Euler Hermes increases shareholding in Israeli credit insurer ICIC to 50 percent
PARIS - 24 APRIL 2013 - Euler Hermes, the world leader in trade credit insurance, will increase its participation in Israel's leading credit insurer ICIC from the original 33% acquired in 2007 to 50%, pending certain regulatory approvals expected before the summer. The remaining 50% of shares will be held by Euler Hermes' local partner Harel Insurance Investment & Financial Services Ltd.
"Euler Hermes' collaboration with ICIC since 2007 has been excellent, and is also reflected in ICIC's strong business results," said Wilfried Verstraete, chairman of the Euler Hermes management board. "Increasing our investment to a 50% shareholding is consistent with our Mediterranean basin growth strategy. We look forward to continuing to best support our Israeli clients - highly focused on export trade - with global market knowledge that helps them make confident business decisions."
Between 2007 and 2012, ICIC turnover increased from 16 to 28 million euros (USD 20.9 to USD 36.5 million).
"The increase of Euler Hermes's share in ICIC will further strengthen our position in the Israeli credit insurance market - be it for domestic or export trade," confirmed David Milgrom, chief executive officer of ICIC. "Euler Hermes' global risk underwriting expertise and Harel's extensive local distribution network as the second largest insurer in Israel provides ICIC with strong partners to support our clients in their business development."
In a turbulent global economic environment, Euler Hermes expects Israel's economy to expand by +2.7% in 2013 and +4.5% in 2014 as the vibrant high-tech sector (highest global expenditure on R&D as a percentage of GDP with 4%) and investments in offshore natural gas spur activity.
Established in 1957, ICIC is headquartered in Tel Aviv and employs 55 people. The company offers a complete range of credit insurance and trade finance solutions.
#####
CONTACTS
| Euler Hermes Group Media Relations | Ogilvy Public Relations Worldwide |
| Bettina Sattler - +33 (0)1 8411 6141 | Lorenzo Ricci - +33(0)1 5367 1283 |
| bettina.sattler@eulerhermes.com | lorenzo.ricci@ogilvy.com |
Euler Hermes is the worldwide leader in credit insurance and one of the leaders in the areas of bonding, guarantees and collections. With 6,000+ employees in over 50 countries, Euler Hermes offers a complete range of services for the management of B-to-B trade receivables and posted a consolidated turnover of €2.4 billion in 2012. Euler Hermes has developed a credit intelligence network that enables it to analyze the financial stability of 40+ million businesses across the globe. The Group insured worldwide business transactions totaling €770 billion exposure end of December 2012. Euler Hermes, subsidiary of Allianz, is listed on Euronext Paris. The Group is rated AA- by Standard & Poor's.
For more information visit www.eulerhermes.com or follow us on Twitter @eulerhermes
Cautionary note regarding forward-looking statements: The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Euler Hermes Group's core business and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the development of loss expenses, (iv) persistency levels, (v) the extent of credit defaults, (vi) interest rate levels, (vii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (viii) changing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the European Monetary Union, (x) changes in the policies of central banks and/or foreign governments, (xi) the impact of acquisitions, including related integration issues, (xii) reorganization measures, and (xiii) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.
The company assumes no obligation to update any forward-looking statement.
