Euler_Hermes

Allianz Trade

Allianz Trade

International insurance company

Allianz Trade is an international insurance company that offers a range of services, including trade credit insurance, debt collection, surety bonds and guarantees, business fraud insurance and political risk protection.

Quick Facts Company type, Industry ...

A subsidiary of Allianz SE, Allianz Trade, is rated AA by Standard and Poor's.[1] It monitors the financial health of over 80 million companies.[2]

Headquartered in Paris, the company is present in more than 50 countries with more than 5,500 employees, and has a global market share of 34%. They posted a consolidated turnover of €2.9billion in 2021, and insured global business transactions representing €931billion in exposure.[3]

History

Creation of credit insurers around the world

Birth of Euler Hermes

SFAC acquired COBAC in 1993, followed by Trade Indemnity in 1996,[4] and ACI and SIAC in 1998.[5] During the same year, Allianz acquired AGF, a shareholder of SFAC. The holding Compagnie Financière SFAC was renamed Euler.

From 2000, Euler was listed on the Paris Stock Exchange.[6] Two years later in 2002, Euler acquired Hermes, the German market leader in trade credit insurance.[7] In 2003, the Group and all its subsidiaries became Euler Hermes.

Euler Hermes began to expand internationally in 2004, and opened offices in Latin America, Asia Pacific, and the Middle East (United Arab Emirates, Kuwait, Oman, and Qatar) between 2004 and 2009. In 2007, Euler Hermes increased its shareholding to 50% in COSEC, the market leader in Portugal.[8] In 2013, Solunion, a joint venture between Euler Hermes and MAPFRE, was created covering Spain and Latin America.[9] In the same year, Euler Hermes increased its shareholding in ICIC, a credit insurer in Israel, to 50%.[10]

Joining the Allianz Group

In 2018, Allianz completed the acquisition of Euler Hermes's outstanding shares and Euler Hermes Group became fully owned by the Allianz Group.[11] In March 2022, Euler Hermes changed its brand name to Allianz Trade.[12]

Activities

Trade credit insurance

This is an insurance policy and a risk management product offered to companies to protect their accounts receivables from loss due to credit risk. Should their customers become insolvent or fall into protracted default, it includes indemnification for the values of goods or services delivered. The policy could include a component of political risk insurance, which insures the risk of non-payment by foreign clients due to issues such as currency problems, political unrest and expropriation. Some policies also include debt collection, which is the process of pursuing payment of debts owed by businesses.

Surety bonds and guarantees

A bond, or financial guarantee, protects the contractual obligations between businesses and a customer, supplier or partner. It is a contractual triangle relationship between the business, the surety bond company or guarantor, and the third-party requiring the bond. The surety bond company or guarantor financially guarantees the third party that the business will abide by the terms established by the bond or guarantee. In the event of non-performance of the specified obligations, the surety bond company or guarantor is there to provide compensation for loss and damage.[13]

Economic research

Ludovic Subran is the Chief Economist of Allianz,[14] and Ana Boata is Director of Economic Research of Allianz Trade.[15] The department's economic research team analyzes and anticipates international economic trends and covers international commerce, macroeconomics, payment risks. The Economic Research Department updates its country risk and sector risk ratings every quarter.

Board of management

  • Aylin Somersan Coqui, CEO and Chairperson of the Board of Management[16]
  • Loeiz Limon-Duparcmeur, Group Chief Financial Officer (CFO), Member of Board of Management in charge of Finance and Tax.[17]
  • Anil Berry, Member of Board of Management in charge of Market Management, Commercial and Distribution[18]
  • Fabrice Desnos, Member of Board of Management in charge of Credit Intelligence, Reinsurance and Surety[19]
  • Michael Eitelwein, Group Chief Operating Officer (COO), Member of Board of Management in charge of Operations and IT[20]
  • Florence Lecoutre, Member of Board of Management in charge of Transformation, Human Resources, Communication and Environmental, Social, and Governance.[21]

References

  1. [1]
    "RatingsDirect : Research Update : Euler Hermes Group Core Subsidiaries Affirmed At 'AA-' On Improved Enterprise Risk Management; Outlook Stable" (PDF). Eulerhermes.com. Retrieved 29 December 2015.
  2. [2]
    "Le leader mondial de l'assurance-crédit change de nom".
  3. [3]
    "Le leader mondial de l'assurance-crédit change de nom". Infomediaire. 31 March 2022.
  4. [4]
    "La SFAC lance une offre d'achat sur le britannique Trade Indemnity". 2 February 1996.
  5. [5]
    "La SFAC affiche une hausse de 15 % de son bénéfice net à 430 millions en 96". 12 March 1997.
  6. [6]
    "Euler sera introduit en Bourse l'année prochaine". 27 September 1999.
  7. [7]
    "Euler achète Hermes pour 535 millions d'euros à l'assureur allemand Allianz". Les Echos. 1 February 2002.
  8. [8]
    "Commission approves acquisition by Euler Hermes and BPI of joint control of COSEC". Practical Law. 29 March 2006 – via Thomson Reuters.
  9. [9]
    "Solunion official launch; Euler Hermes, MAPFRE trade credit insurance joint venture". Global Newswire. 29 January 2013.
  10. [10]
    "Euler Hermes increases shareholding in Israeli credit insurer ICIC to 50 percent". Global Newswire. 24 April 2013.
  11. [11]
    "Allianz to complete Euler Hermes acquisition". NS Insurance. 25 April 2018.
  12. [12]
    "Trade Credit Insurer Euler Hermes Rebrands as Allianz Trade". Insurance Journal. 28 March 2022.
  13. [13]
    "What is a Surety Bond?". SuretyBonds.com. Retrieved 7 February 2023.
  14. [14]
    "Euler Hermes : nomme Ludovic Subran Chef Economiste". Boursier. 27 September 2019.
  15. [15]
    "Ana Boata Is Appointed Global Head of Economic Research of Euler Hermes Group". Bloomberg. 14 October 2021.
  16. [16]
    "Allianz Trade appoints new CEO and chairperson". Commercial Risk. 26 October 2022. Retrieved 26 October 2022.
  17. [17]
    Gangcuangco, Terry. "Euler Hermes group CFO to switch – replacement named". Insurance Business. Retrieved 5 March 2020.
  18. [18]
    Reinsurance News, Katie Baker (25 May 2021). "Euler Hermes makes key changes within its Board of Management". Reinsurance News. Retrieved 30 March 2022.
  19. [19]
    Baker, Katie (25 May 2021). "Euler Hermes makes key changes within its Board of Management". Reinsurance News. Retrieved 30 March 2022.
  20. [20]
    Rédaction NA Pro (12 February 2018). "Nominations : Euler Hermes renouvelle une partie de son directoire". Retrieved 30 March 2022.
  21. [21]
    Gouby, Thierry (18 September 2020). "Nomination : Florence Lecoutre nommée au directoire d'Euler Hermes". News Assurances pro.
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