Embracing change
Annual Report 2021 Atradius N.V.

Contents
Management report
This is Atradius........................................................................................................ 4
This is Atradius................................................................................................................... 4
Our 2021 performance at a glance............................................................................... 6
Ten years in figures............................................................................................................ 7

Driving innovation 3

A message from the Management Board.................................................................... 8
Business profile.........................................................................................................
Products and services..................................................................................................... 13
Global footprint................................................................................................................. 16
Atradius Group organisation......................................................................................... 18
Corporate governance ..............................................................................................
Report of the Supervisory Board............................................................................... 20

Delivering exceptional service 12

Shareholder structure..................................................................................................... 22
Corporate governance.................................................................................................... 25
Company information ......................................................................................... 00
The global economic environment .......................................................................... 30
Business performance ................................................................................................... 33
Human resources ............................................................................................................ 42
Risk and capital management..................................................................................... 45
Environmental, Social and Governance Sustainability ..................................... 48

Building robust businesses 19

Financial statements ............................................ 51
Consolidated financial statements 2021 ................................................................. 51
Company financial statements 2021 ...................................................................... 142

Other information ...................................................151
Statutory appropriation of result ..............................................................................152
Independent	
auditor’s report .....................................................................................154

Stimulating ambition 29

Glossary .......................................................................... 157
2

Driving innovation
At Atradius, we are embracing change together with our customers and together
we are growing our businesses stronger.

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Atradius Management report | This is Atradius

Embracing change
together
We have all embraced the idea thatchange is good for business. It lends
to new ideas and innovation, which
ultimately enhance our lives anddrives profits.
The last two years have emphasised how important embracing change
is. The pandemic has brought hardship for many, which has amplified
the need for rapid change. Whether it be re-evaluating supply chains,introducing new products or services to capture changing needs,
adapting new ways of delivering service or simply adjusting to the newworld economy, we have evolved at a faster pace than ever before.
These changes however are not occurring in a vacuum with just one
business or industry taking a leap of faith and others waiting to see how
it turns out. We are all leaping forward and embracing these changes
together. Whether it be to manage lockdown rules, maintain sales or
respond to the escalating environmental concerns, we are all taking
action. Retailers are accelerating their online sales plans, hospitality
businesses have built off-site business models, offices have adopted
hybrid-working models, the real estate industry is developing plans
for adapting to changing commercial and residential property needs
and automotive and transport, as well as many other industries, areresponding to environmental concerns.
We have discovered that our capacity to innovate the way we do businessto meet each other’s needs is higher than we thought and we areenthusiastically doing it together. At Atradius, we are embracing change
together with our customers and together we are growing ourbusinesses stronger.

4Atradius Management report | This is Atradius

Our performanceat a glance
Supporting our customers during the mostchallenging of times•	The result of the year grew to EUR 240.2 million.
Atradius claims ratio decreased to a 27.8%.
•	The gross combined ratio ended at 65.0%.
•	
A positive contribution of EUR 35.6 million from our prudent investment portfolio.
•	
Shareholders’ equity and subordinated debt position was further strengthened by 6.9%.
•	•	
Total Potential Exposure (TPE) increased by 17.5% (1) through demand for Atradius’
services and the company’s commitment to support its customers and their needs.
•	
Solid solvency ratio exceeds 200% (2)•	Customer retention of 92.9%, a reflection of Atradius’ dedication to its customers andcontinued pursuit of excellence even in the most challenging of times.
(1)

Including bonding and instalment credit protection exposure.

(2)

Subject to finalisation of any audit procedures.

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

The Supervisory Board
Xavier Freixes, Chairman
Francisco Arregui, Vice-Chairman
Désirée van Gorp
Juan Ignacio Guerrero
Carlos Halpern
John Hourican
Bernd H. Meyer
Hugo Serra
José María Sunyer

Supervisory Board Committees
Audit Committee
Remuneration, Selection and Appointment Committee

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Atradius Management report | This is Atradius

Total Revenue

Net Investment Result (1)Gross Claims Ratio

Expense Ratio (2)Result For The Year

Equity(1)
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).
(2)

Recurrent expense ratio for 2021 was 35.5%

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Atradius Management report | This is Atradius

Ten years in figures
Financial information(in EUR million)

2021

2020

2019

2018

2017

2016 (1)

2015

2014

2013

2012

Insurance premium revenue

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

1,439.8

Service and other income

250.6

252.0

252.5

249.5

249.1

203.1

180.8

169.0

166.4

161.8

Total revenue

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

1,601.6

35.6

14.3

25.9

22.1

24.7

22.8

36.0

37.8

35.1

30.3

Total income

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

1,632.0

Result for the year

240.2

44.2

227.7

202.7

186.2

211.8

178.2

161.2

134.5

113.6

Equity2,142.3

1,913.3

2,008.7

1,821.4

1,753.2

1,625.5

1,500.2

1,393.0

1,286.9

1,196.3

Total assets

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

3,737.2

Insurance contracts

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

1,592.8

Return on equity (3)

11.2%

2.3%

11.9%

11.3%

11.0%

13.6%

12.3%

12.0%

10.8%

9.8%

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)

91.0

102.9

91.8

83.9

76.7

71.2

64.9

53.8

43.5

43.5

Gross claims ratio (4)

27.8%

58.6%

42.8%

43.7%

41.7%

41.6%

43.5%

40.7%

45.6%

51.2%

Gross expense ratio (5)

37.2%

35.7%

35.9%

35.5%

35.7%

36.4%

37.1%

36.6%

35.9%

35.0%

Net investment result (2)Balance sheet information(in EUR million)

Shareholders information

Technical ratios

Gross combined ratio

65.0%

94.3%

78.7%

79.2%

77.4%

78.0%

80.6%

77.3%

81.5%

86.2%

Net claims ratio

37.3%

55.9%

43.3%

44.7%

41.4%

42.0%

42.0%

42.6%

46.4%

49.1%

Net expense ratio

35.9%

36.7%

30.0%

32.0%

34.2%

35.4%

35.9%

35.8%

37.4%

37.5%

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

3,497

3,503

3,531

3,545

3,596

3,586

3,161

3,139

3,107

3,143

Financial strength ratings
Moody’s (6)A2, outlook stable

A.M. BestA (Excellent), outlook stable(7)

Including Graydon, Iberinform Portugal, Gestifatura and Informes Mexico since Q3 2016.

(1)
(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)

Recurrent expense ratio for 2021 was 35.5%.

(6)

	Moody’s affirmed the A2 financial strength rating of the Atradius rated entities with a stable outlook since
February 2021 (after a temporary reduction to negative outlook in March 2020 reflecting market uncertainty).

	In 2021 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)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.

We, the Management Board, are proud of
the performance of Atradius in 2021,
and of our ability to adapt to theon-going uncertainty and thrive undersuch circumstances.
It has been another tumultuous year, dominated by Covid-19. The on-going effectsof the global pandemic have brought much uncertainty and disruption to key
economic drivers and global trade. This has been, and will continue to be, a very
difficult period to forecast. The current pattern of historically low insolvencies
is no barometer of the future, and the impact of the cessation of government
support measures has no precedent to give insight into what this might mean forthe period ahead.

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Atradius Management report | This is Atradius

Despite all of these challenges, demand for our services has remained strong
and we have delivered an exceptional performance. Our Gross Insurance
Revenues reached EUR 2,035.9 million, which is 9.4% ahead of last year andthe first time we have breached the EUR 2 billion mark. Overall Atradius
produced a record profit after tax of EUR 240.2 million. Against a back-dropof a benign claims environment and costly government reinsurance schemes,
this is proof of our excellent value proposition and our ability to work inharmony with the economic cycle; balancing risk management and income
generation during these extraordinary times.
2021 has been another year where we have whole-heartedly embraced change
and emerged stronger as a result of it. We believe that this adaptability stems
from Atradius’ unique corporate culture. In 2021 we have listened to ourevolving customer and partner needs to enable us to consistently deliver
unrivalled service.
Our company strategy follows the 3 pillars of our strategic framework: Growthand Customer Service, Profitability and Solvency. These 3 pillars, which arealigned with our parent company Grupo Catalana Occidente S.A. (GCO), guideour view of what tomorrow will look like for the business and where weneed to invest for future success. They also ensure we take a balanced andsustainable approach to the way we run our business.
Under the pillar of Growth and Customer Service, the major digitaltransformation programmes we are undertaking for the Credit Insurance
and Bonding business continue to dominate the agenda. Progress has
continued, but at a slower pace than originally planned due to the challengesof orchestrating such large programmes while largely working on-line andfrom home. Both of these programmes build on Atradius’ core strategic
advantage of having a single and aligned IT platform for our business, which
supports our core service proposition for global customers. In 2021, we havecontinued the expansion of our API offering and extended the Atradius Flowservice to Germany and the Netherlands. With Atradius Flow, our customers
will be able to access credit insurance processes directly in their ERP systems,in this case, in one of the market leading applications Microsoft Dynamics.
We have also continued to upgrade Atrium, our on-line customer tool, withnumerous enhancements to ensure our customers and brokers have the bestuser experience.
Under the pillar of Profitability, a strategic priority is to bring the Atradius
CyC operations in Spain, Portugal and Brazil into greater alignment within
the Atradius Group. In 2021, the Atradius Leadership Team has been extended
to bring the Commercial, Risk and IT operations of Atradius CyC Spain
under the existing structure. Further product and IT system integrations are
identified as strategic projects and work has started in 2021 to take the firststeps on this journey. Atradius Collections also actioned further integrationof Gestifatura under the Atradius umbrella. Economic, Social and Governance(ESG) topics are a strategic priority for Atradius where we are working closelywith our parent Grupo Catalana Occidente to align our measures and morethoroughly embed ESG criteria into all forms of risk assessment. We areundertaking company-wide training on ESG topics such as anti-bribery &corruption and code of conduct; with further sustainability training planned
for next year.
For the Solvency pillar (which deals with compliance-related topics), ourpreparation work for the new IFRS17 directive continues and we are on track
to be compliant when the new accounting standard goes live in January 2023,
including a business parallel run in 2022. Training has started to ensure a9Atradius Management report | This is Atradiussound understanding of the impact of the new standard, with key individuals
taking the role of ambassadors to further embed the new accounting standard
in the organisation. Training will continue and target all levels of ourorganisation, up to the Supervisory Board.
Achievement of our objectives and management of the associated risks aresupported by a mature and effective internal control system. Our key control
mechanisms cover aspects from the environment and governance structures,to codes, policies and mechanisms that are utilised in day-to-day operations.
This control system is given high priority by us, the Management Board, and
the Atradius Leadership Team. It provides assurance that we can achieve ourinternal control objectives, such as: effectiveness and efficiency of operations;reliability of internal and external information (including reliability overfinancial and solvency information) and associated reporting; and compliancewith applicable laws and regulations.
We already mentioned that Atradius has a unique corporate culture. Thishas been the solid foundation upon which we have been able to deliver suchstrong results during extremely difficult times. In 2021, we have invested in
our people to address the gap created by not being able to have face-to-faceinteractions in a normal office environment. In 2021, we launched a wellbeing
programme which consisted of a series of webinars designed to help
employees manage their energy in the new way of working, develop resiliencein tough times and deal with unknown pressures. We also introduced our new
hybrid working model which offers all Atradius employees - group wide – aflexible 60:40, office: home solution to get the best of both worlds. Under thismodel, the Atradius offices facilitate co-operation and personal interaction
with colleagues, customers and business partners, while our ‘home offices’provide a flexible and supportive way for Atradius employees to fulfil theirroles. The number of FTEs has remained largely stable at 3,497.
In 2021 we maintained strong ratings from A.M. Best (A Excellent) andMoody’s (A2 outlook stable). The ratings agencies have assessed Atradius
as having a strong operating performance, favourable business profile andappropriate enterprise risk management; good internal capital generation
over the cycle and conservative capital management. They have also viewed
favourably our strong underwriting expertise and exposure management toallow us to maintain a strong performance record.
Our economic outlook for 2021 predicted a recovery to relatively high levels
based on increasing vaccination rates and relaxation of lockdown measures.
What we did not foresee, was the severity of the impact of new Covid-19
variants and waning vaccine immunity, resulting in a stop-starting mode toeconomic recovery – compounded by supply chain challenges and energy
price rises. The predicted rise in insolvencies for 2021 was held back byongoing fiscal measures and insolvency law amendments in a range ofcountries, resulting in a largely benign claims environment. However, theforecast for 2022 is that there will be a stark rise in insolvencies of 33%. The
combination of delayed insolvencies from 2020, the return of insolvencies to‘normal’ levels as fiscal support is phased out, and the effect of GDP growth
on insolvencies, is expected to lead to higher bankruptcies in most observed
markets. We refer to note 3.2 how the uncertainties impact the estimates andassumptions that affect the reported (re) insurance balance sheet position aspart of the financial statements

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Atradius Management report | This is Atradius

OutlookIn 2022, GDP is forecast to grow at 4.5% globally – which is lower than
the 5.7% growth seen in 2021 as supply bottlenecks weigh on growth anduncertainty about the pandemic and new variants continues. Emerging
market growth is forecast at 4.9%, slightly ahead of forecast growth rates
for advanced economies (at 4.2%). Economic recovery is still closely tied tovaccination rates, which should increase as vaccinations become more widely
available this year. In 2022, the economic environment will still be affectedby high inflation and energy price rises, but a strong labour market andcontinued consumer confidence and spending provide a buffer.
In the context of this outlook and the hard to determine impact of themilitary invasion of Russia in Ukraine, Atradius will continue to apply arisk management strategy that is balanced and customer focused. Efficientutilisation of exposure will be key to sustaining our growth trajectory. Our
digital transformation agenda will carry on, and we expect some significant
deliveries of new internal IT systems during 2022, which will enhance ourfoundation for growth and greater efficiency. We continue to leverage thegreat value of our employees in the most effective manner possible, whileallowing for moderate increases in our staff numbers in markets where wepursue business development as well as areas key to enhancing customer
experience and remaining known for our best in class service.
2021 has been a year of growth – both financially - but also in the way weconduct our business and have been able to respond to change. In 2022, wehope to keep evolving as an organisation, finding new ways to strengthen our
culture as we go further into this new way of working so that we can continue
to deliver exceptional service to our customers.
We are extremely grateful to our shareholders, customers, business partners,
brokers, agents, reinsurers and employees for their support, energy and cooperation, so that even during such unprecedented times we can continue todeliver against our ultimate goal to manage risk and enable trade.

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

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Delivering exceptional service
Atradius’ rigorous risk management expertise has made it possible to navigate thenumerous uncertainties successfully.

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

Products and services
Credit Insurance: a modular approach to ensure every
policy is tailored to the needs of the customer
Credit insurance provides protection against losses arising from non-payment forgoods sold on credit (whether this results from insolvency, default, or
political risks).
Our credit insurance products are based on a concept called ‘Modula’. This is aworldwide-aligned catalogue of modules (or policy conditions) which can be
combined in a flexible way for each customer to meet the requirements of theirbusiness. This means that every policy is tailored to the needs of the customer.
These products are designed to provide protection for a customer’s whole turnover.

We have solutions for all types of business:
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 geographies of multinationals. The
structure of our modular cover and service footprint is uniquely designed tomirror the requirements of our customers, whether they have centralised or local
credit management. This customer-focused approach is supported by dedicatedGlobal Account Teams and Key Account Underwriters, situated around the world
to allow us to provide extensive cross-border customer service, consistent highquality decision making, and to accurately anticipate the needs and requirementsof 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 our agents tofully steer the underwriting process.
The added value 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 account manager, credit limit underwriting andour on-line tools and services.
The Account Manager provides an on-demand contact point who can help
customers to navigate their policies and give credit management support.

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Atradius Management Report  |  Business profile Atradius N.V.

Credit limit underwriting is carried out by hundreds of experienced underwriters
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 and language
skills to provide the best possible risk assessments on your behalf.
Our on-line 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 orsubmitting a claim.
In Atradius Spain, Portugal and Brazil we offer additional value-added services asa reward for customer loyalty, including very recently B2BSafe marketplace.
In addition to more traditional credit insurance, which covers a customer’s ‘wholeturnover’, we also offer a range of structured credit risk solutions for specific large
and complex transactions. These solutions address a range of circumstances,from enhanced credit protection for single contracts or buyers to pre-export
finance and can be combined to meet multiple needs.
With the rise of digital trading via platforms we have also developed a single
transaction credit insurance product which can be digitally integrated withplatforms so that credit insurance can be purchased on-line, 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 and bonding
reinsurer, offering reinsurance solutions for credit insurance and bonding
primary insurers around the globe. Through its team of underwriters in Dublin,
Ireland, Atradius Re supports over 100 clients in 50 countries. The strength of
Atradius Re is in the combination of access to the Atradius underwriting skills in
key business credit and bonding, and highly specialised reinsurance skills for theneeds 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 industries. We help our customers secure
their performance and support their business development both locally andinternationally. But we can help our customers do more than just manage risks
and protect themselves against worst-case scenarios. We provide tailor-madeproducts and solutions that fit their needs and strategies. We aim to be the first
choice of companies that are subject to bond obligations. Thanks to our longstanding bonding expertise, in-depth market knowledge and international
network we can meet customers’ large and complex needs quickly and efficiently.
Our prudent approach and strong business focus have allowed us to grow steadily
over the last decades and earn the trust of major organisations, propelling us tobecome a leading bonds supplier in Europe.

Debt Collection: professional and reliable collections
backed by a global network
With worldwide expertise, and staff in 34 countries, Atradius Collections helps
businesses - both insured and uninsured - collect domestic and international
trade debts, whilst maintaining sound business relationships with their clients.
We have built a strong reputation as a business-to-business specialist, using

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Atradius Management Report  |  Business profile Atradius N.V.

the strength of Atradius Credit Insurance, combined with our own integrated
international network of collectors, lawyers and insolvency practitioners, inaddition to our online capabilities. Since 2015, Atradius Collections has alsooffered a first-party collections service, so customers can outsource theirreminder process immediately after due date. We have created a range of services
for the financial industry, including back-up servicing, cross-border collection,and invoice verification, allowing factoring companies and asset-based lenders
to investigate whether the business transactions or invoices from clients are
acknowledged by the buyer.
The latest addition to our Collections services is Agora, our online debt recovery
platform. This online service allows prospects and customers to get an instantquote on the collection of outstanding debts, initiate their collection, and receive
updates until the debt is collected.

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 with private
individuals and businesses. It offers its services to financial and corporate
policyholders in Belgium and Luxembourg. The main product offering covers
consumer credit, leasing and renting risks. More recently, we have extended
the product range to offer residential real estate insurance products for coownerships and for rental guarantees, as well as products for private-car leasingarrangements.

Dutch State Business: the export credit agency of theNetherlands
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, ADSB offers awide range of insurance and guarantee products to Dutch exporters of capital
goods, internationally operating construction companies, and their financiersor investors. ADSB works on behalf of the Dutch state, making sure exporttransactions can be completed successfully. In 2021 Atradius Dutch StateBusiness launched a new product to accelerate the green energy transition.
This new product is called Green Cover and has been developed for Dutch
entrepreneurs to acquire the finance they need so that they can develop or scale
up sustainable projects or green capital goods.

Credit Information Services: business intelligence tosupport credit management decisions
We offer information services through the following companies: Iberinform in
Spain and Portugal, Graydon in the Netherlands, Belgium and UK and Informes
in Mexico. These companies support our customers with business intelligencesolutions that help them to manage risk and grow their businesses by making
smart credit management, risk and compliance management 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

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

GreeceAthensHungary

Budapest

Iceland

Reykjavik (1)IrelandDublinItaly

Rome, Milan

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)United ArabEmirates

Dubai (1)

Asia
China
Hong Kong

Beijing, Guangzhou,
Nanjing, Shanghai (2)Hong Kong

Argentina

Buenos Aires (1)Indonesia

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

Japan

Tokyo

CanadaMalaysia

Kuala Lumpur (1)Chile lmonte (Ottawa), Mississauga (Toronto),
A
Pointe Claire (Montreal)
Santiago de Chile (1)Philippines

Manila (1)MexicoMexico City, Guadalajara, Monterrey

Peru

Lima

USA

 altimore (Maryland), Chicago (Illinois), Dallas (Texas),
B
Los Angeles (California), Morristown (New Jersey),
New York (New York)

India

Americas(1)16Singapore

Singapore

South Korea

Seoul (2)AfricaKenya

Nairobi (1)South Africa

Johannesburg (1)Credit Insurance

Tunisia

Tunis (1)Collections
Information
Bonding

TaiwanTaipei (1)Oceania

Thailand

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

DSB

VietnamHanoi (1)New Zealand

AucklandReinsurance

Instalment Credit

17

Atradius offices	Associated company, minority interestor reinsurance agreement with orwithout a co-operation agreement withlocal partner

(1)

(2)

	Service establishment and co-operationagreement with local partner

Atradius Management Report  |  Business profile Atradius N.V.

General Atradiusgroup organisation
General overview of the main holding andoperating companies as at 31 December 2021

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

Graydon Holding N.V.
The Netherlands
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

Building robust businesses
We are an accountable company. Integrity, alertness and accuracy are thefundamentals on which our business is built on.

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Atradius Management report | Corporate Governance Atradius N.V.

Report of theSupervisory Board
In 2021 Atradius delivered a remarkable
performance, with results exceeding
pre-pandemic levels.
Atradius has managed to accomplish a set of exceptional financial results, fully
recovering from the adverse effects of the pandemic during the previous year. This
remarkable performance is in spite of the challenges to global economic recovery
posed by the ongoing pandemic, government restrictions, supply chain headwinds
and inflationary pressures.
Against a backdrop of low levels of business failures contributing to a low claims
environment, Atradius has continued to deliver on its value proposition achieving astrong customer retention. Atradius’ rigorous risk management expertise has made it
possible to navigate the numerous uncertainties and achieve a very positive outcome.
The financial results for the year amounted to an annual turnover of EUR 2,151
million and a profit of EUR 240.2 million. Solvency was strengthened by an increasein the equity of 12.0% to over EUR 2.1 billion.
During the year, Atradius remained committed to its major digital transformation
programmes for Credit Insurance and Bonding. These programmes are strategicallyimportant to position Atradius for the future with a technology foundation that ismore modern and flexibly designed. Further significant steps have been taken to
integrate the operations in Spain, Portugal and Brazil within the group structures.
Atradius has also shown a growing commitment to Environmental, Social andGovernance (ESG) initiatives, in alignment with Grupo Catalana Occidente. These
topics are crucial for the future of Atradius and its stakeholders.
With regard to corporate governance, the Supervisory Board has continued to ensurethat Atradius runs its business and manages risk for stakeholders in a transparent
and ethical way. In 2021, the full Supervisory Board convened four times. The
Supervisory Board has established two Committees, the Audit Committee and theRemuneration, Selection and Appointment Committee that discuss specific issues
in depth and prepare items on which the full Supervisory Board makes decisions. In
2021, the Audit Committee convened four times and the Remuneration, Selection andAppointment Committee convened twice.
Key topics discussed during the 2021 Supervisory Board meetings include the reviewof Atradius’ results and strategy, the developments on the commercial area, thereview and monitoring of the risk management framework, the review of investment
and rating aspects and the renewal of the reinsurance programme. The Supervisory
Board was also updated on the progress made on IT security and complianceand the large business transformation programmes. In December 2021, theSupervisory Board approved the budget for 2022 and was involved in the selection
and recommendation process relating to the appointment of a new member of theSupervisory Board, as further indicated below.

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Atradius Management report | Corporate Governance Atradius N.V.

Key topics discussed during the 2021 Audit Committee meetings included; thereview of Atradius’ results and annual report, including the external auditor’sreports and updates; the evolution and sufficiency of technical provisions; theinternal audit reports and the internal audit plan; the re-appointment of theexternal auditor and the review of the external auditor’s independence and nonaudit services provided. These topics were discussed in the presence of the external
auditor, PricewaterhouseCoopers.
During 2021, 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 andthe Supervisory Board, including the result of the yearly self-assessments
undertaken by the Supervisory Board. It also reviewed the variable pay, targets
and performance for the members of the Management Board, the remunerationof the Supervisory Board and the updates to the remuneration policy of Atradius.
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 2021,
this programme covered two separate sessions including, amongst other topics;
talent management and succession planning; and data protection and sanctions
compliance.
At the end of 2021, Mr. Ignacio Álvarez stepped down as Chairman and member of
the Supervisory Board of Atradius, a position he held for the last fourteen years. His
contribution has been instrumental to the performance of the Supervisory Board,
supporting Atradius to build and maintain the foundations for a very successful
period. Mr. Ignacio Álvarez’s contribution has been extraordinary, and we would liketo take the opportunity to give sincere thanks for his leadership and commitment.
With effect 1 January 2022, Mr. Juan Ignacio Guerrero was appointed as a newmember of the Supervisory Board and of the Audit Committee, bringing a wealth ofexperience on insurance and actuarial matters to the Supervisory Board. Also witheffect 1 January 2022, Mr. Xavier Freixes has been appointed as the new Chairmanof the Supervisory Board and Mr. Bernd Hinrich Meyer has been appointed as
the new Chairman of the Audit Committee. Furthermore, in December 2021, Mr.
Francisco Arregui, Ms. Désirée van Gorp and Mr. Bernd Hinrich Meyer were reappointed as members of the Supervisory Board.
The Atradius N.V.’s Annual Report contains the financial statements for the financial
year 2021, 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
the financial statements for 2021.
The Supervisory Board would like to thank the Management Board and all
employees of Atradius for their hard work, personal dedication and ongoingcommitment during yet another challenging year, which has allowed Atradius
to achieve outstanding results while maintaining the trust and confidence of ourcustomers. The Supervisory Board is confident that the Atradius management team,
employees and stakeholders are well prepared for another successful year in 2022.

The Supervisory Board
Xavier Freixes
Chairman21

Atradius Management report | Corporate Governance Atradius N.V.

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, 32.43% 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)

2021

2020

Long-term capital market value

5,191.50

4,663.4

Equity4,667.70

4,138.20

Subordinated debt

194.9

200.7

Return on long-term capital

10.5%

7.3%

Funds under management

15,712.2

14,758.9

Total revenue

4,882.5

4,559.5

468.3

270.1

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 16,500
Intermediaries

More than 1,480
branches

Presence inmore than 50
countries

More than
7,300 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 Jesus 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, teaching, investigation,
culture, sport and social action. In this way the Group contributes to theconstruction of a fairer, more united and more developed society, in which
values such as initiative, effort, healthy competition and continuous
improvement prevail.

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Atradius Management report | Corporate Governance Atradius N.V.

Building trust
Atradius endorses the importanceof sound corporate governance.
Key elements of independence,accountability and transparency createa relationship of trust between Atradius
and all its stakeholders, customers,
shareholders, employees, suppliers andthe general public.
Atradius N.V. is a limited liability company organised under the laws of
the Netherlands, with a Management Board and a Supervisory Board. The
Management Board is responsible for achieving the Company’s objectives,
strategy, policy and results, and is guided by the interests of the Company
and the business connected with it. The Supervisory Board supervises theCompany’s general affairs and the policy pursued by the Management Board,as well as the performance of the management duties by the Management
Board members, taking into account the interests of the Company and thebusiness connected with it.

The Management Board
Composition
The Management Board of Atradius N.V. currently consists of five members.
David Capdevila - Chairman and Chief Executive Officer
Andreas Tesch - Chief Market Officer
Christian van Lint - Chief Risk Officer
Claus Gramlich-Eicher - Chief Financial Officer
Marc Henstridge - Chief Insurance Operations Officer
CVs of each of the Management Board members, showing their roles,
background and experience are available on our website.
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 and25

Atradius Management report | Corporate Governance Atradius N.V.

budget of Atradius to the Supervisory Board for approval. The Management
Board rules describe the allocation of duties and the decision-making process of
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 a vacancy,
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 therecommendation of the Remuneration, Selection and Appointment Committeeof the Supervisory Board and in accordance with the remuneration policy
adopted by the General Meeting. You can find information regarding the amountof remuneration received by Management Board members in the explanatory
notes to the consolidated financial statements of the Annual Report 2021.
Conflict of interest
A member of the Management Board with a potential conflict of interest with
the Company will immediately report this to the Chairman 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.

The Supervisory Board
Composition
The Supervisory Board of Atradius N.V. currently consists of nine members.
Xavier Freixes, Chairman (Chairman effective as per 1 January 2022)
Ignacio Álvarez (Chairman and member until 31 December 2021)
Francisco Arregui, Vice-Chairman
Désirée van Gorp
Juan Ignacio Guerrero (effective as per 1 January 2022)
Carlos Halpern
John Hourican
Bernd H. Meyer
Hugo Serra
José María Sunyer
CVs of each of the current Supervisory Board members, showing theirbackground and experience are available on our website.
Role and procedures
The Supervisory Board supervises the Company’s general affairs and the policy
pursued by the Management Board. The responsibilities of the Supervisory
Board include, among others, supervising, monitoring and advising theManagement Board on the Company’s strategy, performance and risks

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Atradius Management report | Corporate Governance Atradius N.V.

inherent to its business activities; the design and effectiveness of the internalrisk management and control systems and the financial reporting process.
The Supervisory Board rules describe the decision-making process and thecomposition and 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 determined by
the Supervisory Board, by which each Supervisory Board member shall resign
after a maximum of four years after the date of appointment. A resigning
Supervisory Board member may be reappointed. A Supervisory Board
member will resign early in the event of inadequate performance or in othercircumstances in which resignation is deemed necessary by the other membersof 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 carryout its various responsibilities. The current members of the Supervisory Board
have extensive experience in insurance and reinsurance, investment banking,strategic consulting and regulatory matters.
Role of the Chairman and the Company Secretary
Among other things, the Chairman of the Supervisory Board co-ordinates
the decision making of the Supervisory Board, draws up the agenda of theSupervisory Board meetings, chairs the Supervisory Board meetings and theGeneral Meetings of Shareholders. The Chairman also ensures the adequate
performance of the Supervisory Board and its committees, ensures the annual
evaluation of the functioning of the members of the Management Board andthe Supervisory Board, and acts on behalf of the Supervisory Board in serving
as the principal contact person for the Management Board. The Chairman of theSupervisory Board is assisted in his role by the Company Secretary.
Committees of the Supervisory Board
The committees of the Supervisory Board are set up to reflect both Dutch
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, and theperformance of internal and external auditors. The Audit Committee monitors,
independently and objectively, the financial reporting process within Atradius
and the system of internal controls. The Audit Committee also facilitates theongoing communication between the external auditor, the Management Board,the internal audit department and the Supervisory Board on issues concerning
the Company’s financial position and financial affairs. In 2021, the Audit
Committee met four times. The Audit Committee currently consists of Bernd
Hinrich Meyer (Chairman), Francisco Arregui and Juan Ignacio Guerrero.

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Atradius Management report | Corporate Governance Atradius N.V.

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 2021,
the Remuneration, Selection and Appointment Committee met twice. The
Remuneration, Selection and Appointment Committee currently consists ofFrancisco Arregui (Chairman), Xavier Freixes and Hugo Serra.
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. Members of theSupervisory Board’s expenses are reimbursed. You can find information
regarding the amount of remuneration received by Supervisory Board membersin the explanatory notes to the consolidated financial statements of the Annual
Report 2021.
Conflict of interest
A member of the Supervisory Board with a potential conflict of interest with theCompany will immediately report this to the Chairman of the Supervisory Board,
who will determine whether the reported case qualifies as a conflict of interest.
A Supervisory Board member will not participate in any 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 other non-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 toapprove important decisions regarding the identity or character of Atradius, aswell 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 Chairman 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 recommendation of
the Audit Committee of the Supervisory Board. The Audit Committee evaluates
the performance of the external auditor and also pre-approves the fees for audit
services to be performed by the external auditor. The Audit Committee ensuresthe 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 theCompany’s external auditor for the financial year 2021.

28

Stimulating ambition
We always have been encouraging curiosity, innovative thinking and offering thebest services to our customers. This only has been possible through having a flexible
attitude, the willingness to adapt and to have an open mind.

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Atradius Management report | Business information

The global economic
environment
Global economic recovery remains
volatile
The global economy entered its recovery phase in 2021, after a difficult 2020
dominated by the corona pandemic. Economies reopened, as vaccination
campaigns were rolled out and policymakers learned to adapt to the virus.
However, the pandemic is not over. More transmissible coronavirus variants
triggered several new waves of infections, forcing many governments totake new restrictions. At the same time, the global economy is challenged
by supply bottlenecks and higher energy prices, and currently also by
geopolitical tensions between Russia and Western countries. World GDP still
expanded at a reasonably robust rate of 5.8% in 2021, more than offsetting the
3.5% decline of 2020.

Advanced markets
Advanced economies showed a relatively strong recovery, thanks to thevaccination campaigns. What also helped the recovery was strong fiscal andmonetary support. Many governments chose to continue pandemic related
fiscal support well into 2021, while central banks kept policy rates at record
lows and continued their asset purchasing programmes. Across advanced
markets, GDP expanded by 5.0% in 2021, following on a 4.6% decline in 2020.
The United States began the vaccination rollout relatively early in the
pandemic, allowing the economy to largely reopen in the first half of 2021.
This, along with a large fiscal stimulus amounting to 12% of GDP, provided
for a strong recovery in 2021. Supply chain issues strained economic activity
somewhat in the latter half of 2021, although GDP growth was still a robust
5.6% year-on-year.
The Eurozone witnessed a resurgence of infections towards the end of 2021.
Nevertheless, economic activity expanded at a rate of 5.1%, with private
consumption as the main growth driver. Like in the US, inflation was elevatedin the second half of the year, with higher energy prices as the main cause.
Central banks in the Eurozone and the US remained very accommodativein 2021. Policy rates were left unchanged at their zero lower bound, despitea strong rise in inflation. Both the ECB and the Federal Reserve continued
their asset purchasing programmes, but scaled them down a bit in Q4 of 2021
due to the better-than-expected economic recovery. Financial conditions
remained broadly supportive.

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Atradius Management report | Business information

Emerging markets
Emerging markets have relatively low vaccination rates, and many emerging
countries will only get broad access to vaccines in 2022. Moreover, as a groupthey already withdrew fiscal support in 2021, while in a number of major
markets central banks hiked the policy rate in response to higher inflation.
Despite these growth constraints, GDP of emerging markets still expanded by
6.8% 2021, more than offsetting the 1.6% decline of 2020.
The public health situation has improved in many emerging markets in
2021, though infections remain high in a number of large markets, such as
Russia. Emerging Asia remained the fastest growing region among the EME
regions. China’s GDP returned to its pre-Covid-19 levels already last year, andexpanded by 8.1% in 2021.
Latin America’s GDP increased by 6.6% in 2021. Political uncertainty andstructural issues weighted negatively on economic growth. In Brazil, GDP
growth expanded by 4.6%, meaning a return to its pre-Covid-19-level. Growthin Brazil did slow down a bit in the second half of 2021 due to international
supply-chain disruptions, rising political uncertainty ahead of the 2022
elections and a tightening of policy rates. In Mexico, economic activity rose
by 5.2%, but is still below pre-Covid-19 levels. The country benefitted from thestrong US economic recovery, leading to higher demand for Mexican exports
and tourism expenditure in the country.
In Eastern Europe, GDP rose by 4.4% in 2021. Russia’s economy recovered
to above pre-pandemic levels, as containment measures were very mild.
Moreover, oil and gas prices were supportive for public finances. In Turkey,
GDP growth was very strong in 2021, but premature policy rate cuts by thecentral bank triggered a sell-off of the Turkish lira at the end of 2021.

Global insolvencies: still very low
Contrary to our expectations at the start of the year, insolvencies remained
very low in 2021 on a global level. In North America and Asia-Pacific,
we estimate that insolvencies have decreased, whereas there was a mild
increase in Europe. Two types of policies are responsible for the still low
level of insolvencies. First, many countries amended their insolvency
regimes to protect companies from going bankrupt. This includes temporary
suspensions of insolvency applications in bankruptcy courts. Second,
governments provided fiscal support to companies whose revenues cameunder pressure as a result of the crisis.
In the Eurozone, Portugal, the Netherlands and Ireland stand out as countries
with a strong decline in insolvencies, thanks to the generous fiscal support
packages. For Belgium and Germany, we saw a somewhat smaller, but still
sizeable decrease of insolvencies. In contrast, in Spain and Italy, bankruptcies
increased as the economic recovery was relatively weak and fiscal support
somewhat less generous.
United States business insolvencies showed a mild decline in 2021 despiterobust GDP growth. The United States did not adjust its bankruptcy court
proceedings, and insolvencies have a high responsiveness to GDP growth.
But declining fiscal impulse and supply chain bottlenecks prevented a moresignificant decline in corporate failures there. The United Kingdom witnessed
an increase in insolvencies in 2021, as the economy only partially recoveredfrom a deep recession in 2020, due to the Covid-19 pandemic and Brexitrelated uncertainty.

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In 2022, growth of the world economy is expected to moderate to 4.1%,
as the gains from reopening economies have largely been exploited andsupply bottlenecks weigh on growth. Despite the continuing recovery,
unemployment remains elevated and bankruptcies are expected to increase,as the pandemic related fiscal policy support provided in 2020 and 2021 islargely reversed.
Moreover, an important new risk to global growth has emerged now that
Russia has launched a full-scale military invasion on Ukraine. In response,
Western countries have imposed harsh sanctions on Russia and Belarus,
which are likely to push these economies in recession in 2022. This escalation
will also have an effect on global economic growth, including higher pressure
on inflation, although the exact effect is difficult to estimate at the moment.
Emerging markets as a group are forecast to grow by 4.6% in 2022.
Vaccinations will become more widely available this year, which could
help output growth and improve consumer confidence. Many emerging
markets are likely to turn to a less supportive monetary and fiscal policy
in 2022. While growth is moderating, Emerging Asia remains the fastest
growing region in 2022 (5.2%). In China, growth moderates to 5.0% in 2022,with constraints coming from the ailing property sector and occasionaltight restrictions to fight Covid-19 outbreaks. In Eastern Europe, growth isexpected to moderate sharply in Turkey, as the country continues to struggle
with high inflation coming from commodity prices, supply chain disruptions
and geopolitical uncertainty.
Growth in the advanced economies is projected to slide to 3.8%. GDP growthin the United States is expected to moderate in 2022 due to a lower fiscal
impulse and a stalling labour market recovery. Eurozone GDP growth isforecast to moderate somewhat in 2022 due to supply chain disruptions andlockdowns resulting from a resurgence of Covid-19 cases. While fiscal support
will weaken in 2022 compared to 2021, the fiscal position continues to be
expansionary in most countries.
We expect a rise in insolvencies in virtually all markets in 2022, as
measures that helped to suppress insolvency growth in 2020 and 2021
are gradually unwound. There remains a wide dispersion of insolvency
projections between countries. In Singapore, Australia and the Netherlands,
the withdrawal of fiscal support is likely to lead to a strong increase ofinsolvencies, as insolvencies come from a relatively low level. In the United
Kingdom, the increase is also rather high, as high inflation and a withdrawalof fiscal support are weighing on GDP growth. Smaller increases of
insolvencies are expected in for example the United States, France, Germany
and Spain. Brazil is the only covered market where insolvencies are expected
to decline in 2022.
Two years into the pandemic, it is clear that the uncertainty over thecoronavirus has not receded. The possibility of new variants emerging thatforce governments to take new lockdown measures, cannot be excluded.
Given the sizable government support, the economic damage of the pandemic
to businesses and households is not fully felt yet, but it is expected togradually emerge over the coming years. Geopolitical risk is adding to theuncertain outlook.

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Atradius Management report | Business information

Robust performance anda steadfast presence forour customers(EUR thousands)

2021

2020

2,035,910

1,860,481

9.4%(566,413)(1,090,163)

48.0%

Gross insurance operating expenses(757,184)(664,845)(13.9%)

Gross Insurance revenue
Gross insurance claims and loss adjustment expenses(1)

Reinsurance result(419,753)(28,146)(1,391.4%)

Insurance result

292,560

77,327278.3%

Service income(1)

117,994

121,550(2.9%)

Service expenses(108,050)(119,711)

9.7%

Service result

9,944

1,838

440.9%Net investment result

35,575

14,322148.4%

Operating result before finance costs

338,079

93,488261.6%

Result for the year (after tax)

240,249

44,167444.0%

3,497

3,503

(0.2%)

Employees (FTE)(1)

Overview includes inter-segment revenue and claims expenses

Gross

Net

2021

2020

2021

2020

Claims ratio

27.8%

58.6%

37.3%

55.9%

Expense ratio

37.2%

35.7%

35.9%

36.7%

Combined ratio

65.0%

94.3%

73.2%

92.6%

Revenue by business segment
5.8%
7.1%

5.5%

81.7%

Credit Insurance (including ICP)
Reinsurance
BondingServices

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Coming from 2020, a year burdened by the Covid-19 pandemic and its
impacts on trade, insolvencies as well as the overall economic downturn
across the world, 2021 saw economic recovery and increased trade in mostmarkets. While Covid-19 still remained an important factor influencing
many aspects of life in 2021, insurable business volumes increased andtrade activity appeared to be on a path to recovery, resulting in grossinsurance revenue increasing by 9.4% and surpassing EUR 2 billion for the
first time.
It was although not all without challenges such as higher energy prices andsupply chain issues, however insolvencies remained very low on a global
level during the year. While continuing to be steadfast and present for ourcustomers and still pursuing our growth ambitions, claims were more
moderate, more contained and less volatile. Additionally, claims on insured
business from the later part of 2020 manifested only moderately in 2021.
Gross claims for the year ended at EUR 566.4 million, a 48% decrease inabsolute terms with a gross claims ratio of 27.8%.
Our Credit Insurance business, while strained by the impacts on global
trade in 2020, rebounded quickly showing growth again in all geographic
regions and markets during 2021. Our Reinsurance business showed strong
growth with a moderate claims ratio, while our Special Products unit andInstalment Credit Protection businesses did not yet return to growth within
the period.
Last year government reinsurance arrangements were instated in multiple
countries across the group (primarily Europe) to help ensure sufficientliquidity would be available in the market, support businesses affected by
the pandemic and to preserve the continuity of economic activity. However,with signs of economic recovery and the reinvigoration of trade, by July
2021 almost all government reinsurance arrangements had been phased
out. With more moderate claims in 2021, the reinsurance result for the year
was subsequently EUR 391.7 million lower than in 2020.
The insurance result ended at EUR 292.6 million, a very substantial increaseon 2020 as the Gross combined ratio for the year decreased to 65.0%(coming from 94.3% in 2020 and 83.1% in 2019). We remain committed
to innovating the way we work and enhancing the experience for ourcustomers and partners, investment in the strategic development of systems
continued in 2021 leading to a expense ratio of 37.2%, (1.5%pts higher than2020), however our recurrent expense ratio decreased to 35.5%, down 0.2
pts from 35.7% last year.
The net investment result was EUR 21.3 million above previous year withnotable contributions from our associated companies. The result from ournon-insurance services increased by EUR 8.1 million, with high efforts fromthe continued pursuit of cost efficiencies. The financial income & expense
result increased compared to the previous year, benefitting from favourable
variances in exchange rates.
Overall the total result for the year reached EUR 240.2 million, following
not only favourable economic recovery during the period, but also strong
demand for Atradius’ products and services.

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Atradius Management report | Business information

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

2021

2020

1,624,033

1,453,060

11.8%

Information income

135,591

133,071

1.9%

Insurance revenue

1,759,624

1,586,131

10.9%

Gross insurance claims and loss adjustment expenses (1)(432,258)(927,362)

53.4%

Gross insurance operating expenses(634,729)(554,422)(14.5%)

Result before reinsurance

692,637

104,347(563.8%)

Reinsurance result(398,748)(12,387)(3,119.2%)

Result after reinsurance

293,889

91,961

219.6%

24.6%

58.5%

33.9% pts

(1)

Total credit insurance and ICP gross claims ratio(1)

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

Credit insurance & ICP revenue by region
9.7%

8.4%

20.0%

Spain & Portugal
Northern & Central Europe

6.7%Western Europe
Southern Europe
Asia
22.2%

33.0%

Americas2021 generally showed a much improved economic environment with tradeless impeded and showing sign of overall recovery, although this was ofcourse not observed equally in all markets. Our commitment to our customers
and best-in-class service in all circumstance resulted in an excellent retentionof 92.9%, which combined with increased insurable business volumes,
insurance premium revenues grew by 11.8% (12.3% at constant foreignexchange rates).
While not all geographic regions rebounded as well, as quickly or as
consistently from the Covid-19 pandemic, all of our local credit insurance units
grew compared to the previous year. We also continue to pursue our growthambition in Asia which maintained a growth trend in 2021 of 10.4%, and North
America showed a growth of 15.7%, driven by new business and increased
contributions from renewing policies. All countries in Europe showed positive
revenue development. Our markets in Italy and Germany which were more
impacted by the economic environment in 2020 showed strong recovery(growing at 19.0% and 18.9% respectively), along with Central Europe (16.5%)
and Oceania (8.9%). Spain, our largest market also showed moderate growthof 2.7%.
The claims ratio for the year decreased to 24.6%, resulting from a much more
moderate and stable claims environment, supported by lower insolvencies
with the extension of fiscal measures in many countries and the continuationof insolvency law amendments.

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Atradius Management report | Business information

The Group’s risk exposure (total potential exposure, or TPE) increased by
18.2%, to EUR 712.5 billion at year-end 2021, due to the strong reboundof insurable business volumes combined with new business acquisition,
increases in commodity and prices and inflation. Europe represents over
70% of total exposure, where Germany with 13.6% is the largest market,
followed by Spain with 11.8%.
Gross claims expenses for our local credit insurance units ended at EUR 264.1
million with a gross claims ratio of 24.6%, which is 33.9% pts lower than theprevious year. Decreases in overall claims inflow and claims expenses wereobserved across business units. Atradius’ Global unit maintained strong
performance and growth, supported by the excellent customer base retention
thanks to Global’s first class service.
The technical result after reinsurance for our credit insurance & ICP businessincreased by 219.6% compared to 2020, placing it at EUR 293.9 million.

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Atradius Management report | Business information

Reinsurance(EUR thousands)

2021

2020

Insurance revenue

152,124

150,7640.9%

Gross insurance claims and loss adjustment expenses(93,112)(124,617)

25.3%

Gross insurance operating expenses(58,377)(58,572)

0.3%

635

(32,425)(102.0%)

Reinsurance result(9,556)(120)(7,865.6%)

Result after reinsurance(8,921)(32,546)(72.6%)

Gross claims ratio

61.2%

82.7%

21.5% pts

Result before reinsurance

Reinsurance revenue by region of cedent
16.1%

35.6%

Europe

9.8%

Asia & Oceania
Africa & Middle East
South America

38..5%

Atradius Reinsurance DAC (Atradius Re) is a leading market reinsurer providing
capacity to primary insurance companies in credit insurance and bonding.
Atradius Re currently assumes business from more than 100 clients in over 50
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.
Atradius Re has long-standing relationships with its clients, 210 live contractual
agreements and leads 35% of its treaties. In addition, it maintains 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 its own distinctive approach, andexpertise, in structuring reinsurance solutions. In this way, Atradius Re can always
anticipate and respond to the specific and changing needs of its customers.
Total reinsurance revenue increased moderately during the period to EUR 152.1
million coming from 150.8 million in 2020.
The claims ratio has decreased in 2021 to 61.2% (2020: 82.7%) due to theprovisioning of Covid-19 related claims during 2020.
Operating expenses decreased from EUR 58.6 million to EUR 58.4 million, due
to lower earned commission during the year, with the gross insurance operating
expenses ratio decreasing from 38.9% in 2020 to 38.4%.

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Atradius Management report | Business information

Bonding(EUR thousands)

2021

2020

Insurance revenue

124,163

123,586

Gross insurance claims and loss adjustment expenses(41,043)(38,183)(7.5%)

Gross insurance operating expenses(55,658)(43,431)(28.2%)

Result before reinsurance

27,462

41,973(34.6%)

Reinsurance result(11,450)(15,639)

26.8%

Result after reinsurance

16,012

26,333(39.2%)

Gross claims ratio

33.1%

30.9%

(2.2% pts)

Bonding revenue by region
10.5%

2.3%

27.0%

31.5%

Italy
FranceNordic & Germany
Spain
Other
28.8%

In 2021 the insurance revenue for the Bonding Unit developed favourably,
showing continuous recovery from a more challenging 2020. Our expertiseand market knowledge allow us to continue to be flexible in designingbespoke solutions to meet our customers’ needs while maintaining a
prudent underwriting approach.
A positive trend was observed in all Bonding markets, and while somedemonstrated a faster recovery than others, most grew in revenue
compared to 2020.
Driven by a customer focused approach and high quality service, revenue
from gross written premium & fees increased to EUR 130.7 million, up
8.5% on last year. Main contributors were Italy, Spain, Portugal, Finland,
Germany and Belgium. Net of premium reserve changes, the insurance
revenue was EUR 124 million, a 0.5% increase on 2020.
Exposure on industries most affected by Covid-19 has been decreasing to
below last year’s level. We have not registered any claims related to thepandemic. Year-on-year risk exposure grew by 3.6% to EUR 25.6 billion,
due to the progressive recovery in our customer base and new businessacquisition.
As governments progressively gained some control of the pandemic,
businesses in many trade sectors benefitted from more normalised
circumstances, but also from growing public and private investments.
Construction and Energy are the main sectors from which we foresee anopportunity to grow further in the next years.

38

0.5%

Atradius Management report | Business information

The technical result achieved EUR 16 million including continued
investment in innovation and the ongoing business transformation
programme aiming at providing a modern state of the art user journey andexperience for our customers and partners. On a like for like basis, it has
improved 7.2% on last year.
Atradius Bonding has continued to support its customers on their specificneeds throughout the year. We have successfully adapted our businesspractice to cope with the challenges of the pandemic. We have managed torecover revenue development while protecting our portfolio with a prudent
risk approach. Though slightly higher than 2020 the claims ratio of 33.1%
still reflects our last years’ average. This is an important result considering
the difficulties brought by the pandemic.  
Our business continues to grow, reflecting a reasonable risk policy andhigh quality customer service.

39

Services(EUR thousands)

2021

2020

Service income (1)117,994

121,550Service expenses(108,050)(119,711)

9.7%

9,994

1,838

440%

Service result(1)

Overview includes inter-segment revenues.

Service revenue
58.5%

41.5%

Information
servicesC ollections & Other

Atradius’ services segment comprises our debt collection operations, the Dutch
State Business and our information service businesses.

Debt Collection
Atradius Collections helps our customers – both credit insured and noninsured - to recover domestic and international trade debts while maintaining
sound business relationships with their clients. We have built an enviable
reputation, becoming the global trade invoice collector of choice, leveraging
the strength of our core credit insurance business with its own integrated
international network. We offer a single point of contact for all debt collection
cases and worldwide collections expertise ‘on the ground’ through a presence
in more than 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 in nature, with the collection service picking up as the
economy deteriorates while credit insurance prospers more in a benign
environment. Our collection service supports the product and risk
diversification of our business as it is free of insurance risk.
2021 was characterised by an on-going challenging economic climate,
whereby government and monetary support programmes created an artificial
environment of economic decline, strong market liquidity and a low levelof insolvencies resulting in a significant reduction of the market of accountreceivable overdues and non-payments. Vaccination initiatives brought theCovid-19 situations slowly under control in most developed markets, andeconomies with mature debt collections markets returned to growth. Debt
collections growth markets - APAC and America – displayed a more restrictive
economic development.

40(2.9%)Atradius Management report | Business information

Through focus on the product and risk diversification, we have generated aservice income of EUR 50 million in 2021, representing a decrease of 13% to2020. With a significant contribution to the service income, the preventive
services product(s) have proven to be viable and supported growth tooutperform market decline. The dedication to continuous improvement of ourservice delivery has been rewarded with an overall customer satisfaction
score of 7,9.
Atradius Collections enhanced overall group and unit efficiency andsuccessfully integrated our unit in Portugal in its international organisation.
Efforts to support our Global customers continued in 2021 and is expected toresult in further expansion in new markets in the coming years.

Atradius Dutch State Business
The technical results for the account of the Dutch state were positive throughout
2021, as Atradius Dutch State Business (ADSB) provided cover for risks related
to infrastructure projects, the export of capital goods, services to buyers incountries outside the Netherlands, as well as cover for political risks related toinvestments in other countries. To help exporters with the pandemic situation, a
support package was developed of which many exporters and banks made use.
ADSB also continued to cover development-relevant investments and export
contracts in selected medium-income and lower-income countries, which benefit(local) SMEs. We provide this service 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
Graydon is one of the leading providers of business information solutions for
credit management, marketing intelligence, and risk and compliance. Graydon’smarkets demonstrated modest growth, with fierce competition at the lowend segment and large customers demanding value-added services. In thiscompetitive market, the company was able to realise revenues that are almost
equal to 2020.
Graydon is moving towards more tailored solutions for its customers, offering
scalable products and services. Shortly after the Covid-19 outbreak, welaunched an “Impact Score” in Belgium, which measures how robust a company
is in extraordinary circumstances within a disrupted environment. Graydon has
supported the Belgian government in measuring the impact of support schemeson the economy. Moreover, many customers have benefitted from the insights.
Graydon continued to upgrade customers to a new solution for (international)
credit reports and monitoring, with customer feedback being very positive.
In the Iberian markets, Iberinform continued to support our insurance businessas well as our customers, showing improved profitability through marginalsavings in direct expenses whilst maintaining stable revenue.

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Atradius Management report | Business information

Change is the only
constant factor
Digital Transformation is high on
Atradius’ agenda. With the major digitalprogrammes that we are undertaking for
Credit Insurance, Bonding and IFRS17
around the corner, we see that change isthe only constant factor. We are proudof what we have seen in 2021. Over the
past two years, we have seen that weare flexible in adapting and accepting
the constant changing environment.
We have all mastered the freedom andresponsibility of working from home,while at the same time we value being
together.
We have introduced a group wide Hybrid Working Model that combines theadvantages of working in the office and of working at home. However, after
launching this Hybrid Working Model in the autumn, the pandemic became
more and more challenging towards the end of the year. Consequently we
acted by scaling down most of our offices again.

Hybrid Working Model
The Hybrid Working Model is based on research, and the feedback from ouremployees. It provides a framework, while also offering flexibility for local
adaptations linked to local legislation, Collective Labour Agreements andcurrent local practices.
We implement the Hybrid Working Model only when local situations permit.
Health and safety is the top priority for Atradius. We do everything to makesure our people are safe, and our offices are safe places in which to work.
We follow the local governments’ advice, and will scale down immediately if
required locally.

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Atradius Management report | Business information

As a starting point we have asked our employees to be in the office for 60%of the time and be flexible for the remaining 40%. This allows our people tocatch up with each other, create and collaborate in person. It also enables us
to give our new employees an optimal on boarding experience by meetingand learning from others face to face. In this way, we can protect the strong
Atradius culture of which we are proud.
This is a journey and we will evaluate it regularly. We will continue to conduct
surveys to measure employee engagement and our business results in 2022.

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

Evolving our Culture
To help our staff during these challenging times we strengthened our
culture via Evolve+, our multi-year cultural programme. In 2021 there was astrong emphasis on raising the awareness of the ongoing digitalisation andinnovation at Atradius. Another initiative was the Atradius Games. This was
a company-wide habit building, team challenge in which over 1200 people
actively participated.

Development of our people
This year our employees continued to show their flexibility and adaptability.
It was a year where we worked from home, where we re-opened offices andsometimes had to close them again due to the changing landscape of Covid-19.
At Atradius, we have a dedicated Learning and Development team called
the Atradius Academy, which has greatly expanded our (virtual) learningand development offer and reach. By actively promoting our offer, we havesignificantly increased the number of learning hours per employee. Due to thepandemic, we have developed our offer to include themes such as conducting
virtual customer meetings and efficient collaboration.
The Growth Program
The wellbeing of our employees remains of paramount importance for
Atradius. This year we started the Growth Program, as we saw in our
employees Pulse surveys that people were experiencing difficult times during
the pandemic. We encouraged the dialogue in the teams around energy
management and stimulated open and honest conversations. We also offeredsome practical tips and theory around the topic of wellbeing. We are currently
designing the program for 2022.
Giving a good virtual commercial presentation
We recognised that we needed to improve the way that we conduct
our customer facing meetings virtually. We can now use MS Teams tocommunicate with our customers in place of emails, phone calls and faceto-face meetings. Meeting virtually has brought many advantages for ourcustomers and for us. We can meet more often and also ensure that the right43

Atradius Management report | Business information

people from different countries and expertise areas are in the virtual room.
We developed the skills of our customer facing employees to enable them tomaintain our professionalism and offer excellent customer service in a virtualenvironment.
Efficient collaboration
We emphasised the broader and more effective use of Office 365. Office
365 has a lot of great tools and possibilities and people have shown a greatinterest in getting to know the possibilities. We continue to develop the skillsof our employees in the tools for the benefit of our customers, Atradius andeach employee.
Compliance courses
All new employees must undertake our suite of compliance courses. To
ensure important compliance topics stay in everyone’s mind, we offer
mandatory refresher courses every year. This year, we focussed on refreshing
the knowledge of our Code of Conduct and the need for a safe and secure
workplace.

44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 our business and to thealways changing environment. We addressthese with a strong, but adaptable approach
to risk and capital management.
We group the main types of risk that we face into insurance, financial andoperational. Insurance risk is predominantly the risk of non-payment by a buyer
covered by a policy (credit insurance) or the risk of non-performance of a customer(bonding). Financial risks arise out of developments in financial markets and withcounterparties - including market risk, credit risk and liquidity risk. Operational riskmeans the risk of loss arising from inadequate or failed internal processes, personnel
or systems, or from external 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.
Concepts such as sustainability, integrity, transparency and a responsible attitude tocarrying out activities are important to the company.
During 2021, Atradius addressed developments in the global risk landscape as well as
increasing our focus on ESG issues.

Risk management framework
The boards of the group companies have ultimate responsibility and accountability
for risk management and internal control within their respective companies. The
Management Board implements and oversees Atradius’ group-wide risk governancethrough the Risk Strategy Management Board (RSMB) and a number of committees
that support and report to the RSMB. These committees operate in specific riskrelated areas such as underwriting of buyer exposures, country risk, provisioning,asset management and investment policy, reinsurance, quantitative modelling, andapproval of new products. In addition, all employees have well-defined authorities
specifying the level of risk they can accept. This framework ensures that weassume and manage risks in a controlled way, and in line with the risk appetite of
the company. For the description of the main risks and uncertainties and how wemanage them, please refer to Note 4 of the consolidated financial statements.

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Atradius Management report | Business information

Underwriting risk
In 2021, 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, and shareholders) to ensure transparency and to steer assmooth a course as possible through turbulent conditions.

Operational risk
As with many companies worldwide, operational risk posed many challenges in
2021. With the coronavirus pandemic causing many employees to be unable to accessour offices, we strengthened our remote working solutions to support worldwide
access to our business systems from remote locations such that we were able toprovide best in class customer service throughout the year. At the same time, we
supported our employees to ensure their continued health and safety. All of this wasachieved while stringently adhering to government guidelines in all of our locations.
Cyber risk is an area in which increased focus is warranted, the Atradius Information
Security team monitors and addresses threats and coordinates the managementof cyber risk across the Group. The growing threat landscape, including malware(viruses), highlights the importance of education for end users on topics such as,phishing, maintaining software and the dangers of unsupported or non-authorised
software. To minimise this risk, cyber risk awareness is included in staff training.
Further mitigation of this risk includes protections for critical Atradius applications
and Multi-Factor Authentication for all remote access. A medium-term Cyber
Security Strategy is in place to increase Atradius governance, protection, resilienceand vigilance.

Financial risk
We maintain a diversified portfolio of investments, which is closely monitored
and managed according to strategic asset allocation parameters. The portfolio isvery liquid and concentrated around high quality fixed income assets. We ensuresufficient cash liquidity for any given circumstance, and support this with a credit
facility for the unlikely event of a liquidity crunch. The impact of exchange rate
fluctuations is limited as revenue, expenses, assets and liabilities within our nonEuro operations are generally denominated in the same currencies.
Credit risk is low as we maintain a highly creditworthy reinsurance panel. Other
sources of credit risk (bank accounts, policyholders) are not material.

Risk and capital
The relationship between risk and capital is fundamental. Understanding how
taking risks consumes capital is key to steering our company; strategic decisions aretaken with the interdependence of risk and capital in mind.
These strategic decisions are substantially informed by the outcomes of ourinternally developed economic capital model. This model contributes to a multitudeof risk assessment and measurement activities, and thus enhances our ability tomonitor and manage risk levels within the organisation through the allocation ofrisk-based capital.
In 2021, given the internal model’s ability to react quickly to a changing portfolio andenvironment, the internal model was more important than ever in the management

46

Atradius Management report | Business informationof our risk profile. In addition, the model continues to be used to calculate
regulatory capital requirements under Solvency II.

Atradius compliance framework
At Atradius we believe that compliance with relevant laws, rules and regulations,and maintaining a high standard of ethics and integrity, leads to lower operationalrisk and stable business processes. The Atradius Code of Conduct outlines the basic
corporate, legal and ethical compliance principles and guidelines that apply toall our employees and that govern the Atradius 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 more 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 also 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 andare reviewed on a regular basis.
The compliance function – led by the Group Compliance Manager- supports
the management of Atradius in meeting its objective of being compliant withapplicable laws, rules and external and internal regulations. The Group compliancefunction is responsible for the maintenance and overall effectiveness of thecompliance framework at Group level, and the local compliance function monitors
regulatory and compliance developments at local country level.

Capital management
We seek to maintain a strong capital position and well-capitalised operating entities
in line with our defined risk appetite. This helps to support the evolution of our
insurance business, withstand financial stress in adverse business and financial
markets, meet our financial obligations and, ultimately, create shareholder value.
Shareholders’ funds and Subordinated debt
We maintain a strong capital position, building further our capitalisation thanks
to high retained earnings in 2021. Shareholders’ funds at the end of 2021
amounted to EUR 2,142.3 million, an increase of 12.0% from EUR 1,913.3 million
at year-end 2020.
Subordinated debt at the end of 2021 amounted to EUR 250 million (nominal
amount) compared to EUR 325 million at year–end 2020. The decrease is due tothe 100% redemption of a EUR 75 million (nominal amount) subordinated loan.
The outstanding amount as at year-end 2021 consists of EUR 250 million ofsubordinated 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 theconsolidated financial statements of the Annual Report 2021.
Regulatory capitalAt the end of 2021, Atradius’ companies collectively held a solvency ratio above
200%(1). We apply a partial internal model (comprised of an internal model tomeasure substantially all underwriting risk exposure and the regulatory standard
formula to measure other risk types) to calculate regulatory capital requirements
under Solvency II. For further details on the main Solvency II regulatory capitalrequirements, please see the Solvency and Financial Condition Reports of Atradius’
European regulated entities.
(1)

Subject to finalisation of any audit procedures.

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Atradius Management report | Business information

Environmental, Socialand Governance
Sustainability (ESG)
In the changing world environmental,social and governance topics are
becoming increasingly important.
Atradius is embracing these changes
and aims to work together with our
stakeholders to put ESG at the core ofour business.
As a worldwide operating company, we are aware of our responsibility
to do business in a way that is ethically and environmentally sound.
Environmental, Social and Governance topics are more important thanever, as the urgency of taking care of our planet for future generations
and ourselves has further grown. We take up our responsibility as a globalorganisation. We work together with our stakeholders, with a goal of
maximising the sustainable social value and minimising the negative impacts
on social and environmental matters arising from our activities.

Continued commitment
Environmental, Social and Governance Sustainability is embedded in our
culture and a key driver in our day-to-day operations. As a credit insurer,
we strongly support the management of our customers’ risks, enablingthem to increase their trade profitably, prosper in their respective industry
segments, and thus create and maintain employment and reduce poverty.
It is our objective to do this jointly with our customers in a transparent andethical manner, allowing both parties to grow sustainably. We place particularemphasis on the identification of risks and opportunities related to ESG
parameters and criteria and embed them in our underwriting strategy. We
are persistently improving and promoting the development of sustainableproducts and services that contribute to protection of the environment.
We expect the same approach by our suppliers, which is hard-coded in our
procurement policy. Within the Atradius culture, a key building block isthe encouragement of efficient and responsible use of resources, as well as
behaviour supporting its responsible use.

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Atradius Management report | Business information

A company consists of individual people, and our employees are committed
to putting ESG at the heart of their activities. Initiated by individual
employees all over the world, Atradius engages in local initiatives for the
benefit of communities in the different countries where we are located.
From an employer perspective, Atradius provides a workplace environmentthat is based on an atmosphere of trust and mutual commitment, upholding
people and guaranteeing the right to equality of opportunities and treatment
for all people.

International ESG standards and reporting
To connect with the international ESG standards in our commitments
and ambitions, we have subscribed to the ten principles of the United
Nations Global Compact (UNGC) on human rights, labour conditions, theenvironment and anti-corruption. Every year we provide an update on the
progress we have made.
We provide transparency about our ESG-commitments via various channels.
In 2021, we subscribed the Atradius Group to the Dutch government’s biannual Transparency Benchmark study of the 200 largest companies in the
Netherlands. Atradius was awarded 9th place for clarity in ESG-reporting.
We also had the quality of our sustainability management system measured
by EcoVadis (Business Sustainability Rating Agent, Barcelona). Our policies,
actions and results were assessed on 21 sustainability criteria, ranging
from environment, labour and human rights, to ethics and sustainableprocurement. The resulting scorecard puts Atradius in the upper half of all
rated companies.

Our ambitions for the future
The ESG Sustainability Policy of Atradius is closely aligned with the ESG
Sustainability Plan of GCO, our parent company. In 2021, we continued tobuild on the foundations with the intention of further improving the fullgroup’s business. Key areas to be mentioned are our efforts in dealing withclimate change and sustainability, human rights and diversity, as well as
digitisation, innovation and employee experience. All relevant units in
Atradius and GCO are brought together to contribute to our ESG ambitions
as a whole organisation, providing a scope and ambition that has been
generated in the form of a three-year Master Plan (2020-2023).
The progress we have made, especially around our ESG programs, practices
and policies, has been recognised by Sustainalytics, a Global leader in
ESG research with almost 30 years of experience around sustainability,
which has in December 2021 significantly improved GCO’s ESG rating.
Grupo Catalana Occidente S.A. is now 12th out of 300 insurance companies
evaluated. This recognition as a group is a further push for our obligation
to manage the ethical, environmental and social risks of our business andcontribute to global efforts for making the world a better place to live, workand trade.

49

Atradius Management report | Business information

Our compliance with the UN Global Compact
Environmental KPIs (1)

2021

2020

2019

KPI

Total

Total

Total

Number of reporting countries

32

32

32

Number of offices

98

98

99

102,801

103,013

102,629

Electricity from non-renewable source (kWh)5,714,903

5,253,779

7,037,424

Electricity from renewable source (kWh)1,861,141

1,657,669

2,874,299

Total office space (m2)Energy (gas & electricity) usage% of renewable electricity

24.6%

24.0%

29.0%

7,576,044

6,911,448

9,911,723

302,454281,909401,971

10,760,149

9,396,758

13,455,503

Employee air travel (km)815,182

2,321,249

15,050,653

Employee rail travel (km)450,240

711,238

2,648,104

Total electricity (kWh)Gas (m3)
Total energy
TravelCompany lease car travel (km)5,662,071

6,331,731

9,168,351

Total travel (km)6,927,493

9,364,218

26,867,108

Energy (CO2)

5,428

4,466

6,578

Travel (CO2)

1,499

2,176

7,290

Total (CO2)

6,927

6,642

13,868

Non-recycled paper (sheets A4)

4,711,745

7,712,722

11,823,839

Recycled paper (sheets A4)

1,768,764

1,170,872

3,876,649

CO2 footprint (tonnes of CO2)Paper used

% recycled paper
Total paper
Water usage (m3)

27.3%

13.2%

24.7%

6,480,509

8,883,594

15,700,488

22,406

26,46938,480

3.4

4.4

5.7

810.2

556.0

688.0

813.6

560.4

693.7

Waste -per type
Hazardous waste (tonnes)
Non-hazardous waste (tonnes)(2)

Total waste(1)(2)

This table does not include information from Graydon, Gestifatura, Informes Mexico and Iberinform Portugal.
Due to Covid-19 almost all figures were lower in 2020 than they would be normally.

50

Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 Atradius N.V.

Consolidated financial statements 2021
Contents
1

General information ...........................................................................................................................................................................................57
7

2

Summary of significant accounting policies 2021 .....................................................................................................................................57
7

3

Critical accounting estimates and judgements in applying accounting policies............................................................................. 25
75

4

77
Risk and capital management .......................................................................................................................................................................27

5

Segment information ......................................................................................................................................................................................101
51

6

Intangible assets ..............................................................................................................................................................................................105
55

7

Property, plant and equipment & investment property.........................................................................................................................107
57

8

Subsidiaries .......................................................................................................................................................................................................11060

9Investments in associated companies ........................................................................................................................................................111
61

10 Financial investments ....................................................................................................................................................................................113
63
11 Receivables ........................................................................................................................................................................................................113
63
12 Deferred acquisition costs.............................................................................................................................................................................114
64
13 Other assets and accruals..............................................................................................................................................................................114
64
14 Cash and cash equivalents ............................................................................................................................................................................115
65
15 Capital and reserves ........................................................................................................................................................................................115
65
16 Subordinated debt ...........................................................................................................................................................................................117
67
17 Employee benefit assets and liabilities ......................................................................................................................................................117
67
18 Insurance contracts ........................................................................................................................................................................................124
74
19 Other provisions ..............................................................................................................................................................................................128
78
20 Deferred and current income tax ...............................................................................................................................................................129
79
21 Payables .............................................................................................................................................................................................................132
82
22 Other liabilities .................................................................................................................................................................................................132
82
23 Net premium earned ......................................................................................................................................................................................13383
24 Service and other income .............................................................................................................................................................................13383
25 Net income from investments .....................................................................................................................................................................134
84
26 Insurance claims ..............................................................................................................................................................................................136
86
27 Net operating expenses .................................................................................................................................................................................136
86
28 Finance expenses ............................................................................................................................................................................................137
87
29 Income tax ........................................................................................................................................................................................................137
87
30 Dividends per share ........................................................................................................................................................................................13888
31 Assets not freely disposable .........................................................................................................................................................................13888
32 Capital commitments and contingencies..................................................................................................................................................13888
33 Personnel...........................................................................................................................................................................................................13888
34 Related party transactions ...........................................................................................................................................................................138
88
35 Auditor fees......................................................................................................................................................................................................14090
36 Events after the reporting period ................................................................................................................................................................141
91

51

All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.
Atradius| Consolidated
financial
2021 Atradius

Consolidated financial
statements
Consolidated statement of financial position
AssetsNote

31.12.2021

31.12.2020

Intangible assets

6

234,890258,858

Property, plant and equipment

7

190,225

200,827

Investment property

726,025

26,413

Investments in associated companies

975,62362,816

Financial investments

10

2,978,054

2,678,826

Reinsurance contracts

18

810,372

850,505

Deferred income tax assets

20

39,93552,434Current income tax assets

20

36,28435,420Receivables

11

374,607245,004

Accounts receivable on insurance and reinsurance business

210,884

173,057

Other accounts receivable

163,723

71,947

Other assets

653,359

544,404

Deferred acquisition costs

12

77,57568,968Other assets and accruals

13575,784

475,436

Cash and cash equivalents

14499,393424,741

5,918,767

5,380,248

2,142,323

1,913,294--

2,142,323

1,913,294

249,383

324,177

Total
EquityCapital and reserves attributable to the owners of the Company

15

Non-controlling interests
Total
Liabilities
Subordinated debt

16

Employee benefit liabilities

17

100,005

139,720

Insurance contracts

18

2,134,434

1,902,726

Other provisions

19

5,026

5,496

Deferred income tax liabilities

20

100,977

84,291

Current income tax liabilities

20

40,69946,710

Payables

21

521,968

378,595

Accounts payable on insurance and reinsurance business

347,983

310,549

Trade and other accounts payable

173,985

68,04622

Other liabilities

623,953585,239

Total

3,776,444

3,466,954

Total equity and liabilities

5,918,767

5,380,248

52

Atradius || Consolidated
Atradius
Consolidated financial
financial statements
statements 2021
2021 Atradius
AtradiusN.V.
N.V.

Consolidated income
statement
Note

2021

2020

Insurance premium revenue

23

1,900,319

1,727,410

Insurance premium ceded to reinsurers

23(945,461)(899,360)

954,858

828,050

Net premium earned
Service and other income

24

250,649

251,998

Share of income/ (losses) of associated companies

25

15,963

3,008

Net income from investments

25

Total income after reinsurance

19,613

11,314

1,241,083

1,094,370

Insurance claims and loss adjustment expenses

26(563,478)(1,087,540)

Insurance claims and loss adjustment expenses recovered from reinsurers

26

159,914552,538(403,564)(535,002)(499,440)(465,881)

Total expenses after reinsurance(903,004)(1,000,883)

Operating result before finance costs

338,079

93,487

Net insurance claims
Net operating expenses

27

Finance income

944

2,608

(11,008)(18,089)

328,015

78,006(87,766)(33,839)240,249

44,167

Owners of the Company

240,249

44,167

Non-controlling interests--

Total result for the year

240,249

44,167

Finance expenses

28

Result for the year before tax
Income tax expense

29

Result for the year
Attributable to:53All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.
Atradius| Consolidated
financial
2021 Atradius

Consolidated statement ofcomprehensive income
Note
Result for the year

2021

2020

240,249

44,16740,291(11,868)(8,593)

5,852

38,801(6,113)--

18,791(31,447)

Other comprehensive income:Items that will not be reclassified to the income 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 income statement:
Net fair value gains/(losses) on available-for-sale financial investments

15.3

Share of other comprehensive income of associated companies
Exchange gains/(losses) on translating foreign operations and associatedcompanies

15.4

Income tax relating to items that may be reclassified(9,519)

6,835

Other comprehensive income for the year, net of tax

79,771(36,741)

320,020

7,426

320,020

7,426

-

-

320,020

7,426

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

54

Atradius |||Consolidated
Consolidated
financialstatements
2021
Atradius
N.V.
Atradius
statements
2021
Atradius
N.V.
Atradius
Consolidatedfinancial
financialstatements
2021
Atradius
N.V.

Consolidated statement
Consolidated
statementofof
changes inchanges
inequityequityAttributable
to theof theofCompany
Attributable
toowners
the owners
the Company

Balance
Balanceat
at11January
January
2020
2020
Acquisitions
Acquisitions
Dividends
Dividends

30
30

Share
Share
capitalcapital

Share
Share
premium
premium
reserve
reserve

Revaluation
Revaluation Currency
Currency Pension
Pension Retained
Retained
Result Resultforforreserve
reservetranslationtranslation reserve
reserve earnings
earnings the year
the yearreserve
reserve

79,122
79,122

639,228
639,228

- -

- -

-

-

-

-

-

-

-

-

-

-

-

-

- -

- -

-

-

-

-

-

- (102,859)(102,859)-- (102,859)(102,859)-(102,859)(102,859)

- -

- -

7,426 7,426-- 7,426

- -

- -

-

-

-

-

-

- 227,708
227,708(227,708)(227,708)

-

-

-

- -

- -

-

-

-

-

-

-

- 79,122
79,122- 639,228
639,228(1,108)(1,108) (29,617)(29,617) (6,016)(6,016)- (36,741)(36,741)
80,81180,811 (79,989)(79,989) (166,607)(166,607)1,316,561
1,316,561 44,16744,1671,913,294
1,913,294

79,122
79,122

639,228
639,228

80,81180,811

- -

- -

-

-

-

-

-

-

- -

- -

-

-

-

-

-

- (90,991)(90,991)- -- -30,04330,04318,03018,030

- -

- -

-

-

-

- -

- -

-

-

-

- -

- -

30,04330,04318,03018,03079,771 79,771-- 79,122
79,122- 639,228
639,228- 110,854
110,854- 79,826
79,826 (79,826)(79,826)(61,959)(61,959) (55,082)(55,082)1,189,911
1,189,911240,249
240,2492,142,323
2,142,323-

81,91981,919Total

TotalNonNon- Total
controlling
controlling equity
interestsinterests(50,372)(50,372) (160,591)(160,591)1,191,712
1,191,712227,708
227,7082,008,726
2,008,726
-

-

Total
equity2,008,726
2,008,726
-

-

Total
Total comprehensive
comprehensive
incomefor
forthetheyearyear
incomeAppropriation
Appropriationof
ofpriorprior
year
year result
resultResultResult forforthetheyearyear
Other
Other comprehensive
comprehensive
incomeincomeBalance
Balanceat
at31
31December
December
2020
2020

Balance
Balanceat
at11January
January2021
2021
Acquisitions
Acquisitions
Dividends
Dividends

30
30(1,108)(1,108) (29,617)(29,617)(6,016)(6,016) 227,708
227,708(183,541)(183,541)-- 44,167 44,167-

44,167 44,167(79,989)(79,989) (166,607)(166,607)1,316,561
1,316,561 44,16744,1671,913,294
1,913,294
-

-

-

7,426

-

-

44,16744,167--(36,741) (36,741)
1,913,294
1,913,294-

1,913,294
1,913,294---- (90,991)(90,991)-(90,991)(90,991)

31,69931,69944,16744,167196,082
196,082 320,020320,020-

320,020
320,020

-

-

-

-

-

44,16744,167 (44,167)(44,167)
240,249
240,249 240,249240,249
-

-

-

-

-

-

Total
Total comprehensive
comprehensive
incomefor
forthetheyearyear
incomeAppropriation
Appropriationof
ofpriorprior
year result
resultyear
ResultResult forforthetheyearyear
Other
Other comprehensive
comprehensive
incomeincome15.5
15.5
PensionPensionplan
plande-risking
de-risking
15.6
15.6
Balance
Balanceat
at31
31December
December
2021
2021

55

31,69931,699

-

-

-

-

-

-

-

240,249 240,249- 79,771

79,771

2,142,323
2,142,323

All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.
Atradius| Consolidated
financial
2021 Atradius

Consolidated statement ofcash flows
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 financial investments
Interest received
Net cash (used in)/generated by investing activities

Note

9
28

18
18
12

10

10

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).

56

14

2021

2020

328,015

78,006(5,443)(13,582)
44,624(15,963)
53,375
16,141(24,915)
8,035(4,599)(8,172)
27,201(3,008)46,42917,081(31,261)
14,572

231,708
40,133(8,607)(393)(2,498)(59,800)
590,830(67,617)(20,205)
503,007

196,497(238,903)
7,332
208,088
93,923(27,285)
375,901(47,966)(18,452)
309,483(183,071)(1,121,530)(53,829)(112,147)(1,071,612)(55,756)

134
105,854958,780691
13,582
27,979(251,410)

200
137,970
896,739
68
8,172
35,398(160,968)(90,991)(15,925)(75,000)(181,916)(102,859)(16,875)(119,734)

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

28,765404,244(8,268)424,741

Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 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 3,647 people as at 31 December 2021 (2020: 3,653). The parent is Grupo Compañía Española de Crédito y
Caución, S.L., which owns 64.23% (equal to 2020) 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 2020) 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 2 March2022 and have been reviewed by the Supervisory Board. On 2 March 2022 the consolidated financial statements havebeen adopted at the Annual General Meeting of Atradius N.V.

2

Summary of significant accounting policies 2021

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 income statement of Atradius N.V. for 2021 is incorporated in the consolidated financial statements, which allow
for a presentation of a condensed company income statement in the company financial statements in compliance withBook 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 2021

The following relevant standards, amendments and interpretations have been adopted in 2021, but have had nomaterial effect on the consolidated financial statements:-

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2 (effective 1

57

All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

-

January 2021). The amendments ensure that companies will not have to derecognise or adjust carrying amountsof financial instruments for changes required by the reform, will not have to discontinue existing hedge
relationships solely because it makes changes required by the reform and will be required to disclose information
about new risks arising from the reform and how it manages transition to alternative benchmark rates. In theabsence of any hedge relationships it is expected that these amendments will not have a material impact on the
consolidated financial statements.
Amendment to IFRS 16 for Covid-19-related rent concessions beyond 30 June 2021. The amendment permits
lessees, as a practical expedient, not to assess whether particular Covid-19-related rent concessions are leasemodifications. Instead, lessees that apply the practical expedient can account for those rent concessions as if they
were not lease modifications. The Amendment increases the eligibility period for the application of the practical
expedient by 12 months from 30 June 2021 to 30 June 2022. This amendment has no material impact on the
consolidated financial statements.

2.2.2

Standards, amendments and interpretations not yet adopted

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

-

-

-

IFRS 9 Financial Instruments (effective 1 January 2018) replaces the existing guidance in IAS 39 Financial
Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification andmeasurement, impairment of financial instruments and the new general hedge accounting requirements. In
September 2016, the IASB issued amendments to IFRS 4 to address issues arising from the different effective
dates of IFRS 9 and the forthcoming new insurance contracts standard (IFRS 17). The amendments introduce twoalternative options for entities that issue insurance contracts within the scope of IFRS 4: a temporary exemption
from applying IFRS 9 and an overlay approach. The temporary exemption is available for entities whose activities
are predominantly connected with insurance. Atradius performed an assessment of the amendments to IFRS 4
and concluded that its activities are predominantly connected with insurance as at 31 December 2015 based on theassessment that the predominance ratio i.e. ratio total carrying amount of its liabilities connected with insurancecompared with total carrying amount of liabilities criteria was greater than 90%. Atradius decided to apply the
temporary exemption in its reporting period starting on 1 January 2018 and expects to adopt IFRS 9 incombination with the adoption of IFRS 17 Insurance contracts on 1 January 2023. In case of a significant change
in operating activities, Atradius will reassess whether its activities are predominantly connected with insurance.
Please refer to the ‘Temporary exemption from IFRS 9’ section included in Risk and Capital management for the
related disclosures. It is not expected that these amendments will have a material impact on the consolidated
financial statements.
IFRS 17 Insurance contracts (effective 1 January 2023), IFRS 17 Insurance Contracts (issued on 18 May 2017);
including Amendments to IFRS 17 (issued on 25 June 2020): During 2021, the Group has continued with theimplementation of the standard, in accordance with the action plan and the defined milestones. The different
areas involved (Actuarial, Accounting and Consolidation, Accounting Regulations and Policies, Systems, etc.) havefocused their efforts on adapting the systems and the processes to the IFRS 17 standard. In the overall project, theareas of work that have stood out in 2021 are amongst others: the continuation of the modelling of actuarial tools,
the improvement of accounting policies, the development of accounting and management information models, aswell as the testing of the partial results that have been generated. The Group has committees that ensurecompliance with the requirements of IFRS 17. The Project Committees, made up mainly of those responsible forthe areas mentioned above and who monitor the development of the project and its adaptation to therequirements of the standard. It is expected that the first application of the standard will have a significant
financial impact on insurance contracts measured according to the General Measurement Model (commonly
known as "Building Block Approach”), which is intended to be applied for all our products. Progress has been
made in estimating the impact of the standard on the Group's financial statements, although, given the scope andinterdependence of its implications, the preliminary quantitative results are partial and are in the process ofcontinuous analysis. The activities planned for the year 2022 are amongst others: the refinement of the IFRS 17
information and processes; the construction and validation of the transition balance as per 1 January, 2022; theexecution of the parallel runs under IFRS 17 during the year 2022 in order to present the comparative information
for reporting for the year 2023, to advance with the formalisation of the operational processes impacted by IFRS
17 and to align the system of governance with it. These activities will ensure the adoption of IFRS 17 in a timely
manner.
Amendments to IFRS 3 Business Combinations (effective 1 January 2022). The IASB has updated references in
IFRS 3 to the Conceptual Framework without changing any of the accounting requirements. These amendments
will not have a material impact on the consolidated financial statements.
Amendments to IAS 16 Property, Plant and Equipment (effective 1 January 2022). The amendments prohibit
deducting from cost of property, plant and equipment amounts received from selling items produced while the58Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 Atradius N.V.

--

company is preparing the asset for its intended use and requires it to recognise the amounts received as sales
proceeds and related costs in profit or loss. It is expected that these amendments will not have a material impact
on the consolidated financial statements.
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets (effective 1 January 2022). These
amendments require a company to include both incremental costs as well as an allocation of other costs offulfilling a contract when assessing whether that contract will be loss-making. It is not expected that theseamendments will have a material impact on the consolidated financial statements.
Annual Improvements 2018-2020 (effective 1 January 2022). The annual improvements make minor
amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial
Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. These amendments
will not have a material impact on the consolidated financial statements

The European Union has not yet endorsed the following relevant standards and amendments and as such these havenot been adopted by 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 IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates. These amendments will not have an impact on the consolidated financial statements.
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction. These amendments will not have an impact on the consolidated financial statements.

2.3

Consolidation

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

2.3.1

Subsidiaries

Subsidiaries are all entities over which 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 the group 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 income statement as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value atthe acquisition date, except that the deferred tax assets or liabilities and assets or liabilities related to employee
benefit arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee
Benefits respectively.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any)over the net amount of the identifiable assets acquired and the liabilities assumed. If the net amount of the identifiable59All amounts in thousands of Euro, unless otherwise stated
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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 income 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 income statement on the acquisition date. If associates are obtained in successive sharepurchases, each significant transaction is accounted for separately.
Atradius’ share in its associated companies’ post-acquisition profits or losses is recognised in profit or loss, and its
share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income.
Unrealised gains on transactions between Atradius and its associated companies are eliminated to the extent of
Atradius’ interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence ofan impairment of the asset transferred. Associate’s accounting policies are changed where necessary to ensure
consistency with the policies adopted by Atradius.
Interests in companies in which Atradius does not exercise significant influence are accounted for at fair value, in
accordance with the accounting principles for available-for-sale investments.

2.4

Segment reporting

IFRS 8 requires operating segments to be identified on the basis on which the Management Board regularly reviews
components of Atradius in order to allocate resources to the segments and to assess their performance. Operating60

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segments are reported in a manner consistent with the internal reporting provided to the Management Board. For
more information related segment please see Note 5.

2.5

Foreign currencies

2.5.1

Functional and presentation currency

Items included in the financial statements of each of 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 income statement. A monetary item that forms part of a net investment in a foreign operation forwhich settlement is neither planned nor likely to occur in the foreseeable future is, in substance, part of the net
investment in that foreign operation. In the consolidated financial statements, the related exchange gains and losseson 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 income statement presented are translated at monthly average exchange rates
unless this average is not a reasonable approximation of the cumulative effect of the rates 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 income statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as the foreign entity’s
assets and liabilities and are translated at the closing rate.
The exchange rates of the most relevant functional currencies for Atradius are presented below:
Currency

End rate

Average rate

GBP

USD

AUD

GBP

USD

AUD

At 31 December 2021

1.190

0.883

0.640

1.174

0.880

0.629

At 31 December 2020

1.112

0.815

0.629

1.113

0.835

0.616

2.6

Goodwill and other intangible assets

2.6.1

Goodwill

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controllinginterests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any)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 non-61

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controlling 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 CGU’s
where Goodwill is allocated are the lowest identifiable level possible. Cash-generating units to which goodwill has
been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be
impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, theimpairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to theother assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
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 licenses are capitalised on the basis of costs incurred to acquire and to bring to use thespecific software. These assets are amortised on the basis of the expected useful life: which is between three and five
years. Computer software is stated at cost less accumulated amortisation and any accumulated impairment losses.
Development costs that are directly associated with the production of identifiable and unique software products
controlled by 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.
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 income
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

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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 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 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, the Group’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 income 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 income statement.
As a lessor
Atradius classifies all leases for which it is a lessor as operating leases, because none of these leases transfer
substantially all of the risks and rewards incidental to ownership of the underlying asset.
Lease payments from operating leases are recognised as income on a straight-line basis over the lease term and areincluded in ‘net investment income’.
Atradius presents its operational leases as a lessor in ‘investment property’ in the statement of financial position.

2.8

Investment property

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

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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.

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.

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

2.11.2 Loans and receivables
Loans and receivables (including deposits) are non-derivative financial investments with fixed or determinable
payments that are not quoted on an active market, other than those that 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 theincome statement. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is thecurrent effective interest rate determined under contract. As a practical expedient, Atradius may measure impairment
on the basis of an instrument’s fair value using an observable market price.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively toan event occurring after the impairment was recognised, the previously recognised impairment loss is reversed byadjusting the allowance account. The amount of the reversal is recognised in the income statement.

2.12.3 Financial investments - carried at fair value
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 and65All amounts in thousands of Euro, unless otherwise stated
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equity 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 income 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 income statement, theimpairment loss is reversed through the income statement, but only to the amortised cost price. Subsequent increases
above the amortised cost price are credited against the revaluation reserve as a component of other comprehensive
income.
Impairment losses recognised in the income statement on equity securities cannot be reversed in subsequent periods.

2.12.4 Impairment of other non-financial assets
Assets that have an indefinite useful life, for example land, are not subject to amortisation or depreciation and 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, the Group will consider, at aminimum, the following factors:••

There is evidence from internal reports that indicates the economic asset performance is, or is going to be, notaligned with the expectation.
(ii) 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 income statement, the carrying amount of theasset (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 income statement. However, impairment losses recognised for goodwill are not reversed insubsequent periods.
2.13

Offsetting financial instruments

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

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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 income statement.

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

-

-

-

in respect of revenue, expenses and capital transactions, the difference between translating these items at actual
or average exchange rates and using the exchange rate at the end of the reporting period, which is the case forrecognised assets and liabilities;
in respect of the net assets at the beginning of the reporting period, the difference between translating these items
at the rate used at the end of the previous reporting period and using the rate at the end of the current reporting
period; andin respect of the net assets acquired during the reporting period, the difference between translating these items at
the rate 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; andthe non-recognition of assets (‘asset ceiling’) that can occur when the plan assets are higher than the projected
benefit obligation and where Atradius cannot recover any surplus through refunds from the pension vehicle due
to solvency and/or control requirements.

2.15.6 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.

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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 income statement over the fixed period of the debt during which the interest isfixed 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.

The Company applies IFRS 4.25, which allows existing insurance accounting practices to continue. The maindifference 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 income statement as incurred based on the estimated liability
for compensation owed to contract holders. They include direct and indirect claims settlement costs and arise from therisks 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 andstatistical analyses for the claims incurred but not reported. When appropriate, deductions are made for salvage,
subrogation and other expected recoveries from third parties. For reinsurance business the provisions are determinedtreaty-by-treaty, based on premium and loss information supplied by the ceding companies. Estimates of expected
losses are developed using historical claims experience, actual versus estimated claims experience and other known
trends 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 income statement by first writing down the related deferred acquisition costs and then by
establishing a provision for losses arising from the liability adequacy test.

2.17.5 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 income statement. Atradius gathers the objective evidence that areinsurance asset is impaired by applying procedures similar to those adopted for financial assets held at amortised
cost. The impairment loss is calculated under 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 income 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 income statement. Atradius gathers theobjective evidence that an insurance receivable is impaired by applying procedures similar to those adopted for loans
and receivables. The impairment loss is also calculated under similar method used for these financial assets.

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financial
2021 Atradius
All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.

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.
The Group 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.
D e f i n e d b e ne f i t p l a n s
A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on
retirement, dependent on one or more factors such as age, years of service and compensation. In a defined benefit plan
Atradius may pay contributions into a separate entity or fund. Atradius, and in some cases the employees who areparticipating, fund a defined benefit plan and Atradius has a legal or constructive obligation to pay further
contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service
in the current and previous periods.
The amount recognised as a defined benefit liability is the net total of the present value of the defined benefit
obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (ifany) out of which the obligations are to be settled directly. The recognition of assets that arise by over-funding of thedefined benefit plan is limited to the ability to use the surplus to generate future benefits (the asset ceiling). The
defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The
present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using

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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 income 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 income 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 income statement under net operating
expenses. The net interest is presented under finance expenses. Curtailment gains and losses are accounted for as past
service costs. Remeasurements are recognised in other comprehensive income.
D e fine d c o ntrib u tio n p l ans
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 income 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
when it is committed to either terminating the employment of current employees according to a detailed formal plan
without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage71All amounts in thousands of Euro, unless otherwise stated
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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 income statement for the year comprises current and deferred tax. Income tax isrecognised in the consolidated income statement except to the extent that it relates to items recognised in othercomprehensive income, in which case it is recognised in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or
substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous
years.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of 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 income 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:
Pre miu m e arne dWritten 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.
S e rvic e and o the r inc o meService 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 invoiced72

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--

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 over time based on the consideration in the contract, reflecting the constant effort required toacquire 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 theservice contract. This income is recognised evenly over time.

S h a r e o f in c o m e o f a s so c ia t ed c o m p a n ie s
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 theincome statement.
N e t i n c o m e f r o m i n v e s t m e nt s
Investment income comprises interest income on funds invested (including available-for-sale financial investments),
dividend income, gains on the disposal of available-for-sale financial investments and rental income from investment
property that are recognised in the income statement. Interest income is recognised as it accrues in the income
statement, using the effective interest method. Dividend income is recognised in the income statement on the date that
Atradius’ right to receive payment is established, which in the case of quoted securities is the ex-dividend date.
Investment expenses comprise impairment losses recognised on financial investments and investment property.
Realised gains or losses on investment property recognised in the income statement represent the difference between
the net disposal proceeds and the carrying amount of the property.

2.22.2 Expenses
N e t ins u ranc e c l aims
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.
N e t o p e r a t i n g e x p e ns e s
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.
F in a n c e in c o m e a n d e x pe n se s
Finance income consists of interest received on loans, receivables and cash and cash equivalents.
Finance expenses includes interest, amortisation of discount on the subordinated debt, foreign exchange results andthe net interest on the net defined benefit liability (asset) related to defined benefit plans (see also Note 2.20). Foreign
currency gains and losses are reported on a net basis and consist of transaction and translation results.
Interest income and expenses are calculated using the effective interest rate method based on market rather than
nominal rates, at the date that the instrument is recognised initially or modified.

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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 long-term assets and other investments not included in
cash equivalents; andfinancing activities are activities that result in changes in the size and composition of the contributed equity andborrowings of Atradius.

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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 impact these has on income statement or othercomprehensive income. Although management has endeavoured to adequately take all facts into account, including
Covid-19, by their very nature estimates remain uncertain and the eventual outcome may differ significantly from the
projected amount (see section 4.2.6).
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, under an unprecedented pandemic, which requires a quantification of
the additional uncertainty over the business as usual process followed in the pipeline estimates, to ensure that
potential future developments of pipeline are not impacting negatively the financial statements in the coming years.
Historical positive development derived from this process shows that, any potential deviation on unknown shipments
under this unprecedented pandemic and uncertain economic environment would be covered without significant
impacts on insurance premium. However, the Company performs detailed analysis of the different components
included in the automatic modelled pipeline calculations, adjusting those which the Company estimates could be more
uncertain due to the present low claim environment (bonus pipeline) or from deviation in insured turnovers estimates(reconciliation invoices). (See Note 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 1.6 million loss before tax (2020: EUR 7.4 million loss), being the transfer of the total
revaluation reserve for unrealised losses on equity financial investments to the income 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, except for Graydon which is determined using discounted cash flow model (DCF).
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 Graydon Holding N.V. and ACYC 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 due to the Covid-19 pandemic
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 exposures under customer policies, which we refer to as underwriting risk,
Atradius’ risk landscape contains other types of risk. Atradius faces market risk related primarily to our assets, credit
risk from reinsurers and third-party receivables, and operational risks such as cyber risk and legal risks. In addition,
strategic risks exist, such as the rapidly changing technological environment, possible adverse impacts fromgeopolitical conflict, and uncertainty around the breakup of supranational entities. Atradius has structures, systems
and processes in place to identify, evaluate, monitor, and control or mitigate internal and external sources of material
risk in the landscape.
In 2021, as in 2020, the most significant developments in the risk landscape were related to the worldwide effects of
the Covid-19 pandemic. The pandemic has affected all risk areas – from underwriting risk impact on buyers (credit
insurance) and customers (bonding) to financial risk and operational risk (impact on Atradius’ ability to maintain its
standard of service and to ensure that the needs of employees are adequately addressed).
A key part of our underwriting strategy during the Covid-19 crisis beginning in 2020 – and continuing in 2021 - hasbeen supporting our customers in insuring their receivables, and, at the same time, protecting them against losses in aheightened risk environment in an explainable and comprehensible way. While Covid-19 risks were spread broadly,
the risks were not uniform across all countries, sectors and portfolios. We analysed the nature and sources of the risks
and how they constantly shifted, e.g. supply chain problems, commodity shortages and price developments,
fluctuations in consumer and purchasing manager confidence, willingness of governments to continue support of
struggling companies, potential interest rate increases, We continually analysed all trade sectors for relevant risk
factors, such as how they might be influenced by governmental response and readiness, and changing infection rates
in different countries and regions. Using segmentation tools, extensive data and analytics, dedicated Covid-19
response teams coordinated our worldwide risk and commercial organisations to rigorously review and take action on
portfolios. Most of our underwriting algorithms were re-parameterised in the Covid-19 environment. These continuous
underwriting actions were performed in alignment with commercial strategies on (re)pricing, policy restructuring andprudent sales, underpinned by a deliberate and transparent communication with the market.
Atradius has taken the appropriate steps to manage its exposure to the effects of the pandemic.
Climate-related risks - more frequent and severe weather events are damaging infrastructure and disrupting supply
chains. Transition to a lower carbon economy is bringing new policies, regulations and changes to market dynamics.
There is a risk that such changes could have a negative impact on Atradius by affecting our operations and/or ourcustomers and their buyers. Focus on carbon footprint / CO2 emissions may require manufacturers to adapt or go out
of business, in turn having a knock-on effect on their suppliers. Doing business in certain trade sectors may become
undesirable and attract negative publicity. At the same time, interest in climate change / ethical practices, such as ESG
27
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(Environmental, Social & Governance) and CSR (Corporate Social Responsibility) considerations, may create
opportunities to enhance the Atradius offerings. Developments are monitored and discussed in various forums within
Atradius. Aspects of the Group’s approach to ESG are described in this Report.

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 owns, implements and oversees
Atradius’ group-wide risk governance through the Risk Strategy Management Board (RSMB). The RSMB consists of all
members of 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) or the risk of non-performance by a customer (bonding). Financial
risks include market risk, counterparty credit risk and liquidity risk. Operational risks arise from inadequate or failed
internal processes, people, systems, or from external events.
Environmental, Social and Governance (ESG) refers to the three central factors in measuring the sustainability andsocietal impact of an investment in a company or business. ESG concerns are increasingly used in the evaluation ofcompanies; by investors, the media, other companies and the public in general. The image of a company isincreasingly defined by the level of concern for ESG criteria:-

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

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

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 licenses and contract frustration. Traditional credit insurance does not covernon-payment of trade receivables due to commercial disputes. Each policy stipulates a maximum credit period thatthe policyholder can offer to 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. Larger credit limits must be issued by Atradius. Credit limits are an important risk management instrument for
Atradius as they limit the amount that Atradius would have to pay to a customer 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 tospecific conditions and Atradius can also set conditions for cover on a country or withdraw cover on a country
altogether. These tools are important to manage insurance risk exposure in a dynamic way.
Staff in Commercial units have well-defined authorities specifying who can underwrite which policies. 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
require the approval of one or more cosignatories of increasing seniority. The largest credit limit amounts require the2979All amounts in thousands of Euro, unless otherwise stated
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approval of the Atradius credit committee with the appropriate authority level and, in exceptional cases, the approvalof the (leaders of the) reinsurance panel.
The special products business offers a range of bespoke policies to insure against various credit and political risks.
This product line includes policies that cover single transactions, single trade relationships and 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 issued bonds 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 units. Technical underwriters assess the risk of non-performance as well bonding wordings and othertechnical aspects. Financial underwriters, who are not part of the Commercial units, focus on the credit risk-related
aspects of customers; they must approve the acceptance of facilities and individual bonds over certain thresholds.
There is an authority structure in which decisions are escalated depending on the amounts involved. The largest
amounts require the approval of Atradius credit committees (Local or Group) with the appropriate 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.
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 clients
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and 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 and market
and country exposure. Risk and policy limit setting is monitored to ensure credit quality and compliance of theunderlying 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 units. Policies are generally issued for a fixed period with
automatic renewal. The indemnification rate can rise to 100% and recoveries are for the benefit of Atradius.
Risk underwriting is performed by the risk underwriting teams. Credit decisions are made for each individual
operation based on an automated decision model. The model, without human intervention, can refer the case to anunderwriter for manual assessment. Authorities are granted to underwriters according to their seniority andexpertise. 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.
All buyers with significant exposure are reviewed at least annually. Atradius continually receives information onbuyers through on-line connections with business information providers and from customers reporting negative
payment experiences. Buyers are reviewed whenever pertinent new information is received. Atradius assigns aninternal rating to buyers and the review process takes into account exposure on a buyer through direct business,
including exposure for special products and bonding. The authority structure for approval of new exposure referred toin this note also applies to buyer reviews.
The main system includes an integrated risk and (capital) cost-based pricing system. Most new policies and renewals
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 result. Performance development and exposuresrelated to each reinsurance treaty are reviewed quarterly within certain limits and through exception reporting.
For ICP, consumer credit risk underwriting relies on the databases of the relevant national authorities. In addition, ICP
maintains and uses its own internal consumer credit database.
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 2021,
Atradius decided to renew its reinsurance arrangements for 2022. This trend continued with the renewal of thereinsurance arrangements for 2023 in early 2022. On renewal, Atradius assesses the optimal structure of the treaties
for the forthcoming period, including excess of loss. A number of items are taken into consideration during this31

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review, including the forecast growth in the underlying business, economic developments etc. In addition, theproposed structure is considered in the context of the Solvency II capital requirements and Atradius’ SCR appetite.
For the underwriting year 2021 one quota share reinsurance treaty is in place covering the majority of Atradius’
business. The retention under this treaty is 63% (2020: 63%).
In addition, there are two separate quota share treaties, which cover a limited number of policies, where the retention
percentage is 25%, and a single excess of loss programme, covering the own retention under these quota share treaties,
consisting of a series of excess of loss treaties (per buyer group). 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
mitigated the likelihood of it retaining two separate retentions if a common buyer were to fail, affecting both theassumed and direct business of Atradius. The top of the excess of loss layers is chosen so that, in the judgement ofmanagement, there remains only a very remote possibility that failure of any single buyer group will exceed the top
end of the excess of loss coverage purchased.
The attachment point of the excess of loss treaties has been set such that the net retention for business ceded underthe quota share treaties and excess of loss structure for any buyer group does not exceed EUR 26.25 million for
Atradius (2020: 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 2022. The transaction remains subject
to the necessary board, shareholder, court and regulatory approvals. Upon effectiveness of the merger, ARE’s assets
and liabilities, including all of its reinsurance obligations, would be transferred to ACyC, through its Irish branch.
Government Agreements
The Covid-19 pandemic crisis has strongly affected the world economy.
In view of this situation and, as a support to the national economy, the 10 main countries where the Group operates havesupported the business of credit insurance in the form of specific government reinsurance schemes with high cession
rates.
The government schemes were part of an overall package of measures and aimed to ensure that sufficient liquidity wasavailable in the market, to counteract the damage inflicted on companies affected by the outbreak and to preserve thecontinuity of economic activity during and after the outbreak. In particular, they aimed to ensure that trade credit
insurance services continued to be available to businesses.
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 2021. 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.
The table below details the impacts of the agreements in the consolidated statement of financial position (in thousand
euros):

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(EUR thousand)

2021

2020

Balance SheetTechnical Provision Ceded

106,766

217,781

Premiums Provision Ceded

26,117

6,452

Cash in Bank

(297,805)(78,565)

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

4,845

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

Insurance claims recovered(35,527)

266,688

Reinsurance commission

106,204

101,118

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

Reinsurance commission
Income statement impacts:

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

TPE 2021(EUR million)%

TPE 2020(EUR million)%

Germany

108,235

14.9%

93,56815.2%

Spain, Portugal

86,97012.0%

79,231

12.9%

Central and Eastern Europe

77,682

10.7%

64,63010.5%

USA70,655

9.7%

54,188

8.8%

United Kingdom

51,211

7.1%

42,034

6.8%

France50,601

7.0%

45,239

7.4%

Italy

50,352

6.9%

42,001

6.8%

Nordic35,311

4.9%

30,7795.0%

The Netherlands

33,204

4.6%

29,875

4.9%

Other

160,82222.2%

133,004

21.6%

Total

725,043100%

614,549

100%

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

33
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Atradius | Consolidated financial statements 2021 Atradius N.V.

Industry sector

TPE 2021(EUR million)%

TPE 2020(EUR million)%

Chemicals

99,39013.7%

82,804

13.5%

Electronics

90,137

12.4%

73,18911.9%

Consumer durables

81,697

11.3%

69,071

11.2%

Metals

78,757

10.9%

61,597

10.0%

Food

71,101

9.8%

63,860

10.4%

Transport

61,673

8.5%

53,098

8.6%

Construction

53,451

7.4%

47,072

7.7%

Machines

46,328

6.4%

39,635

6.4%

Construction materials

34,801

4.8%

29,345

4.8%

Agriculture

34,441

4.8%

29,845

4.9%Services

25,211

3.5%

23,346

3.8%

Other

48,056

6.6%

41,685

6.8%

Total

725,043100%

614,548

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 2021(EUR million)%

TPE 2020(EUR million)%

0 - 20364,88650.3%

322,137

52.4%

20 - 100

129,83817.9%

103,940

16.9%

100 - 250

78,455

10.8%

69,176

11.3%

250 - 500

61,236

8.4%

50,3788.2%

500 - 1000

48,517

6.7%

34,5225.6%1000 - and more

42,111

5.8%

34,396

5.6%

725,043100%

614,549

100%(EUR million)

Total

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

4.2.5 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 state of the economy in the near future is, and has been, significantly more uncertain thanusual. This, in turn, impacts uncertainty related to the frequency and severity of claims. In light of Covid-19,
governments all around the world have taken measures to support the economy. During 2021, governments in most of
our markets have already started rolling back the fiscal support. Though there is still uncertainty with respect to thetiming and speed with which those measures are rolled back completely, as well as the extent to which the economy
relied on the support, are still major factor of uncertainty.
The bonding business usually only incurs irrecoverable losses when, after a bond call, any payments to beneficiaries
cannot be reclaimed from the bonding customer, or its guarantors. This is usually due to either the insolvency or
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bankruptcy of the bonding customer. Thus, in the end, the frequency and severity of claims is affected by similar
factors as those affecting credit insurance.
All forms of credit insurance and bonding bear the risk that changes in legislation, in particular of insolvency law,
may affect the amount and timing of claims payments or recoveries.
Atradius’ business processes are designed to effectively manage the impact of the many risk factors that affect thefrequency and severity of claims. The business processes continually evolve in response to how Atradius views theserisk factors in the context of its overall business strategy.

4.2.6 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.
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, most35

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Atradius | Consolidated financial statements 2021 Atradius N.V.

credit insurance covers credit periods up to 180 days, while around half the number of bonds written has tenors ofover two years. After receipt of a bond call, it usually takes longer to settle the claim and litigation is not uncommon,
either following the bond call or when trying to realise recoveries. Especially in Italy, litigation tends to be a lengthy
process. Outcomes of litigation cannot be predicted with certainty. For bonding, the provisions set on a case-by-casebasis 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 2022 would be around 20% above the level of end 2021. The main methodologies for
estimating claims provisions for traditional credit insurance combined underpin 74% (2020: 81%) of the claims
provisions for traditional credit insurance.
In light of the increased uncertainty as result of the current circumstances, however, we take a similar approach for2021 closing as we did for 2020 closing. During the second half of 2020, the number of reported claims dropped
significantly compared to the first half of 2020. At the time, this partly related to a drop of insured business as result of
the lock-downs early 2020 and partly because of government’s support for the economy. However, whilst the insured
shipments have recovered since, the number of claims registrations in 2021 have remained at the same low level as
the latter half of 2020, which is 40 – 60% lower than the claims reported during the first half of 2020 depending on the
country. The 2021 provisions have been set based on the assumption that this drop is temporary and imply a strong
increase in expected claim received count during the first six to eight months of 2022 at the level of the first half of2020 plus 10 – 40% depending on the country, due to uncertainty in the current economic environment. If this strong
increase in claims registrations does not materialise, then this leads to a significant favourable runoff on provisions
for underwriting year 2021.
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 35 million, gross ofreinsurance (2020: 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 is feature not specific tocredit insurance, but holds for any insurance product, provided the portfolio is large enough, and correlation between
count and severity is small enough. It is our experience that average claim sizes, for the attritional losses, aresufficiently stable over time to not have significant margins of uncertainty in the parameters governing the size of
attritional claims that have not yet been reported. This is also the case as at year end 2021. There is one material
exception to this; for the Spain and Portugal portfolios, the average claim size observed during 2021 has beensignificantly smaller than our parameter for claims not reported indicates. In this portfolio, particular sectors in thetravel and leisure industry (e.g., restaurants and hotels) were disproportionally affected by Covid-19, hence the relative
contribution of these sectors in the total claim count increased. Moreover, the average claim sizes in these sectors
tends to be lower. Hence, we consider these recent observations the result of a temporary bias towards smaller claims.
As our reserving stance is a return to normality, we have chosen not to lower this parameter to the level of theobserved values during 2021.
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 35
million (2020: 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 be36

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Atradius | Consolidated financial statements 2021 Atradius N.V.

seen 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 current level of uncertainty and experience from prior financial crisis (2008-2009,
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 theratio with attritional losses) to be in the range of those observed under normal circumstance, 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 66 million (2020: 71 million). The case by case estimates are specific to the individual facts andcircumstances of the case. As such, no meaningful overall insight to the sensitivity can be given.
Claims provisions are presented net of recoveries from salvage and subrogation. Realised recoveries can deviate fromexpected recoveries. Expected recoveries amount to EUR 373 million (2020: EUR 490 million). The largest twocomponents of the expected recoveries are the recoveries for traditional credit insurance of EUR 142 million (2020:
EUR 218 million) and for instalment credit protection of EUR 138 million (2020: EUR 154 million).
As recovery rates differ by country as well as product, moreover, that the development depends on the age of theunderwriting year, it is challenging to provide insight into sensitivity to assumptions by measuring the impact of 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 14 million (2020: EUR 22 million). For instalment credit protection, for which similar
margins for uncertainty are introduced, impact of setting recovery provisions lower by 10% is EUR 13 million (2020: 15
million).

4.3

Financial risk

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

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

4.3.1.1

Fair value of financial assets and liabilities

The estimated fair values of 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
37

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All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

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 illiquid investment fund. The external
independent valuation company uses its own proprietary valuation systems to value the securities supported byeconomic and market assumptions from financial information providers. The valuations are provided on a monthly
basis and are reviewed and approved by Atradius. The valuation process at the asset manager is audited and approvedby 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 binding quotes from independent brokers (see Note 16 for further
details).
Other financial liabilities and deposits received from reinsurers
The carrying amount of other financial liabilities and deposits received from reinsurers is not materially different totheir fair value, given their short-term nature.
The following tables present the fair values and the hierachy of the financial instruments carried at fair value (note
2.9):

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Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 Atradius N.V.

Financial instruments measured at fair value
Assets 2021

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

Level 1

Level 3

Total

365,816

22,910388,726

Government bonds

549,357-

549,357

Corporate bonds

1,618,001-

1,618,001

Total

2,533,174

22,9102,556,084

Available-for-sale:
Equity securities
Debt securities:

Financial instruments measured at fair value
Assets 2020
Available-for-sale:
Equity securities
Debt securities:

At 31 December 2021 the Company is mainly exposed to securities traded in active markets (level 1), however due toreclassifications and new investments there is also exposure to illiquid markets (level 3).
Reconciliation of Level 3 fair values
The following table details the changes in the fair value of Level 3 financial investments (valuation techniques
incorporating information other than observable market data):
Financial investments Level 3

Debt securities
2021

2020

Balance at 1 January

22,91017,097

Total gains or losses:--

In income statement (net income from investments)--

In other comprehensive income

(103)

324

Acquisitons/Sales

4,316

5,489

Balance at 31 December

27,123

22,9104.3.1.2

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.
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
39
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All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

diversified portfolio consists of EUR denominated large capitalisation equities. Per the end of December 2021, themarket value of these equities is EUR 165.5 million (2020: EUR 140.5 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 stated in the Atradius Investment Policy.

-

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

sf
Investment funds

Weight in %2021

Passive equities exchange traded funds

Weight in %2020

225,01065.8%

184,940

74.5%

Active money market funds

89,56926.2%

40,416

16.3%

Real estate funds

24,646

7.2%

22,910

9.2%

2,477

0.7%

-

0.0%

341,702100.0%

248,266

100.0%

Infrastructure funds
Total-

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

-

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

-

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

-

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

4.3.1.3

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.
ProfileAt the end of the reporting period the interest rate profile of Atradius’ interest-bearing financial instruments was:Financial assets (1) (3)Financial liabilities
Total(2) (4)

Fixed rate instruments -Variable rate instruments -carrying amountcarrying amount

2021

2020

2021

2020

2,264,924

2,167,358

705,224

547,483(249,383)(324,177)(10,014)(49,369)

2,015,541

1,843,181

695,210498,1141) 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
40
90Atradius
Consolidated financial
financial statements
statements 2021
2021 Atradius
AtradiusN.V.
N.V.
Atradius || Consolidated

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 2021
is 2.7 years (2020: 2.5 years) and the average maturity for 2021 is 2.9 years (2020: 2.7 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 value2021

EUR million% of themarket value

2020

Equity securities:
Shares (including funds 1))

146.6

35.1%

264.5

76.0%

Government bonds

5.8

1.0%

13.3

2.4%

Corporate bonds

20.5

1.2%

71.3

4.4%

Total portfolio

145.1

4.8%

279.2

10.4%

Debt securities:

1)

It excludes money market funds

The classification of financial investments in the VaR table stated above are based on the actual financial risks that theindividual securities present in the investment portfolio carry. For instance, within debt securities a separation
between government bonds, and corporate bonds is maintained to capture the actual exposure to corporate bonds thatcarry additional credit risk above the risks that government bonds bring along. When individual securities areclassified to the asset class that fits their actual risk profile, the volatility of that asset class is calculated using thevolatility to the financial markets of the underlying securities in that asset class. The volatility of each asset 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 decreased from 10.4%
at the end of 2020 to 4.8% at the end of 2021 and the VaR value decreased from EUR 279.2 million at the end of 2020 to
EUR 145.1 million at the end of 2021. During 2021, the global economy continued its recovery after the volatile year of2020. This recovery resulted in a reduced expected risk from a VaR perspective.

4.3.1.5

Currency risk
41

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Atradius| Consolidated
financial
2021 Atradius
All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.

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 2021, the Euro apreciated 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
18 million, net of tax (2020: a loss of EUR 29.5 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 2021 and 31 December 2020, is presented in thefollowing table, in EUR:

FinancialassetsFinancialliabilities

Net position

Financialassets2021

Financialliabilities

Net position

2020

EUR

430,487

416,434

14,053

257,697

262,118(4,421)

GBP

10,061

16,404(6,343)

6,426

9,136

(2,710)USD

555,227

416,097

139,130

428,920

336,435

92,485

AUD

4,041

5,902

(1,862)

6,643

8,174

(1,531)

Other

114,981

207,816(92,835)

107,258

215,997(108,739)

Total

1,114,796

1,076,666

52,143806,944831,860(24,916)

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 2020. 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:

AssetsLiabilities

Net position

Assets2021

Liabilities

Net position

2020

EUR

4,051,063

2,439,154

1,611,908

3,830,461

2,297,920

1,532,541

GBP

397,461

304,188

93,273319,766

256,068

63,698USD

711,608444,634

266,974

550,009369,291

180,718

AUD

126,755

62,61264,144

110,71258,29552,417

Other631,879

525,856

106,023569,300

485,380

83,920Total

5,918,767

3,776,444

2,142,323

5,380,248

3,466,954

1,913,294

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 is
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Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 Atradius N.V.

found 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.
As a result of the Covid-19 pandemic starting in 2020 with a continuation in 2021, some corporate sectors have really
suffered, while other sectors benefitted significantly. In contrary to 2020, this resulted in both downgrades andupgrades of corporate bonds within the Atradius corporate bond investment portfolio in 2021 . Regarding thedowngrades, the Atradius impacted corporate bonds mainly observed an one-notch downgrade with a total of 10.3% of
the market value of its 2021 corporate bond portfolio. With regard to upgrades, 7.6% of the market value of Atradius
2021 corporate bond portfolio observed an upgrade. Despite the improving, but contiuous difficult market
circumstances the fixed income portfolio remains healthy with its average credit rating of ‘A’ in Standard & Poor’s
rating scale.
The main objectives of the investment portfolio concentrate on the capital preservation and liquidity, in order tosupport Atradius strategic and operational needs at any given moment in time. Despite the outbreak of the Covid-19
pandemic, the annual review of the investment policy did not lead to any changes in the concentration risk settings, as
the existing restrictions were considered to be sufficient. Atradius has no investment exposure to sectors directly
impacted by the pandemic, however as a precaution the Group Investment Committee closely monitored any
downgrades on the BBB-rated bonds and any major changes in the concentration exposure by issuer throughout theyear.
The counterparty ratings of receivables, short-term investments, claims, commissions and deposits arising fromreinsurance, cash and cash equivalents and the rating of debt securities as at 31 December 2021 and as at 31 December
2020, are presented in the following tables:

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amountsin thousandsof Euro,unless otherwise
statedN.V.
Atradius| Consolidated
financialstatements
2021 AtradiusAt 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

Total

332

731

1,902

646

49

3,660

At 31 December 2020

AAA

AA

A

BBB

Other andNon-rated

Total

62

277

273

28

29

669

-

(20)

(16)

(13)

-

(49)

Government bonds

244

257

12

24

12

549

Corporate bonds

23

160

809

619

6

1,618

-

7

6

4

6

22

39

13

27

22

-

100

-

39

321

47

18

425

368

733

1,432

731

71

3,335

(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(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

(1)

Total

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

4.3.2.1

Temporary exemption from IFRS 9

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

SPPI: Assets of which cash flows represent solely payment of principal and interest on an outstanding principal
amount, excluding any financial assets that meet the definition of held for trading in IFRS 9, or that are managed
and whose performance is evaluated on a fair value basis; and-other: all financial assets other than those specified in SPPI financial assets:
I.

With contractual terms that do not give rise on specified dates to cash flows that are solely paymentof principal and interest on the principal amount outstanding;II.

That meet the definition of held for trading in IFRS9 or that are managed and whose performanceare evaluated on a fair value basis.
Change in fair
value

Fair Value at(EUR million)

2021

2020

Debt securities:(Government bonds + Corporate bonds)

2,265

2,167

98

SPPI

2,262

2,164

98

Other

3

4

(1)

507

389

118

-

-

-

Other

507

389

118

Short-term investments and Cash held for investments:

206

123

83

SPPI

206

123

83

Other

-

-

-

Cash and cash equivalents

499

425

74

SPPI

499

425

74

Other

-

-

-

Total

3,477

3,104

373

Equity securities:
SPPI

The credit ratings of the financial assets included the SPPI test (debt securities, bank deposits under short-term
investments and cash and cash equivalents) are included in the counter party rating table in section 4.3.2.
No impairment allowance was recorded for those financial assets as at 31 December 2021 .
For information on credit exposure of ‘Other accounts receivables’, See Note 11.

4.3.3 Liquidity risk
Atradius is exposed to liquidity risk if there is insufficient cash available to meet its financial obligations, when due, ata reasonable cost. For Atradius, liquidity risks may arise if large scale short-term fluctuations occur to cash flows, suchas a decline in incoming cash or a rise in outgoing cash, or a combination of both.
Liquidity risk is managed at Atradius level, in close coordination with local operations. Atradius’ policy is to monitor
and measure ongoing cash flow patterns and control liquidity by maintaining sufficient cash and highly marketablesecurities to reduce liquidity risk to acceptably low levels. The investment policy states that Atradius should mainly
invest in financial instruments that can be liquidated in less than three business days. Atradius is able to access credit
facilities to prevent certain liquidity shortages which may arise due to short-term cash flow variances. Atradius
maintain one uncommitted credit line in excess of EUR 1 million, in the form of an overdraft facility for a total amountof EUR 50 million (2020: EUR 50 million). The credit line provides liquidity to cover infrequent peaks in short-term
liquidity requirements while also permitting Atradius to reduce its cash balances and to benefit from a more
substantial and stable investment portfolio. Finally, Atradius has in place a simultaneous claims payment clause in themain reinsurance treaties. This clause allows Atradius to ask the reinsurers to anticipate the payment of a large claim
upon Atradius’ request instead of the usual payment terms agreed in the reinsurance treaties.
Liquidity and interest risk tables
The following tables indicate the estimated amount and timing of the main cash flows at the end of the reporting
period of interest and non-interest bearing liabilities and assets. The tables include both interest and principal cash
45

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Atradius | Consolidated financial statements 2021 Atradius N.V.

flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves
at the end of the reporting period. Atradius has considered the impact of the cross-border cash pooling arrangement inthis overview.
The tables have been drawn up based on the undiscounted contractual cash flows of financial liabilities based on theearliest contractual repayment date. When Atradius has a choice of when an amount is paid, the financial liability isallocated to the latest period in which Atradius can be required to pay. When the lender has a choice of when an
amount is paid, the financial liability is allocated to the earliest period in which Atradius can be required to pay.

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 liabilities
Subordinated note

5.35%

-

13,125

272,677-

249,383

Subordinated loan

-

-

-

-

-

-

0.65%

-

10,014--

10,014-

23,139272,677-

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

At 31 December 2020

Contractual cash flows (undiscounted)

Deposits received fromreinsurers
Total
Non-interest bearing liabilities

Weighted
averageeffective
interest rate%

On demand

Less than 1
year

1 to 5 years> 5 years

Carrying
amount285,802-249,177-

75,000Interest bearing liabilities
Subordinated note

5.35%

-

13,125Subordinated loan

5.00%

-

76,120

Deposits received fromreinsurers

0.20%

-

49,369--49,369-138,614285,802-373,546

Insurance contracts-

1,300,531

577,943(473)

1,902,726

Payables-378,595--

378,594

Total-

1,679,126

577,943(473)

2,281,321

Total
Non-interest bearing liabilities

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Consolidatedfinancial
financialstatements
statements2021
2021
Atradius
N.V.
Atradius
Atradius
N.V.

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

-

-

499,393556,379

436,053

1,943,548

63,6292,970,148

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

At 31 December 2020

Contractual cash flows (undiscounted)

Total
Non-interest bearing assets

Weighted
averageeffective
interest rate%

On demand

Less than 1
year

1 to 5 years> 5 years

Carrying
amountDebt securities
Investments: deposits and cash
held for investments-0.04%-

575,057

1,523,640

84,8552,167,358

0.19%

33,12489,727--

122,742

Cash: Cash and bank deposits-0.03%

422,546

2,195

-

-

424,741455,670

666,979

1,523,640

84,8552,714,841

Other financial assets 1)-

388,735--

388,735

Reinsurance contracts-

588,982

261,737(214)

850,505

Receivables-

245,004--

245,004

Total-

1,222,721

261,737(214)

1,484,244

Interest bearing assets

Total
Non-interest bearing assets

1)

It includes shares, loans and receivables and investments 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, personnel or systems, orfrom external events. This definition is in line with industry practice as well as with the European Solvency II
Directive. It is present within all activities undertaken by Atradius, at all levels and across all locations.
The Operational Risk and Control (ORC) unit is part of the 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
and the Legal and Compliance unit. At the highest level, operational risk is overseen by the Operational Risk
Committee, which has a reporting line to the RSMB.

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All amounts in thousands of Euro, unless otherwise stated
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The ORC unit uses a framework for management of operational risk, which is based on the Committee of Sponsoring
Organisations’ Enterprise Risk Management (COSO ERM) Integrated Framework. Identification and monitoring
activities continue to be developed and enhanced, including the maintenance of risk registers, facilitation of risks andcontrol self-assessments, capture of risk indicators and testing and review of business continuity plans. Additionally,risks and the related controls are discussed at all levels, locations and units across the business, including theManagement Board and Supervisory Board. High-level information on crystallised risks has been captured for several
years, with separate records of information technology risk events stretching back even further. To provide oversightand assurance in an auditable and efficient manner, the ORC unit employs a dedicated governance, risk andcompliance software platform (the ’GRC portal‘) that integrates existing risk management activities across thebusiness.
Fraud risk - In respect of external fraud, the Fraud Control Group, composed of employees across various locations,monitors the activity of customers and buyers to detect indications of fraud. Atradius also provides fraud awarenesstraining and advice to employees and customers to help identify fraudulent buyers. Internal fraud is addressed
through manual and automated operational controls such as the segregation of duties, application of signingauthorities and role-based system privileges and authorities.
Cyber risk – refers to the risk of financial loss, disruption or damage to reputation due to failure of IT systems.
Risks include: an event impacting the data centre (covered via Business Continuity / IT Disaster Recovery), security
incidents, network vulnerabilities, unauthorised activity, malicious code changes, application specific vulnerabilities
and unauthorised software. The Atradius Information Security team monitors and addresses threats and coordinates
the management of cyber risk across the Group.
Within the cyber risk realm, “ransomware” variant malware (viruses) is observed as a growing threat. The current
threat landscape highlights the importance of education for end users on topics such as, phishing, maintaining
software and the dangers of unsupported or non-authorised software. To minimise this risk cyber risk awareness is
included in staff training. Further mitigation of this risk includes protections for critical Atradius applications andMulti-Factor Authentication for remote access. A medium-term Cyber Security Strategy is in place to increase Atradiusgovernance, protection, resilience and vigilance.
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 the registers provides
input to local management meetings and is also reviewed by an Operational Risk Committee and during meetings ofthe Management Board. This ensures that operational risks are evaluated from all management perspectives.
While risk registers use a top-down approach to capturing risks, Atradius also uses a bottom-up approach of control
self-assessments to identify and assess risks and any control weaknesses inherent in business processes.
On a quarterly basis, Atradius conducts specific assessments of processes and controls covering financial reporting
risks, including reporting for regulatory compliance purposes; the resulting ‘in control’ sign-off process is overseen by
a committees with representatives from Group Risk Management, Finance and Internal Audit.

4.4.1.2

Business continuity management

Atradius recognises the importance of being able to recover its critical business processes in the event of any major
operational disruption. A Business Continuity Management (BCM) programme is embedded in the organisation toensure the continuity of the Business in the event of severe disruptions. The BCM programme is aligned with theInternational Standard ISO22301. The Group Business Continuity manager co-ordinates the documentation,
maintenance and continual testing of practical plans for recovering key business activities within acceptable
timeframes.
Covid-19 – Following the initial ‘lockdowns’ in most countries and travel bans, actions were taken to ensure humanresource and IT capabilities were sufficient to maintain the expected level of customer service and to manage the risk
exposure. During 2021 many employees were still working remotely and will continue to do so as necessary as wemove into 2022. Atradius has adapted its business continuity arrangements to address new ways of working such as
the hybrid working model which involves a mixture of in-office and remote working. As of the end of 2021, IT systems
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are stable and collaboration tools have been enhanced for the whole workforce. Overall service to customers and allother parties is being maintained at a high standard.
In early 2020, the Group Incident Management Team (GIMT) (comprised of the Management Board and additional
senior management from relevant departments) launched regular monitoring, reporting and meetings in order tosteer the Covid-19 response on a global level. At the end of October 2021, it was agreed that the Company has passed
the most difficult part of the crisis; severity of impacts may increase and decrease, but it is expected that it will notrevert to the situation in 2020. While regular monitoring and reporting on the situation in local offices continues, the
GIMT ceased its regular meetings. If needed, the GIMT will be reconvened.

4.4.1.3

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 Atradius
employees and that govern the Atradius operations and business conduct towards customers, brokers and all parties
involved in Atradius business.
Atradius has set up several additional compliance policies for more specific areas which set out the requirements that
Atradius’ employees must adhere to. For example, the Policy on Customer Due Diligence and Policy on Sanctions
address potential sanctions risks. Atradius also has a Data Protection Framework in place, which includes controls,
policies and procedures to comply with the applicable data protection legislation. All the compliance policies areavailable to employees an are reviewed on a regular basis.
The compliance function – led by the Group Compliance Manager- supports the management of Atradius in meeting its
objective of being compliant with applicable laws, rules and external and internal regulations. The Group compliancefunction is responsible for the maintenance and overall effectiveness of the compliance framework at Group level andthe local compliance function monitors regulatory and compliance developments at local country level.

4.4.1.4

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

4.5

Capital management

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

4.5.2 Atradius' objectives, policies and processes with regard to capital
The Company shows a robust capital and solvency position.
Atradius manages capital worth more than two billion euro. Per year-end 2021, the capital includes shareholders’funds of EUR 2.1 billion and subordinated debt of EUR 250 million (nominal value). The subordinated debt includes
49

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Atradius | Consolidated financial statements 2021 Atradius N.V.

subordinated notes of EUR 250 million (nominal value) classified as Level 2 under the fair value hierarchy and as Tier
2 basic own funds for Solvency II.
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 2021, 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 2021 the eligible own funds under Solvency II for the Company amounts to EUR 2,448 million (2020:
EUR 2,173 million).

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Atradius | Consolidated financial statements 2021 Atradius N.V.

5

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
financialstatements
2021 Atradius
All amounts
in thousandsof Euro,unless otherwise
stated N.V.

Business segment

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 other income

135,591--

135,591

115,058--

250,649

-

-

-

-

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 toreinsurers(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 from reinsurers

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 to reinsurers

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)

Operating segment result

292,760

16,013(8,921)

299,852

14,731-(12,079)

302,5032021

Inter-segment revenue

Share of income/ (losses) of
associated companies

15,963

Net income from investments

19,613Finance income

944

Finance expenses(11,008)

Result for the year before tax

328,015

Income tax expense(87,766)

Result for the year

240,249

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)

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Atradius
N.V.
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Consolidatedfinancial
financialstatements
statements
2021
Atradius
N.V.

Business segment

Creditinsurance

Bonding

Reinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Group
costs

Total

1,453,060

123,586

150,764

1,727,410---

1,727,410

133,071--

133,071

118,927--

251,998

-

-

-

-

3,381

(3,381)--

Total revenue

1,586,131

123,586

150,764

1,860,481

122,308(3,381)-

1,979,408

Insurance premium
ceded to reinsurers(821,278)(50,178)(27,904)(899,360)---(899,360)

2020
Insurance premium
revenue
Service and otherincomeInter-segment revenue

Total segment income
after reinsurance
Insurance claims andloss adjustment
expensesInsurance claims andloss adjustment
expenses recoveredfrom reinsurers

764,853

73,408122,860

961,121122,308(3,381)-

1,080,048(927,363)(38,183)(124,617)(1,090,163)

-

2,623

-

(1,087,540)

513,761

15,12823,649552,538---

552,538

Net insurance claims(413,602)(23,055)(100,968)(537,625)

-

2,623

-

(535,002)(554,030)(43,431)(58,572)(656,033)(120,862)

758(8,420)(784,557)

295,129

19,412

4,134

318,675---

318,675(258,901)(24,019)(54,438)(337,358)(120,862)

758(8,420)(465,881)

92,35026,334(32,546)

86,1381,446-(8,420)79,164Gross operating
expensesCommission received
for business ceded toreinsurers
Net operating expenses
Operating segment
resultShare of income/(losses) of associatedcompanies
Net income frominvestments

3,008
11,314

Finance income

2,608

Finance expenses
Result for the year
before tax(18,089)

Income tax expense(33,839)

Result for the year

44,167

Business segment

78,006

Creditinsurance

Bonding

Reinsurance

Total
insurancebusiness

Services

Intersegment
elimination

Total

Reinsurance contracts

638,686

154,941

56,878

850,505--

850,505

Receivables

218,019

21,2803,057

242,356

5,664(3,016)

245,004

-

-

-

-

-

-

4,284,739

Total assets

856,705

176,22159,935

1,092,861

5,664(3,016)

5,380,248

Insurance contracts

1,167,214

321,455

414,057

1,902,726--

1,902,726

Payables342,906

32,841

588

376,335

15,730(13,469)

378,595

-

-

-

-

-

-

1,185,633

1,510,120

354,296414,6452,279,061

15,730(13,469)

3,466,954

2,704

143

27

2,874

629

-

3,503

2020

Unallocated assets

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

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103

All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

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 (2020: 60% and 40% respectively), based on premium volume.

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Atradius | Consolidated financial statements 2021 Atradius N.V.

6

Intangible assets

2021

Goodwill

Software

Other 1)Total

At cost at 1 January

151,423

332,486

30,376514,285

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

-

8,850

-

8,850

Impairment-(43,005)-(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

137,687

118,876

2,295

258,858

Balance at 31 December

137,686

96,052

1,152

234,890

+
+ +

++

++

++

2020

Goodwill

Software

Other 1)Total

At cost at 1 January

151,425

305,339

30,468487,232

Additions-

39,151-

39,151

Disposals-(6,004)-(6,004)

Effect of movements in foreign exchange rates(2)(6,000)(92)(6,094)

At cost at 31 December

151,423

332,486

30,376514,285

Accumulated amortisation and impairments at 1 January(10,736)(191,766)(27,029)(229,531)-(14,411)(1,144)(15,555)

Amortisation charge for the year
Disposals

5,061

-

5,061

Impairment(3,000) --(16,830)-(19,830)

Effect of movements in foreign exchange rates
Accumulated amortisation and impairments at 31 December(13,736)

4,336(213,610)

92(28,081)4,428(255,427)

Balance at 1 January

140,689

113,573

3,439

257,701

Balance at 31 December

137,687

118,876

2,295

258,858

1) 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.
The goodwill allocated to the main cash-generating units or groups of units (CGU’s) is presented in the following table:

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All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

Cash-Generating Units

2021

2020

ACyC 1)

98,797

98,797

Graydon Holding N.V.

17,931

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

ACyC (Nordic bonding) 2)

2,565

2,566

Other

4,450

4,450

Total

137,686

137,6871) 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), except for Graydon
which is determined using discounted cash flow model (DCF). The dividend flows are estimated using a projection
period and a normalised period. The projection period is 10 years towards covering a through-the-economic cycle
performance, where the first 1-4 year projections are based on financial budgets and/or forecasts. The remaining years
are estimated using ratios and growth 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, which are Graydon Holding N.V. and ACyC, thediscount rate applied is between 6.7% and 8.9% and the growth rate is between 1% and 2%, respectively. The terminal
value is calculated based on the dividend flows of the normalised period through a perpetuity which applies a longterm growth rate of 2% for CGUs excluding Graydon Holding N.V. and ACyC and a 3% for associated companies (2020:
2%-3%) and the specific discount rate. Any profits, after fulfilling minimum capital requirements, are assumed to be
distributable dividends. Minimum capital requirements are calculated taking into account local solvency rules, theSolvency II Partial Internal Model and minimum shareholders equity required (non-distributable).
CGU are defined by line of business according to the way we manage and steer the operational business.
An approximation of the sensitivity of the following assumptions would impact the CGU market value by thepercentages shown below (other CGUs are not included due to immaterial impacts):

Discount rate

Growth rate2021

+50bp -50bp+50bp -50bp

ACyC

-6.5%

7.6%

1.2%

Graydon Holding N.V.

-8.1%

9.8%

11.1%

Cash-Generating Units

Combined ratio

Solvency ratio

1)

2)

+50bp

-50bp

+1,000bp -1,000bp

-1.0%

-2.2%

2.2%

-5.8%

5.9%

-9.2%

10.2% -10.2%

0.0%

0.0%

Atradius Trade Credit Insurance Inc.

-17.3% 25.0%

20.2% -14.0%-15.1%

15.1%

0.0%

0.0%

Atradius Collections B.V.

-16.3% 29.2%

24.5% -13.5%

0.0%

0.0%

0.0%

0.0%

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%

Discount rate

Growth rate

2020

+50bp -50bp+50bp -50bp

ACyC

-4.8%

Cash-Generating Units

5.5%

0.3%

-0.3%

Combined ratio

Solvency ratio

1)

2)

+50bp

-50bp

-2.2%

2.2%

+1,000bp -1,000bp
-4.6%

4.6%

Graydon Holding N.V.

-10.9% 13.2%

13.7% -11.3%

11.3%-11.3%

0.0%

0.0%

Atradius Trade Credit Insurance Inc.

-14.0% 20.5%

16.2% -11.1%

-3.4%

2.3%

-0.1%

-0.1%

Atradius Collections B.V.

-23.0% 40.1%

34.1% -19.6%

0.0%

0.0%

0.0%

0.0%

ACyC (France)-17.6% 28.3%

23.4% -14.5%

-0.1%

6.5%

-3.0%

14.3%

ACyC (Nordic bonding)-13.6% 21.6%

17.5% -10.8%

-0.1%

5.0%

-2.9%

2.8%

1)

For Graydon Holding N.V., as a non-insurance CGU, the profitability variable used has been the EBITDA and the sensitivities are shown in this column.

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Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 Atradius N.V.
2)

With the same required capital.

No sensitivity analysis mentioned above, both individually and combined, would assume that the carrying amount of
the GCUs would exceed their market value, except for Graydon Holding N.V.
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 43 million (2020 EUR 16.8 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. In addition, during 2021, Atradius has also capitalised EUR 32.8
million mainly due to the Atradius Business Transformation projects (2020: EUR 32.6 million).

7

Property, plant and equipment & investment property

2021

Land &
buildings

Fixtures &fittings

IT
hardwareRight of
Use assets

Total
property,plant &
equipment

Investment
property

At cost at 1 January

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

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Atradius| Consolidated
financial
2021 Atradius
All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.

2020

Land &
buildings

Fixtures &fittings

IT
hardwareRight of
Use assets

Total
property,plant &
equipment

Investment
property

At cost at 1 January

107,01065,48455,541

107,851

335,886

18,195Additions

365

7,108

7,205

27,12541,803-

Disposals-(2,140)(3,045)(3,628)(8,813)(592)

Reclassification
Effect of movements in foreignexchange rates(16,573)---(16,573)

16,573

(211)

(315)

(1,187)(2,337)(4,050)(82)

At cost at 31 December

90,591

70,13758,514129,011348,253

34,093

Accumulated depreciation andimpairments at 1 January(13,967)(44,421)(44,812)(22,635)(125,834)(4,207)

Depreciation charge for the year

(991)

(4,544)(5,782)(22,314)(33,632)(249)

Disposals

-

2,007

2,958

2,072

7,037

117

Impairment / reversal impairment

13

-

-

-

13

27

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

3,379

-

-

-

3,379

(3,379)

37

150

806

618

1,611

10

(11,529)(46,808)(46,830)(42,259)(147,426)(7,681)

Balance at 1 January

93,04321,063

10,72885,216210,051

13,988

Balance at 31 December

79,061

23,329

11,68486,752200,827

26,413The increase in the depreciation charge for the year under Fixtures & fittings is driven by the change on Madrid's
headquarters.
The depreciation charge on property for own use is reported as part of net operating expenses. The depreciation
charge on investment property is reported as part of net income from investments.
The fair value of land and buildings for own use and of investment property is presented in the following table:
Property own use

Investment property

2021

2020

2021

2020

Spain and Portugal

77,89077,796

21,25921,259Italy

20,65020,650443

681

Mexico

4,554

4,026

1,518

1,342

Other

244

1,065

Total

103,338

103,537

23,22023,282

Fair value measurement
Land and buildings are independently appraised by real estate valuers, which are registered in the relevant countries
and have appropriate qualifications and experience in the valuation of properties. Atradius usually revalues land andbuildings every two years.
All significant inputs used in the measurement are market observable and the fair value is therefore classified in Level
2 in the fair value hierarchy (as in 2020). 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.

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Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 Atradius N.V.

The estimated fair value of the properties is directly dependant on the changes of the inputs used. There has been nochange in the valuation techniques used compared to prior year.
The investment property can be classified as follows: 93% office (2020: 94%) and 7% retail (2020: 6%).
Direct operating expenses incurred (including repairs and maintenance) arising from investment property are EUR 31
thousand (2020: EUR 29 thousand). During the year an amount of EUR 401 thousand (2020: EUR 513 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 323 thousand for
non-cancellable contracts (In 2020, expected rental income for next year was 402 thousand for non-cancellable
contracts).

Leases: Right of Use Assets
Right of Use assets consist of office space (94%), 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:
2021

2020

80,911

88,144

Interest expenses on lease liabilities(2,221)(2,196)

Expenses relating to short-term leases

(516)

(580)

Expenses relating to low-value assets

(27)

(26)

22,497

26,183

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

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All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

8

Subsidiaries

The following table sets forth, as at 31 December 2021, 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. The companies are listed in alphabetical order.
Name

Country

Accento Services S.R.L.

Belgium

African Trade Insurance Agency

Kenya

Atradius Collections B.V.

Netherlands

Belgium branch

Belgium

Atradius Finance B.V.

Netherlands

Czech Republic branch

Czech Republic

Atradius Information Services B.V.

Netherlands

Denmark branch

Denmark

Belgium branch

Belgium

France branchFranceDenmark branch

Denmark

Germany branch

Germany

France branchFranceHungary branch

Hungary

Germany branch

Germany

Ireland branch

Ireland

Ireland branch

Ireland

Italy branch

Italy

Italy branch

Italy

Poland branch

PolandJapan branch

Japan

Portugal branch

Portugal

Norway branch

NorwayTurkey branch

TurkeySpain branch

Spain

Atradius Collections DMCC

United Arab Emirates

Sweden branch

SwedenAtradius Collections Holding B.V.

Netherlands

Switzerland branch

Switzerland

Atradius Collections Limited

CanadaTaiwan branch

TaiwanAtradius Collections Limited

Hong Kong

Thailand branch

Thailand

Atradius Collections Limited

United Kingdom

United Kingdom branch

United Kingdom

Atradius Collections Pte. Limited

Singapore

Atradius Information Services Vietnam Company Limited

Atradius Collections Pty. Limited

Australia

Atradius India Credit Management Services Private Ltd.

India

Atradius Collections Serviços de Cobranças de Dívidas Ltda

BrazilAtradius Insurance Holding N.V.

Netherlands

Ownership

1 shareName

Country

Atradius Crédito y Caución Seguradora S.A.
Atradius Dutch State Business N.V.

BrazilNetherlands

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

China

Ownership

Vietnam

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

MexicoAtradius Italia Intermediazioni S.R.L.

Italy

Atradius Collections S.L.

Spain

Atradius Participations Holding S.L.U.

Spain

Atradius Collections, Inc.

USA

Atradius Pension Trustees Ltd.

United Kingdom

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

China

Atradius Reinsurance DAC

IrelandAtradius Credit Insurance Agency, Inc.

USA

Atradius Reinsurance DAC Escritório de Representação no Brasil Ltda.

BrazilAtradius Credit Management Services B.V.

Netherlands

Atradius Rus Credit Insurance LLC

RussiaAtradius Credit Management Services (RUS) LLC

RussiaAtradius Seguros de Crédito, S.A.

MexicoAtradius Crédito y Caución S.A. de Seguros y Reaseguros

Spain

Atradius Trade Credit Insurance, Inc.

USA

Australia branch

Australia

Atradius Trade Insurance Brokerage Yuhan Hoesa

South Korea

Austria branch

Austria

CLAL Credit Insurance Ltd.

Israel20%

Belgium branch

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

Tunisia

3.92%

Bulgaria branch

Bulgaria

Compania de Seguros de Crédito Continental S.A.

Chile

50%*

Canada branch

CanadaCredit Guarantee Insurance Corporation of Africa Ltd

South Africa

25%

Czech Republic branch

Czech Republic

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

BrazilDenmark branch

Denmark

Giant-net B.V.

Netherlands

Finland branch

Finland

Graydon Holding N.V.

Netherlands

France branchFranceGraydon Nederland B.V

Netherlands

Germany branch

Germany

Graydon Belgium N.V.

Belgium

Greece branch

GreeceGraydon UK Ltd.

United Kingdom

Iberinform Internacional S.A.U.

Spain

Hong Kong branch

Hong Kong

Hungary branch

Hungary

Portugal branch

Portugal

Ireland branch

Ireland

Iberinmobiliaria, S.A.U.

Spain
MexicoItaly branch

Italy

Informes Mexico, S.A. de C.V.

Japan branchJapan

B2B SAFE, S.A.

Spain

Luxembourg branch

Luxembourg

Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden N.V.

Netherlands

Netherlands branch

Netherlands

OpenCompanies B.V.

Netherlands

0.5%

New Zealand branch

New Zealand

PT Atradius Information Services Indonesia

Indonesia

Norway branch

NorwayPakula, Podębski i Wspólnicy Kancelaria Prawna spółka komandytowa

Poland99.99%

Poland branch

PolandThe Lebanese Credit Insurer s.a.l.

Lebanon

48.9%

Portugal branch

Portugal

Verenigde Assurantiebedrijven Nederland N.V.

Netherlands

0.65%

Romania branch

Romania

Singapore branch

Singapore

Slovakia branch

Slovakia

Sweden branch

SwedenSwitzerland branch

Switzerland

Turkey branch

TurkeyUnited Kingdom branch

United Kingdom*Minus one share

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

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Atradius | Consolidated financial statements 2021 Atradius N.V.

9

Investments in associated companies
2021

2020

Balance at 1 January
Results of income

62,816
15,963

63,110
3,008

Share of income of associated companies

15,963

3,008

Dividends received
Revaluations
Effect of movements in foreign exchange rates

(906)
(454)
(1,796)(372)
259(3,189)Balance at 31 December

75,62362,816

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 2021 and 31 December 2021.
Atradius assessed the goodwill for impairment of investments in associated companies. Based on this assessment
Atradius has decided that no impairment is needed in 2021 for the goodwill related to investments in associatedcompanies.
Atradius Participations Holding S.L. has entered into a share purchase agreement to sell its shares in The LebaneseCredit Insurer s.a.l. The closing of the transaction is expected to take place in 2022.

Credit Guarantee Insurance Corporation of Africa Limited
CLAL Credit Insurance Ltd., Tel Aviv
Compañía de Seguros de Crédito Continental S.A., Santiago de
Chile
The Lebanese Credit Insurer s.a.l., Beirut

Country ofincorporation% interest
heldType of business

South Africa

25.00%

Credit insurance

Israel20.00%

Credit insurance

Chile

50.00% 1)

Credit insurance

48.90%

Credit insurance

Lebanon1) Minus one share

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

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Atradius| Consolidated
financial
2021 Atradius
All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.

2021

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

Compañía de The Lebanese
Seguros de Credit Insurer
Créditos.a.l.
Continental
S.A. 1)

Other

Total

Atradius 's interest
Goodwill

-

380

1,611

-

-

1,991

Net assets

20,79817,29835,536--73,632Carrying amount

20,79817,67837,147--75,623

Share of income of associatedcompanies

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

83,19386,49071,077--240,760

Result for the year

22,131

7,768

17,746--47,645

-

380

1,611

-

-

1,991

Net assets

15,353

13,83831,634--60,825Carrying amount
Share of income of associatedcompanies

15,353

14,21833,245--62,816

(67)

759

2,298

18

-

3,008

-

-

(372)

-

-

(372)

Assets

128,417

95,722

124,7896,614-

355,543

Liabilities

67,004

26,53561,517

6,614-

161,669

Revenue

38,097

13,35013,577

4,299-

69,324

Net assets

61,413

69,18863,273--

193,874

(269)

3,796

4,592

39

-

8,158

Dividends received

Associated companies

2020
Atradius 's interest
Goodwill

Dividends received

Associated companies

Result for the year

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

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Atradius | Consolidated financial statements 2021 Atradius N.V.

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

2020

2021

2020

2021

2020

Equity securities

507,299

388,726--

507,299

388,726

Debt securities

2,264,924

2,167,358--

2,264,924

2,167,358

Loans

-

-

7

9

7

9

Short-term investments--

168,028

111,995

168,028

111,995

Cash held for investments--

37,796

10,73837,796

10,7382,772,223

2,556,084

205,831

122,7422,978,054

2,678,826

Total

Loans and receivables 1)

Total1) There are no bank deposits tacitly renewable in 2021 and 2020.

Movements in available-for-salefinancial investments

Equity securities
2021

2020

2021

2020

2021

2020

Balance at 1 January388,726

370,138

2,167,358

2,066,629

2,556,084

2,436,767

Additions

70,386

131,927

1,051,144

939,685

1,121,530

1,071,612

Disposals(15,286)(89,791)(943,494)(806,948)(958,780)(896,739)--(17,829)(19,307)(17,829)(19,307)60,500(22,239)(17,997)

13,52542,503(8,714)2,973(1,309)25,742(26,226)

28,715(27,535)

507,299

388,726

2,264,924

2,167,358

2,772,223

2,556,084

2021

2020

Accounts receivable on insurance and reinsurance business

210,884

173,057

Amounts owed by policyholders and direct insurance operations

144,010

133,984

Receivables arising out of reinsurance

66,87439,073

Other account receivable

163,723

71,947

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

Debt securities

Total

For disclosures about the temporary exemption from IFRS 9, please refer to Note 4.3.2

11 Receivables

Total
374,607245,004
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).
An amount of EUR 85 million (2020: EUR 71 million) relates to past due receivables on insurance and reinsurance
business for which no impairment loss has been recognised, 91.2% (2020: 88.3%) relates to receivables ageing less than
three months.
All receivables are considered for impairment testing. As of 31 December 2021, receivables of EUR 26.7 million (2020:
EUR 26.3 million) were considered to be partially impaired. The amount of the impairment taken related to these63

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Atradius | Consolidated financial statements 2021 Atradius N.V.

receivables was EUR 13.3 million (2020: EUR 12.2 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 2021 is EUR 1.6 million (2020: EUR 1.9 million).
The significant increase on other accounts receivables is coming from Dutch State Business, offset by an equalincrease on accounts payables.
Movements on the provision for impaired receivables are presented in the following table:

2021

2020

Balance at 1 January

12,164

13,218

Impairment of receivables

10,417

8,657

Receivables written off during the year as uncollectable(9,289)(9,076)

(17)

(635)

13,275

12,164

Unused amounts reversed
Balance at 31 December

The 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 4.3.2.1

12 Deferred acquisition costs
2021

2020

Balance at 1 January

68,96776,300

Deferred in the year

25,291

21,438

Amortisation change for the year

(20,443)(24,380)

Effect of movements in foreign exchange rates

3,758(4,391)

Balance at 31 December

77,574

68,967

Current

42,971

39,171

Non-current

34,60429,797

2021

2020

Pipeline and return premium ceded

418,768

356,156

Prepayments and accrued interest

35,036

31,548Net pension plan asset

88,37153,667

Reimbursement rights

6,931

8,414

Other

26,67825,651

Total

575,784

475,436

13 Other assets and accruals

Pipeline premium relates to shipments made by Atradius’ policyholders for which Atradius is at risk but has not
invoiced the premium.
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Prepayments and accrued interest, relate to payments in advance for which the Company has received and invoice for
future services or goods, and interest of financial investments for which Atradius is entitled but has not received yet.
The other assets and accruals are substantially all current and consequently the fair values of these assets do notmaterially differ from their carrying amounts.
The reimbursement rights relate to the Spanish pension plans. Since the related policies do not qualify as an insurance
policy under IAS 19, the fair value cannot be netted with the related pension liability (see Note 17).
The net pension plan asset concerns the surplus of the pension plan in the UK; as per 31 December 2021 is EUR 88.4
million (2020: EUR 53.7 million) (see Note 17).

14 Cash and cash equivalents
2021

2020

Cash at bank and on hand

497,751

422,546

Short-term bank deposits

1,642

2,195

Cash and cash equivalents

499,393424,741

Cash and cash equivalents

499,393424,741

Cash and cash equivalents in the statement of cash flows

499,393424,741

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.

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 (2020: the same) of which 79,122,142 ordinary shares were issued and fully
paid (2020: 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 2021 were of EUR 3.0 per share.

15.2

Share premium reserve
2021

2020

Balance at 1 January639,228

639,228

Balance at 31 December

639,228

639,22865

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15.3

Revaluation reserve
2021

2020

Balance at 1 January

80,811

81,919Change in revaluation reserve - gross

44,131(1,303)

Change in revaluation reserve - tax(10,127)

3,933

Net (gains)/losses transferred to net profit on disposal - gross(5,330)(4,810)Net (gains)/losses transferred to net profit on disposal - tax

1,369

1,072

110,854

80,811

2021

2020

Balance at 1 January(79,989)(50,372)

Change in currency translation reserve - gross

18,791(31,447)

Change in currency translation reserve - tax

(761)

1,830

(61,959)(79,989)

Balance at 31 December

15.4

Currency translation reserve

Balance at 31 December

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

15.5

Pension reserve
2021

2020

(166,607)(160,591)

Recognised actuarial gains/(losses)

31,698(6,016)

Change in pension reserve - gross

40,291(11,868)

Balance at 1 January

Change in pension reserve - tax(8,593)

5,852

Pension plan de-risking reclassification to Retained earnings

79,826-

Change in pension reserve - gross

106,475-

Change in pension reserve - tax(26,649)-

Balance at 31 December(55,082)(166,607)

2021

2020

1,316,561

1,191,712

Appropriation of prior year result

44,167

227,708

Pension plan de-risking(79,826)-

Dividends(90,991)(102,859)

1,189,911

1,316,561

The main drivers of the pension reserve variance are explained in Note 17.

15.6

Retained earnings

Balance at 1 January

Balance at 31 December

The NL Pension Plan de-risking has had an impact in retained earnings due to the reclassification of accumulated
actuarial losses net of taxes (previously shown under pension reserve) of EUR -79.8 million.

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 the66

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Atradius | Consolidated financial statements 2021 Atradius N.V.

Company’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 11 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
2021

2020

Balance at 1 January324,177

323,982

Redemption of the subordinated loan

(75,000)

-

206

196

249,383

324,177

Accretion of interest
Balance at 31 December

On 23 September 2014, Atradius Finance B.V. issued guaranteed subordinated notes with a nominal value of EUR
100,000 each for an aggregate amount of EUR 250 million (the ‘notes’). 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 280 million (2020: EUR 276
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.
Atradius Reinsurance DAC, Ireland is sufficiently capitalised and therefore, on 28th September 2021 redeemed 100% of
its outstanding subordinated loan with a principal amount of EUR 75 million together with the EUR 1.7 million
accumulated interest amount as of that date. Prior to the redemption, the Irish supervisor (the CBI) provided aconfirmation of “no objection” to the redemption.
The subordinated loan beared interest at a fixed rate of 5.0% per annum, payable annually in arrears on 20 April eachyear. The subordinated loan qualified as Tier 2 basic own funds item as set out in article 73 of the European
Commission's Solvency II Delegated Regulation (2015/35).

17 Employee benefit assets and liabilities
2021

2020

Retirement benefits

91,907

132,341

Other long-term employee benefits

8,098

7,379

100,005

139,720

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

17.1

Retirement benefits
67

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(*)

Atradius| Consolidated
financial
2021 Atradius
All amounts
in thousandsof Euro,statements
unless otherwise
stated N.V.

The employee benefit assets and liabilities relate mainly to pension assets and liabilities for defined benefit plans.
In 2021 a substantial change took place regarding the Dutch defined benefit pension plan, an agreement between thelegally involved stakeholders to change this defined benefit plan, as of 31 December 2021 to a new defined
contribution plan.
The assets (EUR 459 million) and accrued pension liabilities (EUR 430million) have been fully transferred to a third
party insurance company by way of a buy-in, followed by a buy-out. This operation has been approved by the Dutch
Central Bank. The external insurance company is fully responsible for future execution of the pension plan as of 27thof October 2021 (buy-in). Atradius has decided to provide the curtailment gain (EUR 29 million) as a contribution to thedefined benefit plan. All liquidation costs will be assumed by Atradius NV.In addition, due to this operation there has
been a reclassification of the respective accumulated actuarial losses of EUR 106 million (EUR 80 million net of tax)
from Pension Reserve to Retained earnings. Further details of this change is disclosed in the table below.
The main defined benefit plans as of December 31, 2021 are in the United Kingdom and Germany and these represent
respectively 100% ((2020: 100%) of the net pension plan assets booked in the assets and 74% (2020: 73%) of the defined
benefit obligation booked in the liabilities. Other plans are related to Spain, Italy, Switzerland, Sweden, Belgium,
Norway, France and Mexico. The DBO of these plans are between EUR 0.8 - EUR 12 million (2020: EUR 0.7 - EUR 11
millions) and the number of participants are between 13 and 451 (2020 between 18 and 470).
Within Atradius there are also defined contribution plans. The contributions to these plans are recognised as expenses
in the income statement. The total contributions amounted to EUR 13.2 million in 2021 (2020: EUR 11.8 million).
Pension assets and liabilities
The following table presents the change in the value of the net defined benefit liability:

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Defined benefit
obligation

Fair value of plan
assetsNet defined benefit(asset) liability

2021

2020

2021

2020

2021

2020

1,017,679

958,282

885,338

840,040

132,341

118,242

Additions

-

-

-

-

-

-

Included in the income statement:

-

-

-

-

-

-

15,64914,806--

15,64914,806

(228)

279

-

-

(228)

279

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

Settlement (Gain)/ Loss (**)

(430,687)-(459,970)-

29,283-

Interest cost / income

11,225

12,022

11,06912,001156

21

Administration costs

661

630

-

-

661

630

(432,560)

27,737(448,901)

12,001

16,341

15,736- demographic assumptions(9,238)(8,141)--(9,238)(8,141)- financial assumptions

6,848

86,569

-

-

6,848

86,569- experience adjustments(17,424)(7,027)--(17,424)(7,027)--

21,21461,013(21,214)(61,013)(19,814)

71,401

21,21461,013(41,028)

10,388Contributions paid by the employer(4,000)(3,658)42,327

11,426(46,327)(15,084)

Plan participants contributions

1,995

2,039

1,995

2,039

-

-

Benefits paid

(21,396)(21,178)(21,396)(21,178)--

Effect of movements in foreign exchange rates

22,037(16,944)

26,161(19,729)(4,124)

2,785

-

-

(34,704)(274)

34,704274(1,364)(39,741)

14,383(27,716)(15,747)(12,025)

563,941

1,017,679

472,034

885,338

91,907

132,341

Balance at 1 January (*)

Current service cost
Past service cost - Plan Amendment

Total included in the income statement

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

Other:

Reclassification of surplus plan assets
Total other

Balance at 31 December(*)

The opening balance includes the Dutch pension plan (DBO: EUR 452 million; Fair Value of plan assets EUR 420 million)(**) It includes the Dutch pension plan settlement (DBO EUR 29.180 million) and Mexico settlement (DBO EUR 0.103 million)

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 16.9 million (2020: 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 37.6
million of financial investments (2020: EUR 38.2 million) is on an escrow account to support the UK pension fund. In
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the event of insolvency, the Trustee of the pension fund has the right to those investments, provided certain conditions
are met.
The surplus of the UK pension plans as per 31 December 2021 is EUR 88.3 million (2020: EUR 53.7 million) 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 6.5 million (2020: EUR 7.7
million). At the end of 2021, the defined benefit obligation related to the reimbursement rights amounts to EUR 15.5
million (2020: EUR 15.8 million). This same defined benefit obligation has in addition plan assets of EUR 13.1 million(2020: EUR 13.8 million).

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Atradius | Consolidated financial statements 2021 Atradius N.V.

Characteristics of the main defined benefit plans
Characteristic
Entitlement

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

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

Number ofparticipants

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

478 active members (2020: 484
active members).
476 inactive members (2020:
466 inactive members).

Defined benefit
obligation
Plan assets

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

Remeasurement
gain (loss) through
OCI
Fundingarrangement

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

EUR 154 million (2020: EUR 154
million).
EUR 89.0 million (2020: EUR 83.8
million). Assets of EUR 16.9
million (2020: EUR 16.9 million)
are recognised as part of thefinancial investments.
EUR 4.7 million - gain (2020: EUR
7.0 million - loss).

Employeecontributions

In 2021 contributions amounted
to 7.1% (2020: 7.1%) of the eligible
salary.
A Cash Driven Investment
portfolio has been implemented
that combines Buy & Maintain
Credit with a Liability Driven
Investment, to provide
contractual income that aligns
with the timing of the pension
liability cash flow payments
together with a 100% interest
rate and inflation rate liability
hedge to maintain Selfsufficiency.
The UK pension plan is subject toUK pensions legislation andguidance issued by the Pensions
Regulator in the UK

ALM-strategy

Regulatory
Framework(*)

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

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

The Netherlands(*)
Pension entitlements werebased on a percentage of theaverage salary (maximum of
EUR 0.1 million - closed to new
employees).
261 active members in 2021
(2020: 275 active members).
1,221 in 2021 (2020: 1,361
inactive members).
EUR 0 in 2021 (2020: EUR 452
million).
EUR 0 in 2021 (2020: EUR 420
million).

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

The amounts and figures disclosed for 2021 are as of 27 of October 2021, when NL Pension Plan ended

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, a Pension Trust eV in Germany and a Pension Fund in the
Netherlands). The boards of these entities compromises 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 likeinterest rate risks and investment risk.
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Atradius | Consolidated financial statements 2021 Atradius N.V.

Fair value of plan assets
The fair value of plan assets at the end of the reporting period is analysed in the following table:

Plan assets 2021
Belgium
Germany
MexicoNorwaySpain
SwedenSwitzerland
The Netherlands
United Kingdom
Total

Plan assets 2020
Belgium
Germany
MexicoNorwaySpain
SwedenSwitzerland
The Netherlands
United Kingdom
Total

Debt
Cash and cash Equity
instruments instruments
equivalents(495)
32,71456,735
17
208
366
1,604
3,766
299,054
3,271

33,097357,601

Cash and cash Equity
Debt
equivalents
instruments instruments
1,709
29,48052,597
21
757
6,575
8,213
16,497381
152,544
182,426

1,670
278,412333,436

Investment Insurance
funds
contracts
42,536
2,899
13,160507
4,001
14,624
15,13162,596Real
estate338-

Total 2021
42,536
88,954225
2,899
13,1602,815
4,001
317,444338

472,034

Investment Insurance Real
funds
contracts estate
45,332527
260,751
13,038274,316

3,416
13,781
3,359
65,888

-

Total
2020
45,332
83,786778

351
12,424
12,775

3,416
13,781
2,929
3,359
419,870
312,087
885,338

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. Due to the operation describedabove, the plan assets for The Netherlands associated to the Dutch Pension fund plan have been liquidated andtransfered to the insurance company.
The return on plan assets is determined by multiplying the fair value of the plan assets by the discount rate as
determined at the start of the annual reporting period, taking account of any changes in the plan assets held during theperiod as a result of contributions and benefit payments. The actual return on plan assets (including reimbursement
rights) was EUR 31.1 million – gain (2020: EUR 71.7 million - gain).
Actuarial assumptions
The principal assumptions used for the purpose of the actuarial valuations are reviewed country by country by anindependant external consultant and approved by the managment. In the following table are presented the ones
related the two main defined benefit plans:

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Atradius | Consolidated financial statements 2021 Atradius N.V.

Principal actuarial assumptions

United Kingdom

Germany

2021

2020

2021

2020

Discount rate

2.00%

1.50%

1.00%

0.75%

Price inflation rate

3.50%

2.75%

2.00%

1.75%

Expected increase of future salaries

3.25%

2.50%

2.55%

2.30%

3.36%

2.67%

1.75%

1.50%

CMI 2020 CMI 2019(1.25% LTR) (1.5% LTR)

Heubeck
Richttafeln
2018 G

Heubeck
Richttafeln
2018 G

16

16

Expected increase of future benefit levels
Mortality table

Duration in years

19

20

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

2020 (*)

2021
Increase

Decrease

Increase

Decrease

Discount rate (1% movement)(75,510)98,453(80,023)

106,366

Price inflation rate (1% movement)

77,728(66,265)

86,221(62,994)

Future salary growth (1% movement)

13,665(12,201)

15,445(13,816)

Future pension growth (1% movement)

68,181(56,045)

70,782(57,851)

Future mortality (+1 year)

21,556n/a

21,008n/a(*)

For comparability purposes of the sensitivity analysis, the 2020 comparative values do not include the NL pension plan settled in 2021, as such,these figures do not reconcile with those presented in the 2020 Annual Report

17.2

Defined benefit costs

A total defined benefit cost of EUR 16.7 million (2020: EUR 16.1 million) is recognised in the income statement undernet operating expenses (see Note 27). EUR 16.4 million (2020: EUR 15.8 million) relates to pension plans and EUR 0.3
million (2020: EUR 0.3 million) to other long-term employee benefits.

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18 Insurance contracts
Credit insurance

Gross

Reinsurance
asset
2021

Net

Gross

Reinsurance
asset
2020

Net

Claims reported and loss adjustment
expenses

235,664(148,142)

87,522

240,241(135,408)

104,833

Claims incurred but not reported

974,299(394,056)

580,243827,207(427,019)

400,188

Claims provisions

1,209,963(542,198)

667,765

1,067,448(562,427)

505,021

Provision for unearned premium

343,500(104,394)

239,106

309,116(133,138)

175,978

Total

1,553,463(646,591)

906,871

1,376,563(695,564)

680,999

Claims reported and loss adjustment
expenses

211,950(66,483)

145,467

205,148(70,056)

135,092

Claims incurred but not reported

123,892(20,133)

103,759

100,144(14,024)

86,120Claims provisions

335,842(86,616)

249,226

305,292(84,080)

221,212

Provision for unearned premium

245,129(77,165)

167,964

220,870(70,861)

150,009

Total

580,971(163,781)

417,190

526,163(154,941)

371,222

Total insurance contracts

2,134,434(810,372)

1,324,061

1,902,726(850,505)

1,052,222

Current

1,420,055(550,034)

870,0211,317,684(588,982)

728,703

714,379(260,339)

454,040

585,042(261,523)

323,519

Bonding

Non-current

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
2012-2021 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 2021. 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

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

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

809.6

682.1

753.0

829.6

755.7

770.4

833.8

858.5

992.3

968.0

one year later

764.0

586.0

734.6

780.7

669.6

735.3

890.7

876.6

568.2

-

two years later

704.9

554.6

734.9

744.5

638.5

679.9

826.7

823.5

-

-

three years later

696.3

543.8

732.4

715.0

627.4

675.0

815.8

-

-

-

four years later

684.3

540.9

724.5

701.7

623.7

677.7

-

-

-

-

five years later

685.4

533.2

713.3

706.4

635.5

-

-

-

-

-

six years later

678.1

522.2

707.6

706.4

-

-

-

-

-

-

seven years later

683.2

524.0

703.5

-

-

-

-

-

-

-

eight years later

693.9

523.6

-

-

-

-

-

-

-

-

nine years later
Current estimate of
cumulative claims
Cumulative payments
to date

681.7

-

-

-

-

-

-

-

-

-

681.7

523.6

703.5

706.4

635.5

677.7

815.8

823.5

568.2

968.0

7,103.9

668.4

523.9

685.5

703.9

648.6

676.0

796.5

764.1

363.8

77.1

5,907.8

13.3

(0.3)

17.9

2.5

(13.1)

1.7

19.3

59.5

204.4

890.9

1,196.1

Claims provision at 31
December 2021 inrespect of 2012 - 2021
In respect of prioryears (before 2012)

Total

13.9

Total

1,210.0

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 income
statement. This is relevant for the credit insurance business written by the local business in Spain and Portugal, thereinsurance business and instalment credit protection. The premium earned for underwriting years 2018-2020 in thecurrent financial year for these blocks of business was EUR 119.7 million.
Results for underwriting year 2020 show a significant favourable development on claim cost resulting from the low
entry of claims during 2021 compared to much higher expectations at year end 2020, for claims registrations in 2021,
which did not materialise (see 4.2.6.2).
The claims development table is presented on a gross basis. The effect of risk mitigation is in line with our reinsurance
treaties, quota share and goverment 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
44.8%. Risk mitigation for gross claims incurred as shown in this table varies between 42% and 51% (2020: 41% and54%). 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.

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

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

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

18.98

21.68

18.99

21.03

16.83

13.60

10.59

31.72

29.92

36.08

one year later

48.65

32.58

34.57

26.83

22.83

32.02

36.08

38.30

32.91

-

two years later

53.66

39.14

43.58

31.55

32.89

36.63

46.77

56.69

-

-

three years later

58.36

41.96

45.78

38.17

37.37

40.03

49.75

-

-

-

four years later

58.69

40.99

41.64

44.01

36.79

40.56

-

-

-

-

five years later

58.55

40.24

39.28

41.02

43.87

-

-

-

-

-

six years later

58.09

45.72

41.90

43.94

-

-

-

-

-

-

seven years later

56.19

48.64

39.72

-

-

-

-

-

-

-

eight years later

56.53

46.83

-

-

-

-

-

-

-

-

nine years later
Current estimate of
cumulative claims
Cumulative payments
to date

64.23

-

-

-

-

-

-

-

-

-

64.2

46.8

39.7

43.9

43.9

40.6

49.7

56.7

32.9

36.1

454.6

45.3

29.6

24.7

16.9

25.1

19.8

26.3

18.2

7.2

0.6

213.6

19.0

17.2

15.1

27.0

18.8

20.8

23.4

38.5

25.7

35.5

241.0

Claims provision at 31
December 2021 inrespect of 2012 - 2021
In respect of prior years(before 2012)

Total

94.9

Total

335.8

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 20182020 in the current financial year was 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 goverment 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
25.8%. Risk mitigation for gross claims incurred as shown in this table varies between 11% and 23% (2020: 17% and
28%).

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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
2021

Net

Gross

Reinsurance
asset
2020

Net

Balance at 1 January

1,067,448(562,426)

505,022840,323(346,832)

493,491

Claims paid in the year
Increase/(decrease) in liabilities
arising from claims
Foreign exchange rate and othermovements(320,965)

172,707(148,259)(709,892)

305,001(404,891)

441,411(142,199)

299,211

980,337(535,652)

444,685

22,069(10,278)

11,791(43,320)

15,058(28,262)

Balance at 31 December

1,209,963(542,198)

667,765

1,067,448(562,426)

505,022235,664(148,142)

87,522

240,241(135,408)

104,834

Claims reported and loss adjustment
expensesClaims incurred but not reported

974,299(394,056)

580,243827,207(427,019)

400,188

1,209,963(542,198)

667,765

1,067,448(562,426)

505,022

Balance at 1 January

305,292(84,080)

221,212

294,090(83,784)

210,306

Claims paid in the year
Increase/(decrease) in liabilities
arising from claims
Foreign exchange rate and othermovements(46,565)

15,040(31,525)(44,601)

15,618(28,983)

78,417(17,714)60,70366,369(16,886)

49,483(1,303)138(1,165)(10,565)971(9,593)

Balance at 31 December

335,842(86,616)

249,226

305,292(84,080)

221,213Claims reported and loss adjustment
expenses

211,950(66,483)

145,467

205,148(70,056)

135,092

Claims incurred but not reported

123,892(20,133)

103,759

100,144(14,024)

86,120

Total

335,842(86,616)

249,226

305,292(84,080)

221,213

1,545,805(628,814)

916,991

1,372,740(646,506)

726,235

Total
Bonding

Claims provisions

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Atradius | Consolidated financial statements 2021 Atradius N.V.

18.2.2 Provision for unearned premium
Credit insurance

Gross

Reinsurance
asset
2021

Net

Gross

Reinsurance
asset
2020

Net

Balance at 1 January309,116(133,139)

175,977

332,904(101,679)

231,226

Movement in the period
Foreign exchange rate and othermovements

24,876

31,957

56,833(7,959)(38,251)(46,210)

9,508(3,213)

6,295(15,829)

6,792(9,037)

Balance at 31 December

343,501(104,395)

239,106

309,116(133,139)

175,978

Balance at 1 January

220,871(70,860)

150,011238,912(79,306)

159,606

Movement in the period
Foreign exchange rate and othermovements

19,432(6,104)

13,328(13,442)

6,891(6,551)

4,826

(200)

4,626

(4,599)1,554(3,045)

Balance at 31 December

245,129(77,164)

167,965

220,871(70,860)

150,010

Provision for unearned premium

588,630(181,559)

407,071529,987(203,999)

325,988

Restructuring

Onerouscontracts

Litigation

Total

Balance at 1 January

3,120

-

3,673

6,793

Additional provisions

-

-

112

112

Unused amounts reversed

(198)

-

-

(198)

Utilised

(40)

-

(343)

(383)

-

-

-

-

2,881

-

3,442

6,323

-

-

-

-

2,881

-

3,442

6,323

Restructuring

Onerouscontracts

Litigation

Total

Balance at 1 January

1,485

-

1,135

2,620

Additional provisions

1,635

-

2,847

4,482

Unused amounts reversed

-

-

(264)

(264)

Utilised

-

-

(45)

(45)

Effect of movements in foreign exchange rates

-

-

-

-

3,120

-

3,673

6,793

-

2,675

2,675

-

998

4,118

Bonding

19 Other provisions
2021

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

2020

Balance at 31 December
Current
Non-current

3,120

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
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provision relates to the estimated cost including the costs of legal proceedings of any non-insurance claims against
Atradius. These provisions have not been discounted to reflect present value since the effect of discounting is notmaterial. The majority of the balance relates to a regulatory inquiry in respect of a non-insurance subsidiary that is
not finalised yet.

20 Deferred and current income tax
Current income tax
2021

2020

Current income tax assets

36,28435,420Current income tax liabilities

40,69946,710Net(4,415)(11,290)

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
2021

2020

Deferred income tax assets before set-off

216,494

228,133

Set-off of deferred tax positions(176,559)(175,699)

39,93552,434

Net deferred tax assets as presented in the statement of financial position
Deferred income tax liabilities before set-off

277,536

259,990

Set-off of deferred tax positions(176,559)(175,699)

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

100,977

84,291

2021

2020

Balance at 1 January(31,857)(67,894)

Credit (charge) to other comprehensive income for the year

(17,087)

10,859Charge to the income statement for the year
Movements with no impact on OCI nor P&L

14,55024,150(26,649)

-

1

1,028

(61,042)(31,857)

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

Effect of movements in foreign exchange rates
Balance at 31 December
The movement in the deferred tax assets and liabilities is presented in the following table:

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Atradius | Consolidated financial statements 2021 Atradius N.V.

2021

Balance at 1
January *Recognised in
Recognised
other in the income
comprehensive
statement
income for thefor the year
year

Movements
with noimpact on
OCI nor P&L

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 and equipment(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)

Recognised in
Recognised
other in the income
comprehensive
statement
income for thefor the year
year

Movements
with noimpact on
OCI nor P&L

Effect ofmovements
in foreignexchange

Balance at 31
December*) Restated due to mismatch between pensions and other2020

Balance at 1
JanuaryTax losses carried forward

8,836

-

13,437-(106)

22,166

Technical balances

44,047-

13,045-(332)

56,760Pensions

32,494

5,852(2,957)-637

36,026

Fiscal goodwill

3,168

-

(998)

-

(20)

2,149

Financial investments(22,963)

5,007(2,885)-388(20,452)

Equalisation provisions(109,800)-(1,742)-521(111,020)

Property, plant and equipment(23,692)-

11,831-

40(11,821)

Other

18

-

(5,580)-(103)(5,665)

Total(67,894)

10,85924,150-1,028(31,857)

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 2021, EUR 0.4
million deferred tax assets on the losses carried forward and deductible temporary difference were written down or
not recognised (2020: EUR 1.7 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 0.7 million.
Atradius has unrecognised tax losses carried forward balances amounting to EUR 53.8 million (2020: EUR 57.3
million). The expiration of these unrecognised tax losses carried forward is included in the following table:
Expiration unrecognised tax losses carried forward

2021

2020

1 - 3 years

560

2,126

4 - 9 years

1,650

3,573

Indefinite

51,581

51,563

Total

53,791

57,261The 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:
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Atradius | Consolidated financial statements 2021 Atradius N.V.

Deferred tax

Current tax

2021

Deferred tax

Current tax

2020

Revaluation reserve in shareholders equity related to:
Available-for-sale financial investments(8,494)

(264)

5,007

-

(8,593)

-

5,852

-

-

(761)

-

1,829

(17,087)(1,025)

10,8591,829

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

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Atradius | Consolidated financial statements 2021 Atradius N.V.

21 Payables
2021

2020

Accounts payable on insurance and reinsurance business

347,983

310,549

Payables arising out of reinsurance operations

287,360

253,040

Amounts due to policyholders

40,97040,603

Amounts due to intermediaries and current account Dutch State

19,653

16,907

Trade and other accounts payable

173,985

68,046

Accounts payable

125,740

29,043

Other accounts payable

48,24539,003

Total

521,968

378,595

The payables are substantially all current.
The significant increase on accounts payables is coming from Dutch State Business, offset by an equal increase on
Other accounts receivables.

22 Other liabilities
2021

2020

Ceded pipeline premium¹ and return premium²

242,288

216,775

Deposits received from reinsurers

10,01449,369Unearned reinsurance commission

64,43867,554

Payroll and bonus accruals

60,57444,748

Reinsurance accruals

39,894

15,317

Other accruals

100,043

81,081Other taxes

25,791

22,251

Lease liabilities

80,911

88,144

Total

623,953585,239

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 cost of a policy is less than the insured has previously paid

The main variations are coming from cancelation of the deposits received from reinsurance, bonus accrual increase
because of the better performance of the year and Reinsurance accruals increase due to draft agreements (when theagreements become live, these amounts are transfer to payables arising from reinsurance operations).
Lease liability maturity analysis
Lease liability maturity analysis (undiscounted cash flows)

2021

2020

Less than one year

24,472

22,150Between one and five years

63,58756,698More than five years

22,747

21,693

Total

110,806

100,541

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23 Net premium earned
Credit insurance

Gross

Reinsurers'
share

Net

Gross

Net

2020

2021
Written premium

Reinsurers'
share1,739,266(866,690)

872,576

1,535,094(888,755)

646,339(24,876)(31,957)(56,833)

7,959

38,251

46,210(1,297)

434

(863)

83

46

130

1,713,093(898,213)

814,880

1,543,136(850,457)

692,679

Written premium

206,600(53,321)

153,279

170,894(42,023)

128,870

Change in provision for unearned
premium(19,432)

6,104(13,328)

13,442(6,891)

6,551

Change in provision for unearned
premium
Other movements
Total
Bonding

Other movements

58

(31)

27

(62)

12

(50)

187,226(47,248)

139,978

184,274(48,903)

135,372

1,900,319(945,461)

954,858

1,727,410(899,360)

828,050

2021

2020

Debt collection services

46,88754,791Credit information services

135,591

133,071

Business information and other service income

68,17164,136250,649

251,998

Total
Total premium earned

24 Service and other income

Total

Credit information services are part of the insurance segment. All other services are part of the service segment.
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.

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Atradius | Consolidated financial statements 2021 Atradius N.V.

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

2021

2020

13,005

12,7366

614,597

18,475

IncomeDebt securities available-for-sale
Loans
Equity securities available-for-sale
Other investments

225

368

27,83331,585512774

28,34532,359Debt securities available-for-sale

(146)

(412)

Equity securities available-for-sale(2,781)(14,862)

Handling expenses(5,081)(5,087)

Total income from financial investments
Investment property
Total investment income
Expenses

Other investments

(196)

-

(8,204)(20,361)

(528)

(684)

Total investment expenses(8,732)(21,045)

Net income from investments

19,613

11,314

Share of income/ (losses) of associated companies

15,963

3,008

Net income from investments including associated companies

35,576

14,3222021

2020

Interest

7,425

10,739Dividends

13,582

8,172

Realised gains

6,937

12,925401

523

28,34532,359Handling expenses(5,081)(5,087)

Realised losses(1,494)(8,326)

Impairment loss

(1,606)(7,383)

(344)

(249)

Other
Total

(207)
(8,732)(21,045)

Net income from investments

19,613

11,314

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

15,963
15,96335,576

3,008
3,008
14,322

Total expenses from financial investments
Investment property

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

Depreciation of investment property

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In interest income and expenses reported above, the component related to financial investments available-for-sale is
net EUR 7.4 million (2020: EUR 10.3 million); this is derived from government and corporate bonds.
Net gains/(losses) by category

Impairments

Realised
gains/(losses)
2021

Investment property

Impairments

Realised
gains/(losses)
2020

22

111

27

(212)

Financial assets classified as available-for-sale(1,628)

5,332(7,410)

4,811

Total

(1,606)

5,443(7,383)

4,599

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All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

26 Insurance claims
Credit insurance

Gross

Reinsurers'
share
2021

Net

Gross

Reinsurers'
share
2020

Net

Claims paid in the year

320,965(172,707)

148,259

709,892(305,001)

404,891

Change in claims provisions

120,446

30,507150,953

270,445(230,651)

39,794Claims handling expenses

41,535-41,535

39,168-39,168482,946(142,200)

340,747

1,019,505(535,652)

483,853

Claims paid in the year

46,565(15,040)

31,52544,601(15,617)

28,984

Change in claims provisions

31,852(2,674)29,17821,767(1,269)20,498Claims handling expenses

2,115

-

2,115

1,667

-

1,667

Total

80,532(17,714)62,81868,035(16,886)

51,149Total insurance claims

563,478(159,914)

403,565

1,087,540(552,538)

535,002

2021

2020

Total administrative expenses

618,928

558,562

Acquisition costs

251,154

223,053

Change in deferred acquisition costs(4,848)2,941

Gross operating expenses

865,234

784,556

Commissions received for business ceded to reinsurers(365,794)(318,675)

Total net operating expenses

499,440

465,881

2021

2020

Insurance and information expenses

546,619

470,115

Recoveries and collections expenses

47,642

52,218Other service expenses

56,237

68,644

Group costs

12,0798,420

Total gross administrative expenses

662,578599,397

Claims handling expenses allocated to insurance claims(43,650)(40,834)

Total administrative expenses

618,928

558,562

Total
Bonding

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

27 Net operating expenses

Administrative expenses by type of businessIn the gross administrative expenses are included:-

Depreciation, amortisation and impairment charges for intangible assets and property, plant and equipment
amount to EUR 100.8 million (2020: EUR 69 million).
Short term and low value leases amount to EUR 0.5 million

86

136

Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Consolidated financial statements 2021 Atradius N.V.

Employee benefit expenses

2021

2020

335,498

325,779

Restructuring costs and termination benefits

(198)

338

Pension costs - defined contribution plans

13,197

11,827Pension costs - defined benefit plans

16,71816,099Total employee benefit expenses

365,215354,043

2021

2020

-

3,000

16,141

17,081

132(13)

Other interest expense

1,442

1,373

Foreign exchange (income)/expense(8,928)(5,548)Interest expense on Right of use

2,221

2,196

Total

11,00818,089

Salaries and wages (including social security costs)

For an explanation of the employee benefit details see Note 17.

28 Finance expenses
Impairment of goodwill
Interest and fees on the subordinated debt
Net interest on the net defined benefit liability

The subordinated debt costs include the periodic interest expenses of EUR 15.9 million (2020: EUR 16.9 million) andthe accretion of interest on the debt in the amount of EUR 0.2 million (2020: EUR 0.2 million).

29 Income tax
2021

2020

Current tax

102,316

57,990

Deferred tax(14,550)(24,150)

Income tax expense/(income) for the year

87,766

33,839The reconciliation from the expected tax rate to the actual tax rate is provided in the following table:
2021

2020

Result before tax

328,015

78,006

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

72,63730,285

Tax exempt (income)/loss(3,372)(5,735)

Write down/(reversal) of deferred tax assets

(722)

90

Reassessment of prior year local tax positions

4,966

1,530

Impact of change in tax rate

4,666

2,326

Other

9,591

5,344

Income tax expense/(income) for the year

87,766

33,839The weighted average applicable tax rate was 22.1% (2020: 38.8%).
Deferred tax assets relating to losses carried forward in certain entities have been impaired. This is included in ‘write
down (reversal) of deferred tax assets’.
The impact of the change in tax rate in 2021 mainly reflects the effect of changes in income tax rate in the Netherlands,
UK and Turkey.
The category "Other" includes non-deductible expenses, regional taxes such as IRAP in Italy and withholding taxes.
87137All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

30 Dividends per share
The dividends paid in 2021 and 2020 were EUR 91 million (EUR 1.15 per share) and EUR 102.9 million (EUR 1.30 per
share) respectively.

31 Assets not freely disposable
The financial assets not freely disposable in 2021 are EUR 336.4 million (2020: EUR 284.6 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 92.5 million (2020: EUR 85.9 million).

32 Capital commitments and contingencies
Capital commitments of EUR 11.1 million (2020: EUR 11.4 million) are related to contracted obligations for future
payments for outsourcing, networking, imaging and licences.
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 2.1 million (2020: EUR 2 million).

33 Personnel
The number of employees working for Atradius is included in the following table:
2021

2020

Total average number of employees (full-time equivalent)

3,500

3,517

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

3,497

3,503

Total year end number of employees (headcount)

3,647

3,653

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

Parent (1)2021

Associatedcompanies

Parent (1)2020

Sales to related parties

17,68488

16,67317

Purchases from related parties

9,097

1,915

5,770

2,533

Amounts owed by related parties

8

6,754

5,740

20,906

Amounts owed to related parties

283

14,244

1

2,953

27,071

23,001

28,184

26,409Total1) Subsidiaries of Grupo Catalana Occidente, S.A.

Sales to related parties consist of the net effect of Reinsurance business (premiums, claims, recoveries andcommission) and for information services provided to Atradius. Purchases from related parties consist of the net effectof (retro-) ceded insurance (premiums, claims, recoveries and commission). The amounts owed by related Atradiuscompanies consist of the fair value of insurance policies as calculated under the requirements of IAS 19 and advancepayments of the corporate tax.
Terms and conditions of transactions with related parties
No guarantees have been provided or received for any related party for 2021 or 2020. For the years ending 31
December 2021 and 2020, Atradius has not raised any provision or expenses for doubtful debtors relating to amounts
owed by related parties.
88

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Atradius | Consolidated financial statements 2021 Atradius N.V.

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 56.3 million (22.5%) of the guaranteed subordinated notes issued by Atradius Finance B.V. In 2021 theinterest expense relating to this portion was EUR 3.0 million (2020: EUR 3.0 million).
In 2016 the shareholders of Atradius N.V. provided a subordinated loan to Atradius Reinsurance DAC with a principle
amount of EUR 75 million, that was redeemed in 2021. In 2021 the interest expense relating to this subordinate loan
was EUR 2.6 million.
The related party share for the subordinated debt is as follows:
Lenders

Nominalvalue

Interest
expenseNominalvalue

2021
Plus Ultra, Seguros Generales y Vida, S.A. de Seguros y
Reaseguros

40,000

Seguros Catalana Occidente S.A. de Seguros y Reaseguros

13,291

Bilbao Compañía Anónima de Seguros y Reaseguros

3,000
56,291

Nortehispana, de Seguros y Reaseguros S.A.
Total

Interest
expense

2020
2,112

40,000

2,116

1,581

36,291

1,880

1,648

43,000

2,167

223

6,000

301

5,564

125,291

6,464

The decrease of the above figures is due to the Atradius subordinated loan redemption. All relationships with relatedparties are at arm’s-length.
Compensation of key current and former management personnel of Atradius
The following table provides details on the remuneration for members of the Management Board and Supervisory
Board.
Remuneration

2021

2020

Short-term employee benefits (1)

2,169

2,118

Long-term employee benefits

1,305

889

Post-employment benefits

301

293

3,775

3,300

5

5

Short-term employee benefits (1)

585

585

Total compensation paid to Supervisory Board members

585

585

9

9

Management Board

Total compensation paid to Management Board members
Number of members

Supervisory Board

Number of members
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 2.5 million (2020: EUR 2.4 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 Chairman 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 the89

139All amounts in thousands of Euro, unless otherwise stated
Atradius | Consolidated financial statements 2021 Atradius N.V.

resolution. If all members of the Management Board are conflicted, then the Supervisory Board will pass theresolution.

35 Auditor fees
The following expenses were made for audit and non-audit services rendered by Atradius’ external auditor:
2021 Including VAT

PwC
Accountants
N.V.

Other PwC
Networkorganisations

Total PwC
Network

780

2,324

3,104

Other audit services

-

544

544

Fiscal advisory services

-

-

-

Non-audit services

-

6

6

780

2,874

3,654

PwC
Accountants
N.V.

Other PwC
Networkorganisations

Total PwC
Network

645

1,921

2,566

Other audit services

-

449

449

Fiscal advisory services

-

-

-

Non-audit services

-

5

5

645

2,375

3,020

Audit financial statements

Total2020 Including VAT

Audit financial statements

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.

90

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Atradius | Consolidated financial statements 2021 Atradius N.V.

36 Events after the reporting period
The Board of Directors proposes to the General Meeting to allocate the result for the year to the retained earnings.
In February 2022, Atradius Insurance Holding N.V. sold its shares in Graydon Holding N.V. to Creditsafe Nederland
B.V. The agreed sale price is slightly below the book value (incl. goodwill) at year-end 2021, as such no impairment on
the goodwill related to Graydon Holding N.V. has been booked. The sale of Graydon Holding N.V. will result 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 are expected to decrease by EUR 40 million in 2022 as a resultof the sale.
We are closely monitoring the situation in Ukraine and taking actions where needed. We are engaging with ourcustomers to assess the current exposure profile and to identify areas of attention. In addition we are communicatingwith other stakeholders such as brokers, reinsurers and regulatory bodies. Given the rapid developments with respect
to sanctions, we are especially diligent in this area to ensure compliance. Although we do not expect a significant
impact on the going concern for the Company

91
141All amounts in thousands of Euro, unless otherwise stated
Atradius | Company financial statements 2021 Atradius N.V.

Company financial statements 2021
Contents
Company financial statements ............................................................................................................................................................................143
95
1

General information ........................................................................................................................................................................................146
98

2

Summary of significant accounting policies.............................................................................................................................................146
98

3

Investments in group companies .............................................................................................................................................................. 100
148

4

148
Capital and reserves...................................................................................................................................................................................... 100

5Other liabilities ............................................................................................................................................................................................... 149
101

6Contingencies ................................................................................................................................................................................................. 149
101

7

Personnel ......................................................................................................................................................................................................... 149
101

150
8 Remuneration of Management Board and Supervisory Board ........................................................................................................... 102
150
9 Proposed profit appropriation ..................................................................................................................................................................... 102

94

142

Atradius | |Consolidated
financialstatements
2021
Atradius
N.V.
Atradius
Company financial
statements
2021
Atradius
N.V.

Company financial
statements
Company statement of financial position(before profit appropriation)
31.12.2021

31.12.2020

2,127,190

1,892,384

5

52,127,185

1,892,379

Current assets

54,81060,516

Receivables from group companies

36,451

34,815

Deferred income tax assets

7,683

-

Current income tax assets

1,312

5,269

AssetsNote

Fixed assets
Property, plant and equipment
Investments in group companies

3

Cash and cash equivalents
Total

9,364

20,432

2,182,000

1,952,900

79,122

79,122862,883

862,883

73,257(71,066)

EquityCapital and reserves attributable to the owners of the Company

4

Share capital
Share premium reserve
Legal reserve- Reserve intangibles assets

61,30076,575- Revaluation reserve

110,854

80,811- Pension reserve(55,082)(166,607)- Currency translation reserve(43,815)(61,845)

Retained earnings

886,811

998,186

Result for the year (unappropriated)

240,249

44,167

Total

2,142,323

1,913,294

Current liabilities

39,67739,606

Payables to group companies

34,52534,181

5,152

5,425

39,67739,6062,182,000

1,952,900

Liabilities

Other liabilities

5

Total
Total equity and liabilities

95

143

All amounts in thousands of Euro, unless otherwise stated
Atradius | Company financial statements 2021 Atradius N.V.

Company income statement

Income after tax from group companies
Other results after tax
Result for the year

96

144

2021

2020

246,026

47,273(5,777)(3,106)240,249

44,167

Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius
financialstatements
2021 Atradius
Atradius| Company| Company
financialstatements
2021N.V.
Atradius N.V.

Company
statementof changes
in equity
Company
statementof changes
in equity
Legal reserves
Sharepremium ShareReserve
Share reserve
intangibles
premium
assetscapitalLegal reserves

Sharecapitalreserve

Balance at 1 January
2020

Balance
1 January
Changein atreserves

79,122862,883

73,649

Revaluation
reserve
Reserveintangibles
assets81,919-79,122- 862,883-(1,108)73,649Net income recognised
directly
equityChangeinin
reserves---(1,108)Acquisitions
Net income recognised- -directly in equity
Appropriationof prior
year result-

Result for the year-

Change in reserves-

Dividends
Balance
December
Result at
for31the
year
2020

-

2020

Acquisitions

Appropriation of prioryear result

-

- -

-

79,122

-

-

- -

- -

-

-

-

- -

- -

reserve(29,617)(160,591)(6,016)(29,617)(1,108)- -(1,108)-- ---2,926

- -

-

-

-

-

-

862,883

76,57580,811(166,607)-

Dividends
Balanceat31
December
Balance at 1 January
79,12279,122 862,883 862,88376,575
2020
2021

-

-

(36,740)---

227,708(227,708)-

44,16744,167-(6,016)(29,617)

- -

-

-

-

-

(61,845)(2,926)-(102,859)-

2,008,726---

Result for
the year- 876,263(36,740)(29,617)-

Total

Retainedearnings(32,228)(6,016)- --Result for
the year

Currencytranslation
reserve 227,708
876,263(32,228)(6,016)
81,919-Retainedearnings

reserve(160,591)--

Change in reserves-

Currencytranslation
Revaluation reserve
PensionPensionreserve

998,186-- 227,708---

44,167-

1,913,294--(2,926)

-

-

-

-

-

(102,859)-

80,811(166,607)(166,607)(61,845)(61,845) 44,167 998,186
998,186
1,913,294

76,57580,811-

30,043

111,525

18,030(79,826)-

79,771

111,525

18,030(79,826)-

79,771---

30,043

Balance at 1 January
Acquisitions
2021-79,122- 862,883-

76,575 -80,811-(166,607)-

Appropriationof prior
Change in reserves
year result

-

-

-

-

-

- -

30,043-Resultfor intheequityyear
directly

-

-

-

-

-

- -

Change in reserves--(15,275)

Dividends
Balanceat 31 December
Appropriationof prior
2021

-

-

-

79,122-- 862,883

61,300-Result for the year--

Change in reserves--(15,275)

Dividends
Balance at 31 December
2021

-

-

-

79,122862,883

61,300year result

44,167---(227,708)

2,926

-

-

-

(102,859)

Net income recognised
directly in equity

Acquisitions--

Change in reserves

Net income recognised

227,708-

44,167

111,525-

18,030 (44,167) (79,826) 44,167-

30,043-

111,525-

18,030240,249 (79,826)
240,249

-

-

-

-

-

-

110,854---(55,082) --(43,815)(61,845)

15,275-(90,991)
886,811---(90,991)- 240,249

2,142,323
44,167--(44,167)

-

-

-

-

-

15,275----(90,991)-

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

97

97

145

- 998,186

44,167240,249

Atradius | Company financial statements 2021 Atradius N.V.

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 2021 consolidated financial statements, which are also included in
the annual report. The Company income statement is presented in abbreviated form in accordance with Article 402 ofBook 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 2 March 2022.

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 income statement for the Company’s share in the result. The Company’s interest in thegroup companies is carried in the balance sheet at an amount that reflects its share in the net asset value of the related
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;146

Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Company financial statements 2021 Atradius N.V.

-

Pension reserve;
Currency translation reserve.

147All amounts in thousands of Euro, unless otherwise stated
Atradius | Company financial statements 2021 Atradius N.V.

3

Investments in group companies

The following table shows the changes in investments in group companies valued using the equity method:
2021

2020

Balance at 1 January

1,892,379

1,994,626

Share of profit/(loss)

246,026

47,273

Dividends received(90,991)(112,859)

Change in revaluation reserve, pension reserve and NL pension plan de-risking

61,742(7,123)Foreign exchange reserve movements

18,030(29,538)

2,127,186

1,892,379

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 2020) of which 79,122,142 ordinary shares were issued and fully
paid (equal to 2020). The fully paid ordinary shares carry one vote per share and carry the right to dividends.

4.2

Share premium reserve
2021

2020

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. Reference is made to paragraph 4.5 Capital Management in the
consolidated annual report.

148

Atradius | Consolidated financial statements 2021 Atradius N.V.
Atradius | Company financial statements 2021 Atradius N.V.

4.4

Retained earnings
2021

2020

Balance at 1 January

998,186

876,263

Appropriation of prior year result

44,167

227,708

Transfer between legal reserve and retained earnings

15,275(2,926)

Dividends(90,991)(102,859)

Pension plan de-risking(79,826)-

Balance at 31 December

886,811

998,186

2021

2020

179

157

Long-term employee benefits

1,418

1,450

Other liabilities

3,555

3,818

Total

5,152

5,425

5

Other liabilities

Other taxes

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 (2020: 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., Atradius Dutch State Business N.V., and Graydon Holding N.V. (including its Dutch subsidiaries). Allcompanies included in the fiscal unity are jointly and severally 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, (2020: 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:
2021

2020

Total average number of employees (headcount)5

5

Total year end number of employees (headcount)

5

5

149

All amounts in thousands of Euro, unless otherwise stated
Atradius | Company financial statements 2021 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 34 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.

150

Atradius | Other information 2021 Atradius N.V.

Other information

151

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 thedisposal of the General Meeting.

152

Atradius | Annual Report 2021 Atradius N.V.

Annual Report Atradius N.V.
2 March 2022
The Supervisory Board					The Management Board

Xavier Freixes, Chairman as per 1 January 2022		
David Capdevila, Chairman
Ignacio Álvarez, Chairman until 31 December 2021		
Andreas Tesch
Francisco Arregui, Vice-Chairman				Christian van Lint
Désirée van Gorp						Claus Gramlich-Eicher				Juan Ignacio Guerrero, as per 1 January 2022		
Marc Henstridge
Carlos Halpern
John Hourican
Bernd Hinrich Meyer
Hugo Serra
José María Sunyer

153

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 fairview of the financial position of the Group as at 31 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; and• t he company financial statements of Atradius N.V. (‘the Company’) give a true and fair view of the financial positionof 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.
What we have audited
We have audited the accompanying financial statements 2021 of Atradius N.V., Amsterdam. The financial statements
include the consolidated financial statements of the Group and the company financial statements.
The consolidated financial statements comprise:• the consolidated statement of financial position as at 31 December 2021;•	the following statements for 2021: the consolidated income statement, the consolidated statements ofcomprehensive income, changes in equity and cash flows; and• the notes, comprising significant accounting policies and other explanatory information.
The company financial statements comprise:• the company statement of financial position as at 31 December 2021;• the company income statement for the year then ended;• the notes, comprising the accounting policies applied and other explanatory information.
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 statements and Part 9 of Book 2 of
the Dutch Civil Code for the company financial statements.

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 for our 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, Codeof Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence
regulations in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels
accountants’ (VGBA, Dutch Code of Ethics).

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Report on the other information included in the annual report
The annual report contains other information. This includes all information in the annual report in addition to thefinancial 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 is required by Part 9 ofBook 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 theDutch Standard 720. The scope of such procedures was substantially less than the scope of those procedures performedin our audit of the financial statements.
The management board is responsible for the preparation of the other information, including the directors’ report andthe 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:• t he 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• s uch internal control as the management board determines is necessary to enable the preparation 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 for assessing theCompany’s ability to continue as a going concern. Based on the financial reporting frameworks mentioned, themanagement board should prepare the financial statements using the going-concern basis of accounting unless the
management board either intends to liquidate the Company or to cease operations or has no realistic alternative but todo so. The management board should disclose in the financial statements any event and circumstances that may castsignificant doubt on the Company’s ability to continue as a going concern.
The supervisory board is responsible for overseeing the Company’s financial reporting process.
Our responsibilities for the audit of the financial statements
Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient andappropriate audit evidence to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and toissue 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 the effect of identified
misstatements on our opinion.
A more detailed description of our responsibilities is set out in the appendix to our report.
Amsterdam, 2 March 2022
PricewaterhouseCoopers Accountants N.V.
Original has been signed by M.D. Jansen RA

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Appendix to our auditor’s report on the financial statements 2021 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 forthe 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 inaccordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit
consisted, among other things of the following:• I dentifying 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, and obtaining 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, intentionalomissions, 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 areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCompany’s internal control.
•	Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management board.
•	Concluding on the appropriateness of the management board’s use of the going-concern basis of accounting, andbased 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 disclosuresin the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor’s report and 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 tocontinue as a going concern.
• E valuating 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, we are responsible
for the direction, supervision and performance of the group audit. In this context, we have determined the nature andextent of the audit procedures for components of the Group to ensure that we performed enough work to be able togive an opinion on the financial statements as a whole. Determining factors are the geographic structure of the Group,
the significance and/or risk profile of group entities or activities, the accounting processes and controls, and theindustry in which the Group operates. On this basis, we selected group entities for which an audit or review of financial
information or specific balances was considered necessary.
We communicate with the supervisory board regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.

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Atradius | Glossary Atradius N.V.

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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