Arch Capital buys 29.5% stake in Coface

Arch Capital buys 29.5% stake in Coface

Arch Capital buys 29.5% stake in Coface

Bermuda’s Arch Capital has acquired a 29.5% stake in French trade credit insurer Coface from Natixis in a deal valued at €480m. Announcing the move, Arch said it does not intend to take a majority stake in Coface for 12 months after the current transaction closes. Commenting on the deal, ratings agency Moody’s said Arch’s investment is credit positive for…

BPL records surge in demand for credit and political risk cover within Europe

BPL records surge in demand for credit and political risk cover within Europe

BPL records surge in demand for credit and political risk cover within Europe

Demand for credit and political risk insurance (CPRI) has rocketed in Europe, with the region buying 75% more cover during the last two years through specialist broker BPL. A report by BPL says Europe is now the third-largest buyer of CPRI polices, with $5.7bn worth of business booked to the brokers portfolio at January 2020. The CPRI market has traditionally…

Insolvencies set to rise in US with slowdown impacting trading partners: Atradius

Insolvencies set to rise in US with slowdown impacting trading partners: Atradius

Insolvencies set to rise in US with slowdown impacting trading partners: Atradius

Corporates trading in the US face slower economic growth, uncertainty and increased risk of insolvency this year, according to a new report spanning the North American market from trade credit insurer Atradius. US GDP is forecast to decline from an estimated 2.3% in 2019 to 1.7% in 2020 and 2021, but Atradius says the decrease could be even greater. Rising…

Hartford expands CPRI business through new London arm

Hartford expands CPRI business through new London arm

Hartford expands CPRI business through new London arm

US-based insurance group The Hartford has confirmed that it has opened a new credit and political risk insurance (CPRI) unit in London as part of its international expansion drive in this fast-growing specialty line. The insurer launched its US CPRI operation in December 2018, shortly before it completed its $2.1bn acquisition of specialty insurer Navigators, its Lloyd’s operation and expanding…

Insolvencies to rise in 2020 as EU-UK trading future discussed, warns Atradius

Insolvencies to rise in 2020 as EU-UK trading future discussed, warns Atradius

Insolvencies to rise in 2020 as EU-UK trading future discussed, warns Atradius

Robust risk management will be key to protecting businesses, said trade credit insurer Atradius, as it predicted insolvencies will rise 7% or higher in the UK and more modestly in Europe during 2020 as a result of Brexit. If a trade deal is not agreed between the EU and UK by the end of the Brexit transition period on 31…

Euler Hermes adds ESG-related non-payment risks to country ratings

Euler Hermes adds ESG-related non-payment risks to country ratings

Euler Hermes adds ESG-related non-payment risks to country ratings

Credit insurer Euler Hermes has added environmental, social and governance (ESG) non-payments risks to its country risk ratings. It is the first trade insurance company to include ESG indicators for all ESG-related issues into its rating methodology. The insurer said environmental vulnerabilities, including the risk of supply chain interruptions caused by severe climate-related events, and the link between insolvency and…

New Coface portal to help brokers manage credit risk within global programmes

New Coface portal to help brokers manage credit risk within global programmes

New Coface portal to help brokers manage credit risk within global programmes

Credit insurer Coface has launched a digital portal for brokers that it says will significantly improve the way they can manage their customer’s credit risk within global programmes by offering detailed information on the activities of some 50,000 customers in nearly 100 countries worldwide. Coface’s new Broker Portal system is currently available to brokers in 42 of the countries that…

Credit insurance market tightens as storm clouds gather

Credit insurance market tightens as storm clouds gather

Credit insurance market tightens as storm clouds gather

In the face of rising insolvencies, credit insurance prices are increasing and capacity is shrinking for high-risk sectors and markets, just as Brexit, trade wars and a global economic slowdown are driving increased demand for protection. The bad news for buyers is that trade credit insurers have raised rates and reduced limits in some key areas. Ian Watts, trade credit…

Credit risk rises with growing political and economic uncertainty

Credit risk rises with growing political and economic uncertainty

Credit risk rises with growing political and economic uncertainty

Heightened political and economic uncertainty is driving up credit risk, increasing the threat of insolvencies and supply chain disruption. According to the Organisation for Economic Co-operation and Development’s (OECD) latest outlook, the global economy is becoming increasingly fragile and uncertain. Downside risks continue to mount, with growth slowing to its weakest rate since the financial crisis. In particular, the OECD…

First global insolvency rise for decade, led by UK: Atradius

First global insolvency rise for decade, led by UK: Atradius

First global insolvency rise for decade, led by UK: Atradius

The level of global insolvencies has risen for the first time in a decade, led by the UK where the insolvency rate is expected to increase by as much as 10% in 2019, according to trade credit insurer Atradius. Across all developed markets, business failure rate increases are expected to rise 2.8% on average this year, largely driven by slower…

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