·
Euler Hermes was successfully granted
a license from the Financial Supervisory Commission
R.O.C. to issue trade credit insurance and surety
bonds in the Taiwan market.
·
Euler Hermes opens a branch in Taiwan and is now able to trade under
its own license
in the market.
·
Taiwan is a solid
export oriented economy. Corporate insolvencies are expected to continue
to grow by +5% in 2018. More importantly, Days Sales Outstanding (DSO) for
listed companies is on the rise (increasing from 72 in 2016 to 74 days
in 2017).
TAIWAN - 12 JULY 2018 - Euler Hermes,
the global leader in trade credit insurance, today announced the
launch of its Taiwan branch.
Euler Hermes Taiwan
is now able to trade
under its own license. Euler Hermes is a fully
owned company of the German
based Allianz SE Group.
Euler Hermes was successfully granted a
license from the Financial Supervisory Commission
R.O.C. to issue trade credit insurance
and surety bonds in the Taiwan market.
Over the last 16
years, Euler Hermes worked with the local partners
in Taiwan to provide the products to the
market.
Trade credit insurance, also
called accounts receivable insurance, is a financial tool that protects a company from its
customer’s failure to pay. A business is providing trade
credit to its customers,
when the business supplies goods
or services upfront
but agrees to be paid at a later stage.
This business can however purchase Euler Hermes’ credit insurance to
safeguard against the possibility of default.
Bonding business, also known
as “surety bonds” are contractual relationships where Euler Hermes vouches with
its good name towards third parties for the business obligation of a
contractor. The bond
secures that the contractor will fulfil its
obligations under the contract. By arranging a facility with Euler
Hermes, the companies have the advantage that borrowing facilities and working capital
arrangements with banks
are not impacted.
“I
am glad that the license was finally approved by the local regulator. This is
an important milestone for our business in Taiwan. The Taiwanese team has moved
into a new office and operates independently,”
said Holger
Schaefer, Head of Region, Asia
Pacific
at Euler Hermes. “We have built a solid foundation in Taiwan
with steady business and portfolio growth, as well as a strong network of
partnerships.”
Taiwan is a solid
export oriented economy.
GDP growth has been resilient over the past seven
years despite a range of global shocks. Economic growth rose by an average
+2.2% yearly between 2012 and 2017, compared to a growth of +1.8% yearly for high-income economies over the same period. Supported
by a firm demand for
exports, pro-innovation policies, and a rise
in public infrastructure spending, Euler Hermes expects economic growth to rise
by +2.4% on average during 2018-20.
Corporate insolvencies are expected to continue to grow by +5% in 2018. More importantly, Days Sales Outstanding (DSO) for listed
companies is on the rise (increasing from 72 in 2016 to 74 days in 2017). This lengthening of DSO and the continued
rise of insolvencies call for caution. Euler Hermes provides unique
economic forecast and market intelligence to Taiwanese businesses to help anticipate challenges in trading
with specific countries, sectors and buyers.
“Taiwan is
a growth market. We have confidence in the market and continue to increase our investment
in products and infrastructure,” concluded Vincent Kuo, Country Manager, Euler Hermes
Taiwan.