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about HERMES, credit insurer, Germany
HERMES is the largest credit insurer in Germany and has a world-wide network
of subsidiaries and associated companies.
Hermes offers companies risk management solutions tailored to their needs as their competent partner with an international network of subsidiaries and participations ready to advice them whenever they need it. The Euler & Hermes insurance products and services are adapted to the special requirements of every country.
The Hermes, Euler-Hermes Group as per jan. 01, 2002:
Hermes will be fully acquired by Euler-Hermes, a member of the AGF / Allianz Group
Some figures of Euler-Hermes:
- Coverage of 50 billion Euro's in transactions
- Represented in 29 countries
- 40 million companies in the database
- Turnover of 1'263 Euro's and a consolidated turnover of 592 Euro's by end june 2002.
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In addition to its private business the Hermes company handled the German State Export Guarantee Scheme from 1926 up to the Second World War and has continued to do so from 1948 onwards for the Federal Republic of Germany. HERMES' name is therefore well reputed world-wide.
- Credit insurance – i.e. the insurance of accounts receivable in domestic and export transactions - is an important part of financial risk management. It involves the systematic identification, analysis and assessment of entrepreneurial risks in the granting of credit for goods delivered and services performed and subsequent indemnification in the case of insolvency. More and more corporate executives recognize that a well-structured, tailor-made and service-oriented credit insurance is an important element in their overall financial risk management strategy.
- Credit insurance can help to increase stability not only by compensating losses from bad debts, but particularly and primarily through ongoing checks and monitoring of the customers´ credit risks. HERMES´ rating system automatically surveys all companies and rates their insolvency risk on a daily basis. In doing so HERMES applies i.a. economic and sector analyses, evaluates balance sheets, obtains status information, checks payment terms and evaluates enterprise-specific developments. This data is complemented by the constant exchange of experience with our contractual partners. Overall, HERMES has access to economic data on 40 million companies both domestically and world-wide. top
There are not only new international markets to be developed in credit insurance, products and services too must be updated to meet new demands. Credit insurers these days increasingly offer integrated solutions in debt and risk management. HERMES is convinced that there is an ever increasing demand for joint services and new solutions. In the final analysis everything focuses on the individual company for which the credit insurer has accepted the cover. The key to success is gaining in-depth information on the company´s financial resources, products, position in the market and management.
HERMES products and services:
- Del Credere Insurance
HERMES Cover for Bad Debt Losses provides cover in Germany and abroad. HERMES assesses buyers´ creditworthiness before business is done, monitors it constantly during the entire business relationship and indemnifies losses due to insolvency. Protracted default can also be included in the cover. Protection from risks involved in sales of machines and plant on payment terms up to five years is also possible.
- Guarantee Insurance
In HERMES Bond and Guarantee Cover bonds and guarantees are issued for clients in respect of their contractual or statutory obligations to their principals at home and abroad, comparable to bank guarantees. This relieves the strain on bank credit and creates increased liquidity.
- Fidelity Insurance
HERMES Cover against Fraud secures companies from financial losses arising out of unlawful acts such as misappropriation of funds, theft, embezzlement and fraud, including computer fraud. Losses due to wilful acts by a company´s own employees, directors and board members are covered by this. In addition, external and temporary workers and losses due to hackers can be included. top
- Alternative Risk Transfer
In the field of Alternative Risk Transfer (ART) Asset Backed Securities (ABS) are a capital-market affiliated product of interest especially for multinationals and larger companies, but also for medium sized firms pooling their interests. HERMES is engaged in this relatively new market mainly playing the role of a credit enhancer.
- Consumer Credit Insurance
This policy covers banks and other companies in the financial services sector against the risks involved in overdrafts, term loans, eurocheques, credit cards and electronic cash transactions.
- Inwards Reinsurance
HERMES writes Inwards Reinsurance covering a portion of the credit, guarantee and fidelity business done by other domestic and foreign insurers.
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