Recession credit claims pushes combined ratio over 103%
Credit insurer Euler Hermes saw claims hikes wipe out profits as the recession bit, leading to a technical loss of €11.1m compares with a profit in Q1 last year of €53.1m.
Financial Highlights (2008 Q1 in brackets)
- Premiums €448.3m (€436.7m) up 2.7%
- Service revenues €100.2m (€90.4m) up 10.8%
- Total turnover €548.5m (€527.1m) up 4.1%
- Net technical result -€11.1m (€53.1) down 120.9%
- Net investment income €54.2m (€21.3m) 154.6%
- Operating income €43.1m (€74.4m) down 42.1%
- Net income €16.5m (€38.4m) down 56.9%
- Combined ratio 103.0% 83.2%
Wilfried Verstraete, chairman, said: “The economic climate remained unfavourable in the first quarter of 2009. Therefore the number of claims was high and continued to depress group profitability.”
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