"Our customers will receive the highest standards in terms of credit management expertise and quality services, wherever they are doing business"

Interview with Wilfried Verstraete, CEO of Euler Hermes

18.11.2009


Credit insurers had to deal with dramatic increases in payment default and business insolvencies since the beginning of the crisis. How is Euler Hermes coping?

Wilfried Verstraete: Considering the severity of the crisis, Euler Hermes has been faring better than others but we have also been hit hard by a sharp increase in claims. While our result is still positive, our profitability has dropped significantly and turnover evolution is pretty much flat. Our priorities today are therefore to restore profitability, protect our capital base and our franchise. In order to emerge from the crisis stronger and ensure our group’s sustainable growth, we have decided to undertake some far-reaching actions and reorganize the company.


You coined the major reorganization that Euler Hermes is undergoing “One Euler Hermes”. Can you tell us more about the new structure you are putting in place?

WV:We initiated the “One Euler Hermes” project to complete the integration process that started back in 2002 with the merger of Euler and Hermes. The four pillars of our new organization are a clarified governance at group level, strengthened group functions, a new geographical breakdown in six balanced regions and a clear accountability of Euler Hermes’ operational entities. With “One Euler Hermes" we will become consistently customer-focused and more efficient. Thanks to more effective processes, and systematic sharing of best practices we will be able to respond quicker to the changing needs and expectations of our customers.


How will your customers benefit from the new organization?

WV: One of the main customer benefits of a truly integrated international organization is they will receive the highest standards in terms of credit management expertise and quality services, wherever they are doing business. With its new structure Euler Hermes will also increase cost efficiency which will lead to higher investments in innovation and customer service. In short, our customers can soon expect improved policy management, quicker response times and an even wider range of comprehensive credit management solutions tailored to their needs at competitive prices.