Euler Hermes to Enter Australia, NZ Credit Market

June 22, 2006

Euler Hermes, the Paris-based international credit insurer, has signed a letter of intent with Lumley General Insurance to acquire its credit insurance activities in Australia and New Zealand.

Euler Hermes’ bulletin described Lumley General, a subsidiary of the Australian Group Wesfarmers, as having successfully developed its credit insurance activity over the past 5 years. It ranks among the top 20 listed companies in Australia with a “with a specialized team of credit insurance professionals.”

The credit insurance portfolio in Australia and New Zealand is worth AUD 7 million (€ 4 million – $5 million). Euler Hermes, which does business in 40 countries, “will reinforce through this acquisition its presence in the Pacific area,” said the announcement. “The group will offer Australian and New Zealand companies from now on its worldwide expertise in credit insurance. Furthermore, its unique database on national and international credit risks, its international presence through its commercial network and its aligned procedures and IT systems will be highly valuable for the credit insurance clients in Australia and New Zealand.” The company estimates the volume of the Australian and New Zealand credit insurance market at around €100 million ($125 million).

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