest
settlement does not coincide with the time horizon of the reference rate; (vii) possibility of indefinite maturity
without compensation.
Atradius also classifies investment fund shares in the financial assets at fair value through profit or loss
category, as this typology of instruments does not meet the definition of equity instruments in accordancewith IAS 32 and therefore cannot be measured at fair value through changes in other comprehensive income
and must be measured at fair value through changes in profit or loss.

In addition, Atradius has considered the application of the irrevocable designation options in initial recognition
regarding equity securities:(i)

An equity instrument, provided it is not held for trading purposes, may be classified at fair value throughchanges in other comprehensive income (equity). Movements in the carrying amount are taken through OCI.
On disposal of the equity instruments, the cumulative change in fair value is transferred to retained earnings
and not recycled through profit and loss. Atradius has assumed that equity securities represent investmentsthat Atradius intends to maintain in the long term for strategic purposes. As permitted by IFRS 9, it has
designated these investments as "fair value through changes in other comprehensive income". Dividends aretaken through profit and loss. Equity securities that are classified as fair value through OCI are not subject toimpairment analysis.

For financial liabilities, Atradius has considered that there are no changes required to the classification of instruments,
nor adjustments to its valuation.
Valuation of financial instruments
Initial valuation
Atradius provides that, on initial recognition, a financial asset or liability shall be measured at fair value by adding or
deducting, in the case of a financial asset or liability that is not accounted for at fair value through profit or loss,transaction costs that are directly attributable to its acquisition or issue.
Subsequent valuation
After initial recognition, Atradius measures a financial asset: i) at amortized cost; ii) at fair value through changes inother comprehensive income; or iii) at fair value through profit or loss.
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All amounts in thousands of Euro, unless otherwise stated

Atradius applies impairment requirements to financial assets that are measured at amortized cost and debt securities
measured at fair value through other comprehensive income.
At each reporting date, the value adjustment for expected credit losses shall be measured at an amount equal to the
expected credit losses over the life of the asset or the expected credit losses over the next 12 months; depending onwhether the credit risk on that financial instrument has increased significantly since initial recognition.
Atradius will apply IFRS 9 at the same time as IFRS 17 and the comparative period will be restated according to the"overlay classification" approach ("overlay classification"), so that information on financial instruments that havealready been derecognised off on 1 January 2023 will also be reported in accordance with IFRS 9, as if themeasurement and classification requirements had always applied to them.
Breakdown s r equired by t he d eferral ap p roach in IFRS 9
Below is a breakdown of the fair value of financial assets based on the SPPI criterion at 31 December 2022 and 2021,
as well as the change in fair value during the period. Assets fall into two categories:

SPPI: financial assets whose cash flows represent only principal payments and interest on the amount ofoutstanding principal, excluding any assets classified as held for trading under IFRS 9, or is managed and its
performance assessed on the basis of fair value.
Other: all financial assets not included in the SPPI category:
(i)
(ii)

The contractual terms that do not give rise to cash flows on specified dates which are only payments ofprincipal and interest on the amount of outstanding principal.
Classified as held to trade under IFRS 9 or managed and their performance is assessed on the basis of fairvalue.
Fair Value at(EUR million)

Variation

2022

2021

Debt securities:(Government bonds + Corporate bonds)

2,431

2,265

166

SPPI

2,429

2,262

167

Other

2

3

(1)

394

507

(113)

SPPI

-

-

-

Other

394

507

(113)

Short-term investments and Cash held for investments:

119

206

(87)

SPPI

119

206

(87)

Other

-

-

-

Cash and cash equivalents

576

499

77

SPPI

576

499

77

Other

-

-

-

Total

3,520

3,477

43

Equity securities *:* Equity securities include investment fund shares.
Nearly all debt securities pass the SPPI test and do have at the end of the year a low credit risk (credit rating Investment
Grade). The credit ratings of financial assets that pass the SPPI test are included in the rating detail in Note 4.3.2).
Impact as at 1 January 2022
At 1 January 2022 no material impacts are expected from the adoption of IFRS 9.

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Atradius | Consolidated financial statements 2022 Atradius N.V.

2.2.2.2

IFRS 17 Insurance Contracts

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) shall be applied for annual reporting periods on 1 January 2023
(date of first application). It is compulsory to include comparative information. IFRS 17 Insurance contracts establishes
principles for the recognition, measurement, presentation and disclosures of insurance contracts within the scope ofthe standard.
This standard supersedes IFRS 4, which allows continued use of local accounting practices and has resulted ininsurance contracts accounted for differently between jurisdictions and similar products.
Unlike the above, the implementation of IFRS 17 involves a consistent application on the accounting for all insurance
contracts.
A major change compared with IFRS 4 is that estimated losses (onerousness) on a group of contracts must berecognised when these occur. For all contracts that are not onerous at initial recognition, an entity shall recognise a
profit margin in the profit and loss account (called a contractual service margin or CSM) over the period in which theentity performs the service. However, if at the time of initial recognition or during the period in which the entity
performs the service, the contract becomes onerous, the entity shall recognise the loss in the profit and loss account
immediately.
Since the financial year 2018, the Company is fully engaged in its implementation project. This project has beendeveloped in accordance with the action plan, which has been updated in accordance with the delivery of the defined
milestones.
During the year 2022, the work has progressed with the full involvement of all the areas of the Company (Actuarial,
Accounting and Consolidation, Policies, Data and Systems and Risk Control). The project work was focused on thefollowing: (i) the development and calibration of an actuarial based modelling; (ii) the improvement of the quality of
data, including historical records; (iii) the continued validation of the correct transfer of information throughout theend-to-end data chain, starting from the source systems through the actuarial application to the accounting
application; (iv) the parameter validation for the purposes of the transition from IFRS 4 to IFRS 17; (v) the preparatory
work and the ongoing review of the transitional balance sheet as at 1 January 2022; (vi) the development of a new
Target Operating Model that includes both the set-up and integration of the updated governance processes; and thereview of internal reporting requirements and regulatory breakdowns, which also includes the Atradius entities thatneed to be compliant locally with IFRS 17 for statutory and/or regulatory purposes.
The Company will complete during the first quarter of the financial year 2023, all-important preparatory tasks and thetests of the preliminary 2022 figures.
The IFRS 17 project governance board monitors and steers all the activities. This board consists of AtradiusManagement Board Members and their directors.
Measurement approaches
The Company uses for all its products - credit and surety products, and reinsurance held - the general measurement
model or approach (GMM). The Company has chosen this approach since all of these products have a significant
portion of insurance contracts that have a coverage period longer than one year and the general measurement
approach allows including changes in the estimation of cash flows that are important to deal with volatile economic
environments. Additionally, Atradius is exposed to material expectation changes. Consequently, the Company can
only apply the general measurement model.
The main reinsurance treaties do cover insurance products. These treaties all have a coverage period for more than
one year.
The Company has defined the coverage period as the period during which the entity provides insurance contract
services. This period includes the insurance contract services that relates to all fulfilment cashflows within theboundary of the insurance contract. During the coverage period, an insured event can happen. The insured event for
credit insurance is the insolvency and/or protracted default, where the risk of protracted defaults continues up to theend of the (extended) waiting period. For surety insurance, the coverage ends at the end of the (estimated) period thatthe bond will cover the insured events.

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70

All amounts in thousands of Euro, unless otherwise statedSignificant accounting policies
The Company’s main accounting policies are as follows:
Methods used and judgements applied in determining the IFRS 17 transition amounts
The Company has adopted IFRS 17 retrospectively, applying alternative transition methods where the full
retrospective approach was impracticable. The Company applied the full retrospective approach to the insurance
contracts in force at the transition date (1 January 2022) that were issued less than one year prior to the transition
date. The Company applied the modified retrospective approach to the insurance contracts that originated more than
one year prior to the transition. However, on the annual cohorts that do relate to that period more than one year prior
to transition and have a loss for remaining coverage (LRC), the Company applied the full retrospective approach as per
1 January 2022.
The Company did not apply the fair value approach.
The transition approach was determined at the level of a group of insurance contracts and affected the approach to
calculating the CSM on initial adoption of IFRS 17:

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

For credit insurance contracts issued, the Company has used the full retrospective approach for more than 90 % of theportfolios.
The Company has determined that it would be impracticable to apply the full retrospective approach where any of thefollowing conditions existed:The full retrospective application required assumptions that would have been made in an earlier period, forexample:The Company’s expectations on expected claims and recoveries would not have been possible to recreate
without the use of hindsight.
Difficulties in retrieving relevant reliable information existed where assumptions developed at the dateof initial recognition were not on an IFRS 17 basis (such as risk adjustment for non-financial risk or
expenses).
The older the contracts in force are, the more challenging it would have been to retrieve data from thepast on assumptions.



The full retrospective application required significant estimates of amounts, and it was impossible to distinguishobjectively between information about those estimates that provided evidence of circumstances that (i) existed on
the date at which those amounts were to be recognised, measured or disclosed; and (ii) would have been available
when the consolidated financial statements for that prior period were authorised for issue, and other information,for example:
The Company had limited or no information required for the allocation of acquisition cash flows to
respective groups of insurance contracts issued or expected to be issued and other overhead expenses torespective groups under IFRS 17. Systems have not been tracking or allocating acquisition costs, because
previous accounting policies did not require this. In addition, the allocation of applicable overheads togroups of contracts could require information that has not historically been tracked/recorded.
-

The Company has not historically been accumulating information about the changes in estimates thatwould have been recognised in profit or loss for each accounting period, because they did not relate tofuture service, and the extent to which changes in the FCF would have been allocated to the loss
component.

The Company applied this modified retrospective approach for all the products except for the Credit Insurance
contracts mentioned above.

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Atradius | Consolidated financial statements 2022 Atradius N.V.

Full retrospective approach
The Company has determined that reasonable and supportable information was available for all contracts in force atthe transition date that were issued within one year prior to the transition date.
Accordingly, the Company has:

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

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











Aggregation of contracts. Groups of contracts were divided into annual cohorts. Aggregation of insurance
contracts by expected profitability was assessed as at the transition date to the extent that reasonable andsupportable information was available to perform this assessment as at initial recognition. For this assessment,
the Company estimated the FCF at the initial recognition as described below. Further, to aggregate non-onerous
insurance contracts issued into groups of contracts that had no significant possibility of becoming onerous
subsequently or groups of remaining contracts, the Company assessed the likelihood of changes in insurance,
financial and other exposures on the FCF prospectively as at the transition date. Similarly, to aggregate
reinsurance contracts held in a net cost position into groups of contracts for which there is no significant
possibility of a net gain arising subsequently or groups of remaining contracts, the Company assessed thelikelihood of changes in insurance, financial and other exposures on the FCF prospectively as at the transition
date.
Future cash flows. To the extent that reasonable and supportable information was not available to estimate future
cash flows at initial recognition, future cash flows at the date of initial recognition of a group of insurance
contracts were estimated as the future cash flows at the transition date, adjusted by the actual cash flows thathave occurred between the transition (or earlier) date and the date of initial recognition. Actual cash flows
included cash flows from contracts derecognised before the transition date.
Risk adjustment for non-financial risk. Similar to the cash flow simplification above, the risk adjustment for nonfinancial risk was estimated at the transition date by adjusting the risk adjustment for non-financial risk at thetransition date by the expected release of risk before the transition date. In estimating the release of risk,reference was made to the release of risk for similar insurance contracts that were issued at the transition date.
Discount rates. The Company did not apply the modification for discount rates determination as permitted byparagraph C13 of IFRS 17. The Company did apply the bottom up approach. The bottom-up approach is based on
the Euro swap curve (after the entry into force of the single European currency).
Insurance acquisition cash flows assets. The Company did not recognise any insurance acquisition cash flows
assets for any insurance acquisition cash flows paid (or for which a liability has been recognised applying another
IFRS standard) before the transition date.
CSM, loss component and loss-recovery component. The Company has determined that it does not havereasonable and supportable information to determine the carrying value of the CSM, loss component or lossrecovery component prior to the transition date. Accordingly, the Company has determined the amounts at
transition, assuming that it had not prepared any interim reports prior to transition. For contracts measured
under the GMM, the CSM, loss component and loss-recovery component of the LRC at the transition date were
determined applying modifications in the FCF estimation, as described above. The CSM was reduced for the65

72All amounts in thousands of Euro, unless otherwise statedallocation to profit or loss for services provided or received before the transition date, by comparing theremaining coverage units as at the transition date with the coverage units provided or received under the group ofcontracts before the transition date.
For insurance contracts issued, where the calculated CSM resulted in a loss component, the Company
used the systematic approach to determine amounts allocated to the loss component before the transitiondate.
For groups of reinsurance contracts held that provide coverage for onerous groups of underlying
contracts in force at the transition date that were in place by the time the underlying contracts were
issued. Loss-recovery components of the asset for remaining coverage were determined at the transition
date by multiplying the loss components of the LRC for the respective groups of underlying insurance
contracts by the percentage of claims for the group of underlying insurance contracts that the Company
expects to recover from the group of reinsurance contracts heldSegregation of components
The Company has assessed its products to determine whether some of these components are insurance distinct andwhether they need to be separated and accounted for under other Standards. The Company has not identified
separable components, so all components will be accounted for under IFRS 17.
Investment components which are not separable
The investment component is "the amount that an insurance contract requires the entity to reimburse the holder
under any circumstances, regardless of whether the insured event has occurred". The Company receives and pays
reinsurance commission. This component cannot be segregated and therefore this component will be accounted forunder IFRS 17.
Aggregation
The Company has defined the units of account based on the combination of portfolio, year of issue and profitability, as
detailed below.
The Company manages insurance contracts issued by product lines within one operating segment, where each productline includes contracts that are subject to similar risks. All insurance contracts within a product line represent a
portfolio of contracts. Each portfolio is further disaggregated into groups of contracts that are issued within a calendar
year (annual cohorts) and are: (i) contracts that are onerous at initial recognition; (ii) contracts that at initialrecognition have no significant possibility of becoming onerous subsequently; or (iii) a group of remaining contracts.
These groups represent the level of aggregation at which insurance contracts are initially recognised and measured.
Such groups are not subsequently reconsidered.
The Company uses significant judgement to determine at what level of granularity the Company has reasonable andsupportable information that is sufficient to conclude that all contracts within a set are sufficiently homogeneous andwill be allocated to the same group without performing an individual contract assessment.
Local Credit Insurance business and Bonding business is managed at the country level that issued the insurance
contracts. While the Company manages Global Credit Insurance, Special products, Instalment Credit Protection andAssumed business at group level.
The Company has extensively reviewed all facts and circumstances in all cases where one counterparty has multiple
insurance contracts. The Company has decided that some of these contracts cannot be measured independently.
Circumstances to come to this decision are items such as the existence of one master agreement, aggregated first loss,
aggregate buyer limits, bonus malus on the combined result of all insurance contracts.
Recognition, modification, derecognition
The Company recognizes groups of insurance contracts issued from the first of the following dates:

at the beginning of the coverage period;
the date when the first payment of the policy holder is due; andwhen the Company determines that a group of contracts becomes onerous.

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The Company in general recognises the insurance contract at the beginning of the coverage period unless groups of
insurance contracts are onerous once the contract is bound and if the bound date is prior to the coverage start date.
For standard credit insurance business, the existence of credit limits (coverage of insured sales) determines theexistence of the insurance contract, and not the policy itself.
The Company derecognises an insurance contract when it is:

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

When the Company modifies an insurance contract as a result of an agreement with the counterparties or due to achange in regulations, the Company treats changes in cash flows caused by the modification as changes in estimates of
the FCF, unless the conditions for the derecognition of the original contract are met.
The Company derecognises the original contract and recognises the modified contract as a new insurance contract if
the modified terms had been included at contract inception and the Company would have concluded that the modified
contract: results in a different contract boundary; or belongs to a different group of contracts;
When an insurance contract is derecognised from a group of insurance contracts, the Company adjusts the FCF toeliminate the present value of future cash flows and risk adjustment for non-financial risk relating to the rights andobligations removed from the group and adjust the CSM and the number of coverage units for the expected remaining
insurance contract services, to reflect the number of coverage units removed.
Measurement
Fulfilment cash flows
Fulfilment cash flows (FCF) consist of a best estimate and a risk adjustment.
The best estimate consist of estimates of the future cash flows within the contract boundary of the contracts that
the Company expects to collect from premiums and to pay out for claims, benefits and expenses, adjusted toreflect the timing and the uncertainty of those amounts The best estimate corresponds to a probability weighted
average of future outcomes, with prudent choices being made as to possible scenarios and likelihoods thereof.
The estimates are determined from the perspective of the Company, and consistent with observable market prices
for market variables where relevant. It considers circumstances as at measurement date in as far relevant andknown to the Company and reflect conditions existing at the measurement date.

The estimates of future cash flows are adjusted using the current discount rates to reflect the time value of money andthe financial risks related to those cash flows, to the extent not included in the estimates of cash flows.
Where appropriate and proportionate methodology and data exists, the Company estimates cash flows at the level ofGroups or lower. However, where estimate relate to more severe events, that do not occur at the level of the Group andthat occur with sufficient frequency to allow for robust modelling at that level of granularity the Company models theestimates related to the possible events at a higher level, combining information from multiple portfolios, and thenallocating such estimates to Group level.
Contract Boundary
The Company includes in the measurement of a group of insurance contracts all future cash flows expected to arise
within the contract boundary of each of the group’s contracts. The Company determines whether cash flows are within
contract boundary when substantive rights and obligations arise that exist during the reporting period in which theCompany may oblige the policyholder to pay premiums or the Company has a substantive obligation to provide
services to the insured. The substantive obligation to provide services ends when:

the Company has the practical ability to reassess the risks of a particular insured event and as a result reassess
the premium charged or the level of benefits provided by the premium to fully reflect the new level of risk. How
the Company manages Insurance risk is explained in note 4.2.1. In general for traditional credit insurance,
Atradius can withdraw the credit limit at any time if circumstances demand; orthe Company has the practical ability to reassess the Portfolio premium to fully reflect the risk of all policyholders
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All amounts in thousands of Euro, unless otherwise stated

and the Company’s premium setting does not take into account risks beyond the next revaluation date.
Discount rate
The Company measures the value of money over time using discount rates that reflect the liquidity characteristics of
insurance contracts and the characteristics of cash flows, consistent with current market prices and excluding factors
influencing the market prices of the reference assets but not affecting the flows of insurance contracts. The discountrate is calculated by the "bottom-up" approach after the transition ("bottom-up") based on the risk-free curve, mainly
based on the curve published monthly by EIOPA (European Insurance and Occupational Pensions Authority) andapplying an illiquidity premium of zero.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is applied to the present value of the estimated future cash flows. It reflects
the compensation that the Company requires for bearing the uncertainty about the amount and timing of the cash
flows from non-financial risk as the Company fulfils insurance contracts. The Company takes diversification benefits
into account.
For the calculation of the risk adjustment, the Company will use the Cost of Capital method. The Costs of Capital iscalibrated to the risk margin as used in the standard formula in Solvency II.
Contractual margin of service (or "CSM")
Initial measurement
The CSM is a component of the carrying amount of the asset or liability for a group of insurance contracts issued
representing the unearned profit that the Company will recognise as it provides insurance contract services in the
future.
At initial recognition, the CSM is an amount that results in no income or expenses (unless a group of contracts isonerous or insurance revenue and insurance service expenses are recognised as in (d) below) arising from:
a.
b.
c.
d.

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

When the above calculation results in a net outflow, the group of insurance contracts issued is onerous. A loss fromonerous insurance contracts is recognised in profit or loss immediately, with no CSM recognised on the balance sheeton initial recognition, and a loss component is established in the amount of loss recognised.
Changes to the contractual service margin
For insurance contracts issued, at the end of each reporting period the carrying amount of the CSM is adjusted by
the Company to reflect the effect of the following changes:
a.
b.
c.

d.
e.

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

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The CSM of a group of contracts is recognised in profit or loss by identifying the coverage units in the group. The
number of coverage units reflects the quantity of services provided to the customers, determined by considering foreach contract the quantity of the benefits provided and the expected coverage period.
The remaining CSM at year end for a group of contracts is allocated to all coverage units provided in the year andexpected to be provided in future years, and recognised in profit or loss for the CSM amount allocated to coverage units
provided in the year.
The Company determines the quantity of the benefits provided under each contract as:Standard Credit Insurance based on the expected period customers invoices are settled. After this payment theCompany does not have any insurance risk anymore
Surety business, pro-rata over the coverage period

Reinsurance contracts transferred or held
Portfolio
Portfolios of reinsurance contracts held are assessed for aggregation and measurement separately from portfolios of
insurance contracts issued. Applying the grouping requirements to reinsurance contracts held, the Company
aggregates reinsurance contracts held issued within a calendar year (annual cohorts) into groups of: (i) contracts forwhich there is a net gain at initial recognition, if any; (ii) contracts for which, at initial recognition, there is no
significant possibility of a net gain arising subsequently; and (iii) remaining contracts in the portfolio, if any.
Reinsurance contracts held are assessed for aggregation requirements on an individual contract basis. The Company
has for their main reinsurance held contracts determined to split these in two portfolios, proportional and nonproportional.
Recognition
Reinsurance contracts held are recognised as follows:

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

Contract boundary
For groups of reinsurance contracts held, cash flows are within the contract boundary if they arise from substantive
rights and obligations of the Company that exist during the reporting period in which the Company is compelled to
pay amounts to the reinsurer or in which the Company has a substantive right to receive insurance contract services
from the reinsurer.
Measurement
The Company generally does not measure reinsurance held contracts through separate methodology. But rather, using
the specific contractual features of the reinsurance held contracts combined with the cash flows from the directcontracts whose cash flows are ceded through the respective contract, the Company derives the respective
consequential cash flows. As such, the Company ensures consistent assumptions to measure the estimates of thepresent value of future cash flows for the group of reinsurance contracts held and such estimates for the groups ofunderlying insurance contracts.
For reinsurance contracts held, the risk adjustment for non-financial risk represents the amount of risk beingtransferred by the Company to the reinsurer.
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76All amounts in thousands of Euro, unless otherwise statedContractual Service Margin
For Groups of reinsurance contracts held, any net gain or loss at initial recognition is recognised as the CSM unless thenet cost of purchasing reinsurance relates to past events, in which case the Company recognises the net cost
immediately in profit or loss. For reinsurance contracts held, the CSM represents a deferred loss that the Company willrecognise as a reinsurance expense as it receives insurance contract services from the reinsurer in the future and is
calculated as the sum of:
a.
b.
c.
d.

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

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

d.
e.

The effect of any new contracts added to the Group.
Interest accreted on the carrying amount of the CSM.
Income recognised in profit or loss when the entity recognises a loss on initial recognition of an onerous Group ofunderlying insurance contracts or on addition of onerous underlying insurance contracts to that Group. A loss
recovery component is established or adjusted within the remaining coverage for reinsurance contracts held forthe amount of income recognised.
Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held.
Changes in the FCF, to the extent that the change relates to future service, unless the change results from a change
in FCF allocated to a Group of underlying insurance contracts that does not adjust the CSM for the Group ofunderlying insurance contracts.

A loss-recovery component is established or adjusted within the remaining coverage for reinsurance contracts held forthe amount of income recognised in (d) above. This amount is calculated by multiplying the loss recognised onunderlying insurance contracts by the percentage of claims on underlying insurance contracts that the Company
expects to recover from the reinsurance contracts held that are entered into before or at the same time as the loss isrecognised on the underlying insurance contracts.
Key accounting judgments and estimates
In accordance with the Company’s accounting policies, as described in the preceding paragraph, it has been necessary
to make judgements, estimates and assumptions about the carrying value of assets and liabilities. The estimates andunderlying assumptions will be reviewed on an ongoing basis.
The following are the critical judgments and estimates associated with IFRS 17 that managers have made in theprocess of implementing the Company’s IFRS 17 accounting:







Determining the cash flows within the contract Boundary: The measurement of a group of (re)insurance contracts
includes all future cash flows that arise within the contract limit. In determining which cash flows fall within acontract boundary, the Company considers its substantive rights and obligations arising from the terms of thecontract as well as from the applicable law and regulations. Cash flows are considered to be outside the contract
limit if the Company has the practical ability to change the price of existing contracts to reflect their revaluation
risks and if the contract price for the hedge to the revaluation date considers only the risks until that next
reassessment date. The Company applies its judgement in assessing whether it has the practical ability to set a
price that fully reflects all contract or portfolio risks. The Company considers contractual, legal and regulatory
restrictions in making its assessment
Level of aggregation: The Company defines the portfolio as insurance contracts subject to similar risks andmanaged together. Contracts within a product line are expected to be in the same portfolio that have similar risks
and are managed together. Assessing which contracts are managed requires judgement.
The Company uses significant judgement in reviewing all facts and circumstances in all cases where one
counterparty has multiple insurance contracts. Assessing these circumstances requires judgment.
The Company uses significant judgement to determine at what level of granularity the Company has reasonable
and supportable information that is sufficient to conclude that all contracts within a set are sufficiently
homogeneous and will be allocated to the same Company without performing an individual contract assessment.
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

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

Nature of major impacts arising from IFRS 17
The main changes in the new standard IFRS 17 compared to the current accounting standard IFRS 4 and Solvency II
are presented below. Finally, it assesses the impact on the reading that users of financial information will make onalternative performance measures:
Impacts compared to financial reporting under IFRS 4
Compared to the information currently submitted in accordance with IFRS 4, IFRS 17 implies a change in thepresentation of balance sheet items, but primarily in the income statement. IFRS 17 establishes principles for therecognition, measurement, presentation and disclosure of insurance and reinsurance contracts. The following changes
and impacts should be highlighted:








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

Impacts compared to Solvency II
There are possible synergies with Solvency II in terms of the data, the application of common definition of insured
events, inputs used and the processes carried out given the essence of both regulations. In this respect, the maincommon elements are linked to the measurement of insurance contract liabilities and, in particular, to the use of
future cash flow estimates, discount rates and risk adjustments.
The key difference between IFRS 17 and Solvency II, is how reinsurance is treated. IFRS 17 requires that reinsurance
contracts are independently measured from the direct contract, while Solvency II considers these to be closely
related.
Alternative performance measures ("APM")
As a P&C Company, Atradius will continue maintaining key metrics such as: combined, costs and claims ratio.
Estimated impact in transition
At the transition date (1 January 2022), there is an estimated positive impact in reserves coming from the adoption of
IFRS 17.
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2.2.2.3-

Other standards, amendments and interpretations not yet adopted

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;
Amendments to IFRS 17 Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information.
The amendment introduces the concept of classification overlay. The classification overlay will allow Atradius toclassify financial assets in the comparative period 2022 in a way that aligns with the manner in which Atradiusreasonably expects those assets would be classified on initial application of IFRS 9 as per January 1, 2023.

The European Union has not yet endorsed the following relevant standards and amendments and as such these havenot been adopted by Atradius:--

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 IFRS 16 Leases: Lease Liability in a Sale and Leaseback. These amendments will not have an
impact on the consolidated financial statements;
Amendments to IAS 1 Presentation of Financials Statements: Non-current liabilities with covenants. This is toclarify how conditions with which an entity must comply within twelve months after the reporting period affectthe classification of a liability. The amendments are effective for reporting periods beginning on or after January
1, 2024. These amendments will not have an impact on the consolidated financial statements.

2.3

Consolidation

All the entities that are consolidated have 31 December 2022 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 Atradius has control. Atradius controls an entity when it is exposed to, or has
rights to variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to Atradius.
They are de-consolidated from the date on which control ceases.
Intragroup transactions, balances and unrealised gains on intragroup transactions are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries’
accounting policies are changed where necessary to ensure consistency with the policies adopted by Atradius except
for the accounting for insurance contracts (see Note 2.17).
When Atradius loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any
related Non-controlling Interest (Minority-interest) (further referred to as ‘non-controlling interest’) and othercomponents of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former
subsidiary is measured at fair value when control is lost.

2.3.2

Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a businesscombination is measured at fair value, which is calculated as the sum of fair values of the assets (at the acquisitiondate) transferred to Atradius, liabilities incurred by Atradius to the former owners of the acquiree and the equity
interests issued by Atradius in exchange for control of the acquiree. Acquisition-related costs are generally recognisedin the profit and loss statement as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value atthe acquisition date, except that the deferred tax assets or liabilities and assets or liabilities related to employee
benefit arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee
Benefits respectively.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any)
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All amounts in thousands of Euro, unless otherwise statedover the net amount of the identifiable assets acquired and the liabilities assumed. If the net amount of the identifiable
assets acquired and the liabilities assumed exceed the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree and the fair value of Atradius’ previously held equity interest in the acquiree (ifany), then the excess is recognised immediately in profit or loss as a bargain purchase.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of theentity’s net assets in the event of liquidation, may be initially measured either at fair value or at the non-controllinginterests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice ofmeasurement method is made on a transaction-by-transaction basis. Other types of non-controlling interests aremeasured at fair value or, when applicable, on the basis specified in another IFRS.
When the consideration transferred by Atradius in a business combination includes assets or liabilities resulting froma contingent consideration arrangement, the contingent consideration is measured at the fair value and included in
the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that
qualify as measurement period adjustments, are adjusted retrospectively, with a corresponding adjustment togoodwill. Measurement period adjustments are adjustments that arise from additional information obtained during
the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstancesthat existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. A contingent
consideration that is classified as equity is not re-measured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. A contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39 Financial Instruments: Recognition andMeasurement or IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with thecorresponding gain or loss being recognised in profit or loss.
When a business combination is achieved in stages, Atradius’ previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e., the date when Atradius obtains control) and the resulting gain or
loss, if any, is recognised in the profit and loss statement. Amounts arising from interests in the acquiree before theacquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss
where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, Atradius reports provisional amounts for the items for which the accounting is incomplete. Those
provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities arerecognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that,
if known, would have affected the amounts recognised at that date.

2.3.3

Associated companies

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

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2.4

Segment reporting

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

2.5

Foreign currencies

2.5.1

Functional and presentation currency

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

2.5.2

Transactions and balances

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

2.5.3

Atradius companies

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

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

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

End rate

Average rate

GBP

USD

AUD

GBP

USD

AUD

At 31 December 2022

1.127

0.938

0.637

1.156

0.964

0.648

At 31 December 2021

1.190

0.883

0.640

1.174

0.880

0.629

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All amounts in thousands of Euro, unless otherwise stated

2.6

Goodwill and other intangible assets

2.6.1

Goodwill

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

2.6.2

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

Land and buildings comprise offices occupied by Atradius (‘property for own use’). Land and buildings are stated at
the cost of acquisition or construction, less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. For analysis of the residual value, the fair value is assessed based on active market prices, adjusted
if necessary, for any difference in the nature, location or condition. All other property, plant and equipment are statedat historical cost less accumulated depreciation and subsequent impairment losses.
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Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to Atradius and the cost of theitem can be reliably measured. All other repairs and maintenance are recognised as an expense in the profit and loss
statement during the financial period in which they are incurred.
Some of Atradius’ properties comprise a part that is held as investment property to earn rentals or for capital
appreciation and another part that is held for own use. If these parts could be sold separately or leased out separately
under a financial lease, Atradius accounts for the parts separately as investment property and property for own use,
respectively.
The depreciation period is based on the estimated economic useful life of the asset. Leasehold improvements are
depreciated over the shorter of the estimated useful life of the improvements and the respective lease terms. Land is
not depreciated. All other assets are depreciated using the straight-line depreciation method over the estimatedeconomic useful lives: buildings over 50 years, fixtures and fittings over 3-10 years and information systems
hardware over 3-5 years.

2.7.1

Leased property, plant and equipment

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

2.8

Investment property

Property held for long-term rental yields that is not occupied by one of the companies of Atradius is classified as
investment property.

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83All amounts in thousands of Euro, unless otherwise stated

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 forwhich the fair value is determined using a valuation technique (a valuation model), where inputs in the valuation
model are taken from an active market or are market observable. If certain inputs in the model are not market
observable, but all significant inputs are, the instrument is still classified in this category, provided that the impact of
those elements on the overall valuation is insignificant. Included in this category are items whose value is derived
from quoted prices of similar instruments, but for which the prices are (more than insignificantly) modified based onother market observable external data;
Level 3: Valuation techniques incorporating information other than observable market data. This category includes
financial investments for which the fair value is determined using a valuation technique for which a significant levelof the input is not supported by a current observable market transaction. This category also includes the financial
investments for which the fair value is based on brokers quotes or pricing services. These valuations are for 100% of
the fair value verified with an external independent valuation company.
The fair values of financial instruments traded in active markets are based on quoted market prices at the end of thereporting period. The quoted market price used for financial investments held by Atradius is the current bid price.
Transaction costs on initial recognition of financial investments are expensed as incurred.
The fair values of financial instruments in markets that are not active are determined using valuation techniques.
Atradius uses a variety of methods and assumptions that are based on market conditions existing at the end of thereporting period.
The fair values of property for own use and investment property are determined, every two years, by independent realestate valuators registered in the relevant countries and who have appropriate qualifications and experience in thevaluation of properties.
See Note 4.3.1.1 for further details regarding the determination of the fair value of financial investments.

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 Atradius
commits to purchase or sell the asset. Loans and receivables are recognised and derecognised at settlement date, thedate Atradius receives or delivers the asset.
Financial investments are derecognised when the rights to receive cash flows from the financial investments have
expired or where Atradius has transferred substantially all the risks and rewards of ownership. If Atradius neithertransfers nor retains substantially all the risks and rewards of ownership of a financial investment and does not retain
control over the investment, it derecognises the financial investment. In transfers where control over the asset isretained, Atradius continues to recognise the asset to the extent of its continuing involvement. The extent ofcontinuing involvement is determined by the extent to which Atradius is exposed to changes in the value of the asset.

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2.11

Classification of financial investments

Atradius classifies its financial investments into two categories: investments available-for-sale and loans andreceivables. The classification depends on the purpose for which the investments were acquired. Atradius determines
the classification of 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 profit and loss
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 Atradius intends to sell in the short term, orthat it has designated as available-for-sale. Deposits withheld by ceding companies and receivables arising frominsurance contracts are also classified in this category. Loans and receivables are initially recognised at fair value plustransaction costs and subsequently measured at amortised cost using the effective interest method, less provision for
impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables
where the recognition of interest would be immaterial.

2.12

Impairment of assets

2.12.1 Financial assets - general
At the end of each reporting period Atradius assesses, whether there is objective evidence that a financial asset orgroup of financial 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 initial recognition of the asset (a ‘loss event’) and that loss event has a negative impact on the estimatedfuture cash flows of the financial asset or group of financial assets that can be reliably estimated.
Atradius first assesses whether objective evidence of impairment exists for financial assets that are individuallysignificant. If Atradius determines that no objective evidence of impairment exists for an individually assessedfinancial 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
Atradius assesses, at the end of each reporting period, whether there is objective evidence that a financial asset carriedat amortised 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
Atradius on terms that Atradius 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 theloss 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 the
profit and loss statement. If a loan has a variable interest rate, the discount rate for measuring any impairment loss isthe current effective interest rate determined under contract. As a practical expedient, Atradius may measure
impairment on the basis of an instrument’s fair value using an observable market price.

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All amounts in thousands of Euro, unless otherwise statedIf, 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 profit and loss statement.

2.12.3 Financial investments - carried at fair value
Atradius 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, Atradius 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 profit and loss statement.
If, in a subsequent period, the fair value of debt securities classified as available-for-sale increases and the increase
can be objectively related to an event occurring after the impairment loss was recognised in the profit and loss
statement, the impairment loss is reversed through the profit and loss statement, but only to the amortised cost price.
Subsequent increases above the amortised cost price are credited against the revaluation reserve as a component ofother comprehensive income.
Impairment losses recognised in the profit and loss 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 aretested 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, Atradius 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 of assessing 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 toan event occurring after the impairment loss was recognised in the profit and loss statement, the carrying amount of
the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, provided that theincreased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or cash-generating unit) in previous years. The amount of the reversal
is recognised in the profit and loss statement. However, impairment losses recognised for goodwill are not reversed insubsequent periods.

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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, or to 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 Atradius in the management of its short-term commitments. Bank overdrafts that are
repayable on demand form an integral part of Atradius’ cash management and are included as a component of cash
and cash equivalents for cash flow purposes. In the statement of financial position, bank overdrafts that do not meetthe criteria for offsetting, are presented separately as liabilities under borrowings.
Deposits pledged for regulatory and other purposes as well as cash held for investments are not available for use in
Atradius’ day-to-day operations and are therefore not included within cash and cash equivalents. These assets areincluded within financial investments.

2.15

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 deductionof income tax, except for impairments that are charged directly to the profit and loss 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 at 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 Atradius’ pension obligations
and fair value of the plan assets in respect of a defined benefit plan in the period in which they occur; and the non-recognition of assets (‘asset ceiling’) that can occur when the plan assets are higher than the projected
benefit obligation and where Atradius cannot recover any surplus through refunds from the pension vehicle due
to solvency and/or control requirements.

8187All amounts in thousands of Euro, unless otherwise stated

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

2.16

Subordinated debt

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

2.17

Insurance contracts

An insurance contract is a contract under which one party (the insurer) accepts significant insurance risk fromanother party (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 Atradius 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 Atradius’ insured customers; andBonding contracts: contracts that provide compensation to the beneficiary of the contract if Atradius’ bonding
customer fails to perform a contractual obligation relative to the beneficiary.

Atradius 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
for outstanding claims. Further reference is made to specific information included in Note 4.2.6 and Note 18.

2.17.1 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.

2.17.2 Provision for unearned premium
The UPR is established for the different types of business as follows (see note 4.2.6.1):
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 thathave 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.
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2.17.3 Provision for outstanding claims
Claims and loss adjustment expenses are charged to the profit and loss statement as incurred based on the estimatedliability for compensation owed to contract holders. They include direct and indirect claims settlement costs and arise
from the risks Atradius has assumed up to the end of the reporting period. Atradius does not discount its liabilities(other than the recoveries 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
Atradius and statistical analyses for the claims incurred but not reported. When appropriate, deductions are made forsalvage, subrogation and other 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 otherknown trends and developments.
Additional information on the measurement of the provision for outstanding claims is provided in Note 4.2.6.

2.17.4 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 profit and loss statement by first writing down the related deferred acquisition costs andthen by establishing a provision for losses arising from the liability adequacy test.

2.17.5 Reinsurance contracts
Contracts entered into by Atradius with reinsurers, under which Atradius is compensated for losses on one or more
contracts it has issued and that meet the classification requirements for insurance contracts, are classified asreinsurance contracts held. Contracts that do not meet the classification requirements are classified as financial assets.
Insurance contracts entered into by Atradius under which the contract holder is another insurer (reinsurance
business) are included in insurance contracts.
The benefits to which Atradius is entitled under its reinsurance contracts held are recognised as reinsurance assets.
These assets 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
arising under the related reinsurance contracts. Amounts recoverable from or due to reinsurers are measured
consistently with the amounts associated with the reinsured insurance contracts and in accordance with the terms ofeach reinsurance contract. Reinsurance liabilities are primarily premium payable for reinsurance contracts and arerecognised as an expense when due.
Atradius assesses its reinsurance assets for impairment on a quarterly basis. If there is objective evidence that thereinsurance asset is impaired, Atradius reduces the carrying amount of the reinsurance asset to its recoverable
amount and recognises that impairment loss in the profit and loss statement. Atradius gathers the objective evidence
that a reinsurance asset is impaired by applying procedures similar to those adopted for financial assets held at
amortised cost. The impairment loss is calculated under a similar method used for these financial assets.
Reinsurance commission related to Atradius’ 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
scale commission (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.
Atradius recognises the gains and losses from reinsurance contracts directly in the profit and loss statement.

2.17.6 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, Atradius reduces the carrying amount of theinsurance receivable accordingly and recognises that impairment loss in the profit and loss statement. Atradius
gathers the objective evidence that an insurance receivable is impaired by applying procedures similar to those
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All amounts in thousands of Euro, unless otherwise statedadopted for loans and receivables. The impairment loss is also calculated under a similar method used for thesefinancial assets.

2.17.7 Salvage and subrogation reimbursements
Some insurance contracts permit Atradius to sell goods acquired in settling a claim (i.e., salvage). Atradius may also
have the right 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.

2.17.8 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 fairvalue of the insurance contracts is recognised as an intangible asset.
Atradius subsequently amortises this asset based upon the duration of the underlying cash flows. The carrying
amount after initial recognition is adjusted for accumulated amortisation and any accumulated impairment losses.

2.18

Provisions

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

2.19

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.

2.20

Employee benefits

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

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

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

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

2.20.3 Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an
employee accepts voluntary redundancy in exchange for these benefits. Atradius recognises termination benefits
8591All amounts in thousands of Euro, unless otherwise statedwhen it is committed to either terminating the employment of current employees according to a detailed formal plan
without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage
voluntary redundancy. When termination benefits are related to an overall restructuring plan, the Atradius liability is
included as part of the provisions.

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

2.21

Taxation

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

2.22

Consolidated profit and loss statement

2.22.1 Income
Revenue comprises the fair value for services, net of value added tax, after eliminating revenue within Atradius.
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 Atradius has already accepted thecontractual 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.

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Service and ot her income
Service 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
to the customer, against fixed prices stated in the contract. If a contract includes a separate charge for monitoring,
this element is recognised evenly over time;
Debt collection services for debts owed to customers. The performance obligation is defined at the level of theindividual debts, placed under the contract. Revenue is recognised in line with the actual collected amounts, basedon fees specified in the debt collection agreements.
Business information and other service income.
Business information is provided online to customers on a subscription basis. Revenue is recognised evenly overtime based on the consideration in the contract, reflecting the constant effort required to acquire and prepare
business information.
Atradius Dutch State Business (ADSB) is the official Export Credit Agency for The Netherlands and issues export
credit insurance policies and guarantees to Dutch businesses, on behalf of and for the risk of the Dutch State.
ADSB receives a service fee for managing the credit insurance facility, specified in the service contract. This
income is recognised evenly over time.

Share of inco me of as sociat ed com panies
Associates are accounted for in the consolidated financial statements using the equity method. Under the equity
method the investor’s share of after-tax profits or losses of the associates is presented as a single line item in the profit
and loss statement.
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 profit and loss statement. Interest income is recognised as it accrues in the profit
and loss statement, using the effective interest method. Dividend income is recognised in the profit and loss statementon the date that Atradius’ right to receive payment is established, which in the case of quoted securities is the exdividend date.
Investment expenses comprise impairment losses recognised on financial investments and investment property.
Realised gains or losses on investment property recognised in the profit and loss statement represent the difference
between the net disposal proceeds and the carrying amount of the property.

2.22.2 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 an d ex pen ses
Finance income consists of interest received on loans, receivables and cash and cash equivalents.
Finance expenses include interest, amortisation of discount on the subordinated debt, foreign exchange results andthe net interest on the net defined benefit liability (asset) related to defined benefit plans (see also Note 2.20). Foreign
currency gains and losses are reported on a net basis and consist of transaction and translation results.
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93All amounts in thousands of Euro, unless otherwise statedInterest 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.

2.23

Consolidated statement of cash flows

The statement of cash flows is presented using the indirect method, whereby the result for the year before tax isadjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments, and items of income or expense associated with investing or financing cash flows.
Some of the terminology used in the statement of cash flows is explained as follows:cash flows are inflows and outflows of cash and cash equivalents;
operating activities are the principal revenue-producing activities of Atradius and other activities that are notinvesting or financing activities;
investing activities are the acquisition and disposal of assets and other investments not included in cash
equivalents; andfinancing activities are activities that result in changes in the size and composition of the contributed equity andborrowings of Atradius.

2.24

Hyperinflation accounting

IAS 29 requires the financial statements of entities operating in hyperinflationary economies to be adjusted to reflect
the changes in the general purchasing power of their functional currency. Thus, non-monetary assets and liabilities
that are not already expressed in terms of the measuring unit current at the period end date are restated to reflect thechange in the CPI. In the financial statements of Atradius, the restatement effects on equity items are included in othercomponents of comprehensive income, including the translation differences. The effect of inflation on monetary assets
and liabilities over the reporting period is included in the reporting period’s consolidated income as a loss on net
monetary position. The accumulated gains and losses on net monetary position for previous periods are included
within the retained earnings.
The presentation of the consolidated profit and loss statement of the reporting period is not restated as the effect of therestatement is not material. As stated in IAS 21 “The Effects of Changes in Foreign Exchange Rates”, financial
statements, including their profit and loss statements, are translated in Euros at the closing exchange rate to beincorporated in the financial statements of Atradius, and the comparative information is not restated.

2.25

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

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

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

3.1

Measurement of fair value

Atradius measures some of its financial instruments at fair value for financial reporting purposes. The fair value offinancial instruments that are not traded in an active market is determined by using valuation techniques. Atradiususes its judgement to select a variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting period. When market observable inputs are not available (Level 1), Atradiusengages an external independent valuation company to perform the valuation. Atradius works together with theexternal independent valuation 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 4.3.1.1 and Notes 7 and 16.

3.2(Re-)insurance 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 Atradius’ most critical accounting estimate, due to the impact this has on the profit and loss statement orother comprehensive income. Although management has endeavoured to adequately take all facts into by their very
nature estimates remain uncertain and the eventual outcome may differ significantly from the projected amount (seesections 4.2.5 and 4.2.6).
Pipeline premium
Pipeline premium relates to shipments made by Atradius’ policyholders for which Atradius is at risk but has not
invoiced the premium. Pipeline premium is estimated as the part of insurance premium earned but not yet invoiced at
the end of the reporting period. Although the calculation of the pipeline premium is derived from the core businesssystems and calculated at policy level, considering all policy specific features that might impact the assessment, thecalculation does involve the use of management estimates. The main reason is that premiums for risks taken on
depend on the amount of 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 onclaims related to the policy. As the final performance of the policy is not known at reporting date, this also means thatpart 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 thiscurrent changing macroeconomic information, which requires a quantification of the additional uncertainty over thebusiness 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 this uncertain economic
environment would be covered without significant impacts on insurance premium. However, Atradius performs
detailed analysis of the different components included in the automatic modelled pipeline calculations, adjusting thosewhich Atradius estimates could be more uncertain due to present macroeconomic uncertainties potentially worsening
the claims environment (bonus pipeline) or from deviation in insured turnovers estimates (reconciliation invoices).
(For further details see Note 13).
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 thisreinsurance sliding scale commission is based on the observed claims ratio by underwriting year and the expecteddevelopment.

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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

Atradius determines that an available-for-sale equity financial investment is impaired when there has been asignificant (40% of decrease) or prolonged (18 consecutive months) decline in the fair value below its cost. This
determination of what is significant or prolonged requires judgement.
Had all the declines in fair values below cost been considered significant or prolonged Atradius would have acumulative additional EUR 1.1 million loss before tax (2021: EUR 1.6 million loss), being the transfer of the total
revaluation reserve for unrealised losses on equity financial investments to the profit and loss statement.

3.4

Estimated impairment of goodwill

In accordance with its accounting policy, Atradius 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, Atradius has stress-tested the main assumptions(discount rate, combined ratio and Capital Requirement ratio) which have been applied when determining the value in
use for the related cash-generating units.
The discount rate used varies depending on the location and industry of the company to analyse, using customised
Risk-Free Rates, Market Betas and Country Risk Premiums. The terminal value is calculated based on the dividend
flow/free cash flow of the normalised period through a perpetuity, which applies a long-term growth rate of 2% for
CGUs excluding ACYC CGU and a 3% for associated companies.
The projection period is 10 years, where the first 1-4 year projections are based on financial budgets and/or forecasts.
In the budgets and forecasts, the impact of the changed macroeconomic situation is taken into account. The remaining
years are estimated using ratios and growth rates that converge towards their normalised term value.
For further details see Note 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 ofpension obligations.
Atradius determines the appropriate discount rate at the end of each year. This is the interest rate that should be used
to determine the present value of estimated future cash outflows expected to be required to settle the pension
obligations. In determining the appropriate discount rate, Atradius considers the interest rates of high-quality
corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms tomaturity approximating the terms of the related pension obligation. Other key assumptions for pension obligations
are based in part on current market conditions.
Additional information, including a sensitivity analysis for the main (actuarial) assumptions, is disclosed in Note 17.

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4

Risk and capital management

4.1

Risk management

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

4.1.1 The risk landscapeThe state of the global economy greatly influences the risks that Atradius faces. Economic deterioration may result inincreased insolvencies thereby causing more frequent and severe claims expenses. The return on our investment may
also deteriorate and defaults on our holdings of debt instruments may occur. A severe deterioration of all the abovementioned may affect the credit rating of Atradius. A downgrade of our credit rating could have a negative impact on
the number of customer policies held by Atradius and thereby lower revenues. Understanding of this landscape,anticipating developments and preparing mitigating actions is a key expertise of Atradius.
In addition to the risks arising from direct credit insurance policies, reinsurance, and bonding, which we refer to as
underwriting risk, Atradius’ risk landscape contains other types of risk. Atradius faces market risk related primarily to
our assets, credit risk from reinsurers and third-party receivables, and operational risks such as cyber risk and legalrisks. In addition, strategic risks 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 externalsources of material risk in the landscape.
During 2021 and 2020, the most significant developments in the risk landscape related to the worldwide effects of the
COVID-19 pandemic. Through a skillful application of our strategy of supporting customers while managing upcoming
risks related to supply chain issues, commodity shortages, declining consumer and purchasing manager confidence in
combination with government intervention, Atradius transitioned into 2022 with an excellent level of control over its
risk profile. Government programs, which were established to support national and international trade and hence theeconomy during the pandemic, gradually expired. The expiry of the programs has had no negative impact on our risk
profile.
2022 brought new risk management challenges: the direct and indirect impacts of Russia’s invasion of Ukraine(including the effects of government–imposed sanctions), as well as resulting interest rate hikes, inflation, and energy
cost increases. All of these developments affected global trade as well as national economies in differing magnitudes.
As 2022 progressed, the lingering economic effects of the pandemic, the unpredictable direction of the war in Ukraine,and the developments in interest rates, inflation and energy costs, combined to increase uncertainty.
As in previous stressful periods, we analysed the nature and sources of the risks across geographies and industry
sectors, as well as the interaction of the factors that ultimately affect the resilience of our customers and their buyers.
We used our extensive knowledge base and forward-looking tools, models and analysis on a continuous basis in
portfolio management, underwriting decisions and policy structure to ensure the continued quality of our risk
portfolio.
In relation to climate-related risks - more frequent and severe weather events are damaging infrastructure anddisrupting supply chains. Transition to a lower carbon economy is bringing new policies, regulations and changes tomarket dynamics. There is a risk that such changes could have a negative impact on Atradius by affecting ouroperations and/or our customers 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 incertain trade sectors may become undesirable and attract negative publicity. At the same time, interest in climatechange / ethical practices, such as ESG (Environmental, Social & Governance) and CSR (Corporate Social
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97All amounts in thousands of Euro, unless otherwise statedResponsibility) considerations, may create opportunities to enhance the Atradius offerings. Developments aremonitored and discussed in various forums within Atradius.
In summary, Atradius has taken the appropriate steps to manage what is a rapidly changing risk landscape.

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

To achieve reliability over financial information and solvency reporting, the following controls are implemented andquarterly tested: Key controls required to manage the risk of a material error in financial and non-financial reporting; and Entity-level controls that detect material misstatement due to failures in controls within business processes.

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

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

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.

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

4.2

Insurance risk

4.2.1 Insurance products, their characteristics, sensitivity to insurance risk, risk mitigation and controls
Atradius operates with two main direct insurance product lines: credit insurance and bonding. In addition, Atradius
writes both credit and bonding business as a reinsurer. Credit insurance can be divided into three subcategories:
traditional credit insurance, instalment credit protection and special products. Each of these sub-categories has
particular risk characteristics.
The starting point for the management of insurance risk is that all staff have well-defined authorities specifying thelevel of risk they can accept. Furthermore, Atradius’ reinsurance structure imposes checks on the largest exposures.
Exposures beyond a certain threshold are subject to special acceptance by our leading reinsurers.
Traditional credit insurance and special products
In traditional credit insurance, Atradius insures its customers against the risk of non-payment of trade receivables.
The causes of loss covered differ by policy and usually include all forms of legal insolvency. Policies can also cover socalled ‘political’ causes of loss, which include but are not limited to, the risk of non-payment due to payment transfer
problems, cancellation of export/import licences and contract frustration. Traditional credit insurance does not covernon-payment of trade receivables due to commercial disputes. Each policy stipulates a maximum credit period thatthe policyholder can offer to its buyers without prior approval from Atradius. ‘Buyers’ are the customers of Atradius’
insured customers, i.e., the parties that Atradius insures trade credit risk on. In order to mitigate the risk of adverse
selection, the traditional credit insurance products of Atradius usually cover the entire portfolio of buyers of apolicyholder.
For traditional credit insurance, there are two underwriting processes: policy underwriting and buyer underwriting.
Policy underwriting is the process by which Atradius decides which companies to accept as policyholders and theterms and conditions of cover that are offered to those policyholders. Buyer underwriting is the process by which
Atradius sets a risk capacity for each buyer and issues credit limits for buyers under existing policies. Policy
underwriting and buyer underwriting are carried out by Commercial and Risk Services units respectively.
Policies are issued for a fixed period: usually no longer than two years and with a break clause after one year. Within
traditional credit insurance, customers retain some of the risk for their own account to protect Atradius from the riskof moral hazard. That self-retention can take the form, for example, of an uninsured percentage, a deductible on eachclaim, an aggregate first loss amount or a combination of these. All policies stipulate Atradius’ maximum liability. A
customer is covered for the credit risk on a buyer after a credit limit on the buyer has been established. Most policies
allow customers to establish credit limits themselves for smaller amounts, under strict conditions specified in thepolicy. Atradius must issue larger credit limits through credit limit decisions. Credit limits are an important risk
management instrument for Atradius as they are the key control of the amount that Atradius would have to pay to acustomer in the event of a claim. Moreover, Atradius can withdraw the credit limit on a buyer at any time if
circumstances demand. Credit limits may be subject to specific conditions and Atradius can also set conditions forcover on a country or withdraw cover on a country altogether. These tools are important to manage insurance risk
exposure in a dynamic way.
Staff in Commercial units have well-defined authorities specifying who can underwrite which policies. Policies
typically require the approval of two people and conditions become stricter as the maximum liability under a policy
becomes larger, with the largest policies needing sign-off by both the Director of a Commercial unit and the
responsible Management Board member. The pricing of credit insurance policies (new, amended and renewed), is also
subject to governance and the models and methodologies used to establish a technical price require the approval of the
Quantitative Model Committee, a committee responsible for approving the quantitative models that are used within
the Group.
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 limit amounts grow, decisions
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All amounts in thousands of Euro, unless otherwise statedrequire the approval of one or more co-signatories of increasing seniority. The largest credit limit amounts require theapproval of the Atradius credit committee with the appropriate authority level and, in exceptional cases, the approvalof the (leaders of the) reinsurance panel.
The special products business offers a range of bespoke policies to insure against various credit and political risks.
This product line includes policies that cover single transactions, single trade relationships and e.g. 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
monitoring and 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 dedicated Risk Services teams, which report ultimately to the Chief
Risk Officer. In addition, a dedicated risk management team with a functional reporting line to the Director of Group
Risk Management ensures adherence to the risk governance model, monitors the portfolio risk and ensurescompliance with the terms of the reinsurance treaty.
Bonding
Atradius 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 a customer may fail to meet its obligations either because it is unable to perform to an agreed or required levelor because it is insolvent, there is also the risk that the customer may intentionally fail to meet its obligations.
Therefore, our assessment of both the customer’s financial strength and its ability to perform play an important part in
the underwriting process. Unlike traditional credit insurance, exposure related to bonds issued cannot be unilaterally
cancelled by Atradius.
When a bond is called by the beneficiary, Atradius mediates to resolve conflicts by working with both customer andbeneficiary. If, as a result of non-performance, a payment is made by Atradius to the beneficiary, a recovery action istaken against the customer who remains ultimately liable. If Atradius does incur an irrecoverable loss it is almost
always because of the customer’s financial distress, making the 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 and various 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 theCommercial Bonding units. Technical underwriters assess the risk of non-performance as well as bonding wordings
and other relevant technical aspects. Financial underwriters, who are not part of the Commercial units, focus on thecredit risk-related aspects of customers; they must approve the acceptance of facilities and individual bonds overcertain thresholds. Financial Underwriting decisions are taken in line with a clear and stringent authority linked toamounts involved. The largest amounts require the approval of Atradius credit committees (Local or Group) with theappropriate authority level.
Other products
Reinsurance
Atradius underwrites reinsurance programmes for credit insurance and bonding business written by primary
insurers. This business is conducted by Atradius Reinsurance DAC, which is domiciled and regulated in Ireland.
Atradius Reinsurance DAC provides reinsurance capacity for primary insurance companies from both the developed
and developing credit insurance and bonding markets. It currently assumes business from 70 countries worldwide,
maintaining a balanced diversity within the portfolio from each continent. The underlying business consists ofapproximately 59% credit insurance and 41% bonding, based on premium volume.

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Reinsurance underwriting guidelines and risk boundaries define the kind of business Atradius Reinsurance DAC isauthorised to write, with specific guidelines for type of product, capacity limit, exposure, term and diversity of theunderlying insurance ceded. Particular attention is given to ensuring the diversity of business from third party clientsand the level of exposure to any one country, company, or market is managed within agreed underwriting limits andcapacity.
All reinsurance business is regularly reviewed with respect to past underwriting years’ performance, triangulation
development, individual buyer exposure development, aggregate total potential exposure management of economic
capital requirements and market and country exposure. Risk and policy limit setting is monitored to ensure credit
quality and compliance of the underlying insurance products to the terms of the reinsurance programme.
Instalment Credit Protection (ICP)The ICP product line covers the medium- and long-term risks that financial and corporate policyholders face in theirmultiple instalment agreements with private individuals and businesses, and is available in Belgium andLuxembourg.
Policy underwriting is performed within the Commercial ICP units. Policies are generally issued for a fixed periodwith automatic renewal. The indemnification rate can rise to 100% and recoveries are for the benefit of Atradius.
Risk underwriting is performed by the risk underwriting teams. Authorities are granted to underwriters according totheir seniority and expertise. Cases are escalated according to pre-determined thresholds to the local ICP credit
committees, then to the ICP credit committee and finally to the Management Board member responsible for ICP.

4.2.2 Insurance risk management tools
Atradius monitors its exposure across various dimensions such as counterparty, industry sector and geographic
location. We maintain records of all credit insurance policies, credit limits and buyers in various connected systems.
These systems enable Atradius to set specific limits by buyer or buyer group. Management information derived fromthese systems enables Atradius to monitor aggregate exposure by country, customer, industry sector and otherdimensions.
In addition to customer and buyer-specific decision tools, we employ a number of instruments to analyse and manage
the Company’s insurance risk profile on both a retrospective, current and forward-looking basis. This includes:Economic capital model – a best practice risk measurement tool;
Risk dashboards and tools to drill down to underlying details of parts of the portfolio;
Predictive analysis of indicators such as shipments, claims and premiums;
Models of probabilities of default and loss-given-default.

These tools enable Atradius to manage its profile within a regularly reviewed and approved risk management
framework.
All buyers with significant exposure are reviewed at least annually. Depending on the credit worthiness of a buyer,
reviews may be more frequent and even require the involvement of a Special Risk Management unit. Atradiuscontinually receives information on buyers through on-line connections with business information providers andfrom customers reporting negative payment experiences. Buyers are reviewed whenever pertinent new informationis received. Atradius assigns an internal rating to buyers and the review process takes into account exposure on abuyer through direct business, including exposure for special products and bonding. The authority structure forapproval of new exposure referred to in this note also applies to buyer reviews.
Atradius operates with an integrated risk and (capital) cost-based pricing system. Generally, new policies andrenewals are priced starting from a technical price suggested by the Group Pricing Model.
For reinsurance, Atradius Reinsurance DAC uses a number of risk management tools to monitor the reinsurance
portfolio for exposures and performance developments. The reinsurance system is used to record the risk profile,ultimate estimate and related accounting information for each reinsurance treaty. This allows the reporting of
performance, total aggregate exposure and accounting reinsurance results. Performance development and exposuresrelated to each reinsurance treaty are reviewed quarterly within certain limits and through exception reporting.

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All amounts in thousands of Euro, unless otherwise stated

For ICP, consumer credit risk underwriting relies on the databases of the relevant national authorities. In addition, ICP
maintains and uses its own internal consumer credit database.
Both Bonding and ICP have their own pricing systems and guidelines, which reflect the specifics of their businesses.

4.2.3 Reinsurance programme
Atradius transfers a significant portion of its insurance risk to external reinsurers, through a number of reinsurance
arrangements that include quota share and excess of loss treaties covering either the entire portfolio of Atradius or
specific risks. The reinsurance treaties are renewed annually, usually in December of the preceding year. During 2022,
Atradius decided to renew its reinsurance arrangements for 2023. This trend continued with the renewal of thereinsurance arrangements for 2024 in early 2023. 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’ risk appetite.
For the underwriting year 2022 one quota share reinsurance treaty is in place covering the majority of Atradius’
business. The retention under this treaty is 63% (2021: 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). These excess of loss treaties also provide protection for
the assumed business of Atradius Reinsurance DAC. The combined excess of loss programme for Atradius has mitigatedthe likelihood of it retaining two separate retentions if a common buyer were to fail, affecting both the assumed anddirect business of Atradius. The top of the excess of loss layers is chosen so that, in the judgement of management, there
remains only a very remote possibility that failure of any single buyer group will exceed the top end of the excess ofloss coverage purchased.
The attachment point of the excess of loss treaties has been set such that the net retention for business ceded under thequota share treaties and excess of loss structure for any buyer group does not exceed EUR 26.25 million for Atradius(2021: EUR 26.25)
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 (ARE) will be merged into Atradius Crédito y Caución S.A. de
Seguros y Reaseguros (ACyC) through a cross-border merger to be completed in 2023. The transaction remains subject
to the necessary board, shareholder, court and regulatory approvals. Upon effectiveness of the merger, ARE’s assets andliabilities, including all of its reinsurance obligations, would be transferred to ACyC, through its Irish branch.
Government Agreements
In view of the situation generated by the COVID-19 pandemic and, as a support to the national economy, the 10 main
countries where the Group operates have supported the business of credit insurance in the form of 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.
In 2020 Atradius entered into agreements with the governments of France, Germany, Denmark, Norway, Belgium,
Luxemburg, the Netherlands, United Kingdom, Italy and Spain. All these agreements were renewed until the firstsemester of 2021, except for France where the covered period was extended to 31 December 2022. In general terms, allgovernment schemes covered Credit Insurance with domestic policyholders related to all the buyers. In Europe, allagreements were approved by their correspondent regulators. These government reinsurance agreements are applied
before the private reinsurance with the exception of Spain where the agreement provided an additional cession to theprivate cession). All government schemes are risk attaching, the cession rates are different per country.
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The table below details the impacts of the agreements in the consolidated statement of financial position (in thousand
euros):(EUR thousand)

2022

2021

Technical Provision Ceded

29,190106,766

Premiums Provision Ceded

7,533

26,117

Balance Sheet

Cash paid/received(384,364)(297,805)

Accounts Receivables/Payables

12,115(125,754)

Reinsurance commission(2,044)(7,307)

Insurance premium ceded(14,852)(323,805)

Insurance claims recovered(27,277)(35,527)

Reinsurance commission

2,647

106,204

Profit and (Loss) net impact(39,482)(253,128)

Profit and loss statement impacts:

4.2.4 Concentration risk
Atradius is exposed to concentration risk in a number of ways: primarily by buyer, buyer country or buyer industry
exposure. The following tables illustrate the exposure at the end of 2022 and 2021 in terms of the sum of credit limits
registered by Atradius on individual buyers. This is referred to as total potential exposure or TPE.
TPE is an approximate upper boundary to real outstanding exposure, in the sense that a limit that Atradius has issued
does not necessarily give rise to underwriting risk at a specific point in time. Atradius normally does not know the real
outstanding exposure under its limits on any specific buyer at any point in time. The ‘usage’ of limits is, on average,
much smaller than the amount of the limit. At the portfolio level, real outstanding exposure tends to be in the range of
10% to 30% of TPE, on top of which customers still have their own retention. In addition to the TPE, customers are often
allowed to bring exposure under the policy through discretionary limits. Potential exposure resulting from a
discretionary limit on any buyer is not held on Atradius’ system. Each policy specifies the maximum discretionary
limit allowed under the policy. For most policies this is no more than EUR 20 thousand per buyer. This illustrates that
TPE is a crude but appropriate measure of exposure and that, in aggregate, real exposure will be far lower.
The following tables show aggregated TPE for credit insurance (including special products) and assumed reinsurance.
Buyer country

TPE 2022(EUR million)%

TPE 2021(EUR million)

%

Other

195,34722.6%

160,822

22.2%

Germany

125,35414.5%

108,235

14.9%

Spain, Portugal

97,58011.3%

86,97012.0%

USA95,616

11.1%

70,655

9.7%

Central and Eastern Europe (*)

88,671

10.3%

77,682

10.7%

Italy

62,161

7.2%

50,352

6.9%

United Kingdom

59,7406.9%

51,211

7.1%

France58,8086.8%50,601

7.0%

Nordic40,912

4.7%

35,311

4.9%

The Netherlands

39,063

4.5%

33,204

4.6%

Total

863,252100%

725,043

100%(*) Ukraine and Russia TPE is included in this group. Total exposure in both countries has been reduced in comparison with year-end
2021 by 64%, representing less than 0.4% of the total exposure.

The following table shows the distribution of TPE over buyer industry sector.
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All amounts in thousands of Euro, unless otherwise statedIndustry sector

TPE 2022(EUR million)%

TPE 2021(EUR million)%

Chemicals

123,206

14.3%

99,39013.7%

Electronics

107,892

12.5%

90,137

12.4%

Metals

94,88811.0%

78,757

10.9%

Consumer durables

91,125

10.6%

81,697

11.3%

Food

82,021

9.5%

71,101

9.8%

Transport

75,6508.8%

61,673

8.5%

Construction

62,382

7.2%

53,451

7.4%

Other

59,186

6.9%

48,056

6.6%

Machines

55,280

6.4%

46,328

6.4%

Construction materials

41,5634.8%

34,801

4.8%

Agriculture

39,751

4.6%

34,441

4.8%

Services

30,3093.5%

25,211

3.5%

Total

863,252100%

725,043

100%

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

TPE 2022(EUR million)%

TPE 2021(EUR million)%

0 - 20413,00347.8%

364,886

50.3%

20 - 100

154,12417.9%

129,838

17.9%

100 - 250

98,213

11.4%

78,455

10.8%

250 - 500

72,296

8.4%

61,2368.4%

500 - 1000

67,7397.8%

48,5176.7%1000 - and more

57,878

6.7%

42,111

5.8%

Total

863,252100%

725,043

100%(EUR million)

Exposure for bonding and for instalment credit protection has different characteristics and therefore is not included inthese tables. The bonding exposure is EUR 27.6 billion (2021: EUR 25.6 billion). Exposure for instalment credit
protection amounts to EUR 3 billion (2021: EUR 3 billion).

4.2.5 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 Russian invasion of Ukraine and the energy crisis, the state of the economy in the near
future is, and has been, significantly more uncertain than usual. This, in turn, impacts uncertainty related to thefrequency and severity of claims.
Concerning COVID-19, some countries (e.g. China) are still suffering lockdowns and/or an increase in infection rates.
Moreover, in most European countries (core of Atradius CI business) the governmental support to the economy isbeing progressively rolled back., Though there is still uncertainty with respect to the extent to which the economy
relied on the support.

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Regarding the energy crisis and the Russian invasion of Ukraine, these had relevant adverse impacts across the global
economy, notably on inflation and interest rates. Most trade sectors, are dependent on energy, which has sufferedmaterial inflation during 2022. Therefore, world-trade is being affected by such inflation and stress. This in turnimpacts uncertainty related to the frequency and severity of claims.
As a collateral effect of the above mentioned, most relevant central banks have increased the interest rates. This has
been followed banks and suppliers of credit, leading to a tougher lending conditions. Further adding to the uncertainty
in frequency and severity, also affecting recoveries.
All the factors above, lead to an increased potential for adverse development on the technical provisions in the coming
months because of increase in frequency, severity and insolvency rates.
The bonding business usually only incurs irrecoverable losses when, after a bond call, any payments to beneficiaries
recourse to the bonding customer; or its guarantors fails. This is typically due to either the insolvency or bankruptcy ofthe bonding customer. Thus, in the end, the frequency and severity of claims is affected by similar factors as thoseaffecting credit insurance.
All forms of credit insurance and 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.

4.2.6 Sources and assumptions
4.2.6.1

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 factorsthat affect the frequency and severity of claims in general, as described in Note 4.2.5.
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 theprovisions for claims ‘incurred but not reported’, the IBNR. The accounting policies and estimation methods for setting
UPR and IBNR vary by product and in part also by entity within Atradius:







for traditional credit insurance, premium is earned in full when the underlying shipment takes place. UPR
exclusively relates to the unearned part of premium invoiced in advance and to risks that have not started. IBNR
is Atradius’ estimate for future claims payments that will result from risks taken on, but for which no claims
notification has been received;for the local credit insurance business in Spain and Portugal, premium is earned pro rata over the period between
invoice date and due date of invoices for the insured shipments. Thus, part of UPR relates to risks that havestarted, in the sense that the underlying insured shipment has taken place. IBNR is the local business in Spain andPortugal’s estimate for future claims payments that will result from risks taken on, for which no claims
notification has been received and for which the underlying invoices are overdue at the end of the reporting
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 interpretingthe claims development tables in Note 18 to evaluate the accuracy with which Atradius has historically estimatedfuture claims payments.
Estimates for future claims payments are made through a combination of case-by-case estimates and statisticalestimates. Provisions for reported claims are set on a case-by-case basis, taking into account statistical estimates for
expected recoveries and statistical estimates of claims incurred to payment ratios. The estimates for future claims
payments are produced per period during which policyholders brought risk under the cover of the policy (i.e., theperiod in which the insured shipment has taken place). Large cases are provisioned separately, at expected loss.
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All amounts in thousands of Euro, unless otherwise stated

In the case of traditional credit insurance, the main sources of uncertainty for estimates of future claims payments
include:

the amounts that will be paid out as a percentage of the claim amount;the speed with which customers submit claims, as measured from the moment that the insured shipment took
place, the expected average claims payment and the expected percentage of cases that do not lead to a payment;
the expected number of claims for risks taken on during the most recent months since very few claims will havebeen reported for the most recent four to six months (depending on the country of the customer);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 andreceipt of the bond call tends to be much longer than that of traditional short-term credit insurance. For example, mostcredit insurance covers credit periods up to 180 days, while around half the number of bonds written has tenors ofover two and a half years. After receipt of a bond call, it usually takes longer to settle the claim and litigation is notuncommon, either following the bond call or when trying to realise recoveries. Especially in Italy, litigation tends to bea lengthy process. Outcomes of litigation cannot be predicted with certainty. For bonding, the provisions set on a caseby-case basis are based on the amount called minus an amount to account for expected recoveries based on historicexperience or case specific information. For imminent large bond calls as well as for large customers in financial
difficulties, the Company sets a claim provision. The case by case and business oriented evaluation is integrated with astatistical and actuarial model. This model based on the exposure of active bonds applies probability of defaults andloss given default. Booked recovery provisions for bonding are periodically reviewed and adjusted to experience.

4.2.6.2

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 2023 would be around 20% above the level of end 2022. The main methodologies for
estimating claims provisions for traditional credit insurance combined underpin 68% (2021: 74%) of the claims
provisions for traditional credit insurance.
In light of the increased uncertainty as a result of the current circumstances, we have taken a similar approach for2022 closing as we did for 2021 closing. During the second half of 2020, the number of reported claims dropped
significantly compared to the first half of the year. This partly relates to a drop of insured business as result of thelock-downs in early 2020 and, partially, because of government’s support for the economy. However, whilst theinsured shipments have recovered since, the number of claims registrations remained at a low level including the firsttwo quarters of 2022. However, the second half of 2022, showed a notable increase. This being said, the total numberof claims registrations during 2022 is still 20 – 40% lower than the claims reported during the first half of 2020,
depending on the country. The 2022 provisions have been set based on the assumption that this reduction is still
temporary and that a further strong increase in claims registrations is still expected going forward. The estimatedultimate claim count for most recent month of risk has been set at the level of the first half of 2020 plus 10 – 40%
depending on the country due to uncertainty in the current economic environment.
An indication of the sensitivity to projected ultimate number of claims would be the following: if the estimatedultimate number of claims, inclusive of the expected increase mentioned in the previous paragraph, for the mostrecent six months of risk were to change by 10%, the claims provisions would change by EUR 40 million, gross ofreinsurance (2021: EUR 35 million). As in essence provisions for most recent months are set as estimated number
times estimated claims size, this also describes the sensitivity to assumed claims size. This sensitivity isapproximately linear. Unless noted otherwise, the same holds true for other sensitivities mentioned in this section.
Under normal circumstances, for modelling attritional losses, the uncertainty in severity quickly becomes lessimportant compared to the uncertainty in frequency, as the portfolio becomes larger. This feature is feature notspecific to credit insurance, but holds for any insurance product, provided the portfolio is large enough, andcorrelation between count and severity is small enough. It is our experience that average claim sizes, for the attritional
losses, are sufficiently stable over time to not have significant margins of uncertainty in the parameters governing thesize of attritional claims that have not yet been reported.
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Whilst recent trends in severity have been duly considered as part of the process by which Atradius reviews and sets
parameters and prudent choices have been made, we still consider there to be more uncertainty than in recent history,
as result of the unprecedented circumstances.
To indicate an overall level of sensitivity with respect to the parameters driving the average size for claims not yet
registered, if this average would be increase by 10%, claims provisions for attritional losses would increase by EUR 37
million (2021: 35 million).
By its nature, an estimate of the expected inflow of large cases is not easy to quantify. The order of magnitude of thissensitivity would be, in the judgement of management, similar to the sensitivity in the estimated number of claims forthe most recent months, although, as is inevitable with severity risk, it has a longer tail. From historic data it can beseen that the correlation between the ultimate aggregate losses arising from large claims by underwriting year andthe attritional losses is larger than 80%.
As such, supporting the plausibility of the management judgement, provisions for large cases are in part based on
historic experience with large cases and in part on case by case reporting of ultimate loss estimates. The approach that
relies on historic experience sets an ultimate loss arising from large cases as a fraction of the total losses for the last
two risk years. Despite the historically high correlation between large and attritional losses, current low claims entry
implies estimated attritional losses for recent underwriting years to be well below prior years. These exceptional
circumstances, accompanied with the current level of uncertainty and experience from prior financial crisis (20082009, which showed a higher proportion of large losses over total losses) leads to setting a ratio aligned to the historic
one observed in prior financial crisis. The selected ratio implies estimated ultimate large loss amounts (as opposed to
the ratio with attritional losses) to be in the range of those observed under normal circumstances, like underwriting
years 2012 to 2019. If these fractions were chosen 10% higher, then the claims provisions for traditional credit
insurance would increase by EUR 84 million (2021: 66 million). The case by case estimates are specific to theindividual facts and circumstances of the case. As such, no meaningful overall insight to the sensitivity can be given.
In addition to contributions from standard components of Atradius reserving methodologies, an Event Based
Provision has been estimated specific to the impact of the conflict between Russia and Ukraine. This is for those risks
considered to be not fully covered by the standard methodologies. This is based on a case-by-case review of the
exposures related to Russia-Ukraine conflict. Management has considered two main drivers of risks to be covered by
the Event Based Provision:a. Real Outstanding Exposure (ROE) related to traditional CI business from customers trading out of Russia and for
Russian/Ukrainian buyers. This excludes exposure already notified as claims, as the standard methodology
already caters for this. It also excludes exposure for which a notification of non-payment was registered. This istreated as a separate category:b. Notifications of Non-Payments related to business from customers out of Russia but related to the conflict
between Russia and Ukraine.
As a result of the analysis performed, a EUR 140m provision gross of reinsurance (EUR 98m net of reinsurance) was
added.
Claims provisions are presented net of recoveries from salvage and subrogation. Realised recoveries can deviate fromexpected recoveries. Expected recoveries amount to EUR 378 million (2021: EUR 373 million). The largest twocomponents of the expected recoveries are the recoveries for traditional credit insurance of EUR 167 million (2021:
EUR 142 million) and for instalment credit protection of EUR 132 million (2021: EUR 138 million).
As recovery rates differ by country as well as product, moreover, that the development depends on the age of theunderwriting year, it is challenging to provide insight into sensitivity to assumptions by measuring the impact of amere parameter change. For traditional credit insurance, ultimate recoveries are first estimated using commonly usedprojection methods. These estimates are then reduced considering a margin for uncertainty, such that a favourable
development on these estimates is by far the most likely outcome. Nevertheless, the impact of setting the recovery
provisions lower by 10% is EUR 17 million (2021: EUR 14 million). For instalment credit protection, for which similar
margins for uncertainty are introduced, the impact of setting recovery provisions lower by 10% is EUR 13 million(2021: 13 million).

4.3

Financial risk

Atradius is exposed to financial risk mainly through its financial assets, financial liabilities, reinsurance contracts andinsurance contracts. The core components of financial risk are market risk, credit risk and liquidity risk.

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All amounts in thousands of Euro, unless otherwise stated

These risks arise mainly from interest rate sensitive positions, equity instruments, credit exposures, non-Eurocurrency exposures and cash flow patterns.

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

4.3.1.1

Fair value of financial assets and liabilities

The estimated fair values of Atradius financial assets and liabilities, other than the subordinated debt, equal theircarrying value. The fair values of subordinated debts are disclosed in Note 16.
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, Atradius establishes the accounting policies and processes
governing valuation and is responsible for ensuring that these comply with all relevant accounting pronouncements.
Within this governance structure, non-quoted investments or illiquid investments in which Atradius invests arevalued by an external independent valuation company or the asset manager of an illiquid investment fund. The
external independent valuation 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 amonthly basis and are reviewed and approved by Atradius. The valuation process at the asset manager is audited andapproved 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.
Subordinated debt
The fair values of subordinated debts are based on valuation techniques using market prices of comparable
instruments or parameters from comparable active markets (see Note 16 for further details).
Other financial liabilities and deposits received from reinsurers
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The carrying amount of other financial liabilities and deposits received from reinsurers is not materially different totheir fair value, given their short-term nature.
The following tables present the fair values and the hierarchy of the financial instruments carried at fair value (note
2.9):
Financial instruments measured at fair value
Assets 2022

Level 1

Level 3

Total

362,576

31,649394,225

Government bonds

645,611-645,611

Corporate bonds

1,785,409-

1,785,409

Total

2,793,596

31,6492,825,245

Level 1

Level 3

Total

480,176

27,123507,299

Government bonds

557,223-557,223

Corporate bonds

1,707,701-

1,707,701

Total

2,745,100

27,1232,772,223

Available-for-sale:
Equity securities
Debt securities:

Financial instruments measured at fair value
Assets 2021
Available-for-sale:
Equity securities
Debt securities:

At 31 December 2022 the Company is mainly exposed to securities traded in active markets (level 1), whereas having alimited exposure to illiquid markets (level 3).
Reconciliation of Level 3 fair values
The following table details the changes in the fair value of Level 3 financial investments (valuation techniques
incorporating information other than observable market data):
Financial investments Level 3

Equity securities

Balance at 1 January

2022

2021

27,123

22,910Total gains or losses:-

In profit and loss statement (net income from investments)--

In other comprehensive income

1,107

(103)

Acquisitions/Sales

3,419

4,316

Balance at 31 December

31,64927,1234.3.1.2

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. Atradius 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 andanalysed by using value at risk techniques and capital models from the external credit assessment institutions. The
value-at-risk measures the potential maximum loss on Atradius’ equity instruments due to adverse movements inequity prices in the short-term while the capital models measures the potential maximum loss in the long-term, (seeNote 4.3.1.4 for more information). Atradius invests in a portfolio of diversified equity instruments to minimise theidiosyncratic risk of individual assets.
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All amounts in thousands of Euro, unless otherwise stated

Individual equity instruments
Atradius invests in individual equities via a segregated mandate in which the asset manager has discretion to selectthe equity portfolio in accordance with investment restrictions set in the investment management agreement. This
diversified portfolio consists of EUR denominated large capitalisation equities. Per the end of December 2022, themarket value of these equities is EUR 147.7 million (2021: EUR 165.5 million).
--

Investment funds: the investment funds in which Atradius invests are exposed to market risk, counterparty risk,
liquidity risk and currency risk (i.e., general investment fund risks). The risk of an investment fund is 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. Atradius only selects investment funds thathave similar investment restrictions stated in their prospectus as set 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 %2022

Weight in %2021

Passive equities exchange traded funds

101,32241.1%

225,01065.8%

Active money market funds

113,457

46.0%

89,56926.2%

Real estate funds

25,93010.5%

24,646

7.2%

5,719

2.3%

2,477

0.7%

246,428100.0%

341,702100.0%

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 funds
denominated in Euro 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.

4.3.1.3

Interest rate risk

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

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ProfileAt the end of the reporting period the interest rate profile of Atradius’ interest-bearing financial instruments was:Fixed rate instruments -Variable rate instruments -carrying amountcarrying amount

2022

2021

2022

2021

Financial assets (1) (3)2,431,020

2,264,924

695,220705,224

Financial liabilities(249,600)(249,383)(9,263)(10,014)2,181,420

2,015,541

685,957

695,210(2) (4)

Total

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

Duration
Duration demonstrates the dependability of a bond’s market value to a change in the underlying discount rate of thatbond. The duration figure depicts the percentage change of the market value of a bond investment if the underlying
discount rate is parallel shifted by 100 basis points or 1.00%. The higher the duration figure, the more a bond issensitive to movements in the underlying discount rate.
Atradius uses the duration to assess its interest rate risk exposure and monitors whether the duration remains
between the minimum and maximum duration limit (between one to five years for government bonds and one tothree years for corporate bonds) as set in the Atradius Investment Policy. The duration is calculated as the weighted
average of the discounted future cash flows to be received measured in years. The duration as per 31 of December
2022 is 2.0 years (2021: 2.7 years) and the average maturity for 2022 is 2.2 years (2021: 2.9 years).

4.3.1.4

Value-at-Risk

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

EUR million% of themarket value2022

EUR million% of themarket value

2021

Equity securities:
Shares (including funds 1))

153.9

54.8%

146.6

35.1%

Government bonds

30.2

4.7%

5.8

1.0%

Corporate bonds

90.7

5.1%

20.5

1.2%

198.7

6.7%

145.1

4.8%

Debt securities:

Total portfolio
1)

It excludes money market funds

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All amounts in thousands of Euro, unless otherwise stated

The classification of financial investments in the VaR table stated above are based on the actual financial risks that theindividual securities present in the investment portfolio carry. For instance, within debt securities a separation
between government bonds, and corporate bonds is maintained to capture the actual exposure to corporate bonds thatcarry additional credit risk above the risks that government bonds bring along. When individual securities areclassified to the asset class that fits their actual risk profile, the volatility of that asset class is calculated using thevolatility to the financial markets of the underlying securities in that asset class. The volatility of each asset class as awhole serves as input for the VaR calculation of that asset class. In case of an investment fund, the volatility of thefund (driven by the characteristics of its underlying securities) serves as input for the calculation of the VaR on thatspecific investment fund and is subsequently included in the VaR calculation of the asset class. Total portfolio VaR isless than the sum of the VaR of the individual portfolio components because the correlation between thesecomponents is less than one and forms the basis of portfolio diversification. The VaR percentage increased from 4.8%
at the end of 2021 to 6.7% at the end of 2022 and the VaR value increased from EUR 145.1 million at the end of 2021 to
EUR 198.7 million at the end of 2022. During 2022, the global economy was impacted by the war in Ukraine, with its
subsequent energy crisis in Europe, and high inflation with increasing yield levels resulting in higher expected risk
from a VaR perspective.

4.3.1.5

Currency risk

Movements in exchange rates may affect the value of consolidated shareholders’ equity, which is expressed in Euro.
Foreign exchange rate differences taken to other comprehensive income arise on the translation of the net investment
in foreign subsidiaries and associated companies. During 2022, the Euro appreciated in value against some of the nonEuro functional currencies (see Note 2.5.3) resulting in a foreign currency gain in other comprehensive income of EUR
7.5 million, net of tax (2021: a loss of EUR 18 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.
Atradius exposure to foreign currency exchange rate risk, arising from monetary financial assets and liabilities
denominated in non-functional currencies as at 31 December 2022 and 31 December 2021, is presented in thefollowing table, in EUR:

FinancialassetsFinancialliabilities

Net position

Financialassets2022
EUR

485,034

Financialliabilities

Net position

2021

449,41135,623

430,487

416,434

14,053

GBP

8,010

9,198

(1,188)10,061

16,404(6,343)USD

680,749

575,881

104,869

555,227

416,097

139,130

AUD

2,085

5,155

(3,071)

4,041

5,902

(1,862)

Other

66,985

177,782(110,797)

114,981

207,816(92,835)

Total

1,242,863

1,217,427

25,436

1,114,796

1,062,653

52,143

Sensitivity analysis
As an indication of the currency exposure, a 10% strengthening of these foreign currencies against the Euro as at theend of 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 inparticular interest rates, remain constant and is performed on the same basis as for 2021. A 10% weakening of theaforementioned foreign currencies against the Euro as at the end of the reporting period would have had an equal but
opposite effect.
The following table specifies Atradius’ gross and net positions in major currencies (both monetary and non-monetary
items), in EUR:

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AssetsLiabilities

Net position

Assets2022

Liabilities

Net position

2021

EUR

4,285,713

2,619,569

1,666,144

4,051,063

2,439,154

1,611,908

GBP

263,506

205,167

58,339397,461

304,188

93,273USD

830,950

575,661

255,289

711,608444,634

266,974

AUD

135,834

65,36970,465

126,755

62,61264,144

Other775,036

649,825

125,211

631,879

525,856

106,023

Total

6,291,040

4,115,590

2,175,448

5,918,766

3,776,444

2,142,323

4.3.2 Credit risk
Credit risk is the risk that customers or counterparties are unable to repay their debt towards Atradius in full whendue. Atradius exposes itself to credit risk mainly by reinsurance contracts and holding financial assets.
Reinsurance is used to manage insurance risk. This does not, however, discharge the liability as primary insurer. If a
reinsurer fails to pay a claim for any reason, Atradius remains liable for the payment to the policyholder. The Atradiuspolicy is to select only reinsurers that have a well-established investment grade credit rating. The minimum
requirement is an ‘A-’ level rating, although there are some minor exceptions. In the event that the reinsurer’s rating isfound to be below this threshold, Atradius has the right to either terminate the reinsurance relationship during thecourse of the reinsurance year or else seek collateral if the relationship is to continue. Deposits received fromreinsurers mitigate the credit risk.
Individual operating units maintain records of the payment history for significant contract holders with whom they
conduct regular business. The exposure to individual counterparties is also managed by other mechanisms, such as
the right of offset where counterparties are both debtors and creditors. Management information reported to Atradius
includes details of provisions for impairment on loans and receivables and subsequent write-offs.
Credit exposure to business partners, such as insured customers and brokers, is closely monitored. Potential
impairments on receivables are reviewed monthly and updated.
With regard to managing the credit risks of the financial investments, the investment policy of Atradius is to hold a,
principally Euro-centric, internationally diversified portfolio and to avoid large risk concentrations. From a Standard& Poor’s rating scale or comparable perspective, the minimum allowed average rating of the overall fixed income
portfolio is A-, whereas investments in individual fixed income securities are allowed a minimum issue rating of BBBat purchase. If a debt security in which Atradius has invested falls below the minimum credit rating or is not rated, itshould be reviewed by the Group Investment Committee to decide whether the debt security is still a suitable
investment. The maximum concentration limit per issuer (per legal entity and at Atradius N.V. level) is 5% of themarket value of the financial investments of the legal entity or Atradius N.V.. The concentration per issuer is evaluatedby aggregating the exposure to a single issuer through both debt investments and equity securities. The Group
Investment Committee monitors this limit and takes action if necessary.
The year 2022 started with a gradual relief of the COVID-19 restrictions, but soon the Russian invasion in Ukraine
became headline news, together with the increase of the inflation figures, resulting in an energy crisis with rising
price levels of natural gas, oil and electricity, which skyrocketed mid-2022, especially the price of natural gas. Afterthe COVID-19 pandemic, these changing market circumstances were even more reason to focus on and maintain thehigh quality of the fixed income portfolio.
With regard to rating downgrades, 1.1% of the market value of bonds of Atradius was impacted by a downgrade, while
5.3% of the Atradius corporate bond portfolio observed a rating upgrade. Despite the challenging market
circumstances, with rapidly increasing yields, the fixed income portfolio remains healthy with its average rating of ‘A’in Standard & Poor’s rating scale, which is the same as at the end of 2021. For reporting purposes Russian bonds havebeen reclassified to assets held for sale.
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 fading of the COVID-19
pandemic, followed by the war in Ukraine and the (European) energy crisis, 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.
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All amounts in thousands of Euro, unless otherwise stated

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 2022 and as at 31 December
2021, are presented in the following tables:

At 31 December 2022

AAA

AA

A

BBB

Other andNon-rated

Total

Receivables, claims and commissions arisingfrom reinsurance

13

332

418

12

46

821

Deposits received from reinsurers

-

(7)

(2)

-

-

(9)

Government bonds

357

250

6

12

20

646

Corporate bonds

12

189

1,121

463

-

1,785

Deposits withheld by ceding companies

-

7

6

3

6

22

Bank deposits under short-term investments

-

28

58

6

5

97

Cash and cash equivalents

116

46

378

21

16

577

Total

498

845

1,985

517

88

3,939

At 31 December 2021

AAA

AA

A

BBB

Other andNon-rated

Total

29

276

357

18

18

698

-

(3)

(7)

-

-

(10)

Government bonds

238

257

19

29

15

557

Corporate bonds

25

123

1,006

552

2

1,708

-

8

6

3

5

22

40

13

118

14

-

184

-

57

403

30

9

499

332

731

1,902

646

49

3,660

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

Debt securities:

Short-term investments:(EUR million)
Receivables, claims, commissions and deposits
arising from reinsurance:
Receivables, claims and commissions arisingfrom reinsurance
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

(1)

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

4.3.3 Liquidity risk
Atradius is exposed to liquidity risk if there is insufficient cash available to meet its financial obligations, when due, ata reasonable cost. For Atradius, liquidity risks may arise if large scale short-term fluctuations occur to cash flows, suchas a decline in incoming cash or a rise in outgoing cash, or a combination of both.
Liquidity risk is managed at Atradius level, in close coordination with local operations. Atradius’ policy is to monitor
and measure ongoing cash flow patterns and control liquidity by maintaining sufficient cash and highly marketablesecurities to reduce liquidity risk to acceptably low levels. The investment policy states that Atradius should mainly
invest in financial instruments that can be liquidated in less than three business days. Atradius is able to access credit
facilities to prevent certain liquidity shortages which may arise due to short-term cash flow variances. Atradius
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maintains one uncommitted credit line in excess of EUR 1 million, in the form of an overdraft facility for a total
amount of EUR 50 million (2021: EUR 50 million). The credit line provides liquidity to cover infrequent peaks in shortterm liquidity requirements while also permitting Atradius to reduce its cash balances and to benefit from a more
substantial and stable investment portfolio. Finally, Atradius has in place a simultaneous claims payment clause in themain reinsurance treaties. This clause allows Atradius to request (cash call) the reinsurers to settle their share of alarge reported claim instead of the usual payment terms agreed in the reinsurance treaties.
Liquidity and interest risk tables
The following tables indicate the estimated amount and timing of the main cash flows at the end of the reporting
period of interest and non-interest bearing liabilities and assets. The tables include both interest and principal cash
flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves
at the end of the reporting period. Atradius has considered the impact of the cross-border cash pooling arrangement inthis overview.
The tables have been drawn up based on the undiscounted contractual cash flows of financial liabilities based on theearliest contractual repayment date. When the lender has a choice of when an amount is paid, the financial liability isallocated to the earliest period in which Atradius can be required to pay.

At 31 December 2022

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest rate%

On demand

Less than 1 1 to 5 years
year> 5 years

Carrying
amountInterest bearing liabilities
Subordinated note

5.35%

-

13,125

263,125-

249,600

Deposits received fromreinsurers

1.36%

-

9,263

-

-

9,263

-

22,388263,125-

258,863

Insurance contracts-

1,760,176

759,943

18,7942,565,569

Payables-

328,525

-

-

-

Total

-

2,088,701

759,943

18,7942,565,569

Total
Non-interest bearing liabilities

At 31 December 2021

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest rate%

On demand

Less than 1 1 to 5 years
year> 5 years

Carrying
amountInterest bearing liabilities
Subordinated note

5.35%

-

13,125276,250-249,383

Deposits received fromreinsurers

0.65%

-

10,014--

10,014-

23,139276,250-

259,397

Insurance contracts-

1,434,428

668,676

10,2592,134,434

Payables-

521,968--

521,968

Total-

1,956,396

668,676

10,2592,656,402

Total
Non-interest bearing liabilities

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All amounts in thousands of Euro, unless otherwise stated

At 31 December 2022

Contractual cash flows (undiscounted)
Weighted
averageeffective
interest rate%

On demand

Less than
1 year1 to 5 years> 5 years

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

3.53%

-

406,119

2,180,863

54,7542,431,020

3.20%

37,207

81,771--

119,431

Cash: Cash and bank deposits(0.03%)

431,851

20,113--451,964

469,058

508,0032,180,863

54,754

3,002,415

Other financial assets 1)-

394,678--

394,678

Reinsurance contracts-

623,979

269,399

6,662

900,040

Receivables-

380,584--

380,584

Total-

1,399,241

269,399

6,662

1,675,302

Total
Non-interest bearing assets

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

0.24%

-

287,071

1,943,548

63,6292,264,924

0.09%

58,627

147,341--

205,831

Cash: Cash and bank deposits(0.03%)

497,752

1,641

-

-

499,394556,379

436,053

1,943,548

63,6292,970,149

Other financial assets 1)-

507,306--

507,306

Reinsurance contracts-

550,034

256,405

3,933

810,372

Receivables-

374,607--374,607

Total-

1,431,947

256,405

3,933

1,692,285

Total
Non-interest bearing assets

1)

It includes shares in group non consolidated entities

4.4

Operational risk

4.4.1 Operational risk management
Operational risk means the risk of loss arising from inadequate or failed internal processes, people or systems, or fromexternal events. This definition is in line with industry practice as well as with the European Solvency II Directive. It ispresent within all activities undertaken by Atradius, at all levels and across all locations. At the same time asclassifying operational risk into processes, people, systems, and external events, Atradius also labels its risks
according to ESG categories.
The Operational Risk and Control (ORC) unit is part of the Group 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
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Atradius | Consolidated financial statements 2022 Atradius N.V.

and the Group Legal & Compliance unit. At the highest level, operational risk is overseen by the Operational Risk
Committee, which has a reporting line to the RSMB.
The ORC unit uses a framework for the management of operational risk, which is based on the Committee ofSponsoring Organisations’ Enterprise Risk Management (COSO ERM) Integrated Framework. Identification andmonitoring activities are developed and enhanced on an ongoing basis and include the maintenance of risks registers,
facilitation of risk and control self-assessments, capture of risk indicators and incidents and testing and review ofbusiness continuity plans. Risks and risk responses are discussed at all levels, locations and units across the business,
including the Management Board and Supervisory Board. High-level information on crystallised risks has been
captured for many years, with separate records of information technology risk events stretching back even further. To
provide oversight and assurance in an auditable and efficient manner, 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 over 30 countries,
monitors the activity of customers and buyers to detect indications of fraud. This monitoring includes using bespoke
software to capture indicators of fraud from wide-ranging internal and external sources. Atradius also provides fraud
awareness training and advice to employees and customers to help identify fraudulent buyers. Internal fraud isaddressed through manual and automated operational controls such as the segregation of duties, application ofsigning authorities and role-based system privileges and authorities.
In addition, the Atradius Code of Conduct and several additional compliance policies applicable for more specific areas,
set the requirements that Atradius’ employees must adhere to. For example, the Atradius Speak up Procedure gives
guidance on how to raise concerns regarding a violation or breach of the Code of Conduct, in a confidential
manner. Further information on compliance policies can be found in 4.4.1.3.
Cyber risk – refers to the risk of financial loss, disruption or damage to reputation due to failure of IT systems.
Risks include: an event impacting the data centre (covered via Business Continuity / IT Disaster Recovery), security
incidents, network vulnerabilities, unauthorised activity, malicious code changes, application specific vulnerabilities
and unauthorised software. The Atradius Information Security team monitors and addresses threats and coordinates
the management of cyber risk across the Group.
The evolving cyber landscape highlights the increasing monetisation of cyber security threats against financial
services companies through insufficient technical controls and user error. As such, Atradius takes the education of end
users on the aforementioned cyber risks very seriously: awareness training is mandatory for all staff. Further
mitigation of this risk includes protections for critical Atradius applications and Multi-Factor Authentication for
remote access. A medium-term Cyber Security Strategy is in place to further improve governance, protection,
resilience and vigilance across all Atradius companies and products.
More details on certain operational risk management activities are provided below.

4.4.1.1

Risk registers and risk / control self-assessments

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

4.4.1.2

Business continuity management

Atradius recognises the importance of being able to recover its critical business processes in the event of any major
operational disruption. A Business Continuity Management (BCM) programme is embedded in the organisation to
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All amounts in thousands of Euro, unless otherwise statedensure 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.
During the COVID-19 pandemic, the BCM programme was temporarily paused to enable the organisation to focus on
the response arrangements. At the start of 2022 the BCM programme recommenced across the Group accompaniedwith quarterly reporting on country and Group objectives. The strategic decisions made during the pandemic havebeen integrated in to BCM Plans and key processes such as the Business Impact Analysis.
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. IT systems are stable and collaboration
tools have been enhanced for the whole workforce. Overall service to customers and all other parties is being
maintained at a high standard.
Atradius is also preparing itself for alignment with an upcoming European regulatory framework on digital
operational resilience whereby firms must ensure that they can withstand, respond to and recover from all types of
ICT-related disruptions and threats.

4.4.1.3

Legal Risk / Compliance Framework

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

4.4.1.4

RussiaThe large number of sanctions restrictions relating to Russia and Belarus imposed by authorities in the EU, the UK and
the US, among others, have been closely reviewed by the organisation to analyse their impact on the business. In linewith its sanctions compliance programme, Atradius reviews the potential exposure of business counterparties andother entities to sanctions in close coordination among the Group Legal & Compliance, Risk Services and Commercial
teams, based both on regular screening as well as on ad-hoc review initiatives. In the context of this situation, theorganisation has relied on a number of measures to closely monitor the impact of the updated sanctions regimes,
including the daily screening of its main databases against certain tools coordinated by a central compliance team, theestablishment of a task force with representatives from various departments to align the strategy and measures
adopted, and the introduction of certain additional checks to enhance monitoring capabilities.

4.5

Capital management

4.5.1 Guiding principles
Capital management is guided by the following principles:-to ensure that Atradius is sufficiently capitalised to have the ability to survive by maintaining sufficient available
capital after meeting its financial obligations;
to meet the local regulatory capital requirements of all Atradius entities, including branches and subsidiaries ofAtradius worldwide;
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Atradius | Consolidated financial statements 2022 Atradius N.V.

-

to manage the capital adequacy of Atradius and its entities, taking into account the economic and accounting
views along with the external rating agencies and regulatory capital requirements;
to optimise capital structure by allocating funds across Atradius’ entities; andto minimise the overall cost of funding while preserving financial flexibility.

4.5.2 Atradius' objectives, policies and processes with regard to capital
The Company shows a robust capital and solvency position.
Atradius manages capital worth more than two billion euro. Per year-end 2022, the capital includes shareholders’funds of EUR 2.2 billion and subordinated debt of EUR 250 million (nominal value) classified as Level 2 under the fairvalue hierarchy and as Tier 2 basic own funds for Solvency II (For further details see Note 16).
In addition to the internally developed economic capital model, Atradius considers the solvency calculation models of
the relevant regulatory authorities and credit rating agencies in its process of managing capital.
In order to ensure capital adequacy, a capital buffer above the solvency capital required is maintained, such that large
loss events would not impair the ability of Atradius to carry on its normal course of business and the ambition tomaintain an ‘A’ rating level is sustained.
Atradius has embedded processes and procedures to ensure compliance with externally imposed regulations andinternally imposed requirements for capital adequacy. Such compliance is ensured by:-regular assessment of solvency needs, taking into account the business strategy, resulting risk profile and applied
risk appetite levels;
incorporating a view on expected future investments in new businesses, revenues, claims, reinsurance
expectations and dividends as these impact both available and required capital;
monitoring duration of assets; andtaking into consideration capital market expectations such as expected returns, volatilities and correlations asthese may impact earnings and the shareholder equity reserves.

4.5.3 Regulatory capital requirements
In each country in which Atradius operates with insurance or reinsurance companies established according to local
laws, and also where prescribed for branches, the local insurance regulator specifies the minimum amount and type of
capital that must be held by each of the subsidiaries or branches. The minimum required capital must be maintainedat all times throughout the year. In addition, the local insurance regulators have the discretionary right to impose
additional capital requirements in excess of the required minimum.
In 2022, the capital of Atradius has been managed according to the Atradius guidelines and in close cooperation withthe units involved. The Atradius entities were able to meet their financial obligations and to comply with local legal
and regulatory requirements.

4.5.4 Solvency II
Solvency II is the regulatory framework for (re-)insurance undertakings and groups domiciled in the EU.
Atradius Crédito y Caución, S.A. de Seguros y Reaseguros in Spain and Atradius Reinsurance DAC in Ireland are theregulated entities that are subject to Solvency II. Under Solvency II guidelines Group supervision takes place at theultimate parent Grupo Catalana Occidente S.A.
Since approval by the College of Supervisors in 2017, the regulated entities within Atradius apply a Partial Internal
Model for calculating their regulatory capital requirements. An internal model, which reflects our business better than
the regulatory “standard formula”, is used to calculate capital requirements for Underwriting Risk. Atradius uses theStandard Formula for Market, Counterparty Default and Operational Risk as the characteristics of these risk types do
not warrant an internal model approach.
As per year end 2022 the eligible own funds under Solvency II for the Company amounts to EUR 2,600 million (2021:
EUR 2,448 million).

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All amounts in thousands of Euro, unless otherwise stated5

Segment information

Operating segments are identified on the basis of internal reports about components of Atradius that are regularly
reviewed by the Management Board in order to allocate resources to the segment and to assess its performance. The
company has identified two operating segments, insurance and services. Within the insurance segment there aredifferent business activities: Credit insurance including related information income, Instalment credit protection (ICP),
Bonding and Reinsurance. The segment Services includes Collection activities, Atradius Dutch State Business, noninsurance related information income and other service related business. Group costs relate to corporate operations,after cost allocations to the other business segments.
Collection activities include recovery activities on behalf of insurance companies. Transactions between segments areon an arm’s length basis in a manner similar to transactions with third parties. The accounting policies of thereportable segments are the same as described in Note 2.
Atradius revenue has no dependency on any large customer.
Information regarding these segments is presented in the following tables:

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Atradius | Consolidated financial statements 2022 Atradius N.V.

Business segment

Creditinsurance

Bonding Reinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Group
costs

Total

Insurance premium
revenue

1,925,409

133,376

166,555

2,225,340---

2,225,340

Service and otherincome141,923--

141,923

83,785--

225,7072022

Inter-segment revenue

-

-

-

-

2,914

(2,914)--

Total revenue

2,067,332

133,376

166,555

2,367,263

86,699(2,914)-2,451,047

Insurance premium
ceded to reinsurers(790,821)(52,071)(16,047)(858,939)---(858,939)

Total segment income
after reinsurance

1,276,511

81,305150,508

1,508,324

86,699(2,914)-

1,592,108

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

-

2,463

-

(912,309)

Insurance claims andloss adjustment
expenses recoveredfrom reinsurers

265,992

15,141

10,373

291,506---

291,506

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

-

2,463

-

(620,803)

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

Commission received
for business ceded toreinsurers

299,958

20,824

1,823

322,605---

322,605

Net operating
expenses(383,204)(29,292)(62,431)(474,927)(66,675)452(15,314)(556,464)

Operating segment
result370,288

26,89912,944410,131

20,024-(15,314)414,841

Share of income/(losses) of associatedcompanies

17,755

Net income frominvestments

24,588Finance income

8,135

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

458,065

Income tax expense(104,220)

Result for the year
from continuing
operations

353,844

Result for the year
from Held for Sale
operations(21,633)

Result for the year

332,212115

121

All amounts in thousands of Euro, unless otherwise stated

Business segment

Creditinsurance

Bonding

Reinsurance

Total
insurancebusiness

Reinsurance contracts

684,246

161,553

54,241900,040

Receivables

345,555

19,766

12,652377,973

-

-

-

-

Total assets

1,029,801

181,319

66,893

Insurance contracts

1,709,310

343,424

Payables289,780-

Services

Intersegment
elimination

Total

-

-

900,040

5,243(2,632)

380,584--

5,010,416

1,278,013

5,243(2,632)

6,291,040

512,835

2,565,569--

2,565,569

37,841(1,089)326,532

10,298(8,305)328,525

-

-

-

-

-

1,221,496

1,999,090

381,265

511,746

2,892,101

10,298(8,305)

4,115,590

2,704

146

26

2022

Unallocated assets

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

116

122

2,876

435

-

3,311

Atradius | Consolidated financial statements 2022 Atradius N.V.

Businesssegment

Creditinsurance

Bonding

Reinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Group
costs

Total

Insurance
premium revenue

1,624,032

124,163

152,124

1,900,319---

1,900,319

Service and otherincome135,591--

135,591

115,058--

250,649

2021

Inter-segment
revenue

-

-

-

-

3,552

(3,552)--

Total revenue

1,759,623

124,163

152,124

2,035,910

118,610(3,552)-2,150,968

Insurance
premium ceded
to reinsurers(875,283)(48,456)(21,722)(945,461)---(945,461)

Total segment
income after
reinsurance

884,340

75,707130,4021,090,449

118,610(3,552)-

1,205,507

Insurance claims
and loss
adjustment
expenses(432,258)(41,043)(93,112)(566,413)

-

2,936

-

(563,478)

Insurance claims
and loss
adjustment
expenses
recovered fromreinsurers

132,663

17,06010,191

159,914---

159,914

Net insurance
claims(299,595)(23,983)(82,921)(406,499)

-

2,936

-

(403,564)

Gross operating
expenses(635,857)(55,658)(58,377)(749,892)(103,879)

616(12,079)(865,234)

Commission
received forbusiness ceded toreinsurers

343,872

19,947

1,975

365,794---

365,794

Net operating
expenses(291,985)(35,711)(56,402)(384,098)(103,879)

616(12,079)(499,440)

Operatingsegment result

292,760

16,013(8,921)

299,852

14,731-(12,079)

302,503

Share of income/(losses) of
associatedcompanies

15,963

Net income frominvestments

19,613Finance income

944

Finance expenses(11,008)

Result for theyear before tax

328,015

Income tax
expenseResult for theyear(87,766)
240,249

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All amounts in thousands of Euro, unless otherwise stated

Business segment

Creditinsurance

Bonding

Reinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Total

Reinsurance contracts

598,332

163,781

48,259810,372--

810,372

Receivables

344,088

17,911

9,811

371,8105,215(2,418)374,607

-

-

-

-

-

-

4,733,788

Total assets

942,420

181,692

58,0701,182,182

5,215(2,418)5,918,767

Insurance contracts

1,339,177

346,475

448,782

2,134,434--

2,134,434

Payables

481,397

39,787(1,187)519,997

13,157(11,186)

521,968

-

-

-

-

-

-

1,120,042

1,820,574

386,262

447,595

2,654,431

13,157(11,186)

3,776,444

2,690

149

27

2,867

631

-

3,497

2021

Unallocated assets

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

The segmental reporting follows the management point of view. In all the other insurance related notes the figures arereported based on the products of credit insurance and bonding which differs from the segmental view presented
here. The underlying contracts of the Reinsurance segment are approximately 59% credit insurance contracts andapproximately 41% bonding (2021: 60% and 40% respectively), based on premium volume. As a consequence ofGraydon’s sale, services income and expenses have decreased around EUR 40 million.

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6

Intangible assets

2022

Goodwill

Software

Other 1)Total

At cost at 1 January

151,421366,327

30,458548,206

Additions-25,438-25,438

Disposals(17,931)(1,090)-(19,021)

Change in consolidation group(13,000)(21,800)-(34,800)(90)(6,852)71(6,871)

At cost at 31 December

120,401

362,023

30,529512,952

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

Amortisation charge for the year-

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

Disposals

-

7,072

-

7,072

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

19,699

(905)

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

Balance at 1 January

137,686

96,052

1,152

234,890

Balance at 31 December

119,496

94,123-

213,618

Effect of movements in foreign exchange rates

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

+
+ +

+

+

+

2021

Goodwill

Software

Other 1)Total

At cost at 1 January

151,423

332,486

30,376514,285

Business combinations

-

-

-

-

Additions-

34,803-34,803

Disposals-(8,852)-(8,852)

Effect of movements in foreign exchange rates

(2)

7,890

82

7,970

At cost at 31 December

151,421366,327

30,458548,206

Accumulated amortisation and impairments at 1 January(13,736)(213,610)(28,081)(255,427)

Amortisation charge for the year-

(16,440)(1,144)(17,584)

Disposals
Impairment

-

8,850
(43,005)-

8,850(43,005)

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

1(13,735)(6,070)(270,275)(81)(29,306)(6,150)(313,316)

Balance at 1 January
Balance at 31 December

137,687
137,686

118,876
96,052

2,295
1,152

258,858
234,8901) Other intangible assets relate to agent networks, non-patented technology, trade names and insurance portfolios

Goodwill
If applicable, impairment of goodwill is included as part of Finance expenses (see note 28). Atradius assessed all
goodwill for impairment.
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All amounts in thousands of Euro, unless otherwise stated

The goodwill allocated to the main cash-generating units or groups of units (CGU’s) is presented in the following table:
Cash-Generating Units

2022

2021

98,797

98,797-

17,931

Atradius Trade Credit Insurance Inc.

4,750

4,750

Atradius Collections B.V.

6,426

6,426

ACyC. (France)

2,767

2,767

2,476

2,565

Other

4,280

4,450

Total

119,496

137,686

ACyC 1)
Graydon Holding N.V.

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

The value in use of an individual CGU is determined using a dividend discount model (DDM). The dividend flows are
estimated using a projection period and a normalised period. The projection period is 10 years, where the first 1-4 year
projections are based on financial budgets and/or forecasts. The remaining years are estimated using ratios andgrowth rates that converge towards their normalised term value. The discount rate, gross of tax, varies depending on
the Risk-Free Rate and the Country Risk Premium of the country where the CGU is located. For those CGUs with
Goodwill higher than EUR 10 million (ACyC), the discount rate applied is between 8.3% and 9.3% and the growth rate is
between 1.0% and 1.5%, respectively. The terminal value is calculated based on the dividend flows of the normalised
period through a perpetuity which applies a long term growth rate of 2.0% for CGUs excluding ACyC and between 2.0%
and 3.0% for associated companies (2021: 2.0%-3.0%) and the specific discount rate. Any profits, after fulfilling
minimum capital requirements, are assumed to be distributable dividends. Minimum capital requirements arecalculated taking into account local solvency rules, the Solvency II Partial Internal Model and minimum shareholders
equity required (non-distributable)
CGUs are defined by line of business according to the way we manage and steer the operational business.
An approximation of the sensitivity of the following assumptions would impact the CGU market value by thepercentages shown below (other CGUs are not included due to immaterial impacts):

Cash-Generating Units

Discount rate

Growth rate

Solvency ratio

Combined ratio

1)

2022

+50bp

-50bp

+50bp

-50bp

+50bp

-50bp

+1,000bp -1,000bp

ACyC(5.9%)

6.8%

1.1%(0.9%)(3.2%)

3.2%(5.5%)

5.5%

Atradius Trade Credit Insurance Inc.

(9.5%)

11.5%

7.6%

(6.3%)(2.4%)

2.4%--

Atradius Collections B.V.

(7.4%)

9.5%

6.2%(4.8%)----

ACyC (France)(10.3%)

13.2%

9.2%

(7.2%)(3.6%)

3.6%(0.7%)

0.7%

ACyC (Nordic bonding)(12.1%)

16.1%

11.9%

(8.9%)(4.3%)

4.3%(4.6%)

4.6%

Cash-Generating Units

Discount rate

Growth rate

Solvency ratio

Combined ratio

1)

2021

+50bp

-50bp

+50bp

-50bp

+50bp

-50bp

+1,000bp -1,000bp

ACyC(6.5%)

7.6%

1.2%(1.0%)(2.2%)

2.2%(5.8%)

5.9%

Graydon Holding N.V.

(8.1%)

9.8%

11.1%

(9.2%)

10.2% (10.2%)--

Atradius Trade Credit Insurance Inc.

(17.3%) 25.0%

20.2% (14.0%)(15.1%)

15.1%

-

-

Atradius Collections B.V.

(16.3%)

29.2%

24.5%

(13.5%)

-

-

-

-

ACyC (France)(18.3%)

31.2%

26.3%

(15.4%)(3.4%)

3.4%(4.2%)

21.0%

ACyC (Nordic bonding)(17.4%)

27.9%

23.0%

(14.3%)(3.7%)

3.7%(4.4%)

4.4%

1)

With the same required capital.

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Atradius | Consolidated financial statements 2022 Atradius N.V.

No sensitivity analysis mentioned above, both individually and combined, would assume that the carrying amount of
the GCUs would exceed their market value.
In February 2022, Atradius Insurance Holding N.V. sold its shares in Graydon Holding N.V. to Creditsafe Nederland
B.V. The sale of Graydon Holding N.V. resulted among others in a reduction of intangible assets (self-developed
software) of EUR 15 million and a reduction of EUR 17.9 million in Goodwill. The service income and expenses
decreased by EUR 40 million in 2022 as a result of the sale.
SoftwareAtradius assessed all capitalised software to determine if the criteria for capitalisation are being met (see note 2.6.2).
Based on this assessment Atradius decided to impair EUR 0.6 million (2021 EUR 43 million) of self-developed software
mainly related to need of redesigning part of the solutions in their transformation programmes, including data
models, user journeys, utilisation of shared components, new functionalities and multichannel/omnichannel
integrations to deliver the best customer experience. During 2022, Atradius capitalised EUR 20.4 million due to the
Atradius Business Transformation projects (2021: EUR 32.8 million).

121

127

All amounts in thousands of Euro, unless otherwise stated

7

Property, plant and equipment & investment property

2022

Land &
buildings

Fixtures &fittings

IT
hardwareRight of
Use assets

Total
property,plant &
equipment

Investment
property

At cost at 1 January

90,341

66,84559,649142,094358,929

33,985Additions

-

1,945

5,059

27,105

34,109-

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

Change in consolidation group
Effect of movements in foreignexchange rates

-

(502)

(257)

(8,992)(9,751)

-

161

(630)

(949)

(496)

(1,914)68

At cost at 31 December

90,50258,33458,062

155,355

362,253

33,125

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

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

Disposals

-

3,205

4,333

2,457

9,995

1,204

Reclassification

-

49

113

598

760

-

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

-

44

181

4,849

5,073

-

(27)

412

816

223

1,424

(9)

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

Balance at 1 January

78,053

23,83910,02378,310190,225

26,025

Balance at 31 December

77,29815,7908,384

79,409180,880

25,947

122

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Atradius | Consolidated financial statements 2022 Atradius N.V.

2021

Land &
buildings

Fixtures &fittings

IT
hardwareRight of
Use assets

Total
property,plant &
equipment

Investment
property

At cost at 1 JanuaryFirst time adoption as per 1st
January 2019

90,591

70,13758,514129,011348,253

34,093

-

-

-

-

-

-

-

9,030

6,215

12,932

28,177-(318)(13,613)(6,641)(2,142)(22,714)

(134)

68

1,291

1,561

2,294

5,214

26

At cost at 31 December

90,341

66,84559,649142,094358,929

33,985

Accumulated depreciation andimpairments at 1 January(11,529)(46,808)(46,830)(42,259)(147,426)(7,681)

Depreciation charge for the year

(877)

(8,757)(7,985)(22,526)(40,145)(343)

Disposals

99

13,406

6,460

1,683

21,64845

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

32

-

(63)

-

(31)

22

(13)

(846)

(1,207)(682)(2,748)(3)(12,288)(43,005)(49,625)(63,784)(168,702)(7,960)

Balance at 1 January

79,061

23,329

11,68486,752200,827

26,413

Balance at 31 December

78,053

23,83910,02378,310190,225

26,025Additions
Disposals
Effect of movements in foreignexchange rates

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
2022

Investment property
2021

2022

2021

Spain and Portugal

77,41977,89021,97021,259Italy

20,65020,650443

443

Mexico

5,531

4,554

1,844

1,518

Other

250

244

-

-

Total

103,849

103,338

24,25623,220Fair value measurement
Land and buildings are independently appraised by real estate valuers, which are registered in the relevant countries
and have appropriate qualifications and experience in the valuation of properties. Atradius usually revalues land andbuildings every two years.
All significant inputs used in the measurement are market observable and the fair value is therefore classified in Level
2 in the fair value hierarchy (as in 2021). Valuation techniques used are: Market (comparison) approach, Income
approach (discounted cash flow method) and Cost approach. Significant valuation inputs used to determine the fairvalue measurements based on techniques used are construction features, location (and/or conditions) and transportutilities.
The estimated fair value of the properties is directly dependent on the changes of the inputs used. There has been nochange in the valuation techniques used compared to prior year.
The investment property can be classified as follows: 92% office (2021: 93%) and 8% retail (2021: 7%).
123

129

All amounts in thousands of Euro, unless otherwise statedDirect operating expenses incurred (including repairs and maintenance) arising from investment property are EUR 44
thousand (2021: EUR 31 thousand). During the year an amount of EUR 673 thousand (2021: EUR 401 thousand) has
been recognised as rental income from investment property for lease contracts. These contracts have remaining termsof between 1 and 10 years. Expected rental income arising from these contracts for next year is EUR 1.650 thousand
for non-cancellable contracts (In 2021, expected rental income for next year was 323 thousand for non-cancellable
contracts).
Leases: Right of Use Assets
Right of Use assets consist of office space (95%), including parking and vehicles under a number of operating leaseagreements. The most significant lease contracts relate to the offices in our locations in Western Europe. The
remaining terms of these office rentals vary between 2 to 12 years and most of the contracts contain extension
options. The extension options are taken into account in the measurement of lease liabilities when the Group isreasonably certain to exercise these options.
Further information about the leases for which Atradius is a lessee is presented below:
2022

2021

82,33680,911

Interest expenses on lease liabilities(1,668)(2,221)

Expenses relating to short-term leases

(386)

(516)

Expenses relating to low-value assets

(31)

(27)

27,79022,497

Lease liability included in statement of financial position at 31 December (see Note 22)
Amounts recognised in profit and loss statement :Amounts recognised in the statement of cash flows :Total cash outflow for leases

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Atradius | Consolidated financial statements 2022 Atradius N.V.

8

Subsidiaries

The following table sets forth, as at 31 December 2022, the name and country of incorporation of the main subsidiaries of Atradius N.V.
All companies are, directly or indirectly, wholly owned unless otherwise indicated.

Name

Country

Atradius Collections B.V.

Netherlands

Ownership

Name

Country

Atradius Crédito y Caución Seguradora S.A.

Belgium branch

Belgium

Atradius Dutch State Business N.V.

BrazilNetherlands

Czech Republic branch

Czech Republic

Atradius Enterprise Management Consulting (Shanghai) Co., Ltd.

China

Denmark branch

Denmark

Atradius Finance B.V.

Netherlands

France branchFranceAtradius Information Services B.V.

Netherlands

Germany branch

Germany

Belgium branch

Belgium

Hungary branch

Hungary

Denmark branch

Denmark

Ireland branch

IrelandFrance branchFranceItaly branch

Italy

Germany branch

Germany

Poland branch

PolandIreland branch

Ireland

Portugal branch

Portugal

Italy branch

Italy

Turkey branch

TurkeyJapan branchJapan

Atradius Collections DMCC

United Arab Emirates

Norway branch

NorwayAtradius Collections Holding B.V.

Netherlands

Spain branch

Spain

Atradius Collections Limited

CanadaSweden branch

SwedenAtradius Collections Limited

Hong Kong

Switzerland branch

Switzerland

Atradius Collections Limited

United Kingdom

Taiwan branch

TaiwanAtradius Collections Pte. Limited

Singapore

Thailand branch

Thailand

Atradius Collections Pty. Limited

Australia

United Kingdom branch

United Kingdom

Atradius Collections Serviços de Cobranças de Dívidas Ltda

BrazilAtradius Information Services Vietnam Company Limited

Vietnam

Atradius Collections, S.A. de C.V.

MexicoAtradius India Credit Management Services Private Ltd.

India

Atradius Collections S.L.

Spain

Atradius Insurance Holding N.V.

Netherlands

Atradius Collections, Inc.

USA

Atradius Italia Intermediazioni S.R.L.

Italy

Atradius Corporate Management Consulting (Shanghai) Co., Ltd.

China

Atradius Participations Holding S.L.U.

Spain

Atradius Credit Insurance Agency, Inc.

USA

Atradius Pension Trustees Ltd.

United Kingdom

Atradius Credit Management Services B.V.

Netherlands

Atradius Reinsurance DAC**

IrelandAtradius Credit Management Services (RUS) LLC

RussiaAtradius Reinsurance DAC Escritório de Representação no Brasil Ltda.**BrazilAtradius Crédito y Caución S.A. de Seguros y Reaseguros

Spain

Atradius Rus Credit Insurance LLC

RussiaAustralia branch

Australia

Atradius Seguros de Crédito, S.A.

MexicoAustria branch

Austria

Atradius Trade Credit Insurance, Inc.

USA

Belgium branch

Belgium

Atradius Trade Insurance Brokerage Yuhan Hoesa

South Korea

Bulgaria branch

Bulgaria

B2B SAFE, S.A.

Spain

Canada branch

CanadaCrédito y Caución do Brasil Gestao de Riscos de Crédito e Serviços LTDA

BrazilCzech Republic branch

Czech Republic

Iberinform Internacional S.A.U.

Spain

Denmark branch

Denmark

Portugal branch

Portugal

Finland branch

Finland

Iberinmobiliaria, S.A.U.

Spain

France branchFranceInformes Mexico, S.A. de C.V.

MexicoGermany branch

Germany

Pakula, Podębski i Wispólnicy Kancelaria Prawna spółka komanditowa

PolandGreece branch

GreecePT Atradius Information Services Indonesia

Indonesia

Ownership

99,99%

Hong Kong branch

Hong Kong

Compañía de Seguros de Crédito Continental S.A.

Chile

Hungary branch

Hungary

Credit Guarantee Insurance Corporation of Africa Ltd

South Africa

25%

Ireland branch

Ireland

CLAL Credit Insurance Ltd.

Israel20%

Italy branch

Italy

Compagnie Tunisienne pour l'Assurance du Commerce Exterieur S.A.

Tunisia

3.92%

Japan branchJapan

Verenigde Assurantiebedrijven Nederland N.V.

Netherlands

0.65%

Luxembourg branch

Luxembourg

Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden N.V.

Netherlands

Netherlands branch

Netherlands

African Trade Insurance Agency

Kenya

New Zealand branch

New Zealand

Norway branch

NorwayPoland branch

Poland*Minus one share

Portugal branch

Portugal** It is expected that Atradius Reinsurance DAC and its subsidiary in Brazil, will be dissolved in 2023,
pending regulatory approval.

Romania branch

Romania

Singapore branch

Singapore

Slovakia branch

Slovakia

Sweden branch

SwedenSwitzerland branch

Switzerland

Turkey branch

TurkeyUnited Kingdom branch

United Kingdom

Entities for which Atradius does not have control are not fully consolidated.
Comparative with 2021:
Accento Services, Belgium (dissolved)
Graydon Holding and its subsidiaries: Graydon NL, Graydon UK, Graydon BEL, Giant Net and Opencompanies (sold)
The Lebanese Credit Insurer (sold)

125

131

50%*

0.5%
1 shareAll amounts in thousands of Euro, unless otherwise stated

9

Investments in associated companies
2022

2021

Balance at 1 January
Results of income

75,62317,75562,816
15,963

Share of income of associated companies

17,755

15,963

Dividends received
Revaluations
Effect of movements in foreign exchange rates(7,890)
2,240
998

(906)
(454)
(1,796)

Balance at 31 December

88,72675,623

None of the associated companies are listed. All information from the associated companies, unless otherwise stated,
is based on balance sheet dates between 30 September 2022 and 31 December 2022.
Atradius assessed the goodwill for impairment of investments in associated companies. Based on this assessment
Atradius has decided that no impairment is needed in 2022 for the goodwill related to investments in associatedcompanies.
Atradius Participations Holding S.L. sold its shares in The Lebanese Credit Insurer s.a.l. (effective as per 11 August2022).

Credit Guarantee Insurance Corporation of Africa Limited
CLAL Credit Insurance Ltd., Tel Aviv
Compañía de Seguros de Crédito Continental S.A., Santiago de
Chile

Country ofincorporation% interest
heldType of business

South Africa

25.00%

Credit insurance

Israel20.00%

Credit insurance

Chile

50.00% 1)

Credit insurance

1) Minus one share

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

126
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Atradius | Consolidated financial statements 2022 Atradius N.V.

2022

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

Compañía deSeguros deCréditoContinental
S.A. 1)

Total

Atradius 's interest
-

380

1,611

1,991

Net assets

21,73917,24647,75186,736

Carrying amount

21,73917,62649,362

88,726

Share of income of associated companies

6,612

1,782

9,361

17,755

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

124,998

159,086

442,811

Liabilities

71,772

38,77063,579174,120

Revenue

58,63016,73018,05093,409Net assets

86,95586,22895,507

268,690

Result for the year

26,448

8,908

18,72254,078

-

380

1,611

1,991

Net assets

20,79817,29835,53673,632Carrying amount

20,79817,67837,14775,623

Share of income of associated companies

5,533

1,554

8,876

15,963

-

-

(906)

(906)

Assets157,160

121,127

119,790

398,077

Liabilities

73,967

34,63848,712

157,317

Revenue

46,726

16,501

21,567

84,794

Net assets

83,19386,49071,077240,760

Result for the year

22,131

7,768

17,74647,645

Goodwill

Associated companies

2021
Atradius 's interest
Goodwill

Dividends received
Associated companies

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

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133

All amounts in thousands of Euro, unless otherwise stated

10 Financial investments
Financial investments classified bymeasurement category and nature

Available-for-saleLoans andreceivables 1)

Total

2022

2021

2022

2021

2022

2021

Equity securities

394,225507,299--394,225507,299

Debt securities

2,431,020

2,264,924--

2,431,020

2,264,924

Loans

-

-

453

7

453

7

Short-term investments--

104,078

168,028

104,078

168,028

Cash held for investments--

14,90037,796

14,90037,7962,825,245

2,772,223

119,431205,8312,944,676

2,978,054

Total1) There are no bank deposits tacitly renewable in 2022 and 2021.

Movements in available-for-salefinancial investments

Equity securities

Debt securities

Total

2022

2021

2022

2021

2022

2021

Balance at 1 January507,299

388,726

2,264,924

2,167,358

2,772,223

2,556,084

Additions

148,20270,386

1,071,858

1,051,144

1,220,060

1,121,530

Disposals(217,333)(15,286)(724,039)(943,494)(941,372)(958,780)--(12,947)(17,829)(12,947)(17,829)(45,569)

60,500(163,798)(17,997)(209,367)

42,503

1,626

2,973

(4,978)25,742(3,352)

28,715394,225507,299

2,431,020

2,264,924

2,825,245

2,772,223

Amortisation charge for the year
Revaluations through othercomprehensive income and profit andloss statement
Effect of movements in foreignexchange rates
Balance at 31 December

For disclosures about the temporary exemption from IFRS 9, please refer to Note 2.2.2.1.

11 Receivables
2022

2021

258,156

210,884

Amounts owed by policyholders and direct insurance operations

156,357

144,010

Receivables arising out of reinsurance

101,799

66,874

Other account receivable

122,428

163,723

Total

380,584

374,607

Accounts receivable on insurance and reinsurance business

The outstanding receivables are substantially all current and consequently their fair values do not materially differ
from their carrying amounts.
There is no concentration of credit risk in respect of receivables as Atradius has a large number of internationallydispersed debtors (see Note 4.3.2).
The increase in Receivables arising out of reinsurance from EUR 66.9 million to EUR 101.8 million is explained by the better
performance of ACyC Hong Kong and ACyC Germany during 2022.
An amount of EUR 87 million (2021: EUR 85 million) relates to past due receivables on insurance and reinsurance
business for which no impairment loss has been recognised, 86% (2021: 91.2%) relates to receivables ageing less than
three months.
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Atradius | Consolidated financial statements 2022 Atradius N.V.

All receivables are considered for impairment testing. As of 31 December 2022, receivables of EUR 45.13 million (2021:
EUR 26.7 million) were considered to be partially impaired. The amount of the impairment taken related to thesereceivables was EUR 15.6 million (2021: EUR 13.3 million). This balance takes into account that a portion of theimpaired receivables will be recovered. Atradius does not hold any collateral over these balances.
The ‘Other accounts receivable’ related to service income, are short term balances which consist of individually smallbalances. The provision for impaired ‘Other accounts receivable’ for 2022 is EUR 1.4 million (2021: EUR 1.6 million).
The significant decrease on other accounts receivables is mainly coming from the reclassification to other accruals of
IPT advance payments in ACyC Italy and from a big receipt processed as unapplied amount in Atradius Dutch StateBusiness N.V.
Movements on the provision for impaired receivables are presented in the following table:

2022

2021

Balance at 1 January

13,275

12,164

Impairment of receivables

8,793

10,417

Receivables written off during the year as uncollectable(6,724)(9,289)

Unused amounts reversed

265

(17)

Balance at 31 December

15,60913,275The movement in the provision for impaired receivables on insurance business, mainly credit insurance, is includedin the premium line. Amounts charged to the allowance account are generally written off when there is no expectationof recovery.
For disclosures about the temporary exemption from IFRS 9, please refer to Note 2.2.2.1.

12 Deferred acquisition costs

Balance at 1 January

2022

2021

77,574

68,967

Deferred in the year

27,61825,291

Amortisation change for the year

(18,958)(20,443)

Effect of movements in foreign exchange rates

2,418

3,758

Balance at 31 December

88,65377,574Current

50,95542,971

Non-current

37,69834,604129

135

All amounts in thousands of Euro, unless otherwise stated

13 Other assets and accruals
2022

2021

Pipeline and return premium ceded

476,294

418,768

Prepayments and accrued interest

52,24235,036

Net pension plan asset

81,33788,371

Reimbursement rights

6,687

6,931

Other

32,093

26,678

Total

648,653575,784

Pipeline premium relates to shipments made by Atradius’ policyholders for which Atradius is at risk but has not
invoiced the premium.
Prepayments and accrued interest, relate to payments in advance for which the Company has received and invoiced
for future services or goods, and interest of financial investments for which Atradius is entitled but has not received
yet. The increase from the previous year is due to a reclassification from other account receivables of IPT advancepayments in ACyC Italy.
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 17).
The net pension plan asset concerns the surplus of the pension plans, mainly in the UK; as per 31 December 2022 it is
EUR 81.3 million (2021: EUR 88.4 million) (see Note 17).

14 Cash and cash equivalents
2022

2021

Cash at bank and on hand

431,850

497,751

Restricted cash

123,825-

Short-term bank deposits

20,114

1,642

Cash and cash equivalents

575,789

499,393

Cash and cash equivalents

575,789

499,393

Cash and cash equivalents in the statement of cash flows

575,789

499,393

Atradius manages the cash by using a cross-border cash pooling agreement. This provides for a notional pool structurewith interest compensation per currency. The cash pool arrangement allows for offsetting of cash balances ofbranches within a legal entity. However, it does not allow offsetting between different legal entities.
In 2022 it was decided to reclassify from "restricted financial investments" to "cash and cash equivalent" the deposits
that meet the criteria established by the standard for this category. This cash is not available to the Company for
immediate or general business use neither to spend, nor to invest. (2021: EUR 46 million)

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Atradius | Consolidated financial statements 2022 Atradius N.V.

15 Capital and reserves
15.1

Share capital

The authorised share capital of Atradius N.V. amounts to EUR 250,000,000 and is divided into 250,000,000 ordinary
shares with a nominal value of EUR 1 each (2021: the same) of which 79,122,142 ordinary shares were issued and fully
paid (2021: the same). The fully paid ordinary shares carry one vote per share and carry the right to dividends.
Earnings per share are calculated by dividing the Group share of the net income by the number of ordinary shares inissue during the year. The earnings in 2022 were of EUR 4.2 per share.

15.2

Share premium reserve
2022

2021

Balance at 1 January639,228

639,228

Balance at 31 December

639,228

639,228

15.3

Revaluation reserve
2022

2021

Balance at 1 January

110,854

80,811

Change in revaluation reserve - gross(208,607)

44,131

Change in revaluation reserve - tax

43,964(10,127)

Net (gains)/losses transferred to net profit on disposal - gross(5,904)(5,330)Net (gains)/losses transferred to net profit on disposal - tax

2,256

1,369

(57,436)

110,854

2022

2021

(61,959)(79,989)

7,508

18,791

Balance at 31 December

15.4

Currency translation reserve

Balance at 1 January
Change in currency translation reserve - grossChange in currency translation reserve - tax
Balance at 31 December

134

(761)

(54,316)(61,959)

Atradius’ significant foreign currencies and sensitivity to fluctuations are set out in Note 4.3.

15.5

Pension reserve
2022

2021

Balance at 1 January(55,082)(166,607)

Recognised actuarial gains/(losses)

26,08331,698Change in pension reserve - gross

37,47140,291

Change in pension reserve - tax(11,388)(8,593)Pension plan de-risking reclassification to Retained earnings-

79,826

Change in pension reserve - gross-

106,475

Change in pension reserve - tax-(26,649)(28,999)(55,082)

Balance at 31 December
The main drivers of the pension reserve variance are explained in Note 17.

131

137

All amounts in thousands of Euro, unless otherwise stated

15.6

Retained earnings
2022

2021

Balance at 1 January

1,189,911

1,316,561

Appropriation of prior year result

240,249

44,167-(79,826)

Pension plan de-risking
Turkey´s hyperinflation

55-

Dividends(164,574)(90,991)

Balance at 31 December

1,265,640

1,189,911

15.7

Dividend distribution

Atradius’ dividend distribution is based on the Company financial statements. The Company and its subsidiaries are
subject to legal restrictions regarding the amount of dividends they can pay to their shareholders. Dividends can only
be paid up to an amount equal to the excess of the Company’s shareholders' equity and reserves required by law. The
Dutch Civil Code contains the restriction that dividends can only be paid up to an amount equal to the excess of theCompany’s shareholders’ equity and reserves required by law. Additionally, certain subsidiaries are subject torestrictions on the amount of funds they may distribute in the form of dividends or otherwise and also in respect ofminimum capital requirements that are imposed by industry regulators in the countries in which the subsidiaries
operate.
The Company distributes dividends out of the retained earnings balance (see Note 9 in the Company financial
statements). If this balance is insufficient, the Company will distribute dividends out of the share premium reserve(see Note 4.2 in the Company financial statements).

16 Subordinated debt

Balance at 1 January
Redemption of the subordinated loan
Accretion of interest
Balance at 31 December

2022

2021

249,383

324,177-(75,000)

217

206

249,600

249,383

On 23 September 2014, Atradius Finance B.V. issued guaranteed subordinated notes with a nominal value of EUR
100,000 each for an aggregate amount of EUR 250 million (the ‘notes’). Atradius Finance B.V. may redeem the notes,
in whole but not in part, on 23 September 2024 and thereafter on each interest payment date. Unless previously
redeemed, the notes will be redeemed at maturity on 23 September 2044. The notes bear interest at a fixed rate of
5.250% per annum payable annually in the first 10 years, which will thereafter be reset to a floating 3 month-EURIBOR
plus a margin of 5.031% per annum payable quarterly for the remaining 20 years. The notes do qualify as regulatory
capital under the Solvency II grandfathering rules. The notes are issued by Atradius Finance B.V. and guaranteed by
the Company. The notes are listed on the Luxembourg Stock Exchange.
The fair value estimate of the subordinated notes issued by Atradius Finance BV is EUR 251 million (2021: EUR 280
million). They are classified as Level 2 under the fair value hierarchy and as Tier 2 basic own funds for Solvency II.
The fair value estimate of the subordinated bond is provided by an external independent valuation company, whichuses its own proprietary valuation systems to value securities supported by economic and market assumptions fromfinancial information providers. The model calculates, accordingly to IFRS methodology, the present value of thesubordinated bond’s cash flows discounted using the Euro government bond yield curve as a benchmark and applying
an appropriate risk spread. The risk spread applied is estimated using the credit spreads of market quoted
subordinated bond issues from similar issuers and with similar rating and maturity profiles.
On 28 September 2021 Atradius Reinsurance DAC, Ireland redeemed 100% of its outstanding subordinated loan with aprincipal amount of EUR 75 million.

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17 Employee benefit assets and liabilities
2022

2021

Retirement benefits

50,68991,907

Other long-term employee benefits

8,290

8,098

Total

58,979100,005

17.1

Retirement benefits

The employee benefit assets and liabilities relate mainly to pension assets and liabilities for defined benefit plans.
The main defined benefit plans as of 31 December 2022 are in the United Kingdom and Germany and these represent
83.6% (2021: 85.0%) of the pension plan assets and 79.5% of the defined benefit obligation booked in the liabilities(2021: 80.5%). The main characteristics of these plans are detailed below.
Other plans are related to Spain, Italy, Switzerland, Sweden, Belgium, Norway, France and Mexico. The DBO of theseplans are between EUR 0.5 - EUR 6.3 million (2021: EUR 0.8 - EUR 12 million) and the number of participants are
between 13 and 451 (2021 between 13 and 451).
Defined benefit plans expose Atradius mainly to market investment risk, interest rate risk and inflationary risk:-a decline in asset market value (equity, real estate, alternatives etc.) will immediately increase the balance
sheet liability and the near-term cash flows for countries where there is minimum funding requirements;a decrease in corporate bond yields will result in an increase in plan liabilities even if this effect will be
partially offset by an increase in the value of the plans’ bonds; andan increase in inflation rate will result in higher plan liabilities thus, an increase in future employer
contributions in countries where there is minimum funding requirements.

Within Atradius there are also defined contribution plans. The contributions to these plans are recognised as expenses
in the profit and loss statement. The total contributions amounted to EUR 19.3 million in 2022 (2021: EUR 13.2 million),
this increase is driven by the new defined contribution plan in The Netherlands.

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All amounts in thousands of Euro, unless otherwise statedPension assets and liabilities
The following table presents the change in the value of the net defined benefit liability:
Defined benefit
obligation
Balance at 1 January
Additions

Fair value of plan
assetsAsset ceiling

2021 2022 2021

Net defined benefit(asset) liability

2022

2021

2022

2022

2021

563,941

1,017,679

472,034

885,338--

91,907

132,341

-

-

-

-

-

-

-

-

Included in the profit and loss
statement:
Current service cost

7,263

15,649

-

-

-

-

7,263

15,649

Past service cost - Plan
Amendment
Past service cost - Curtailment

-

(228)
(29,180)

-

-

-

-

-

(228)
(29,180)

Settlement (Gain)/ Loss (*)
Interest cost / income
Administration costs

8,419
4

(430,687)
11,225
661

9,234
-

(459,970)
11,069
-

-

-

(815)
4

29,283156
661

Total included in the profit andloss statement

15,686(432,560)

9,234(448,901)

-

-

6,452

16,341

Included in OCI:
Remeasurement loss (gain):
Actuarial loss (gain) arising from:- demographic assumptions(2,840)(9,238)

-

-

-

-

(2,840)(9,238)(187,482)
8,273

6,848
(17,424)

-

-

-

-

(187,482)
8,273

6,848
(17,424)

Return on plan assets excludinginterest income--(144,052)

21,214--

144,052(21,214)

Change in Irrecoverable Surplus
other than Interest
Total included in OCI(182,049)(19,814)(144,052)

21,214

(60)
(60)

-

60
(37,937)(41,028)(4,115)621(15,752)(9,028)(4,000)
1,995(21,396)
-

3,054
621
(15,752)(9,005)42,327
1,995(21,396)---(7,169)(23)(46,327)-- financial assumptions (**)
- experience adjustments

Other:
Contributions paid by theemployerPlan participants contributions
Benefits paid
Acquisition / Divestiture
Effect of movements in foreignexchange rates
Reclassification of surplus plan
assetsTotal other(13,861)

22,037(18,353)

26,161

-

-

4,492

(4,124)(42,135)(1,364)

7,034(32,401)(34,704)
14,383--(7,034)(9,734)34,704(15,747)

Balance at 31 December

355,443

563,941

304,815

472,034(60)-

50,68891,907(*) It includes the Dutch pension plan settlement (DBO EUR 29.180 million) and Mexico settlement (DBO EUR 0.103 million)(**) Mainly driven by the change of the financial assumptions in UK, where discount rate increased 300 basic points, which leads to an actuarial gain of EUR 121.7 M on DBO.

Plan assets
Atradius has pension related assets which under IAS 19 do not meet the criteria to qualify as plan assets. In Germany,for one of the plans, assets of EUR 14.9 million (2021: EUR 16.9 million) are classified as financial investments since inthe event of bankruptcy, these assets are not fully secured for the members of the pension plan. In the UK, EUR 24.1
million of financial investments (2021: EUR 37.6 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.
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Net plan pension assets corresponds mainly to the surplus of UK pension plans, which is EUR 81.3 million as per 31
December 2022 (2021: EUR 88.3 million), which is disclosed as net plan pension assets as part of Note 13.
In Spain and Portugal, the defined benefit plans are partially insured with Seguros Catalana Occidente S.A.. These
insurance policies do not qualify as insurance policies under IAS 19, therefore the fair value is treated asreimbursement rights, which are recorded as part of other assets for an amount of EUR 6.3 million (2021: EUR 6.5
million). At the end of 2022, the defined benefit obligation related to the reimbursement rights amounts to EUR 10.4
million (2021: EUR 15.5 million). This same defined benefit obligation has in addition plan assets of EUR 13.1 million(2021: EUR 13.1 million).
Characteristics of the main defined benefit plans
Characteristic
Entitlement

Defined benefit obligation

United Kingdom
Pension entitlements are based on apercentage of final salary (closed for new
employees).
85 active members (2021: 101 active
members).
547 inactive members (2021: 539 inactive
members).
EUR 169 million (2021: EUR 299 million).

Germany
Pension entitlements are based on apercentage of the average salary of the last
10 years.
471 active members (2021: 478 active
members).
496 inactive members (2021: 476 inactive
members).
EUR 113 million (2021: EUR 154 million).

Plan assets

EUR 247 million (2021: EUR 387 million).

Remeasurement gain
(loss) through OCI
Funding arrangement

EUR 6.3 million - loss (2021: EUR 30.7
million - gain).
The basis of the funding agreement lies in
the Trust Deed and Rules. The pension fundperforms triennial actuarial valuations todetermine employer contributions.

Employee contributions

In 2022 contributions amounted to 7.1%
(2021: 7.1%) of the eligible salary.
A Cash Driven Investment portfolio has been
implemented that combines Buy & Maintain
Credit with a Liability Driven Investment, toprovide contractual income that aligns withthe timing of the pension liability cash flow
payments together with a 100% interest rateand inflation rate liability hedge to maintain
Self-sufficiency.
The UK pension plan is subject to UK
pensions legislation and guidance issued by
the Pensions Regulator in the UK

EUR 76.1 million (2021: EUR 89.0 million).
Assets of EUR 14.9 million (2021: EUR 16.9
million) are recognised as part of thefinancial investments.
EUR 27.6 million - gain (2021: EUR 4.7
million - gain).
A Contractual Trust Agreement is established
as a financing vehicle to cover part of thepension liabilities. There is no specificfunding arrangement although the assets
must exceed the initially funded amount of
EUR 39.2 million.
None; all contributions are made by theemployer.
The investment objectives and policies aredeveloped based on an ALM-study.

Number of participants

ALM-strategy

Regulatory Framework

The investment policy limits the interest raterisk by restricting the investment in bonds tofixed rate bonds. Equity price risk iscontrolled by investing according to the Dow
Jones Euro Stoxx 50 Index.
The German pension plan is subject toGerman pensions legislation and guidanceissued by the Pensions Regulator in
Germany

In general, the defined benefit plans are administered by pension vehicles. Although liaised with the Group, these are
separate legal entities (a Trustee in the United Kingdom and a Pension Trust eV in Germany). The boards of these
entities comprise both employer and employee representatives. The boards are responsible for setting their own
policies (e.g. investment and governance) within the applicable legal framework. These defined benefit plans may
expose the Group to actuarial risks (such as longevity risk) and financial risks like interest rate risks and investment
risk.
Fair value of plan assets
The fair value of plan assets at the end of the reporting period is analysed in the following table:

135

141

All amounts in thousands of Euro, unless otherwise statedPlan assets 2022
Belgium
Germany
MexicoNorwaySpain
SwedenSwitzerland
United Kingdom

Cash and cash Equity
equivalents
instruments(532)
28,690
19
347
6,443
-

Total

Plan assets 2021
Belgium
Germany
Mexico5,911

29,056

Debt
instruments
47,931
234
1,522
163,584
213,271

Cash and cash Equity
Debt
equivalents
instruments instruments(495)
32,71456,735
17
208

NorwaySpain
SwedenSwitzerland
United Kingdom
Total

3,766
3,271

366
33,097

1,604
299,054357,601

Investment Insurance
funds
contracts
25,203
2,734
13,126481
4,510
10,203
10,68445,573

Investment Insurance
funds
contracts
42,536507
14,624
15,131

2,899
13,1604,001
62,596Real
estate320-

Total 2022
25,20376,089253
2,734
13,1262,670
4,510
180,230320

304,815Realestate-Total 2021
42,536
88,954
225

338
338

2,899
13,1602,815
4,001
317,444472,034

All equity and debt securities have quoted prices in active markets. The plan assets do not include any of Atradius’
own financial instruments, nor any property occupied or other assets used by Atradius.
The return on plan assets is determined by multiplying the fair value of the plan assets by the discount rate as
determined at the start of the annual reporting period, taking account of any changes in the plan assets held during theperiod as a result of contributions and benefit payments. The actual return on plan assets (including reimbursement
rights) was EUR 135.1 million – loss (2021: EUR 31.1 million - gain).
Actuarial assumptions
The principal assumptions used for the purpose of the actuarial valuations are reviewed country by country by anindependent external consultant and approved by the management. In the following table the ones related the twomain defined benefit plans are presented:
Principal actuarial assumptions

United Kingdom

Germany

2022

2021

2022

2021

Discount rate

5.00%

2.00%

3.75%

1.00%

Price inflation rate

3.50%

3.50%

2.50%

2.00%

Expected increase of future salaries

3.25%

3.25%

3.05%

2.55%

Expected increase of future benefit levels
Mortality table

3.36%

3.36%

2.25%

1.75%

CMI 2021

CMI 2020

Heubeck
Richttafeln
2018 G

Heubeck
Richttafeln
2018 G

13

16(1.25% LTR) (1.25% LTR)
Duration in years

15

19

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:
136
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Atradius | Consolidated financial statements 2022 Atradius N.V.

Defined benefit obligation

2022

2021

Increase

Decrease

Increase

Decrease

Discount rate (1% movement)(36,874)

46,098(75,510)98,453

Price inflation rate (1% movement)

38,505(34,569)

77,728(66,265)

Future salary growth (1% movement)

6,887(6,175)

13,665(12,201)

Future pension growth (1% movement)

33,913(28,551)

68,181(56,045)

Future mortality (+1 year)

9,668

n/a

21,556n/a

17.2

Defined benefit costs

A total defined benefit cost of EUR 5.7 million (2021: EUR 16.7 million) is recognised in the profit and loss statement
under net operating expenses (see Note 27). EUR 6.4 million (2021: EUR 16.4 million) relates to pension plans and gainof EUR 0.7 million (2021: EUR 0.3 million loss) to other long-term employee benefits.

137
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All amounts in thousands of Euro, unless otherwise stated

18 Insurance contracts
Credit insurance

Gross

Reinsurance
asset
2022

Net

Gross

Reinsurance
asset
2021

Net

Claims reported and loss
adjustment expenses

299,246(148,394)

150,851

235,664(148,142)

87,522Claims incurred but not reported

1,291,405(480,879)

810,526

974,299(394,056)

580,243

Claims provisions

1,590,651(629,273)

961,377

1,209,963(542,198)

667,765

371,294(109,213)

262,081343,500(104,394)

239,106

1,961,945(738,486)

1,223,458

1,553,463(646,592)

906,871

202,783(60,797)

141,986

211,950(66,483)

145,467

Provision for unearned premium
Total
Bonding
Claims reported and loss
adjustment expenses
Claims incurred but not reported

145,325(25,113)120,212

123,892(20,133)

103,759

Claims provisions

348,108(85,910)262,198

335,842(86,616)

249,226

Provision for unearned premium

255,516(75,644)

179,872

245,129(77,165)

167,964

Total

603,624(161,554)

442,070

580,971(163,781)

417,190

Total insurance contracts

2,565,569(900,040)

1,665,528

2,134,434(810,372)

1,324,061

Current

1,778,529(623,979)

1,154,549

1,448,802(550,034)

898,767

Non-current

787,040(276,061)

510,979

685,632(260,338)

425,294

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.

18.1

Claims development tables

The claims development tables provide an overview of how Atradius’ recognised claims costs for underwriting years
2013-2022 have changed at successive financial year-ends. This overview also provides a breakdown of the claims
provisions (claims reported and loss adjustment expenses and claims incurred but not reported) that are held against
each underwriting year as at 31 December 2022. Underwriting year here means the year in which the risks were
accepted; for reinsurance business it is the treaty year.

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

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Total

682.1
586.0
554.6
543.8
540.9
533.2
522.2
524.0
523.6
524.7

753.0
734.6
734.9
732.4
724.5
713.3
707.6
703.5
700.2
-

829.6
780.7
744.5
715.0
701.7
706.4
706.4
703.1
-

755.7
669.6
638.5
627.4
623.7
635.5
630.9
-

770.4
735.3
679.9
675.0
677.7
669.6
-

833.8
890.7
826.7
815.8
808.7
-

858.5
876.6
823.5
801.2
-

992.3
568.2
502.6
-

968.0
592.0
-

1302.9
-

524.7

700.2

703.1

630.9

669.6

808.7

801.2

502.6

592.0

1,302.9

7,235.9

522.9

688.6

697.2

641.5

667.7

793.1

772.4

410.3

307.3

167.8

5,668.8

1.8

11.6

5.9

(10.6)

1.9

15.6

28.8

92.3

284.7

1,135.1

1,567.1

Estimate of grossclaims incurred:at the end of theyear when risk was
taken
one year later
two years later
three years later
four years later
five years later
six years later
seven years latereight years laternine years later
Current estimate of
cumulative claims
Cumulative
payments to date
Claims provision at
31 December 2021 inrespect of 2012 2021
In respect of prioryears (before 2012)

23.6

Total

1,590.7

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 particularunderwriting year can increase in future financial years as both the premium and losses are recognised in the profit
and loss statement. This is relevant for the credit insurance business written by the local business in Spain andPortugal, the reinsurance business and instalment credit protection. The premium earned for underwriting years
2019-2021 in the current financial year for these blocks of business was EUR 134.6 million (2021: EUR 117.9 million).
Results for underwriting year 2020 and 2021 show a significant favourable development on claim cost resulting fromthe low entry of claims compared to much higher expectations at year end, which did not materialize. For further
details see Note 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 4.2, detailing further disclosures on insurance risk.
The overall impact of risk mitigation on claims provisions (for all underwriting years combined) is approximately
39.6%. Risk mitigation for gross claims incurred as shown in this table varies between 37% and 42% (2021: 42% and51%). These differ from the quota share treaties due to the private instalment credit protection which are not ceded, theinward reinsurance business which is covered by Excess of loss treaties and the Government Schemes.

139

145

All amounts in thousands of Euro, unless otherwise stated

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

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Total

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

21.7

19.0

21.0

16.8

13.6

10.6

31.7

29.9

36.1

26.9

one year later

32.6

34.6

26.8

22.8

32.0

36.1

38.3

32.9

42.5

-

two years later

39.1

43.6

31.5

32.9

36.6

46.8

56.7

44.1

-

-

three years later

42.0

45.8

38.2

37.4

40.0

49.7

72.9

-

-

-

four years later

41.0

41.6

44.0

36.8

40.6

58.1

-

-

-

-

five years later

40.2

39.3

41.0

43.9

47.0

-

-

-

-

-

six years later

45.7

41.9

43.9

43.8

-

-

-

-

-

-

seven years later

48.6

39.7

39.4

-

-

-

-

-

-

-

eight years later

46.8

39.3

-

-

-

-

-

-

-

-

nine years later
Current estimate of
cumulative claims
Cumulative
payments to date
Claims provision at
31 December 2021
in respect of 2012 2021
In respect of prioryears (before 2012)

46.8

-

-

-

-

-

-

-

-

-

46.8

39.3

39.4

43.8

47.0

58.1

72.9

44.1

42.5

26.9

460.8

30.9

25.4

18.5

25.8

22.2

35.1

38.3

11.2

10.5

0.8

218.7

15.9

13.9

20.9

18.0

24.8

23.0

34.6

32.9

32.0

26.1

242.1
106.0

Total

348.1

The claims costs do not include an estimate for future claim payments on cases where Atradius does not yet haveadverse information. This explains the increase in claims costs over time. For bonding, Atradius typically earns
premium in proportion 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 20192021 in the current financial year was EUR 81.1 million (2021: EUR 71.7 million).
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 4.2, detailing further disclosures on insurance
risk. The overall impact of risk mitigation on claims provisions (for all underwriting years combined) is
approximately 24.7%. Risk mitigation for gross claims incurred as shown in this table varies between 14% and 25%(2021: 11% and 23%).

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18.2

Insurance liabilities and reinsurance assets

18.2.1 Changes in insurance liabilities and reinsurance assets
Credit insurance

Gross

Reinsurance
asset
2022

Net

Gross

Reinsurance
asset
2021

Net

Balance at 1 January

1,209,963(542,198)

667,765

1,067,448(562,426)

505,022

Claims paid in the year
Increase/(decrease) in liabilities
arising from claims
Foreign exchange rate and othermovements(417,938)

192,998(224,940)(320,965)

172,707(148,259)

800,339(277,014)

523,326

441,411(142,199)

299,211(1,713)(3,060)(4,774)22,069(10,278)

11,791

Balance at 31 December

1,590,651(629,275)

961,377

1,209,963(542,198)

667,765

Claims reported and loss adjustment
expenses299,246(148,395)

150,851

235,664(148,143)

87,522Claims incurred but not reported

1,291,405(480,880)

810,525

974,300(394,056)

580,244

Total

1,590,651(629,275)

961,376

1,209,963(542,198)

667,765

Balance at 1 January

335,842(86,616)

249,226

305,292(84,080)

221,212Claims paid in the year
Increase/(decrease) in liabilities
arising from claims
Foreign exchange rate and othermovements(56,789)

15,402(41,388)(46,565)

15,040(31,525)

67,351(14,493)

52,85878,417(17,714)60,703

1,705

(203)

1,502

(1,303)138(1,165)

Balance at 31 December

348,109(85,910)262,199335,842(86,616)

249,226

Claims reported and loss adjustment
expenses

202,784(60,797)

141,987

211,950(66,483)

145,467

Claims incurred but not reported

145,325(25,113)120,212

123,892(20,134)

103,758

Total

348,109(85,910)262,199335,842(86,616)

249,226

1,938,760(715,185)

1,223,575

1,545,805(628,814)

916,991

Bonding

Claims provisions

141

147

All amounts in thousands of Euro, unless otherwise stated

18.2.2 Provision for unearned premium
Credit insurance

Gross

Reinsurance
asset
2022

Net

Gross

Reinsurance
asset
2021

Net

Balance at 1 January343,501(104,395)

239,106

309,116(133,139)

175,977

Movement in the period
Foreign exchange rate and othermovements

23,197(2,508)20,687

24,876

31,957

56,833

4,597(2,310)

2,287

9,508

(3,213)

6,295

Balance at 31 December

371,295(109,213)

262,080

343,501(104,395)

239,106

Balance at 1 January245,129(77,164)

167,965

220,871(70,860)

150,011

Movement in the period
Foreign exchange rate and othermovements

10,679929

11,607

19,432(6,104)

13,328

(293)

592

301

4,826

(200)

4,626

Balance at 31 December

255,515(75,644)

179,873245,129(77,164)

167,965

Provision for unearned premium

626,810(184,857)

441,953588,630(181,559)

407,071

Bonding

19 Other provisions
2022

Restructuring

Litigation

Total

Balance at 1 January

1,584

3,442

5,026

Additional provisions

-

645

645

Unused amounts reversed

(589)

-

(589)

Utilised

(995)

-

(995)

Effect of movements in foreign exchange rates

-

-

-

Balance at 31 December

-

4,087

4,087

Current---

Non-current

-

4,087

4,087

Restructuring

Litigation

Total

Balance at 1 January

1,823

3,673

5,496

Additional provisions

-

112

112

2021

Unused amounts reversed

(198)

-

(198)

Utilised

(40)

(343)

(383)

-

-

-

1,584

3,442

5,026

-

-

3,442

5,026

Effect of movements in foreign exchange rates
Balance at 31 December
Current
Non-current

1,584

Litigation
The litigation provision is related to disputes with third parties that are not related to the insurance business ofAtradius. Insurance business related litigation provisions are included in the provisions for outstanding claims. The
provision relates to the estimated cost including the costs of legal proceedings of any non-insurance claims against
142

148

Atradius | Consolidated financial statements 2022 Atradius N.V.

Atradius. These provisions have not been discounted to reflect present value since the effect of discounting is notmaterial.

20 Deferred and current income tax
Current income tax
2022

2021

Current income tax assets

83,03536,284Current income tax liabilities

73,194

40,699Net

9,841(4,415)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.
Deferred income tax
2022

2021

Deferred income tax assets before set-off

233,315

216,494

Set-off of deferred tax positions(147,502)(176,559)

85,81339,935

Deferred income tax liabilities before set-off

248,485

277,536

Set-off of deferred tax positions(147,502)(176,559)

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

100,983

100,977

2022

2021

Balance at 1 January(61,042)(31,857)

Credit (charge) to other comprehensive income for the year

34,803(17,087)

Charge to the profit and loss statement for the year
Movements with no impact on OCI nor P&L

6,597
1,503

14,550(26,649)

Effect of movements in foreign exchange rates

2,969

1

(15,170)(61,042)

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

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

Balance at 31 December
The movement in the deferred tax assets and liabilities is presented in the following table:

143

149

All amounts in thousands of Euro, unless otherwise stated2022

Balance at 1
January

Recognised inothercomprehensive
income for theyear

Recognised Movementsin the profit
with noand loss
impact on
statement OCI nor P&L
for the year

Effect ofmovements
in foreignexchange

Balance at 31
DecemberTax losses carried forward

42,862-(8,066)-45

34,841

Technical balances

72,358-28,456(2,348)(378)

98,087Pensions

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

-

1,125

(985)

Fiscal goodwill

1,926

-

(237)

-

(30)

1,659

Financial investments(30,608)

46,191

487

112

(205)

15,977Equalisation provisions(145,107)-(17,741)

3,512

(150)

(159,485)

Property, plant andequipment(9,793)

-

57

2

(68)

(9,802)Other(3,176)

-

4,858

226

2,631

4,539

Total

(61,042)

34,803

6,597

1,503

2,969

(15,170)

2021

Balance at 1
January

Recognised inothercomprehensive
income for theyear

Recognised Movementsin the profit
with noand loss
impact on
statement OCI nor P&L
for the year

Effect ofmovements
in foreignexchange

Balance at 31
DecemberTax losses carried forward

22,166-

20,699‐(3)

42,862

Technical balances

56,760-15,692‐(94)

72,358Pensions

28,125(8,593)

18,110(26,649)(497)

10,496

Fiscal goodwill

2,149

-

(275)

‐

52

1,926

Financial investments(20,452)(8,494)(1,522)‐(140)(30,608)

Equalisation provisions(111,020)-(33,844)‐(243)(145,107)

Property, plant andequipment(11,821)

-

2,045

‐

(17)

(9,793)

Other

2,236

-

(6,355)-943(3,176)

Total(31,857)(17,087)

14,550(26,649)

1(61,042)

Deferred income tax assets are recognised for tax losses carried forward, unused tax credits, and deductible
temporary differences, to the extent that it is probable that taxable profits will be available against which the unused
tax losses carried forward, unused tax credits, and deductible temporary differences can be utilised. In 2022, EUR 0.3
million deferred tax assets on the losses carried forward and deductible temporary difference were written down or
not recognised (2021: EUR 0.4 million). This is offset by the reversals of the impairments, prior year adjustments andforeign exchange, resulting in a net reversal of impairment of these deferred tax assets of EUR 1.0 million.
The DTL related to the financial investments changed to a DTA due to the rise in interest rates, which negatively
impacted the value of our bond portfolio, in addition to the negative results of the equity markets.
Deferred tax assets on pensions decrease due to the update of the actuarial assumptions. Discount and inflation rates
have significantly increased for all plans compared to year-end 2021.
Atradius has unrecognised tax losses carried forward balances amounting to EUR 47.0 million (2021: EUR 53.8
million). The expiration of these unrecognised tax losses carried forward is included in the following table:

144
150

Atradius | Consolidated financial statements 2022 Atradius N.V.

Expiration unrecognised tax losses carried forward

2022

2021

1 - 3 years

324

560

4 - 9 years

618

1,650

Indefinite

46,002

51,581

Total

46,94553,791The decrease of unrecognised tax losses is mainly due to the utilisation of unrecognised tax losses or expiration of
unrecognised tax losses in countries where the carry forward of losses is limited to a certain amount of years.
The 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

2022

Deferred tax

Current tax

2021

Revaluation reserve in shareholders equity related to:
Available-for-sale financial investments

46,191

28(8,494)(264)(11,388)-(8,593)

-

-

134

-

(761)

34,803

162(17,087)(1,025)Pension reserve in shareholders equity related to:
Recognised actuarial gains/(losses)
Currency translation reserve in shareholders equity relatedto:Currency translation reserve
Total

145
151

All amounts in thousands of Euro, unless otherwise stated

21 Payables
2022

2021

Accounts payable on insurance and reinsurance business

184,339

347,983

Payables arising out of reinsurance operations

119,786

287,360

Amounts due to policyholders

41,521

40,970

Amounts due to intermediaries and current account Dutch State

23,031

19,653

Trade and other accounts payable

144,186

173,985

Accounts payable

111,216

125,740

Other accounts payable

32,97048,245

Total

328,525

521,968

The payables are substantially all current.
The significant decrease during 2022 is explained by the settlements with the Goverments in ACyC UK, ACyC Germany
and ACyC Spain, the sale of Graydon and the liability cancellation with GCO related to the corporate tax payments.

22 Other liabilities
2022

2021

275,595

242,288

Deposits received from reinsurers

9,263

10,014

Unearned reinsurance commission

65,19564,438

Payroll and bonus accruals

62,86960,574

Reinsurance accruals

42,42639,894

Other accruals

101,867

100,043

Other taxes

27,65825,791

Ceded pipeline premium¹ and return premium²

Lease liabilities

82,33680,911

Total

667,209

623,953

1) 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 premium of a policy is less than the insured has previously paid

Lease liability maturity analysis
Lease liability maturity analysis (undiscounted cash flows)

2022

2021

Less than one year

24,062

24,472

Between one and five years

63,582

63,587More than five years

38,44522,747

Total

126,089

110,806

146

152

Atradius | Consolidated financial statements 2022 Atradius N.V.

23 Net premium earned
Credit insurance

Gross

Net

Reinsurers'
share

Gross

Net

2021

2022
Written premium

Reinsurers'
share2,048,379(811,776)

1,236,603

1,739,266(866,690)

872,576

Change in provision forunearned premium(23,196)

2,509(20,687)(24,876)(31,957)(56,833)

Other movements(2,363)889(1,474)(1,297)

434

(863)

2,022,820(808,378)

1,214,442

1,713,093(898,213)

814,880

Written premium

213,287(49,612)

163,675

206,600(53,321)

153,279

Change in provision forunearned premium(10,679)(929)(11,607)(19,432)

6,104(13,328)

(89)

(20)

(109)

58

(31)

27

202,519(50,560)

151,959

187,226(47,248)

139,978

2,225,340(858,939)

1,366,401

1,900,319(945,461)

954,857

2022

2021

Debt collection services

46,27546,887

Credit information services

141,922

135,591

Business information and other service income

37,51068,171

Total

225,707250,649

Total
Bonding

Other movements
Total
Total premium earned

24 Service and other income

Credit information services are part of the insurance segment. All other services are part of the service segment.
Business information and other service income impacted by Graydon’s sale.
Characteristics of service contracts and income:








The contracts of credit information, collections and business information services mostly have a duration of one
year. The contract period of credit information contracts is linked to the insurance policies, which can be up to two
years. But the credit limits are renewed on an annual basis, which requires additional credit information that is
separately invoiced to the customer. The cooperation agreement of Atradius Dutch State Business with the Dutch
state has an undetermined period.
The agreed performance obligations and transaction prices, included in the contracts, are clear and contain nojudgements that significantly affect the determination of the amount and timing of revenue.
The contracts contain no financing elements, warranties or obligations for returns or refunds.
In the cases that service income relates to variable consideration, the conditions are explicitly stated in thecontract.
All costs for obtaining and fulfilling contracts are recognised as expenses. Atradius does not incur costs that meetthe 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 the remaining
performance obligations for service contracts at year end, since the contracts either have a duration of one year or
Atradius is allowed to recognise revenue in an amount to which it has a right to invoice.

147

153

All amounts in thousands of Euro, unless otherwise stated

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

2022

2021

13,46259,366

13,005143
6146
14,597146
225
148
27,833

673

148
512

60,039149
28,345

IncomeDebt securities available-for-sale
Loans

11

Equity securities available-for-sale

44,993

Other investments

900

Total income from financial investments
Investment property
Total investment income
Expenses

149

Debt securities available-for-sale(21,997)

(146)
149

Equity securities available-for-sale(6,506)

Handling expenses(5,231)Other investments(49)(2,781)150(5,081)150(196)

Total expenses from financial investments(33,783)(8,204)

Investment property(1,668)(528)

Total investment expenses(35,451)(8,732)

Net income from investments

24,588

19,613

Share of income/ (losses) of associated companies

17,755

15,963

Net income from investments including associated companies

42,34335,5762022

2021

Interest

13,9607,425

Dividends

11,75913,582

Realised gains

33,647

6,937

673

401

60,03928,345

Handling expenses(5,231)(5,081)

Realised losses(28,729)(1,494)

Impairment loss

(760)

(1,606)

Depreciation of investment property

(413)

(344)

Other
Total

(318)
(35,451)(207)(8,732)

Net income from investments

24,588

19,613

Share of income of associated companies
Total
Net income from investments including associated companies

17,75517,75542,343

15,963
15,96335,576

Net investment income by nature of income/(expense)
IncomeRental income from investment property
Total
Expenses

In interest income and expenses reported above, the component related to financial investments available-for-sale is
net EUR 13.0 million (2021: EUR 7.4 million); this is derived from government and corporate bonds.

148

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Atradius | Consolidated financial statements 2022 Atradius N.V.

Net gains/(losses) by category

Impairments

Realised
gains/(losses)
2022

Investment property

Impairments

Realised
gains/(losses)
2021

-

(937)

22

111

Financial assets classified as available-for-sale

(760)

5,855

(1,628)

5,332

Total

(760)

4,918

(1,606)

5,443

26 Insurance claims
Credit insurance

Gross

Reinsurers'
share
2022

Net

Gross

Reinsurers'
share
2021

Net

Claims paid in the year

417,938(192,998)

224,940

320,965(172,707)

148,259

Change in claims provisions

382,402(84,016)

298,386

120,446

30,507150,953

Claims handling expenses

42,771-42,771

41,535-41,535

Total

843,111(277,014)

566,097

482,946(142,200)

340,747

Claims paid in the year

56,789(15,402)41,38846,565(15,040)

31,525

Change in claims provisions

10,561909

11,47031,852(2,674)29,178Claims handling expenses

1,849

-

1,849

2,115

-

2,115

Total

69,199(14,493)

54,70780,532(17,714)62,818

Total insurance claims

912,309(291,506)

620,804

563,478(159,914)

403,565

2022

2021

Total administrative expenses

581,394

618,928

Acquisition costs

306,334

251,154(8,660)(4,848)Gross operating expenses

879,068

865,234

Commissions received for business ceded to reinsurers(322,605)(365,794)

Total net operating expenses

556,463499,440

2022

2021

Insurance and information expenses

544,025546,619

Recoveries and collections expenses

48,17747,642Other service expenses (*)

18,49856,237

Group costs

15,314

12,079Total gross administrative expenses

626,014662,578

Claims handling expenses allocated to insurance claims(44,619)(43,650)

Total administrative expenses

581,395

618,928

Bonding

For more detail on the change in claims provisions, see Note 18.2.1.

27 Net operating expenses

Change in deferred acquisition costs

Administrative expenses by type of business

Other service expenses are impacted by the sale of Graydon (2021: EUR 40 million)
149
155

All amounts in thousands of Euro, unless otherwise stated

In the gross administrative expenses are included:

Depreciation, amortisation and impairment charges for intangible assets and property, plant and equipment
amount to EUR 41.2 million (2021: EUR 100.8 million).
Short term and low value leases amount to EUR 0.4 million (2021: EUR 0.5 million)

Employee benefit expenses

2022

2021

342,108

335,498

Restructuring costs and termination benefits(1,278)(198)

Pension costs - defined contribution plans

19,29913,197

6,711

16,718366,840

365,215

2022

2021

170

-

Salaries and wages (including social security costs)

Pension costs - defined benefit plans
Total employee benefit expenses
For an explanation of the employee benefit details see Note 17.

28 Finance expenses
Impairment of goodwill
Interest and fees on the subordinated debt

13,352

16,141

Net interest on the net defined benefit liability

(868)

132

Other interest expense

3,903

1,442

(10,970)(8,928)Interest expense on Right of use

1,668

2,221

Total

7,255

11,008Foreign exchange (income)/expense

The subordinated debt costs include the periodic interest expenses of EUR 13.1 million (2021: EUR 15.9 million) and theaccretion of interest on the debt in the amount of EUR 0.2 million (2021: EUR 0.2 million).

29 Income tax
2022

2021

Current tax

110,816

102,316

Deferred tax(6,597)(14,550)

104,220

87,766

Income tax expense/(income) for the year

The reconciliation from the expected tax rate to the actual tax rate is provided in the following table:
2022

2021

458,065

328,015

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

99,613

72,637

Tax exempt (income)/loss(5,111)(3,372)

Write down/(reversal) of deferred tax assets

2,831

(722)

Reassessment of prior year local tax positions(4,145)

4,966

Impact of change in tax rate

239

4,666

Regional taxes

3,155

974

Result before tax

Other
Income tax expense/(income) for the year
The weighted average applicable tax rate was 21.7% (2021: 22.1%).
150

156

7,638

8,616

104,220

87,766

Atradius | Consolidated financial statements 2022 Atradius N.V.

Deferred tax assets relating to losses carried forward in certain entities have been impaired. This is included in ‘write
down (reversal) of deferred tax assets’. On balance, the reversal exceeded the impairment.
The impact of the change in tax rate in 2022 mainly reflects the effect of changes in income tax rate in Austria, UK andTurkey.
The category "Other" includes non-deductible expenses and withholding taxes.

30 Dividends per share
The dividends paid in 2022 and 2021 were EUR 165 million (EUR 2.1 per share) and EUR 91 million (EUR 1.15 pershare) respectively.

31 Assets not freely disposable
The financial assets not freely disposable in 2022 are EUR 329.3 million (2021: EUR 336.4 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 technicalprovisions is EUR 79.5 million (2021: EUR 92.5 million).

32 Capital commitments and contingencies
Capital commitments of EUR 24.1 million (2021: EUR 11.1 million) are related to contracted obligations for future
payments for outsourcing, networking, imaging and licences. The increase is coming from a new multi-year master
contract for the network.
The Group has contingent liabilities in respect of matters arising in the ordinary course of business. It is not
anticipated that any material liabilities will arise from the contingent liabilities. The Group has given guarantees tothird parties amounting to EUR 2.2 million (2021: EUR 2.1 million).

33 Held for sale
As part of the analysis about strategic options for our presence in Russia, the assets and liabilities related to Atradius
Rus Credit Insurance LLC have been presented as held for sale and its results are presented separately on the income
statement as “Result related Held for sale business”.
The net result of the held for sale operations reported in the consolidated profit and loss statement includes the resultof the year of the HFS entity plus the estimated loss on a potential sale.

151

157

All amounts in thousands of Euro, unless otherwise stated

Assets2022

Intangible assets

22

Property plant and equipment

648

Financial investments

22,502

Reinsurance contracts

37,124Current income tax assets

2,493

Receivables

77

Other assets

3,872

Cash and cash equivalents

34,592Estimated loss on a potential sale

(26,703)

Total Assets

74,626

Liabilities

2022

Insurance contracts

53,672

Deferred income tax liabilities

1,503

Current income tax liabilities

1,135

Payables

5,845

Other liabilities

5,289

Total Liabilities

67,444

Profit and loss

2022

Net premiums earned

4,723

Net income from investments

1,394

Net insurance claims(5,360)

Non technical result

5,469

Result for the year before tax

6,227

Income tax expense
Result for the year after tax(1,156)
5,071

As part of this held for sale reclassification, intercompany positions within the Company - mainly at Atradius Re forthe internal reinsurance - remain in the balance sheet and profit and loss statement of the Company. The impact of
those amounts can be seen in the tables below.
IC Transactions

2022

Premiums(15,901)

Claims11,727

Commissions

6,528

34 Personnel
The number of employees working for Atradius is included in the following table:
2022

2021

Total average number of employees (full-time equivalent)

3,404

3,500

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

3,310

3,497

Total year end number of employees (headcount) (1) (2)

3,426

3,639

1)

Excluding management board members.

2)

Of which 2987 employees work outside the Netherlands (2021; 3080 employees).

152
158

Atradius | Consolidated financial statements 2022 Atradius N.V.

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

Parent (1)2022
Sales to related parties

Associatedcompanies

Parent (1)2021

20,61779

16,505

(2)

104

2,315

49

1,915

Amounts owed by related parties

191

6,511

8

6,754

Amounts owed to related parties
Total

20,912

(282)
8,623

283
16,845

11,64020,397(2)

Purchases from related parties

1)

Subsidiaries of Grupo Catalana Occidente, S.A.

2)

2021 restated, (claims and commissions were reported as purchases instead of lower sales).

88

Sales to related parties consist of the net effect of Reinsurance business (premiums, claims, recoveries andcommission) and for information services provided to Atradius. Purchases from related parties consist of the net effectof (retro-) ceded insurance (premiums, claims, recoveries and commission). The amounts owed by related Atradiuscompanies consist of the fair value of insurance policies as calculated under the requirements of IAS 19 and advancepayments of the corporate tax.
In 2021 amounts owed to related parties was due to the pending liquidation payment of the Corporate Tax (EUR 11
million), which has been paid during 2022.
The increase on sales to related parties is mainly due to the significant decrease in payments to CGIC (2021: EUR 8
million vs 2022: EUR 1 million).
Terms and conditions of transactions with related parties
No guarantees have been provided or received for any related party for 2022 or 2021. For the years ending 31
December 2022 and 2021, Atradius has not raised any provision or expenses for doubtful debtors relating to amounts
owed by related parties.
Subordinated debt
Plus Ultra, Seguros Generales y Vida, S.A. de Seguros y Reaseguros, Seguros Catalana Occidente S.A. de Seguros y
Reaseguros and Bilbao Compañía Anónima de Seguros y Reaseguros; subsidiaries of the ultimate parent of the Grouppurchased EUR 60.0 million (24.0%) of the guaranteed subordinated notes issued by Atradius Finance B.V. In 2022 theinterest expense relating to this portion was EUR 3.0 million (2021: EUR 3.0 million).
The related party share for the subordinated debt is as follows:
Nominalvalue

Lenders

Interest
expense2022
Plus Ultra, Seguros Generales y Vida, S.A. de Seguros y
Reaseguros
Seguros Catalana Occidente S.A. de Seguros y
Reaseguros
Bilbao Compañía Anónima de Seguros y Reaseguros

Interest
expense2021

40,0002,112

40,0002,112

17,041

752

13,291

1,581

3,000

163

3,000

1,648

-

223

56,291

5,564

Nortehispana, de Seguros y Reaseguros S.A.
Total

Nominalvalue

60,041

3,027

On 28 September 2021 Atradius Reinsurance DAC, Ireland redeemed 100% of its outstanding subordinated loan with aprincipal amount of EUR 75 million.
Compensation of key current and former management personnel of Atradius
153

159

All amounts in thousands of Euro, unless otherwise stated

The following table provides details on the remuneration for members of the Management Board and Supervisory
Board.
Remuneration

2022

2021

Short-term employee benefits (1)

2,331

2,169

Long-term employee benefits

1,362

1,305

Post-employment benefits

327

301

4,020

3,775

5

5

2022

2021

Short-term employee benefits (1)

630

585

Total compensation paid to Supervisory Board members

630

585

Management Board

Total compensation paid to Management Board members
Number of members
Remuneration
Supervisory Board

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

From the total compensation for Management Board members, EUR 2.7 million (2021: EUR 2.5 million) has been paid
at the end of the reporting period. The remaining balance payable is subject to meeting the variable pay conditions.
The Management Board and Supervisory Board members also participate in the Boards of some of the Company´ssubsidiaries. Apart from this, they do not have other relationships with the Company or its subsidiaries.
A member of the Management Board with a potential conflict of interest with the Company will immediately report
this to the Chair of the Management Board, who will determine whether the reported case qualifies as a conflict ofinterest. A member of the Management Board will not participate in any deliberations or decision-making of theManagement Board if that member has a direct or indirect personal interest that conflicts with the interest of theCompany or its business. In such a case, the other non- conflicted members of the Management Board will pass theresolution. If all members of the Management Board are conflicted, then the Supervisory Board will pass theresolution.

154

160

Atradius | Consolidated financial statements 2022 Atradius N.V.

36 Auditor fees
The following expenses were made for audit and non-audit services rendered by Atradius’ external auditor:
2022 Including VAT

PwC
Accountants
N.V.

Other PwC
Networkorganisations

Total PwC
Network

883

3,142

4,025

Other services required by law and regulation

-

390

390

Other assurance related services

-

18

18

Fiscal advisory services

-

-

-

Other non-audit services

-

63

63

883

3,613

4,496

PwC
Accountants
N.V.

Other PwC
Networkorganisations

Total PwC
Network

780

2,324

3,104

Other services required by law and regulation

-

534

534

Other assurance related services

-

10

10

Fiscal advisory services--

Other non-audit services

-

6

6

780

2,874

3,654

Audit services

Total2021 Including VAT

Audit services

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
to audit reviews on Solvency II and other regulatory requirements. The amounts reported on non-audit services lines
are related to projects where external auditor is involved.

37 Events after the reporting period
The Management Board proposes to the General Meeting to allocate the result for the year to the retained earnings.

155
161

All amounts in thousands of Euro, unless otherwise statedCompany financial
statements 2022
Contents
Company financial statements ............................................................................................................................................................................. 163
Notes to the Company financial statements
1

		General information ....................................................................................................................................................................................... 166

2

		Summary of significant accounting policies ........................................................................................................................................... 166

3

		Investments in group companies ............................................................................................................................................................... 167

4

		Capital and reserves ....................................................................................................................................................................................... 167

5

		Other liabilities ................................................................................................................................................................................................. 168

6 		Contingencies ................................................................................................................................................................................................... 168
7 		Personnel .......................................................................................................................................................................................................... 168
8

		Remuneration of Management Board and Supervisory Board.......................................................................................................... 169

9

		Proposed profit appropriation .................................................................................................................................................................... 169

162

Atradius | Company financial statements 2022 Atradius N.V.

Company statement offinancial position
Company statement of financial position as at December 31, 2022
(before profit appropriation)
31.12.2022

31.12.2021

2,198,159

2,127,190

5

52,198,154

2,127,185

Current assets

46,12154,810Receivables from group companies

AssetsNote

Fixed assets
Property, plant and equipment
3

Investments in group companies

30,09636,451

Deferred income tax assets

1,320

7,683

Current income tax assets

12,132

1,312

Cash and cash equivalents

2,573

9,364

2,244,280

2,182,000

Total
EquityCapital and reserves attributable to the owners of the Company

4

Share capital

79,122

79,122

Share premium reserve862,883

862,883

Legal reserve(56,512)73,25766,09561,300- Revaluation reserve(57,436)

110,854- Pension reserve(28,999)(55,082)- Currency translation reserve(36,172)(43,815)

957,744886,811- Reserve intangibles assets

Retained earnings
Result for the year (unappropriated)
Total

332,212240,249

2,175,450

2,142,323

Liabilities
Current liabilities

68,83039,677

Payables to group companies

63,58434,525

5,246

5,152

68,83039,6772,244,280

2,182,000

5

Other liabilities
Total
Total equity and liabilities

159

163

All amounts in thousands of Euro, unless otherwise statedCompany profit and loss
statement for the year
ended December 31, 2022

All amounts in thousands of Euro, unless otherwise statedCompany profit and loss statement for the year ended December 31, 2022
2022

2021

Income after tax from group companies

338,752

246,026

Other results after tax(6,540)(5,777)

Result for the year

332,212240,249

164

Atradius | Consolidated inancial statements 2022 Atradius N.V.

Company statement ofchanges in equity for the year
ended December 31, 2022
Atradius | Company financial statements 2022 Atradius N.V.

Company statement of changes in equity for the year ended December 31, 2022
SharecapitalSharepremium
reserve

79,122

Legal reserves
Retainedearnings

Result for
the year

998,186

44,167

1,913,294

18,030(79,826)-

79,771

18,030(79,826)-

79,771

-

-

-

-

-

-

44,167(44,167)---

240,249

240,249

Reserveintangibles
assets

Revaluation
reserve

Pensionreserve

Currencytranslation
reserve

862,883

76,57580,811(166,607)(61,845)---

30,043

111,525---

30,043

111,525

Acquisitions

-

-

-

- -

- -

Appropriation of prior year result

-

-

-

-

Result for the year

-

-

-

-

Change in reserves--(15,275)

Dividends
Balance at 31 December 2021

-

-

-

-

-

79,122862,883

61,300110,854

79,122862,883

61,300--

Balance at 1 January 2021
Change in reserves
Net income recognised directly in equity

Balance at 1 January 2022
Change in reserves

15,275---(90,991)-(90,991)(55,082)(43,815)886,811240,249

2,142,323

110,854(55,082)(43,815)886,811240,249

2,142,323-(168,290)

26,083

7,643

55

-

(134,509)

55

-

-

-

(168,290)

26,083

7,643

Acquisitions

-

-

-

-

-

-

Appropriation of prior year result

-

-

-

-

-

-

Result for the year

-

-

-

-

-

Change in reserves

-

-

4,795

-

-

Dividends
Balance at 31 December 2022

-

-

-

-

79,122862,883

66,095(57,436)

Net income recognised directly in equity

161

165

Total

-

(134,509)--

240,249(240,249)---

332,212332,212-(4,795)

-

-

-

-

(164,574)-(164,574)(28,999)(36,172)

957,746

332,2122,175,450

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

General information

Atradius N.V. (referred to as the “Company’) is based in Amsterdam (The Netherlands) and registered at the Dutch
Chamber of Commerce under number 34196963.
The Company financial statements are part of the 2022 consolidated financial statements, which are also included in
the annual report. The Company profit and loss statement is presented in abbreviated form in accordance with Article
402 of Book 2 of the Dutch Civil Code.
The Company has applied the provisions of Article 379, Subsection 5 of Book 2 of the Dutch Civil Code. The list referred
to in this article has been included in the appendix.
The Company has issued a statement of liability in accordance with Article 403, Book 2 of the Dutch Civil Code for thefollowing Atradius companies: Atradius Collections B.V., Atradius Collections Holding B.V., Atradius Credit
Management Services B.V, Atradius Dutch State Business N.V, Atradius Insurance Holding N.V.and Atradius
Information Services B.V.
The Company financial statements have been authorised for issue by the Management Board on 1 March 2023.

2

Summary of significant accounting policies

2.1

Basis of presentation

The Company annual financial statements have been prepared in accordance with Part 9, Book 2 of the Dutch Civil
Code. In the preparation of the Company annual financial statements, the provisions of Article 362, Subsection 8 ofBook 2 of the Dutch Civil Code have been applied.
Group companies are accounted for using the equity method. Equity of group and associated companies is based on
IFRS accounting principles of Atradius N.V.
The Company has the power to govern the group companies . The equity method involves recognition of the groupcompany’s profit or loss in the profit and loss statement for the Company’s share in the result. The Company’s interestin the group companies is carried in the balance sheet at an amount that reflects its share in the net asset value of therelated subsidiary.
All amounts in the notes are shown in thousands of Euro (EUR), rounded to the nearest thousand, unless otherwise
stated.

2.2

Investments in group companies

Atradius companies are valued using the equity method in accordance with the accounting principles applied in the
consolidated financial statements.

2.3

Legal reserve

The legal reserve has to be created under Dutch legislation for the reserves established by subsidiaries that cannot be
distributed and relates to: Reserve intangible assets;
 Revaluation reserve;
 Pension reserve;
 Currency translation reserve.
162

166

Atradius | Company financial statements 2022 Atradius N.V.

3

Investments in group companies

The following table shows the changes in investments in group companies valued using the equity method:
2022

2021

2,127,186

1,892,379

6,000

-

Share of profit/(loss)

338,752

246,026

Dividends received(139,275)(90,991)

Change in revaluation reserve, pension reserve and NL pension plan de-risking(142,152)

61,742

7,643

18,0302,198,154

2,127,186

Balance at 1 January
Investments in group companies

Foreign exchange reserve movements
Balance at 31 December

4

Capital and reserves

4.1

Share capital

The authorised share capital of Atradius N.V. amounts to EUR 250,000,000 and is divided into 250,000,000 ordinary
shares with a nominal value of EUR 1 each (equal to 2021) of which 79,122,142 ordinary shares were issued and fully
paid (equal to 2021). The fully paid ordinary shares carry one vote per share and carry the right to dividends.

4.2

Share premium reserve
2022

2021

Balance at 1 January862,883

862,883

Balance at 31 December

862,883

862,883

4.3

Legal reserve

The total amount of equity in the Company financial statements equals shareholders’ equity in the consolidated
financial statements. Certain components within equity are different in the Company financial statements due to legal
reserves, established by subsidiaries of the Company, which in accordance with Book 2, Part 9 of the Dutch Civil Code,
Article 389, Subsection 6, cannot be distributed. In particular:






costs for research and development to the extent they are capitalisedchanges in revaluation of group companies, which consists of unrealised revaluations within consolidated groupcompanies presented in the revaluation reserve in the consolidated financial statements, and actuarial gains andlosseseffect of asset ceilings within consolidated group companies presented in the pension reserve in the consolidated
financial statements andforeign currency translations on consolidated group companies, presented in the currency translation reserve inthe consolidated financial statements

The legal reserves cannot be freely distributed. In case of negative balances for individual reserves legally to beretained, no distributions can be made out of retained earnings to the level of these negative amounts.
In addition to the legal and regulatory restrictions on distributing dividends from subsidiaries to the Company, there
are various other considerations and limitations that are taken into account in determining the appropriate levels ofequity in the Group’s subsidiaries. These considerations and limitations include, but are not restricted to, local
regulatory regulations and rating agency requirements, that can change over time. It is not possible to disclose areliable quantification of these limitations. (See 4.5 )

163
167

All amounts in thousands of Euro, unless otherwise stated

4.4

Retained earnings
2022

2021

Balance at 1 January

886,811

998,186

Appropriation of prior year result

240,249

44,167(4,795)

15,275(164,574)(90,991)-(79,826)55-

957,746

886,811

2022

2021

171

179

Transfer between legal reserve and retained earnings
Dividends
Pension plan de-risking
Other comprehensive income
Balance at 31 December

5

Other liabilities

Other taxes
Long-term employee benefits

1,162

1,418

Other liabilities

3,913

3,555

Total

5,246

5,152

6

Contingencies

The Company has contingent liabilities in respect of guarantees arising in the ordinary course of business. It was not
anticipated that any material liabilities will arise from the contingent liabilities. The Company gave guarantees tothird parties in the ordinary course of business amounting to EUR 0.6 million (2021: EUR 0.6 million).
Atradius N.V. is head of the Dutch fiscal unity for corporate income tax, consisting of Atradius N.V., Atradius Insurance
Holding N.V., Atradius Finance B.V., Atradius Crédito y Caución S.A. de Seguros y Reaseguros, Dutch branch, Atradius
Information Services B.V., Atradius Collections Holding B.V., Atradius Collections B.V., Atradius Credit Management
Services B.V., and Atradius Dutch State Business N.V. All companies included in the fiscal unity are jointly andseverally liable for the corporate income tax payable in the Netherlands by the fiscal unity.
The Company is subject to litigation in the normal course of business. The Company believes that such litigation will
not have a material effect on its profit or loss and financial condition.
The Company acts as the guarantor for the guaranteed subordinated loan, EUR 250 million, (2022: EUR 250 million)
issued by Atradius Finance B.V. (see Note 16 of the consolidated financial statements).

7

Personnel

The number of employees working for the Company:
2022

2021

Total average number of employees (headcount)5

5

Total year end number of employees (headcount)

5

5

164

168

Atradius | Company financial statements 2022 Atradius N.V.

8 Remuneration of Management Board and Supervisory Board
For information on remuneration of the members of the Management Board and the Supervisory Board: see Note 35 of
the consolidated financial statements.

9 Proposed profit appropriation
The Management Board proposes to the General Meeting to allocate the result for the year to the retained earnings.

165
169

Atradius | Other information 2022 Atradius N.V.
Atradius | Other information 2021 Atradius N.V.

Other information

168
170

Atradius | Other information 2022 Atradius N.V.

Atradius | Other information 2021 Atradius N.V.

Statutory appropriation of result
In accordance with article 24 of the Articles of Association the result for the year is at the disposal of the General
Meeting.

171

169

Atradius | Annual Report 2021 Atradius N.V.
Atradius | Annual Report 2022 Atradius N.V.

Annual Report Atradius N.V.
1 March 2023
The Supervisory Board

The Management Board

Xavier Freixes, Chair
Bernd H. Meyer
Hugo Serra
Désirée van Gorp
John Hourican
Carlos Halpern
José María Sunyer
Juan Ignacio Guerrero
Joaquín Guallar

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

170

172

Atradius | Independend auditor’s report

Independent auditor’s report
To: the general meeting and the supervisory board of Atradius N.V.

Report on the financial statements 2021
Our opinion
In our opinion:• t he consolidated financial statements of Atradius N.V. together with its subsidiaries (‘the Group’) give a true and fair
Independent
auditor’sview of thefinancial position of theGroup as at 31 report
December 2021, and of its result and cash flows for the year thenended in accordance with International Financial Reporting Standards as adopted by the European Union (‘EUIFRS’) and with Part 9 of Book 2 of the Dutch Civil Code; andFinancial Statements
31 December 2022
1 January 2022
Atradius N.V.
Controle
Goedkeurend
NLE00019461.1.1
KVK
Create SBR Extension
1.0

Amsterdam

1 March 2023

To: thegeneral statements
meeting andofthe
supervisoryboard
of AtradiusN.V.
• t he company
financial
N.V. (‘theCompany’)give
a true and fair view of the financial position
Atradiusof the Company as at 31 December 2021 and of its result for the year then ended in accordance with Part 9 of Book 2of the Dutch Civil Code.

Report on the financial statements 2022

What we have audited

Our opinion

We have audited the accompanying financial statements 2021 of Atradius N.V., Amsterdam. The financial statements
In our opinion:
include the consolidated
financial statements of the Group and the company financial statements.
the consolidated financial statements of Atradius N.V. together with its subsidiaries
Group’)
give a trueand fair view of the financial position of the Group as at
The consolidated(‘thefinancialstatements
comprise:
31 December 2022 and of its result and cash flows for the year then ended in accordance with
International
Financial
Reportingas adopted
by the European Union (‘EU-IFRS’)• the consolidated
statement offinancial
position Standards
as at 31 December
2021;
and with Part 9 of Book 2 of the Dutch Civil Code;• 	the following
statements
forfinancial
2021: theconsolidated
incomeN.V.
statement,
the consolidated
statementsof of
the company
statementsof Atradius(‘the Company’)
give a trueand fair view
comprehensive
income,changesin ofequityand cashas
flows;
thefinancial
position
the Company
at 31and
December 2022 and of its result for the year thenended in accordance with Part 9 of Book 2 of the Dutch Civil Code.
• the notes, comprising significant accounting policies and other explanatory information.

What
we have
auditedfinancialstatements
comprise:
The company
We have audited the accompanying financial statements 2022 of Atradius N.V., Amsterdam.
• the company
statementof financial
position
at 31 December
2021;statements of the Group and the
The financial
statements
comprisetheas
consolidated
financialcompany financial statements.
• the company income statement for the year then ended;The
consolidated
statements• the notes,
comprising
thefinancial
accounting
policies comprise:applied and other explanatory information.
the consolidated statement of financial position as at 31 December 2022;
 reporting
the following
statements
forin2022:
the consolidated
and lossstatement,
the consolidated
The financial
framework
appliedthe preparationof theprofit
financialstatements
is EU-IFRS
and the relevant
comprehensive
income,changesin equity andcash flows;andprovisions of Partstatements
9 of Book of
2 of
the Dutch Civil
Code forthe consolidated
financialstatements
and Part 9 of Book 2 of
the notes, comprising a summary of the significant accounting policies and other explanatory
the Dutch Civil Code for the company financial statements.
information.
The forcompany
statements comprise:
The basis
ourfinancial
opinion

the company statement of financial position as at 31 December 2022;

 our
the
company
profit andwith
lossDutch
statement
for the year
ended
31Standards
December on2022,
the company
We conductedaudit
in accordancelaw, including
the
Dutch
Auditing.
We have further
statement of changes in equity for the year ended 31 December 2022; anddescribed our responsibilities under those standards in the section ‘Our responsibilities for the audit of the financialthe notes, comprising a summary of the accounting policies applied and other explanatory
statements’ of ourreport.
information.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The financial reporting framework applied in the preparation of the financial statements is EU-IFRS
and the relevant provisions of Part 9 of Book 2 of the Dutch Civil Code for the consolidated financial
Independence
statements and Part 9 of Book 2 of the Dutch Civil Code for the company financial statements.
We are independent of Atradius N.V. in accordance with the ‘Wet toezicht accountantsorganisaties’ (Wta, Audit firms
supervisionact), the ‘Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO, CodeZPZ5H7XYJHC7-417282666-35
of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence
Accountants N.V.,
ThomasR. Malthusstraat
5, 1066 JR Amsterdam,
90357,
regulationsPricewaterhouseCoopers
in the Netherlands. Furthermore,
we havecompliedwith the ‘Verordening
gedrags-P.O.
en Boxberoepsregels
1006
BJ Amsterdam,
the ofNetherlands
accountants’(VGBA,
Dutch Code
Ethics).
T: +31 (0) 88 792 00 20, F: +31 (0) 88 792 96 40, www.pwc.nl‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V.
(Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V.
(Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368),
PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General Terms
and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditionsof Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions
and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.

173

Atradius | Independend auditor’s report

The basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing.
We have further described our responsibilities under those standards in the section‘Our responsibilities for the audit of the financial statements’ of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Independence
We are independent of Atradius N.V. in accordance with the ‘Wet toezicht accountantsorganisaties’(Wta, Audit firms supervision act), the ‘Verordening inzake de onafhankelijkheid van accountants bij
assuranceopdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect toindependence) and other relevant independence regulations in the Netherlands. Furthermore, we havecomplied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).

Information in support of our opinion
We designed our audit procedures with respect to fraud and going concern, and the matters resulting
from that, in the context of our audit of the financial statements as a whole and in forming our opinion
thereon. The information in support of our opinion, such as our findings and observations related tothe audit approach on fraud risk and the audit approach on going concern was addressed in thiscontext, and we do not provide a separate opinion or conclusion on these matters.

Audit approach fraud risks
We identified and assessed the risks of material misstatements of the financial statements due tofraud. During our audit we obtained an understanding of Atradius N.V. and its environment and thecomponents of the internal control system. This included the management board’s risk assessment
process, the management board’s process for responding to the risks of fraud and monitoring theinternal control system and how the supervisory board exercised oversight, as well as the outcomes.
We refer to section Risk and Capital – managing and adapting to changes – Operational risk of the
management report for management’s fraud risk assessment and section 4.4.1 Operational risk
management of the Notes to the consolidated financial statements.
We evaluated the design and relevant aspects of the internal control system with respect to the risks ofmaterial misstatements due to fraud and in particular the fraud risk assessment, as well as the code of
conduct, whistleblower procedures, incident registration and investigation protocols, among otherthings. We evaluated the design and the implementation and, where considered appropriate, tested theoperating effectiveness of internal controls designed to mitigate fraud risks.
We asked members of the management board as well as the internal audit department, legal affairs
and the supervisory board whether they are aware of any actual or suspected fraud. This did not resultin signals of actual or suspected fraud that may lead to a material misstatement.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect tofinancial reporting fraud, misappropriation of assets and bribery and corruption. We evaluatedwhether these factors indicate that a risk of material misstatement due to fraud is present.

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174

Atradius | Independend auditor’s report

We identified the following fraud risks and performed the following specific procedures:[]

Identified fraud risks
The risk of management override ofcontrol
The management board is in a uniqueposition to perpetrate fraud because ofmanagement’s ability to manipulate
accounting records and prepare
fraudulent financial statements byoverriding controls that otherwise
appear to be operating effectively.
That is why, in all our audits, we pay
attention to the risk of management
override of controls in:The appropriateness of journal
entries and other adjustments
made in the preparation of thefinancial statements.
Management estimates.

Significant transactions, if any,outside the normal course ofbusiness for the entity.
We pay particular attention totendencies due to possible interests ofthe management board.

Risk of fraud in revenue recognition

Our audit work and observations
We evaluated the design and implementation of the internal
control system for the processes of generating and processing
journal entries, making estimates, and monitoring projects.
We also paid specific attention to the access safeguards in the
IT system and the possibility that these lead to violations ofsegregation of duties.
We performed our audit procedures in a mix of controls andsubstantive procedures.
We have addressed the risk of management override of controlsby:
Journal entries and other adjustments: we have selectedjournal entries based on risk criteria and performed
specific audit procedures on these. These procedures
include, amongst others, inspection of the entries tosource documentation. We have assessed all otheradjustments made in the preparation of the financial
statements and noted no irregularities.
Management estimates: we have evaluated management
estimates. We also specifically paid attention to theinherent risk of (unintentional or intentional) bias ofmanagement with respect to assumptions made. We
assessed the sensitivity calculation for the estimates
performed by management and established that it fellwithin a reasonable range of outcomes.

Significant transactions outside the normal course ofbusiness: we did not identify any significant transactions
outside the normal course of business.
Our audit procedures did not lead to specific indications offraud or suspicions of fraud with respect to management
override of controls.
We evaluated the design and implementation of the internal
control measures and assessed the effectiveness of relevant
controls in the process related to revenue reporting.

As part of our risk assessment andbased on a presumption that there arerisks of fraud in revenue recognition, we
We performed our audit procedures in a mix of controls andevaluated each type of revenue. For socalled assumed business, we determined substantive procedures.
the risk of fraud in revenue recognition
to be predominantly on accuracy andcut-off, whereas for the so-called credit
insurance pipeline, premium accuracy
and valuation are seen as the specificassertions at risk.

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175

Atradius | Independend auditor’s report

For credit insurance (including special products and ICP) we
assessed the estimates used in the pipeline premium
calculation. We audited the integrity and accuracy of the datathat serve as the basis for the calculation of the pipeline
premium. We reviewed the run-off of pipeline premium
estimates of prior year.
For the assumed business revenue, we tested revenue
transactions on a sample basis to ensure that they are recorded
in line with the relevant treaty and/or cedent statements andbooked in the correct period. We assessed the appropriatenessof earning patterns applied in the allocations to periods.
Our audit procedures did not lead to specific indications offraud or suspicions of fraud with respect to fraud in revenue
recognition.
[]

We incorporated an element of unpredictability in our audit. We reviewed lawyers’ letters andcorrespondence with regulators. During the audit, we remained alert to indications of fraud. We also
considered the outcome of our other audit procedures and evaluated whether any findings wereindicative of fraud or non-compliance with laws and regulations. Whenever we identify any indicationsof fraud, we re-evaluate our fraud risk assessment and its impact on our audit procedures.

Audit approach going concern
The management board prepared the financial statements on the assumption that the entity is agoing concern and that it will continue all its operations for at least twelve months from the date of
preparation of the financial statements. Our procedures to evaluate the management board’s
going‑concern assessment included, amongst others:
considering whether the management board identified events or conditions that may castsignificant doubt on the entity’s ability to continue as a going concern (hereafter: going-concern
risks);
considering whether the management board’s going-concern assessment includes all relevant
information of which we are aware as a result of our audit by inquiring with the management
board regarding the management board’s most important assumptions underlying its
going‑concern assessment;evaluating the management board’s current budget, including cash flows for at least twelve
months from the date of preparation of the financial statements, taking into account current
developments in the industry, such as the macroeconomic outlook affecting global chances of
insolvency, and all relevant information of which we are aware as a result of our audit;
analysing whether the current and the required financing has been secured to enable thecontinuation of the entirety of the entity’s operations, including compliance with relevantcovenants;
performing inquiries of the management board as to its knowledge of going-concern risks
beyond the period of the management board’s assessment.

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Atradius | Independend auditor’s report

We concluded that the management board’s use of the going-concern basis of accounting isappropriate, and based on the audit evidence obtained, that no material uncertainty exists related
to events or conditions that may cast significant doubt on the entity’s ability to continue as agoing concern.

Report on the other information included in the annual report
The annual report contains other information. This includes all information in the annual report inaddition to the financial statements and our auditor’s report thereon.
Based on the procedures performed as set out below, we conclude that the other information:is consistent with the financial statements and does not contain material misstatements; andcontains all the information regarding the directors’ report and the other information that isrequired by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and the understanding obtained in our
audit of the financial statements or otherwise, we have considered whether the other information
contains material misstatements.
By performing our procedures, we comply with the requirements of Part 9 of Book 2 of the
Dutch Civil Code and the Dutch Standard 720. The scope of such procedures was substantially lessthan the scope of those procedures performed in our audit of the financial statements.
The management board is responsible for the preparation of the other information, including
the directors’ report and the other information in accordance with Part 9 of Book 2 of the
Dutch Civil Code.

Responsibilities for the financial statements and the audit
Responsibilities of the management board and the supervisory board
for the financial statements
The management board is responsible for:
the preparation and fair presentation of the financial statements in accordance with EU-IFRS
and Part 9 of Book 2 of the Dutch Civil Code; and forsuch internal control as the management board determines is necessary to enable thepreparation of the financial statements that are free from material misstatement, whether due
to fraud or error.
As part of the preparation of the financial statements, the management board is responsible forassessing the Company’s ability to continue as a going concern. Based on the financial reporting
frameworks mentioned, the management board should prepare the financial statements using thegoing-concern basis of accounting unless the management board either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The management board
should disclose in the financial statements any event and circumstances that may cast significant
doubt on the Company’s ability to continue as a going concern.
The supervisory board is responsible for overseeing the Company’s financial reporting process.

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Our responsibilities for the audit of the financial statements
Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtainsufficient and appropriate audit evidence to provide a basis for our opinion. Our objectives are toobtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high but not absolute level of assurance, which makes it possible that we
may not detect all material misstatements. Misstatements may arise due to fraud or error. They are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of the financial statements.
Materiality affects the nature, timing and extent of our audit procedures and the evaluation of theeffect of identified misstatements on our opinion.
A more detailed description of our responsibilities is set out in the appendix to our report.
Amsterdam, 1 March 2023
PricewaterhouseCoopers Accountants N.V.
/PwC_Partner_Signature/

Original has been signed by M.D. Jansen RA

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Appendix to our auditor’s report on the financial statements
2022 of Atradius N.V.
In addition to what is included in our auditor’s report, we have further set out in this appendix our
responsibilities for the audit of the financial statements and explained what an audit involves.

The auditor’s responsibilities for the audit of the financial statements
We have exercised professional judgement and have maintained professional scepticism throughout
the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence
requirements. Our audit consisted, among other things of the following:
Identifying and assessing the risks of material misstatement of the financial statements, whether
due to fraud or error, designing and performing audit procedures responsive to those risks, andobtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the intentional override of internal control.
Obtaining an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
Evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management board.
Concluding on the appropriateness of the management board’s use of the going-concern basisof accounting, and based on the audit evidence obtained, concluding whether a material
uncertainty exists related to events and/or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s reportand are made in the context of our opinion on the financial statements as a whole. However,
future events or conditions may cause the Company to cease to continue as a going concern.

Evaluating the overall presentation, structure and content of the financial statements, including
the disclosures, and evaluating whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Considering our ultimate responsibility for the opinion on the consolidated financial statements, weare responsible for the direction, supervision and performance of the group audit. In this context, wehave determined the nature and extent of the audit procedures for components of the Group to ensurethat we performed enough work to be able to give an opinion on the financial statements as a whole.
Determining factors are the geographic structure of the Group, the significance and/or risk profile ofgroup entities or activities, the accounting processes and controls, and the industry in which the Group
operates. On this basis, we selected group entities for which an audit or review of financial informationor specific balances was considered necessary.
We communicate with the supervisory board regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

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Glossary
Atradius Atrium
Credit management portal giving customers and brokers access to all the information they need to manage theirpolicies and apply for credit limits in one place, in real time.

Bonding (product)
The activity of providing guarantees that protect the beneficiary if the supplier fails to meet the agreed performancelevel. Bonding is also known as surety.

Buyer
A customer of our insured customer (i.e. the holder of the credit insurance policy). Buyers carry a credit risk such as
protracted default, insolvency and bankruptcy. This could lead to a financial loss for our customer and/or policyholder.
Buyer underwriting is related to the assessment of this credit risk.

Buyer underwriting
The activity related to the risk acceptance of credit risk of buyers. Buyer underwriting determines the credit limits thatare attached to the credit insurance policy and determines the amount for which shipments are insured. Buyers areassessed on financial and non-financial criteria, including financial status, profitability, liquidity, size, region, trade
sector and payment experience.

Claim
An application by an insured customer for indemnification of a loss under the policy.

Claims ratio
A performance indicator that is defined as total claims including claims handling expenses divided by total insurance
revenue.

Combined ratio
The combined ratio is a performance indicator calculated using the general insurance standard; the sum of the claims
and the expenses divided by total insurance revenue.

Credit Insurance (product)
Commercial and/or political risk insurance whereby the customer is protected against non-payment of tradereceivables due to insolvency or default.

Credit limit
The maximum exposure specifically approved or otherwise authorised by the insurer in respect of a buyer.

Debt collection
Activity to collect monies owed by a company. Atradius offers this service to both insured customers and third parties.

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Economic capital
The amount of risk capital, assessed on a realistic basis, required by a company to cover its risks assumed underinsurance contracts.

Eurozone
Refers to the European Union member states that have adopted the Euro as their currency.

Expense ratio
A performance indicator that is defined as total insurance expenses divided by total insurance revenue.

Exposure
Total amount underwritten by the insurer as cover on a buyer, a country, under a policy or under all policies.

Financial year
A period used for calculating annual financial statements but which does not require that the period reported on
constitutes a calendar year.

GlobalAtradius’ product and service offering to multinational customers, which provides tailored credit management
solutions for customers worldwide in several languages and currencies.

Atradius Insights
An advanced online business intelligence tool to support our customers with a detailed analysis of their debtor
portfolio and help them in managing their buyer portfolios and credit risks.

Insolvency
Legally recognised inability of a debtor to meet its commitments and pay its debts.

Instalment credit protection
Atradius’ offering to financial and corporate policyholders in Belgium and Luxembourg, that protects against
short and medium-term risks involved in multiple instalment agreements with private individuals and businesses(business-to-consumer).

Insurance revenue
The total of gross earned premium and information income (i.e. credit checking fees).

Medium-term businessBusiness (capital goods and major projects) transacted on credit terms of between two and five years.

Policyholder
Our insured customer; the party that purchases an insurance policy for protection against the risk of non-payment by(foreign or domestic) buyers and assumes responsibilities and obligations under that policy.

Policy underwriting
The activity related to establishing the terms and conditions of the insurance policy designed to mitigate
unacceptable risks. These terms and conditions include premium rate, maximum credit periods, the insurer’s
maximum liability, the customer’s own retention and other risk sharing and mitigation aspects.

Political risk
The risk that a government or a country prevents the fulfilment of a transaction, or fails to meet its payment
obligations, or the risk that is beyond the scope of an individual buyer or falls outside the individual buyer’s
responsibility.

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Premium
Amount paid by an insured customer to the insurer in return for risk coverage.

Reinsurance
A risk-sharing operation, whereby the insurer obtains cover from a third party (the reinsurer) for part of the credit
risks that it has guaranteed, in exchange for the payment of a premium.

Reinsurance business
The activity whereby Atradius acts as a reinsurance company for credit insurance and bonding business of primary
insurers. This activity is performed by a dedicated team of underwriters at Atradius Reinsurance DAC.

SME
Small and medium-sized enterprises.

Solvency II
An EU Directive that codifies the EU insurance regulation. The Solvency II Directive aims to create a harmonised, riskorientated solvency regime resulting in capital requirements for (re) insurance companies that are more reflective of
the risks they run. Its objectives are to deepen the integration of the EU insurance market, to improve the protectionof policyholders and beneficiaries, to improve the international competitiveness of EU insurers and to instil better
regulation of the EU insurance markets.

Underwriter
Person charged with risk acceptance, control of that risk and the setting of cover conditions on buyer/credit limits,
including any country-specific terms of cover.

Underwriting year
The year in which a risk is accepted for a shipment from a customer/policyholder to its buyer. The underwriting
year performance provides management with important insight into the buyer (risk) underwriting performance. In
addition, it gives information about the most recent underwriting year performance without any impact from previous
underwriting years.

UN Global Compact
A United Nations strategic policy initiative for Businesses that are committed to aligning their operations andstrategies with ten universally accepted principles in the areas of human rights, labour, environment andanti-corruption.

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Disclaimer
The information in the chapter ‘The global economic environment” is forgeneral guidance on matters of interest only. While we have made every
attempt to ensure that the information contained in this report reflects carefulanalysis and investigations on our side before publication of this Annual
Report, we are neither responsible for any errors or omissions nor for the
results obtained from the use of this information.
The information in this Annual Report does not contain nor imply a warranty
as to the completeness, accuracy, timeliness or otherwise. Atradius, its relatedcompanies, or the directors, agents or employees thereof, will in no event
be liable to you or anyone regarding any decision made or action taken inreliance on the information in this Annual Report or for any consequential,
special or similar damages.

Produced and publishedThis Annual Report is published by Atradius N.V.

Your contact
Dirk Hagener – Director Group Marketing and Communication
Phone: +31 20 553 2626
Email: dirk.hagener@atradius.com

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