First-time rating ‘A’ with stable outlook for Credendo – Short-Term Non-EU Risks and Credendo – Short-Term EU Risks

• S&P Global Ratings assigned their ‘A’ insurer financial strength rating with a stable outlook to both Credendo – Short-Term Non-EU Risks and Credendo – Short-Term EU Risks.
• With these two entities receiving their first ratings, all Credendo entities now have a rating of category A.
• Both entities have posted positive net incomes over the past few years, contributing to our group’s strong results.

Credendo – Short-Term Non-EU Risks

S&P Global Ratings has assigned a rating ‘A’ to Credendo – Short-Term Non-EU Risks. S&P considers Credendo – Short-Term Non-EU Risks a core entity of Credendo. Dedicated to short-term trade credit insurance policies, covering risks in emerging and developing markets, the entity is 100% owned by its parent company Credendo – Export Credit Agency, and considered closely linked to our group’s reputation and brand name.

Over the past five years, Credendo – Short-Term Non-EU Risks has contributed to our group’s profitability through its positive net income. The only exception to this was the year 2020, when Credendo reported an overall loss. Since then, Credendo – Short-Term Non-EU Risks’ profitability has seen a sharp recovery. The entity’s capital meets our group’s standards, as the entity posted a solid solvency ratio of 241% at the end of 2020. Another strong point is the significant reinsurance protection the company can count on.

Credendo – Short-Term EU Risks

Just as its sister company, Credendo – Short-Term EU Risks was assigned an ‘A’ rating by S&P Global Ratings, and is considered a core entity of Credendo. The entity also focuses on short-term trade credit insurance policies, but the risks covered are mainly in European markets. Credendo – Short-Term EU Risks is also 100% owned by parent company Credendo – Export Credit Agency, and considered closely linked to our group’s reputation and brand name.

Even if Credendo – Short-Term EU Risks is relatively small, S&P Global Rating considers it important to our group, as they expect the entity to grow significantly over the coming years. This entity too, benefits from solid protection thanks to its reinsurance programme. Furthermore, it has been reporting positive net income over the past few years, through which it has contributed to the strong performance of our group. More recently, Credendo – Short-Term EU Risks showed a sharp increase in profitability and a considerable improvement in its net combined ratio. The entity’s capital also meets our group’s standards and its solvency ratio stood at 225% at the end of 2020.

Outlook and future

The outlook is stable because S&P Global Ratings expects Credendo to continue to support its entities. Credendo – Short-Term Non-EU Risks will remain a core entity to our group, generating profitable growth thanks to its stable and competitive underwriting policy. Credendo – Short-Term EU Risks will also remain core to our group, and is even expected to become more important in our group strategy in the coming years, when its business volume increases.

Press contact
Nabil Jijakli
Group Deputy CEO
rue Montoyerstraat 3
1000 Brussels
Belgium
E n.jijakli@credendo.com
M +32 478 25 11 33