1. Insuring the balance sheet
Handouts General Presentation Template Aon Nederland
Insuring the balance sheet
DACT Treasury Beurs
Noordwijk
November 5th, 2009
Aon Trade Credit

2. Handouts General Presentation Template Aon Nederland
Who is Aon
Handouts General Presentation Template Aon Nederland
Worldwide leader in
Risk Management
Employee Benefits
(Re-) Insurance
Aon Corporation
Revenue USD 7,4 Billion (2008)
Based in 120 countries with 500 offices
employees worldwide, 1500 in The Netherlands
Aon Trade Credit

3. Aon Trade Credit Aon is risk consultant & insurance broker to Randstad
Aon Trade Credit was requested to advise Randstad on credit insurance in relation to the pursued off-balance sheet financing of the receivable portfolio
The objective of Randstad was the off-balance structure
In some structures a credit insurance was a condition sine qua non
This has an impact on the discount rate of the purchase price
Randstad
Bank
Premium
A/R
Credit
Insurer
Insurance
EUR
Aon Trade Credit

4. Insurance Issues Credit management impact for Randstad
Standby facility: when to start insuring
Amount covered and therefore fundable unclear over time
Insured is the financial institution (ABS policy) at the moment it becomes owner of the assets
Cost / Benefit
Aon Trade Credit

5. Randstad Solution
The receivables portfolio of Randstad is diversified in terms of debtors and industry segments
Therefore comparable to the portfolio of a financial institution willing to finance the portfolio (predictability and no concentration concerns)
The credit insurance market is open for solutions and has shown flexibility
The discount proposed by a financial institution and amount eligible for sale should be compared with the cost for risk transfer premium of a credit insurance
Aon Trade Credit

6. Aon Trade Credit
Aon Trade Credit