Allianz SE's (ALV.XE) Euler Hermes SA (ELE.FR), one of the
biggest credit insurers worldwide, Thursday said net profit fell
16.2% in the first six months, on lower operating profit, higher
claims and a lower contribution from investments.
MAIN FACTS:
-In the second quarter alone, net profit was down 19% to 95.0
million euros ($115 million) from EUR117.2 million, as lower
operating profit and higher claims weren't offset by higher
revenues, improvements in net investment income and a lower net
expense ratio.
-Net income for the first six months fell to EUR161.4 million
from EUR192.5 million, as a result of lower operating profit and a
one-time tax rate impact in the first quarter.
-Turnover for the first half was EUR1.19 billion, up 5.6%
year-on-year from EUR1.09 billion
-Net combined ratio 73.1%, compared with 65.8% in the first half
of 2011
-Operating profit fell 11.3% to EUR237.1 million from EUR267.2
million
-Demand for credit insurance was solid in the first half of 2012
amid continuing economic slow-down.
-Net claims ratio increased 9.1 percentage points to 51.3%, of
which 5 percentage points are linked to three claims, including the
collapse of Germany's ailing drugstore chain Schlecker. The
remaining increase is due to higher claims frequency compared to
the still very low levels observed in 2011.
-In 2012 and 2013, businesses will face increased pressure on
trade receivables management. Contributing factors include lower
economic, credit and trade growth prospects, private deleveraging,
and mounting business insolvencies worldwide.
-Write to the Frankfurt Bureau at
djnews.frankfurt@dowjones.com
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