Credit Insurance Cooperating with ECAs Denmark Copenhagen, June 16, 2009

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

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

3. Atradius – facts and figures Atradius Group • World wide market share 31% • Annual revenues of more than EUR 1,8 billion • “A-” from S&P and “A2” from Moody’s • Information on 52 million companies • 22000 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 3 of 10

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

5. Economic cycle management Facts • Severe and fast change in economic cycle • Recession in most countries • Business defaults increasing sharply everywhere • 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 5 of 10

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

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

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

9. Basic principles • Structured 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 • Market have the “first right of refusal” to a limit • Market facility - offered to all major market players • EKF sets the price • The private insurers have the “underwriting pen” • Increased risk retention for the customers • Only covers export Slide 9 of 10

10. Terms & Conditions • Policyholder • 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 • Buyer 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 10 of 10

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

12. Premium rate and retained risk • Policyholder must take additional risk retention (20%) • Buyer risks are concentrated on buyers above average credit risk. • The 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 • Political 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%. Slide 12 of 10

13. Erik Skovgaard Nielsen Executive Manager, Denmark T. +45 33 26 52 10 erik.skovgaard.nielsen@atradius.com www.atradius.com