CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Euler Hermes announces insurance joint venture in China with CPIC
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

  • Asset finance up 16% in June
    New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase)… More

Headlines

 
Euler Hermes announces insurance joint venture in China with CPIC PDF Print E-mail
Thursday, 08 September 2016
Euler Hermes, the worldwide leader in trade credit insurance, and China Pacific Property Insurance Company (CPPIC) today announced the launch of their credit insurance joint venture, named CPPIC Euler Hermes Insurance Sales Company Limited (CPPIC Euler Hermes). The joint venture will be headquartered in Shanghai, and will have managers and existing members of staff from both companies.  

“Our strategy in Asia is to invest in and build strong partnerships that provide exceptional value for our clients,” stated Wilfried Verstraete, Chairman of the Board of Management of Euler Hermes. “The cooperation with CPPIC marks a milestone in our strategy for China and we are very pleased to deepen our partnership and bring our services to a wider spectrum of Chinese entrepreneurs and businesses.”

The Chinese trade credit insurance market, in the world’s second biggest economy, is both extensive and largely untapped. After export credit insurance liberalization began in 2013, the market has opened up significant opportunities. CPPIC is the third largest Property & Casualty (P&C) insurer in China, and is one of the few players that can offer export credit insurance in the country. Euler Hermes is the global leading trade credit insurer. Both have worked in partnership since 2011 and have successfully grown their trade credit portfolio, both domestic and export, during this time.

China has become the second largest global economy, as well as the largest exporter in the world since joining the World Trade Organization (WTO) in 2001. “The CPPIC-Euler Hermes joint venture integrates the competitive edges. By combining the 120+ years of experience of Euler Hermes, its global risk database and worldwide collection expertise, with CPPIC’s extensive network and resources, we are going to have a differentiating development in trade credit insurance industry,” said Mr. Gao Guofu, Chairman of China Pacific Insurance Group.

As global trade growth continues to be sluggish, competition over higher quality, lower price and longer credit terms is more intense than ever. Euler Hermes forecast some 300,000 corporations globally will fail this year. Business insolvencies are also increasing rapidly in Asia Pacific. In China, bankruptcies look set to increase by +20% this year following a +24% rise in 2015. Payment delays are on the rise with Days Sales Outstanding (DSO) standing at 88 days in 2015, +11 days more than in 2012. These challenges inevitably weigh on companies’ financial base and liquidity.

At the same time, more and more Chinese companies are globalizing. Among many other initiatives, the One Belt, One Road initiative will create an economic belt involving more than 60 countries, representing a third of the world’s total economy and more than half of the global population. This will likely translate into increased needs for protection.

“This is an exciting time for Euler Hermes and CPPIC. The new joint venture signifies our joint commitment to the Chinese trade credit insurance market,” added Holger Schaefer, Head of the Asia Pacific region at Euler Hermes. “With a presence in more than 50 countries, we are confident we can help businesses in China meet the challenges they face when capturing new opportunities, both in their domestic market and aboard. We look forward to working closely with our partner CPPIC.”
 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197