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Trade credit insurance partnership between Government and Euler Hermes

Media Statement

1 Jul 2009

New Zealand Export Credit Office
Euler Hermes

The New Zealand Export Credit Office (NZECO) and Euler Hermes Trade Credit jointly announced today the launch of a top-up cover arrangement to assist New Zealand exporters.

This arrangement enables an exporter to obtain an excess layer of trade credit insurance underwritten by the NZECO. This excess layer of cover may either replace primary cover that Euler Hermes has partially withdrawn on an exporter's buyer, or provide a top-up layer of cover where Euler Hermes has only partially approved the buyer limit that has been requested by the exporter.

The launch of this top-up cover arrangement with Euler Hermes is in direct response to the Government’s decision earlier this year to extend the NZECO's mandate to support the private sector’s provision of short-term trade credit assistance. "The Government is committed to supporting exports and this initiative will help ensure trade opportunities are not missed," Finance Minister Bill English says.

Euler Hermes is the first of the private trade credit insurers to negotiate this type of arrangement. "This arrangement creates a facility for exporters that enables trade to continue, backed by good commercial risk management practices using a unique combination of public and private sector resources," New Zealand's Managing Director of Euler Hermes Burke Steel says. "As a result, trade volumes may be maintained at reasonable levels despite extraordinary risk conditions in numerous export markets." 

 "We are delighted to have collaborated with Euler Hermes and look forward to supporting their exporting clients via this innovative arrangement", the Chair of the NZECO Advisory Board, Anthony Ractliffe says.

The top-up cover arrangement complements NZECO's short-term trade credit guarantee, which provides trade credit insurance on creditworthy buyers direct to exporter where the private sector is unable to provide any cover. 


Euler Hermes
is the worldwide leader in credit insurance and one of the leaders in the areas of bonding, guarantees and collections. With 6,200 employees in over 50 countries, Euler Hermes offers a complete range of services for the management of B-to-B trade receivables and posted a consolidated turnover of €2.2 billion in 2008. Euler Hermes has developed a credit intelligence network that enables it to analyse the financial stability of 40 million businesses across the globe. The group protects worldwide business transactions totalling €800 billion. Euler Hermes, subsidiary of AGF and a member of the Allianz group, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor’s. View their website at www.eulerhermes.com. Contact: Burke Steel, (649)3542992, burke.steel@eulerhermes.com

 

These assessments are, as always, subject to the disclaimer provided below.
Cautionary Note Regarding Forward-Looking Statements: Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words ‘may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue’ and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz SE's core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults (vii) interest rate levels, (viii) currency exchange rates including the Euro-U.S. Dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The matters discussed herein may also involve risks and uncertainties described from time to time in Allianz SE’s filings with the U.S. Securities and Exchange Commission. The Group assumes no obligation to update any forward-looking information contained herein.

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