The Annual Report is a complete overview of the performance of Atradius N.V. in a year. It includes performance and strategy, full year accounts and additional financial information.
Atradius Annual Report 2020 – Rising to the challenges
At Atradius, we continuously strive to deliver the best possible service to our customers and to be everywhere they do business. 2020 has presented us with new challenges. With businesses in lockdown around the world, delivery, flexibility, and innovation were key to success. Through continuous investment in our digital platforms and on-going digitalization initiatives, we rose to the task providing our customers with as close to a business as usual experience as possible, while for the most part working remotely.
While we were able to continue providing top quality service, the pandemic took its toll on global trade resulting in a decline in sales of our customers and subsequently insurance revenue.
Insurance premium revenue was 1.8% lower while gross claims rose 21.8% and government reinsurance programs resulted in an increase of 31.2% in insurance premium ceded to reinsurers. As a result, the overall insurance result decreased by 76.0% and the consolidated result for the year by 80.6%, to EUR 77.3 million and EUR 44.2 million respectively. Our continued support of our customers’ and partners’ needs during these turbulent times has delivered another high customer retention rate of 92.7% for 2020.
The outlook for 2021
In 2021, growth of the world economy is likely to rebound to 5.0%. This relatively high growth rate is partly a ‘technical’ rebound from a relatively low base in 2020. As the vaccination process is underway, we anticipate social distancing measures gradually being reduced in 2021. While economic activity is expected to expand, costs of the crisis in terms of bankruptcies and unemployment remains high. We expect a rise in bankruptcies in virtually all markets, as the measures that helped to suppress insolvency growth in 2020 are gradually unwound. There remains a wide dispersion of insolvency projections between countries. We are well prepared to steer the business, supporting our partners and customers in overcoming these turbulent times and help them grow their business by trading safely.
The global economy continues to be impacted by uncertainty in the business environment created by the Covid-19 pandemic. We have risen to this challenge by adapting to the situation in 2020, and are confident of our abilities to continue to support our customers, partners, employees, and shareholders throughout this health crisis.