Overview of our 2019 financial results
2019 was a good year for Atradius. We have made progress in our three strategic pillars: growth, profitability and solvency; we have consolidated our strategy and continue to contribute to the commercial development of our customers.
The environment in which we have carried out our activity has not been easy. The world’s economies are suffering from a synchronized slowdown and barriers to world trade are proliferating, causing a noticeable slowdown in their growth. Despite this, Atradius has achieved its objectives regarding the three strategic pillars of Grupo Catalana Occidente.
The financial results for the year amounted to annual turnover of EUR 2,012 million, business growth of 6.0%; profit of EUR 227.7 million increased 12.4% and solvency strengthened by increasing the equity 10.3% to over EUR 2 billion. We remain focused on the development of our distribution networks, risk management & prudent underwriting and customer approach.
Total revenue surpassed the EUR 2 billion milestone. Insurance premium revenue increased 6.7% (6.1% at constant foreign exchange rates) with favourable portfolio development in most countries.
When our customers succeed, we succeed. In 2019 we provided our customers with more support to help them grow their businesses than ever before. Together, we are building our futures.
Net Investment Result
A positive EUR 25.9 million contribution to the result for the year from our prudent investment portfolio despite constrained interest rates.
Our customers count on us to pay their claims in a timely manner. Our conservative investment approach ensures we have the funds available to do so.
Atradius achieved a claims ratio of 42.8%, maintaining balanced risk acceptance while continuing to provide comprehensive coverage to our customers.
Knowing your buyers helps you manage your receivables better. Atradius's extensive resources on buyers' payment practices has helped deliver consistent performance when it comes to payment of invoices.
The expense ratio for the year was 35.9%, following substantial investment in innovation and technological development.
Shaping tomorrow together means investing in tools and services that will enable Atradius and our customers to grow and evolve with the world. We are making those investments in our cumulative future.
Result for the year
The result for the year grew to EUR 227.7 million, a 12.4% increase from 2018.
Our strong results are a reflection of the quality of the service we deliver to our customers. We are building a future together with information, protection and support that helps both Atradius and our customers grow.
Our shareholders' equity and subordinated debt position was further strengthened by 8.7%.
We have continued to grow our resources so that we can help our customers grow their businesses.