- The share capital of Credendo – Single Risk has been increased from EUR 25 million to EUR 65 million.
- Credendo sees rising opportunities in single-risk insurance, as it is a market with high potential growth
Credendo announced a EUR 40 million capital increase in its subsidiary Credendo – Single Risk. The increase aims at seizing business opportunities arising from the single-risk insurance business segment and global demand for protection against geopolitical risks.
The 60th annual General Meeting of Shareholders of Credendo – Single Risk Insurance AG, held in Vienna on 16 May 2018, decided to increase the share capital of the company from its current registered capital of EUR 25 million by EUR 40 million to EUR 65 million.
“This decision provides a great opportunity to grow our business in a competitive but also promising market environment. Our growth strategy is based on our business development plan which aims at generating sustainable returns on a solid capital base,” says Michael Frank, General Manager of Credendo – Single Risk. Referring to the business development plan, he emphasises that there is a growing demand among the company’s existing international clients as well as its target clients for insurance cover for single contracts, transactions and investments in the context of international trade, against a large spectrum of political and commercial risks. He also sees additional potential in seizing cross-selling business opportunities between the different entities of Credendo due to the extensive range of comprehensive and bespoke credit insurance solutions that are available at Credendo entities and that can complement each other.
“This capital increase is the key to unlocking existing market opportunities and growth potential as future growth will need to be based on a level of capitalisation that not only meets regulatory requirements but also meets target customers’ criteria for selecting their insurers in the private market. We identified the additional capital requirement at a level of EUR 40 million, allowing us to meet these customer criteria. Furthermore, it enables us to keep the Solvency II ratio above the Credendo target of 150% over a medium-term horizon and to achieve defined profitability targets at the same time,” Michael Frank concludes in his statement following the decision for a capital increase.
Commenting on the capital increase, Dirk Terweduwe, Group Chief Executive Officer of Credendo, the majority shareholder of Credendo – Single Risk, and Chairman of the Supervisory Board of Credendo – Single Risk, declared: “We clearly see rising opportunities in the single-risk insurance business. Credendo – Single Risk is operating in a market with high potential growth shaped by the development of international trade with non-OECD countries and the growing role of the private sector. On the supply side, increased capacities (increased products lines, longer tenors and new entrants) demonstrate how much the political risk insurance market looks attractive. Credendo – Single Risk is very well recognised as a highly specialised private-market single-risk credit insurer, renowned for its professionalism, flexibility and strong reactivity. We will continue to work in this sense and support the long-term growth of the company.”
This capital increase strongly enhances Credendo – Single Risk‘s ability to deploy specialised credit insurance solutions worldwide, embrace change for the industry and acquire a leading position in its speciality market.
Credendo – Single Risk
Head of External Relations
M +41 (0)79 603 89 00