Financial results 2010 (press release)

In 2010, the Export Guarantee and Insurance Corporation (EGAP) generated profit in the amount of CZK 377 mil. based on preliminary results not subject to the audit yet. The gross premiums written exceeded CZK 2.2 billion and the indemnity in the approx. amount of CZK 1.5 billion was paid out.

The financial results of the previous year affirm the long-term economic balance of the state-owned credit insurance company EGAP when all costs, including indemnity payments, have been fully covered by revenues produced internally, in particular based on written premiums, and the state subsidies to insurance funds have been used exclusively for the optimal insurance capacity generation. The accounting balance of the insurance funds and reserves at the end of the last year amounted to CZK 16 billion. The state budget for 2011, allocated for EGAP a subsidy in the amount of CZK 1 billion. This should create sufficient space for the conclusion of new contracts to insure the Czech-state subsidized export of Czech goods and investments. Based on preliminary estimates, the annual insured volume may reach the level of CZK 70 billion.

In the last year, EGAP concluded 325 contracts to insure risks with the state support relating to the export of Czech goods, services and investments totalling to CZK 67.2 billion. The largest insured volume pertains to export client credits provided by banks to finance export contracts. In total, within the framework of this type of insurance, contracts in the insured value of CZK 36 billion were concluded. The second largest volume of CZK 19 billion, represents the insurance of Czech investments abroad and credits drawn to cover the financing thereof.

At the end of 2010, the Tax Office for Prague 1 performed an inspection in EGAP focused on tax returns and tax documents posting for the previous three years. During the inspection no serious deficiencies were discovered.

Vlastimil Nesrsta

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