1. Beyond
Traditional
Trade Credit
Insurance
Increase internal capacity avoiding external syndication
Integrate a credit protection element into your pricing
Expand the range of eligible obligors to non-rated entities
Distribute your credit risk to an S&P AA-, Moody’s Aa3, Dagong AA- rated insurer
Manage exposures through our online tool. This gives a comprehensive, real time overview
of your customers’ risk profile
Consider optimization of your Risk Weighted Assets (RWAs) under Basel III regulation
Bank as the Insured Our products protect against the non-payment of:
Trade credit insurance has been available to your clients for more than 100 years.
With new lending products, increased regulation and overall global risk, banks
have recently benefited from purchasing credit insurance directly. Insuring bank
transactions with Euler Hermes offers insight, protection and stability for the lender.
What are our Bank Solutions?
Our credit insurance policies secure bank transactions against both commercial and political
triggers of non-payment. We will use our extensive database of over 40 million companies
worldwide to assess and monitor the creditworthiness of your portfolio.
Medium Term: Cover available up to 7 years, non cancellable limits
Supply Chain Finance: Receivables and payables purchased by you as part
of your financing activity
Export Finance: Pre-export loans, commercial loans (trade related) and
buyer/supplier credits
Trade Finance: Confirmed LoCs, import LoCs and silent guarantees
Asset Finance: Amounts falling due by the lessee under your operating
leasing activity
Bank Finance: Bank-to-bank trade loans
Sovereign Finance: Term loans issued to a public obligor for capex or
working capital purposes
Bancassurance: We can offer non-payment insurance to your customers. This
protects them against the non-payment of receivables. Ask about a partnership
with Euler Hermes to learn how to receive risk-free income.
Bank as the Distributor Products available to your customers:
Insuring your receivable finance programs enables you to:

2. On a single risk exposure, the estimated impact of a probability of default (PD) substitution is illustrated as follows:
Assumptions:
◾ 8% capital ratio
◾ 0.5% original obligor PD
◾ 45% original obligor LGD
◾ 0.05% Euler Hermes PD
◾ 90% indemnity level
Direct
Clauses within
bank’s control
Explicit and
clearly defined
Irrevocable Unconditional*
Direct recourse
to guarantor
Rated corporate
entity
Non mono-line
insurer
Euler Hermes North America Headquarters 800 Red Brook Boulevard Owings Mills, MD 21117 Phone: +1 877-883-3224 Fax: 410-753-0952
eulerhermes.usa@eulerhermes.com www.eulerhermes.us
Contact us to discuss how
you could benefit from a
Euler Hermes solution.
Jerry Paulson
Head of Bank Channel
Americas Region
+1.312.560.9526
jerry.paulson@eulerhermes.com
banks@eulerhermes.com
1000
800
600
400
200
0
$1,000k
$799k
$64k
EAD
RWA
K
1000
800
600
400
200
0
$1,000k
$294k
$24k
EAD
RWA
K
EAD – Exposure at Default
RWA – Risk-weighted Assets
K – Capital Requirement
Capital requirements drop from $64k to $24k.
There is a significant risk transfer effect on the individual transaction.
Why Euler Hermes?
Euler Hermes is the global leader in trade-related insurance solutions. We are unrivaled in our
financial solidity, risk analysis and integrated global structure. In addition to insuring your bank
transactions, Euler Hermes will provide you with the domestic and export market knowledge needed
to successfully manage your finance programs.
By choosing to have your transactions insured by Euler Hermes, you gain access to:
◾ Exclusive and proprietary information gathered through our extensive global network of
1,500 credit risk specialists.
◾ Top-notch research on countries and sectors to provide you with best-in-class knowledge.
◾ Significant underwriting capacity backed by Allianz, one of the leading financial services
providers worldwide.
Risk-Weighted Asset (RWA) Optimization
Euler Hermes has a firm understanding of your regulatory (Basel III, FRB, Dodd-Frank and more) requirements and a dedicated team of experts that
works with financial institutions. Our products can be structured to qualify as eligible instruments for unfunded credit risk mitigation.
The data shown in this diagram is only an example.
Eligibility Criteria for Credit Protection
Eligibility Criteria for Protection Providers
*Basel text also refers to “permitted conditionality”