First Half-Year 2010 Business Results

During the first half-year 2010, we concluded 164 new insurance policies for state supported insurance totalling almost CZK33 billion, out of which extensive business cases with insurance value exceeding in every individual case one billion CZK accounted for approx. CZK25 billion. Prescribed insurance premium for new policies amounted to CZK1.2 billion.

Contrary to previous years, the focus of our activity considerably shifted to the insurance of buyer export credits, insurance of investments by Czech legal entities abroad and the insurance of credits for foreign investments. In total, these three insurance products accounted for 90 % of the volume insured during the first six months of this year.

In terms of territory, Turkey (32 %), where we insured a large Czech investment into water power stations, clearly dominated; it was followed by Russia (23 %) that is an important market for our clients on a long-term basis, and Azerbaijan (22 %).

In the first half-year 2010, we paid out insurance benefits amounting to CZK1.2 billion, while these were, by overwhelming majority, related to insured accidents having occurred in previous years. Due to the insolvency of PA Export, for example, the payments of insurance benefits by reason of claim for performance guarantees, issued for the projects of construction of Pakistani power stations Balloki and Muridke, continued to be carried out. Further insurance benefits related primarily to insured accidents in Kazakhstan, the Ukraine and Cuba. In these cases, we, however, gradually succeed in coming to agreements with debtors concerning the debt rescheduling.

In the same period, we recovered debts amounting to CZK15 million and prevented losses of approximately same extent.

© EGAP  2018
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