Credit Insurance Cooperating with ECAs Denmark Copenhagen, June 16, 2009 Erik Skovgaard Nielsen, Executive Manager, Denmark

Slide 2 of 10 Contents n Atradius – facts and figures n Economic cycle management n EKF scheme

Slide 3 of 10 Atradius – facts and figures Atradius Group n World wide market share 31% n Annual revenues of more than EUR 1,8 billion n “A-” from S&P and “A2” from Moody’s n Information on 52 million companies n credit decisions daily Atradius in Denmark Largest credit insurer – market share 65% Insured turnover appr. EUR 20 billion Appr. 80% related to export Credit insurance, B2B Collection and guarantee business

Slide 4 of 10 Contents n Atradius – facts and figures n Economic cycle management n EKF scheme

Slide 5 of 10 Economic cycle management Facts n Severe and fast change in economic cycle n Recession in most countries n Business defaults increasing sharply everywhere n Country issues increasing Result Credit capacity is shrinking Fewer companies qualify for cover Price for credit is increasing significantly Credit insurers are pulling limits Politicians/governments worry on impact on exports and economy overall

Slide 6 of 10 Creditworthiness Very goodVery poor ‘Marketable’ credit risks ‘Non-Marketable’ credit risks Economic crisis Market Outlook – Deterioration of Creditworthiness

Slide 7 of 10 ” The best of the rejected risks ” ‘Marketable’ credit risks ‘Non-Marketable’ credit risks Economic crisis EKF Reinsurance Scope for EKF involvement Creditworthiness Very good Very poor Good times

Slide 8 of 10 Contents n Atradius – facts and figures n Economic cycle management n EKF scheme

Slide 9 of 10 Basic principles nStructured as a quota share reinsurance facility  Private insurers front in all aspects  Premium split between EKF and insurer  EKF pays a ceding commission to insurers nMarket have the “first right of refusal” to a limit nMarket facility - offered to all major market players nEKF sets the price nThe private insurers have the “underwriting pen” nIncreased risk retention for the customers nOnly covers export

Slide 10 of 10 Terms & Conditions nPolicyholder  Scheme is a supplement to the policyholders current credit insurance.  Private insurers decide whether they accept a customer for the facility  Separate policies are issued for the EKF scheme  EKF must approve policyholder nBuyer risk  Diverse country group, incl. most OECD/EU-countries  Only ”the best of the non-marketable risks” can be covered  Specific guidelines on buyer underwriting applies  The private insurers do the risk underwriting decisions without interference from EKF, unless……

Slide 11 of 10 Why use quota share structure nHistorically the preferred option by the Danish government nRelatively easy in terms of admin – well known concept by the private market nEKF will not have to be involved directly into the market nTreaty signed for a year – with possibility to renew nEasy to phase-out again when market capacity gets back to normal

Slide 12 of 10 Premium rate and retained risk nPolicyholder must take additional risk retention (20%) nBuyer risks are concentrated on buyers above average credit risk. nThe premium rate is fixed and has been decided by EKF based on a grouping of countries. The premium rates – turnover basis – are:  1.00% in country group 1  1.50% in country group 2  2.00% in country group 3 nPolitical risk cover is compulsory in country groups 2 and 3. For country group 1, political risk cover is optional subject to an excess premium of 0.10%.

Erik Skovgaard Nielsen Executive Manager, Denmark T