Euler Hermes, the trade credit insurer of the Allianz Group, and China Pacific Insurance (Group) Co., Ltd. (CPIC Group), one of China’s largest insurers, announced that they “have combined their expertise to help Chinese companies to better manage trade credit risks.”
The two companies will offer their Chinese clients a “dedicated risk transfer solution for their outstanding commercial invoices. Allianz Group, parent company of Euler Hermes, holds a 2.8 percent stake in CPIC Group representing 10.4 percent of the CPIC Group shares listed in Hong Kong. The objective of this investment is to participate in the Chinese insurance market and open up cooperation opportunities in the world’s most important insurance growth market.”
The cooperation and reinsurance agreements Euler Hermes and CPIC Group have signed, are designed to make it easier for their Chinese corporate clients to “protect their trade receivables. This offer enables Chinese corporates to trade competitively with their B2B customers on an open account basis,” the bulletin explained. “Commercial credit insurance indemnifies CPIC Group’s clients in case of bankruptcy of their buyer and non-payment of the invoice. In addition the solution enables them to better select potential buyers and to determine the right payment terms for them.
“Euler Hermes provides reinsurance capacity and brings its trade credit risk underwriting expertise. CPIC Group provides its market knowledge and sales network covering the whole of mainland China.”
Wilfried Verstraete, Euler Hermes Group CEO, commenetd: “With Euler Hermes’ credit underwriting expertise and CPIC Group’s position in China we share the same ambition and have a perfect platform to develop our partnership together. These unique strengths that both partners bring to the table mean that we have every expectation of achieving great success together.”
Wu Zongmin, CEO of China Pacific Property Insurance Co., Ltd., a subsidiary of CPIC Group, expressed his pleasure with the enhanced ability “to provide domestic credit insurance in China. With the backing of Euler Hermes we will support corporates in China in managing their trade risks and enable them to develop their business safely, effectively and profitably.
China Pacific Insurance (Group) Co., Ltd. is headquartered in Shanghai. It currently has 74,000 employees and 300,000 agents, who “provide individual and institutional clients a wide range of risk prevention solutions, financial advice and asset management.”
Source: Allianz
Topics China
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