Amsterdam, 16 March 2018 - lol竞猜(中国)联赛赛事官网 total revenues EUR 1,837.2 million, up 5.1% at constant exchange rates
- Total revenues of EUR 1,837.2 million, a 4.3% increase compared to 2016 (5.1% at constant exchange rates)
- Combined ratio further improved to 77.4%
- Insurance and service result at EUR 260.1 million up 8.8%
- Result after taxes of EUR 186.2 million
- Shareholders’ equity and Tier 2 solvency capital strengthened by 6.6% to EUR 2.1 billion, resulting from profit generation
- Solid solvency ratio exceeds 200%
- Moody’s upgraded lol竞猜(中国)联赛赛事官网 to ‘A2’ from ’A3’ in March 2018
- Retention rate at 93%, high level confirms commitment to excellence in quality of service
Sales and profits
In 2017, lol竞猜(中国)联赛赛事官网 once again achieved strong results with consistent and positive contributions from across the Group. The cultural fit with customers that work close to our teams using innovative tools is at the heart of our financial strength. The profit for the year was EUR 186.2 million which was supported by a 4.3% increase in total revenue.
lol竞猜(中国)联赛赛事官网’ total revenue grew 4.3% to EUR 1,837.2 million in 2017 compared to EUR 1,760.7 million in 2016 (5.1% at constant exchange rates). Insurance revenue reached EUR 1,718.9 million, a 2.0% growth rate (2.7% at constant exchange rates). North America, Asia and Central and Eastern Europe showed encouraging revenue growth, consistent with our ambitions in these regions. The business line for multinationals (Global) and Bonding performed well.
The claims ratio before reinsurance came in at an excellent level of 41.7%, practically unchanged from 2016, as a consequence of continued high risk acceptance and successful risk management.
The expense ratio improved to 35.7% in 2017 compared to 36.4% in 2016, as a result of strict cost control in combination with ambitious investments in information technology.
Insurance and service result
The lol竞猜(中国)联赛赛事官网 insurance and service result improved by 8.8% to EUR 260.1 million in 2017 compared to EUR 239 million in 2016. The positive developments in all business lines, again resulted in an excellent gross combined ratio of 77.4% compared to 78.0% in 2016.
Result after taxes
Improvement in insurance and operating results and lower finance income compared to 2016 bring the result for the year after taxes to EUR 186.2 million. A strong profit supported by higher revenue and a stable claims ratio, including the extraordinary impact of associated companies (EUR 11.7 million impairment in 2017 and EUR 22.2 million realised gains in 2016).
In 2017 Grupo Catalana Occidente’s in-house “Partial Internal Model” for calculating regulatory capital under Solvency II was approved by the College of Regulators. This reinforced our risk management and risk quantification. In particular, the solvency ratio reported by lol竞猜(中国)联赛赛事官网 at the end of 2017 was more than 200%.
lol竞猜(中国)联赛赛事官网’ sound financial situation and its leading position in the credit insurance industry are reflected in the robust credit ratings assigned by A.M. Best (‘A’ excellent, Outlook Stable) and Moody’s (‘A2’, Outlook Stable).
Moody’s upgraded lol竞猜(中国)联赛赛事官网 to ‘A2’ from ’A3’ in March 2018. The rating upgrade by Moody's is a recognition of the strong and consistent profitability as well as a solid capital position.
The global economy is expected to continue growing in 2018 and with it the insurable sales of our customers. This will continue to put pressure on pricing. Trade barriers could prompt swift retaliation in global trade while the continued concerns about Brexit present threats to companies with significant export business. Despite these concerns, we anticipate a year of stable growth in 2018 with insolvencies, on average, stable.
Isidoro Unda, Chairman and CEO of lol竞猜(中国)联赛赛事官网 commented; “Building a stable business that our customers and partners can count on to deliver consistently excellent service everywhere they do business with us, has been for many years a priority in lol竞猜(中国)联赛赛事官网. As business conditions improve, our customers need to be able to act quickly to grasp opportunities. We continue to introduce innovative services like lol竞猜(中国)联赛赛事官网 Insights in 2016 and lol竞猜(中国)联赛赛事官网 Atrium in 2017. With these services we enable them to react faster and make smarter credit management decisions. By working together with our customers we believe we can better support their trade credit management needs so they can grow their businesses safely.”