Issue 83: Credit Insurance News Digest

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Welcome to issue 83 of Credit Insurance News Digest. This issue is kindly sponsored by STA International.

Index

Credit Insurance News

Business collapse shows the importance of trade credit cover. Insurance Business has published an article which reports that the collapse of Australian high-profile fashion labels Marcs and David Lawrence can be used by brokers as a way to drive client interest in trade credit cover. Mark Hoppe, Managing Director of the Australian branch of Atradius, said: “Even though it might not be their industry, nearly every business has got a large exposure on their books who they are not worried about because they know their name and they have dealt with them for 20 years.” Mr. Hoppe also stressed that uncertainty remains in the trade credit market. In 2016, insolvencies in Australia peaked in the first part of the year and Mr. Hoppe said that businesses without insurance are left scratching their heads when a large supplier fails. “With a name like this [being impacted] it can happen at any time to anyone.” To read the article on Insurance Business' website go to http://www.insurancebusinessonline.com.au/au/news/breaking-news/business-collapse-shows-importance-of-trade-credit-cover-230693.aspx.

UK to face the sharpest rise in business failures of any EU economy. According to research by Euler Hermes, UK business failures will rise by 5% (to 20,254) in the next 12 months as the economic slowdown, rising input prices and increased late payment risks begin to take their toll. This is in sharp contrast with the rest of the continent, where insolvencies will fall by 4% in Western Europe and by 1% in Central and Eastern Europe this year. The company’s latest Economic Insight, 'Insolvencies: Tip of the iceberg', reveals that this upswing in UK failures will be the first rise in the UK since 2010 and follows a 3% fall in 2016. Valerio Perinelli, CEO of Euler Hermes - UK and Ireland, commented: “The UK will be the only major European country to see a sizeable rise in business insolvencies in 2017. While the economy has remained resilient since the EU referendum, there is already evidence of additional strains on prompt payment in the supply chain.” To read Euler Hermes' report go to http://www.eulerhermes.com/economic-research/publications/Pages/insolvencies-the-tip-of-the-iceberg.aspx?postID=952.

Four key risks businesses face without trade credit insurance. Boss Magazine has published an article which describes four key business risks that can be substantially mitigated by credit insurance. These include: the danger of unknowingly trading with high-risk partners; governmental policy changes and natural disasters; international market risk due to regulatory changes, goods confiscation, civil unrest and even the sovereign’s willingness to pay. The article stresses that as soon as a business sells its goods to a buyer on credit, it puts itself at risk and suggests that a credit insurance policy can mitigate the risks involved with trading domestically and internationally, regardless of the external factors. "In the absence of firm information to help businesses prepare for crises, credit insurance provides a dependable solution." To read the article on Boss Magazine's website go to https://thebossmagazine.com/key-risks-without-credit-insurance/.

Equinox pursues Brexit contingency plan in Hamburg. The Insurance Insider has published an article, which reports that Equinox Global plans to submit an application to set up a German subsidiary in preparation for Brexit. Equinox Global's CEO, Mike Holley, who was a vocal member of the 'remain' camp in the run-up to the referendum, told The Insurance Insider that his London-based company had, in December, registered a GmbH or limited liability German company to be located in Hamburg. This follows Mr. Holley's comments in a blog in June 2016 in which he advised that when setting up Equinox Global in the UK: "had we known that Brexit was on the cards, perhaps we would have reconsidered choosing the UK as our home domicile." To read The Insurance Insider's article go to http://www.insuranceinsider.com/equinox-pursues-brexit-contingency-plan-in-hamburg. (Subscription required).

Hardening rates boost the Australian trade credit market. An Insurance Business article has reported that the trade credit market is seeing hardening rates, which could be good news for brokers. Mark Hoppe, Managing Director of the Australian branch of Atradius, commented: “The market hardened in the backend of last year and I think that it will continue to do so." With that being said, the market is recovering from a very soft level, and while Atradius increased its rates in Australia in 2015, the rates that were offered in 2016 were still lower than were being offered in 2014. Looking ahead, Mr. Hoppe cautioned that he expects 2017 to be “one of the more uncertain years” that he has ever seen, but stressed that "uncertainty is when you want to be insured.” To read Insurance Business' article go to http://www.insurancebusinessonline.com.au/au/news/breaking-news/hardening-rates-to-boost-trade-credit-market-231082.aspx.

Global GDP expected to grow 2.8% in 2017. An article by CPI Financial reports that Euler Hermes expects the world GDP to grow by 2.8% in 2017. Jules Kappeler, CEO of Euler Hermes GCC, commented: “The US is expected to benefit from renewed confidence, hence the world’s biggest economy to post 2.4% growth in 2017. Growth in the Euro zone, on the other hand, will likely reach 1.6% as there are some pain points in 2017: elections in France, Germany and The Netherlands, the everlasting Brexit route, and the vulnerability of the Italian banking sector will continue to make headlines in 2017." Mr. Kappeler added that after two consecutive years of contraction, trade growth could recover in 2017 in value terms, above 3.5%, as imports from the US, from Europe and from the emerging world, are on the rise. To read CPI Financial's article go to http://cpifinancial.net/news/post/39323/euler-hermes-global-gdp-expected-to-grow-2-8-per-cent-in-2017.

Overview of trade Credit Insurance in Portugal. Astreos Credit's latest country overview reports that the Portuguese trade credit insurance market has so far failed to reach the €70 million premium high it last experienced in 2009. The market also almost stagnated in 2016 when compared to 2015. The market is dominated by five players: Cosec, CyC, Cesce, with Cosec holding the largest market share with 53.61%. The report also notes that during 2016, Cosec made a huge effort to maintain its client base by means of price decreases and renewal bonus payments. Overall, the forecast for 2017 shows that economic growth in Portugal will remain weak, affected by a fragile government and a delicate banking sector that increases the risk of a credit downgrade. To read Astreos Credit's news release go to http://www.astreos-credit.com/single-post/2017/02/01/Credit-Insurance-in-Portugal.

Lackluster outlook for world trade could be compounded by the resurgence of protectionist measures. Global Trade Magazine has published an article which reports that Coface's latest forecast for the global economy has predicted that following two years of slower world growth, the outlook should improve slightly in 2017 - up from 2.5% to 2.7%. This outcome will be driven by a rebound in emerging countries - with expected 4.1% growth due to recoveries in Brazil and Russia - that will offset the slowdown in China. Advanced countries will see stable growth of 1.6%. Coface also warns that the lackluster outlook for world trade, forecasted at 2.4% for 2017 (compared to an average of 7.0% between 2002 and 2007) could be further compounded by the resurgence of protectionist measures following the US election of Donald Trump. To read Global Trade Magazine's article go to http://www.globaltrademag.com/trade-credit-insurance/coface-country-risk-outlook-2017.

UK businesses advised of new opportunities within growing emerging market economies. Leading economists from Atradius have released their assessment of the world’s top emerging markets of 2017. The new economic report reveals that India, Indonesia, Kenya, Côte d’Ivoire, Peru, Chile and Bulgaria are some of the global leading emerging market economies to watch. According to Atradius, these economies have been boosted by higher yields, reduced concern surrounding a hard landing of China’s GDP growth and a stabilisation of commodity prices. However, while there are increasingly new opportunities for UK businesses to trade with emerging markets and new global opportunities must be "seized upon", Richard Reynolds, Head of Regional Brokered Sales at Atradius, cautioned that "the key for businesses operating in these new markets is protection. Businesses must be aware of the risks and take positive action to mitigate against them with robust risk and credit management strategies.” Click here to read Atradius' news release.

The bleak economic environment has cast a shadow over Brazilian companies' payment behaviour. A new payment survey of Brazilian companies by Coface has found that the majority of companies (58%) observed an increase in their delinquency rates in 2015, compared with 2014. Similarly, in 2016 the survey found that payment experiences had deteriorated in comparison to the previous year for 46% of companies. The survey also found that the majority of surveyed companies (58%) saw the number of clients that filed for Chapter XI soar in the last year, while in 2015, a hike of 5 % was reported compared to 2014. Among those companies that reported an increase in Chapter XI cases, 53% did not see any changes in the client's behaviour prior to the request. Over recent years, Chapter XI has become more and more common in Brazil and is affecting companies of varying sizes and sectors. To read Coface's news release with a link to the full report go to http://www.coface.com/News-Publications/News/First-Brazilian-Corporate-Payment-Survey-2016.

Is the oil market finally approaching balance? Atradius' latest Economic Research has reported that the price of oil bottomed out in early 2016 and, since Q4 2016, has held steady around US$55 per barrel. This has been driven by rising demand, OPEC’s decision to curb production, and resilience in the US shale sector. Looking ahead, Atradius predicts that oil prices are expected to stay steady around US$56 until 2018 when demand is forecast to begin exceeding supply, lifting the price more rapidly to US$79 per barrel by 2020. Downside risks stem from a persistent supply glut, either from US policy or OPEC’s failure to follow through on the agreement to cut production. To read Atradius' research paper go to https://group.atradius.com/publications/oil-price-update-2017.html.

Growth in most GCC countries is expected in 2017. CPI Financial has reported that Coface's latest global and regional economic outlook has a found that although all GCC countries except Kuwait saw economic contraction in 2016, growth is expected to improve in 2017 across the GCC states - except in Oman and Bahrain. Coface now forecasts that growth is likely to reach 2.5% in the UAE, up from 2.3% in 2016 owing to being more diversified from oil than its neighbouring GCC countries. Saudi Arabia’s economic growth is expected to accelerate to 1.8%in 2017 from 1.3% in 2016, and Qatar’s economic growth is forecast to be 3.3% in 2017 up from 2.6% in 2016. Kuwait’s economy had more than doubled from 2015 to 2016 going from 1.1% to 2.4%. In 2017, the country will grow more and reach 2.6%. In contrast, the Bahrain economy is expected to shrink further to 1.7% in 2017 from 2% in 2016. Growth in Oman will also dip slightly again to be 1.7% in 2017 from 1.8% in 2016. To read CPI Financial's article go to http://www.cpifinancial.net/news/category/economics/post/39420/2017-an-economic-upturn-in-the-face-of-uncertainty.

Forget China or India. The ASEAN countries are the latest hot spot for export growth. ChronicleLive has published an article in which Atradius' Mike Rowan was asked what risk factors businesses heading to ASEAN markets need to consider. He answered that although many of the main risks are very similar to those encountered when doing trade closer to home, political change, instability, succession, weak infrastructure, in-market ethnic differences and the slow pace of economic reforms within these nations also play a role. "The more recent and growing territorial disputes, for example over maritime boundaries, is also a source of concern." Risk issues aside, do the ASEAN countries represent a genuine opportunity for North East exporters? Mr. Rowan believes so, and commented: "With uncertainty surrounding Brexit, the eyes of businesses are being turned to other markets across the globe to consider new trade destinations." To read ChronicleLive's article go to http://www.chroniclelive.co.uk/business/business-news/forget-china-india-asean-countries-12572974.

Sompo Canopius to enter trade credit with AIG hires. The Insurance Insider has published an article, 'Sompo Canopius to enter trade credit with AIG hires', which reports that specialty (re)insurer Sompo Canopius has hired a pair of trade credit insurance underwriters from AIG. Insurance Insider understands that Will Clark and Scott Morrison have moved to Sompo Canopius as part of an expansion into trade credit insurance at the Japanese-owned carrier. Mr. Clark was previously head of UK trade credit at AIG. Also moving over from AIG is Mr. Morrison, who will act as Mr. Clark's deputy. To read The Insurance Insider's article go to http://www.insuranceinsider.com/sompo-canopius-to-enter-trade-credit-with-aig-hires. (Subscription required).

Insolvencies in China continue to rise. Atradius' latest country report on China warns that the countries current economic slowdown has led to increasing overdue invoices and businesses requesting longer payment terms – a trend that is expected to continue in 2017. Insolvencies are also expected to rise further after a substantial increase in 2016, as overcapacity and high indebtedness remain an issue in many sectors (especially construction, steel and metals, shipping, mining, paper). While listed and state-owned businesses still benefit from stronger support from banks and shareholders, Atradius advises that more caution is recommended when dealing with small and medium-sized private businesses, as many of them - even those active in better performing industries - often suffer from limited financing facilities. To read Atradius' report go to https://group.atradius.com/publications/country-report-asia-pacific-china-2017.html.
Additional country reports are also available for India, Indonesia, Japan, Malaysia, Philipines, Singapore, South Korea, Taiwan, Thailand and Vietnam at https://group.atradius.com/publications/.

Political Risk Map 2017: Global geopolitical risk concerns for businesses. Marsh has published its latest Political Risk Map 2017 and has warned that recent events in the West (including the UK’s Brexit vote and the US presidential election) have the potential to amplify geopolitical risks in 2017. Overall, emerging markets, particularly those in North Africa and the Middle East, show the greatest instability as conflicts, civil war, and socio-economic instability affect Syria, Sudan, South Sudan, The Central African Republic, Yemen, and other countries. Marsh also predicts that there is likely to be continued growth in rivalries between world powers in 2017, such as those witnessed in recent tensions between China, Japan, and South Korea in the South and East China Sea, and in Russia’s growing assertiveness in peripheral countries and in Syria. For more information and to see the Map go to https://www.marsh.com/us/campaigns/political-risk-map-2017.html.

US leaves TPP-dashed hopes for industry growth in Asia. Atradius has warned that the US decision to leave the TPP agreement could foretell profound economic and strategic implications for certain Asia Pacific economies and industries. Australia and New Zealand food producers and exporters and service providers would have benefited from increased market access to TPP markets. Japan would have gained better access to the US market, including manufacturing US-bound cars with more parts provided by (cheaper) Asian sources. Vietnam was supposed to be a major beneficiary of a US-led TPP, which would have led to a significant increase in its medium-term growth prospects and it is estimated that Vietnam’s GDP would have grown an additional 10% over the coming 10 years. To read Atradius' news release go to https://group.atradius.com/publications/US-leaves-TPP-note.html.

Congratulations to Credit and Business Finance and Nexus CIFS, winner and highly commended respectively in the 'Credit Insurance Specialist of the Year' category at the recent CICM Awards in London. For a full list of all the night's winners go to http://www.cicmbritishcreditawards.com .

Announcement from Credit Insurance News Digest

Launching in 2017. We are hugely excited to announce that we will be launching a new business information service and newsletter, Credit Management News and Credit Management News Digest, in the first half of 2017.

We're currently developing a list of subscribers for Credit Management News Digest and would be delighted to add your name. Issues will, of course, be free. Click here to sign-up or email us.

New Appointments

Tokio Marine HCC has recruited two new professionals to continue the development of a mid-market and larger turnover portfolio.

Nick Dando has joined the New Business team as a Business Development Executive reporting to Caroline Davies. Mr. Dando has 10 years’ experience in the industry, most recently with Euler Hermes in the Major and Strategic New Business team.
Linda Christensen joins Tokio Marine HCC's Customer Relations Department on 13th February 2017 as a Commercial Underwriter reporting to Andy Aldridge. Ms. Christensen has over 20 years’ experience in senior customer relations roles and 15 years in credit insurance. She will be responsible for a portfolio of business in Scotland, Northern Ireland and Eire.

Coface. As part of the implementation of the three-year strategic Fit-to-Win plan, Coface has announced the following changes to the Group's Executive Committee:

Cécile Paillard will succeed Antonio Marchitelli as CEO Mediterranean & Africa Region and will be based in Milan. Ms. Paillard joins Coface after more than 17 years spent with the Axa Group, most recently as Chief Operating Officer for Axa Seguros Brazil and Axa Corporate Solutions LATAM.
Antonio Marchitelli, CEO Mediterranean & Africa Region since 2013, will become CEO of the Western Europe Region. He will be based in the Paris head office. Mr. Marchitelli previously worked with the Axa Group, where he occupied various positions in the Mediterranean and Latin American regions, in charge of implementing growth and profitability strategies, mainly in emerging markets.
Cyrille Charbonnel, CEO Western Europe Region and France since 2013, takes charge of a new group underwriting department comprising risk underwriting, information, debt collection and commercial underwriting.

Business Information

Increasing UK business financial distress. According to Begbies Traynor’s Red Flag Alert research for Q4 2016, 276,518 businesses were experiencing ‘Significant’ financial distress at the end of 2016; an increase of 3% compared to the same period last year. On an annualised basis, the last time that ‘Significant’ distress fell year on year was in Q3 2013. This rising distress comes at a time when the number of UK company incorporations is growing substantially, with more than 685,000 start-ups joining the UK economy during 2016 alone – the highest level since the start of the financial crisis in 2007. However, Begbies Traynor highlights that many of these start-ups are short lived ‘lifestyle’ businesses often forced upon people by changing circumstances. For example, of the c.470,000 companies incorporated during 2011, almost 57% have since been dissolved, struck off or have entered formal insolvency procedures, and another 7.5% are not even trading. To read Begbies Traynor's news release go to https://www.begbies-traynorgroup.com/news/business-health-statistics/financial-distress-edges-up-as-economy-prepares-for-uncertain-year-ahead.

UK could remain a top 10 global economy in 2050. The UK could grow faster than other large European countries like Germany, France and Italy in the long run, despite some medium-term drag from Brexit. According to new analysis by PwC, The World in 2050, the UK will fall just one place from 9th to 10th in global economy rankings in purchasing power parity (PPP) terms by 2050, while measured by GDP at market exchange rates the UK could fall from 5th to 9th place. With potential average annual growth of around 1.9%, the UK is projected to be the fastest growing economy in the G7 over the whole period to 2050. To read PwC's news release go to http://pwc.blogs.com/press_room/2017/02/uk-could-remain-a-top-10-global-economy-in-2050-despite-brexit.html.

Six quarter high in UK business confidence. A resurgence in economic confidence was experienced by credit professionals in the final quarter of 2016, according to the UK’s latest Credit Managers’ Index (CMI). Yet bad debt remains a risk with only 13% of credit managers expecting a decline in 2017. Full results from the quarterly barometer of the Chartered Institute of Credit Management (CICM) have now been released; the CMI’s headline Index closed up 0.5 points to 59.8, ending a successive three-quarter fall. It is the highest result since Q2 2015 and only the fifth time in the CMI’s seven-year history it has climbed above 59.0. To read the CICM's news release go to http://www.cicm.com/index-reports-six-quarter-high-business-confidence/.

Europe to remain key export market for UK businesses - despite Brexit vote. According to the results of the British Chambers of Commerce’s (BCC) latest International Trade Survey, UK companies remain committed to strong trading relationships with European customers and suppliers despite the UK’s vote to leave the EU. The results of the survey, based on the responses of nearly 1,500 business people, show that UK companies continue to regard Europe as an important trading partner. Currently, around three-quarters of respondents sell (76%) and source (73%) goods and services in the EU market. The findings also show that over a third (36%) of the companies surveyed plan on putting more resources into exporting to the European market over the next five years. To read the BCC's news release go to http://www.britishchambers.org.uk/press-office/press-releases/bcc-international-trade-survey-europe-to-remain-key-export-market-despite-brexit-vote.html.

Retail trade is the biggest contributor to UK GDP growth. New figures show that GDP is estimated to have increased by 0.6% during the final quarter of 2016, with the retail trade making the largest contribution to headline GDP growth. Overall, UK GDP was estimated to have increased by 2.0% during 2016, slowing slightly from 2.2% in 2015 and from 3.1% in 2014. Commenting on the figures, Rupert Eastell (Head of retail at RSM) said: "The latest GDP figures underline the important contribution of the retail sector to the UK economy. However, the picture in the final months of the year was mixed. While many supermarkets recorded some good year-on-year figures, other High Street retailers didn’t fare so well and the ONS data for retail sales in December showed a 1.9% fall compared to a 0.1% fall in November. Over the next year, retailers will face a number of challenges. Key among these will be having to cope with the lower pound, which is down by around 15% on a trade-weighted basis since January 2016, and is likely to stay at these levels." To read RSM's news release go to https://www.rsmuk.com/news/retail-trade-biggest-contributor-to-gdp-growth.

Late payment costs UK freelancers £16.5 million annually. A survey from the the Association of Independent Professionals and the Self Employed (IPSE) has found that freelancers spent an average of 20 days a year following up on late payments. Chris Bryce, IPSE chief executive, said: ‘It's an absolute travesty that freelancers have to spend a working month chasing late payment. Time chasing invoices is time not working, and for some freelancers that could be the work that keeps their business afloat. The introduction of the small business commissioner this year should clean up the UK's poor payment culture, so our smallest businesses can do what they do best." The research also found that 41% of freelancers find it difficult to complete their annual self-assessment, spending two working days, on average, completing their tax return. To read IPSE's news release go to https://www.ipse.co.uk/news/late-payment-and-hmrc-top-admin-burdens-freelancers.

UK small businesses speak out on Brexit. The Federation of Small Businesses (FSB) has published its initial findings from a six-month research programme on the business impact of leaving the EU. 32% of small businesses in the UK are involved in overseas trade as an exporter and/or importer, with the vast majority trading with the EU single market (92% of exporting small firms and 85% of importing small firms). As a result of Brexit, the FSB found that 29% of exporting UK small firms, regardless of destination, expect their level of exports to decline, while 20% expect it to increase. The difference is starker for current importers, where 31% expect to see a decrease compared to 7% that expect to see an increase. To read the FSB's news release go to http://www.fsb.org.uk/media-centre/press-releases/small-businesses-speak-out-on-brexit.

Mid-sized companies revealed as the engine of the economy as they outperform UK plc. The UK’s mid-sized businesses grew faster, generated larger profit growth and created more jobs in the last 12 months than the nation’s large and small companies, according to new figures published by BDO. Financial results indicate that mid-sized businesses increased revenues and profits by 3.8% and 19% respectively compared to smaller businesses (turnover contracting by 7.6% and profits contracting by 26%) and FTSE 350 companies (turnover contracting by 12.6% and profits contracting by 24.5%). These high-growth, entrepreneurial and ambitious businesses (which BDO calls the UK economic engine) punch well above their weight, accounting for only 30,000 companies (1.5% of all UK companies) but one-third (£1.2 trillion) of all UK turnover. To read BDO's news release with a link to the full report go to https://www.bdo.co.uk/en-gb/news/2017/mid-sized-companies-revealed-as-engine-of-uk.

Domestic demand underpins growth in UK manufacturing orders. According to the latest CBI SME Trends Survey, the UK’s SME manufacturers saw new orders grow at the fastest pace in two years but there are stark signs of price pressures gathering steam. The survey of SME manufacturers reported healthy growth in total new orders, underpinned by a strengthening in domestic demand, while exports rose at only a subdued pace. Looking ahead, firms expect new orders to continue to grow solidly again over the next quarter, with the outlook for both domestic and export demand upbeat. To read the CBI's news release go to http://www.cbi.org.uk/news/domestic-demand-underpins-growth-in-orders/.

UK retail retains strong brand appeal overseas. According to the latest British Retail Consortium (BRC) - Google online retail monitor for Q4 2016, the volume of overseas customers searching for UK retailers grew 23% across all devices in the fourth quarter of 2016 compared with the same quarter a year ago. In the UK, search volumes on mobile devices increased 16% in the fourth quarter of 2016 compared with the same quarter a year ago. Apparel was the most searched for sector by overseas consumers on mobile devices, reporting growth of 64% in Q4 2016. Beauty was also a popular sector for overseas consumers on mobile devices, increasing 50% in Q4 2016. roatia demonstrated the strongest appetite for UK retailers, reporting a 106% increase on mobile devices in the fourth quarter of 2016. To read the BRC's news release go to http://brc.org.uk/news/2017/uk-retail-retains-strong-brand-appeal-overseas.

Brexit and Trump have not dented UK business optimism. The latest Business Trends Report by BDO shows continuing signs of encouraging economic prospects for the UK over the coming six months, despite uncertainty following the US Presidential Election and the UK’s decision to leave the European Union. BDO attributes the positive performance of UK businesses to an overall improvement in the global economy, the decrease in the value of sterling and better-performing key export markets. Commenting on the findings, Peter Hemington, Partner, BDO LLP, said: “The UK economy seems to be remarkably resilient. British businesses are surprisingly confident about the short term, encouraged by the opportunities our cheaper currency and a better-performing global economy have created. These have provided a much-needed short-term boost for our economy, particularly our manufacturers." To read BDO's news release go to https://www.bdo.co.uk/en-gb/news/2017/manufacturing-optimism-reaches-20-month-high.

Overseas investors' appetite for UK food & beverage companies reaches three-year high. According to the latest research from Grant Thornton, overseas investors' appetite for UK food and beverage companies has continued to increase, with 2016 recording the highest level of activity for three years. Grant Thornton's latest Bitesize report found that the number of deals involving overseas investors increased to a third (32%) of all transactions in 2016; representing a continued rise from the levels seen in 2014 (20%) and 2015 (28%). Asian investors accounted for 19% of all overseas buyers last year, up from 11% in 2014 and 13% in 2015. There was also a particular interest from Japanese investors, with the largest transaction of Q4 2016 being Japanese company Sumitomo's approach to acquire Irish fruit distributor Fyffes. To read Grant Thornton's news release go to http://www.grantthornton.co.uk/en/news-centre/overseas-investors-appetite-for-uk-food--beverage-companies-reaches-three-year-high/.

Weakest January sales in the UK for four years. According to new figures by BDO, the UK’s high street has just experienced its worst January sales in four years. January’s like-for-like sales declined by -0.1%, according to BDO’s High Street Sales Tracker. It marks the first negative growth in the crucial January discounting period since 2013 and comes hot on the heels of a dismal December (also down -0.1% year-on-year). Fashion sales were hit hardest in January, down -1% year-on-year after three consecutive weeks of negative sales growth at the end of the month. The only silver lining for retailers came from online sales, which hit a two-year high for a single month, growing 26.6% in January. To read BDO's news release go to https://www.bdo.co.uk/en-gb/news/2017/weakest-january-sales-for-four-years.

Fall in the value of Sterling is squeezing domestic sales margins and increasing the cost base of UK businesses. The British Chambers of Commerce’s (BCC) latest International Trade Survey has warned that the recent fall in the value of Sterling is squeezing domestic sales margins and increasing the cost base of UK businesses. The Survey's findings also indicate that the recent devaluation of Sterling is having a negative impact on the domestic sales margins of 44% of businesses. The effect is more diverse on export margins, with roughly equal levels of businesses reporting a positive (25%) and negative (22%) impact, suggesting that while the fall in value of the pound may be helping some UK exporters it’s also hurting others. The survey also found that 68% of businesses expect the fall in the value of Sterling to increase their cost base in the coming year. To read the BCC's news release go to http://www.britishchambers.org.uk/press-office/press-releases/bcc-international-trade-survey-fall-in-sterling-expected-to-increase-cost-base-and-push-up-prices.html.

Survey finds that 21% of directors feel they are at risk of insolvency if a creditor fails to pay. A new survey of UK Limited company Directors by www.CompanyHelp.co.uk has found that 27% of Directors say Brexit is their biggest business fear for 2017. 26% of Directors think Brexit will impact their business negatively versus 15% positively. In addition, 21% of Directors said they are at risk of insolvency if one or more creditors fail to pay, and 47% of Directors also said they did not know quick cash flow or balance sheet tests to determine if a company is insolvent. To read www.CompanyHelp.co.uk's news release go to http://www.companyhelp.co.uk/stunning-director-ignorance-revealed/.

Career Opportunities

FEATURED VACANCY - Branch Director - Aon Credit International.
Aon are currently recruiting a Branch Director to join Aon Credit International team in Leeds. The Branch Director will be primarily responsible for drive performance excellence through effective and efficient management of business processes. Manage and develop the team so that they are equipped to meet team and Business Unit performance objectives.
About the Role
As a Branch Director with Aon Credit International, some of your key responsibilities will involve:

Accountable for the delivery of the Leeds branch budget;
Drive the team to achieve budget and actively manage controllable costs;
Accountable for building and maintaining high performance within the team;
Be a role model for the team and consistently demonstrate and promote integrity, quality and professionalism;
Effectively manage the performance of the team by providing regular feedback, having monthly one to one meetings and coaching the team;
Promote a compliant culture within the team and ensure the regulatory learning modules are completed at the required times;

Additional Accountabilities:

Contribute to the team budget by achieving personal revenue targets;
Accountable for team adherence to business processes, systems and procedures;
Contribute to the performance management cycle for the team;
Continually strive to improve client satisfaction and ensure we deliver on our promises to the client;
Responsible for supporting the effective delivery of global service through network relationships, where appropriate;
Actively build relationships across Aon and exploit cross selling opportunities;
Role model the Aon Leadership (model) behaviours;
Support the Head of ACI National in driving change and continuous improvement;
Responsible for working in accordance with the Aon UK Limited Risk Management Framework, and compliance with the Aon UK Limited policies, including participation in the management of risks (including completion of mandatory training) that may adversely affect the business, interests or reputation of any Group Company.

About you
As a Branch Director with Aon Credit International your skills and qualifications will ideally include:

Leadership capability (and commitment to developing leadership skills);
Trade credit experience preferred but not essential.
Excellent communication and presentation skills;
Strong Client Management relationship skills;
Strong influencing and negotiation skills;
Strong interpersonal skills;
Ability to manage, motivate and coach direct reports;
Understanding of client and industry strategic and financial drivers
Understanding of the client, their industry and their risks
Ability to understand client needs
Effective communication and presentation skills
Effective negotiation skills
Strong analytical and problem solving skills;
Strong business acumen;
Strong technical insurance knowledge;
Ability to use insurance industry IT systems to efficiently deliver client service;
Good understanding of compliance and FCA regulation.

Salary and Benefits
This role offers a competitive salary and bonus, plus a comprehensive benefits package and 25 days holiday. Through our flexible benefits, you will also have the opportunity to choose additional benefits, including healthcare, childcare vouchers and additional holiday. To apply for this position please email your CV with a covering letter to samantha.cook@aon.co.uk.
(Please mention that you saw this vacancy on Credit Insurance News' Job Board)

Credit Insurance Consultant – South East (ref Ref 29895). £35,000 - £100,000.

My client is the Market Leader in the provision of Credit Insurance, and through continued success, they now have a fantastic opportunity for a New Business focused professional to join their team. The successful candidate will have a proven track record in new business or account growth and will be required to build internal relationships, gaining referrals and then develop these into prospective sales opportunities. For your hard work you will be rewarded with the opportunity to earn very pleasing commission cheques, and work for a business that is very employee focussed.

Responsibilities: Building strong relationships with the company partners to facilitate referral introductions; Generating a high quality and sustainable sales pipeline; Converting the pipeline into new business customer relationships; Providing accurate management information on a continual basis.
Skills: A proven track record in business to business field sales / account management with growth targets; An exceptional level of business acumen and commercial awareness; Strong relationship building experience; Corporate in both manner and appearance; The ability to read and perform basic analysis of a set of accounts; Experienced in consultative selling; The ability to present technical information effectively; Experience using Microsoft applications and SFDC CRM.
To apply for this vacancy, please send your CV to dave.dewey@heatrecruitment.co.uk.

Please mention that you saw this vacancy on Credit Insurance News' Job Board).

Committee Support Manager / Associate Director (focus Medium LongTerm Committee), London, England.
The Berne Union – International Union of Credit & Investment Insurers – is the leading international trade association for the export credit and investment insurance industry, giving its members a unique forum to connect and exchange business experience since its foundation in 1934. Its membership includes 82 private credit insurers and national export credit agencies worldwide. These member organisations support international trade and foreign direct investment by providing risk mitigation products to exporters, investors and banks.
Based in London and under the supervision of the Secretary General, the Committee Support Manager / Associate Director is a member of the Berne Union Secretariat team and will be responsible for managing meeting content and other supporting activities for, and in cooperation with, Berne Union members. The BU currently consists of four committees, primarily relating to line of business distinctions (e.g. short term business, investment insurance, etc.). The grading / positioning of this role (Committee Support Manager / Associate Director) will be subject to the successful applicants’ professional qualification and specific experience.

Roles and Responsibilities:

Act as a Secretariat point of contact for Committee Chair(s) to ensure delivery of relevant and suitable meeting content at general and specialist member meetings; regularly and proactively communicate with a variety of stakeholders
Identify, develop, prepare and manage content related to export credit and investment insurance for member events and meetings; ensure content relevance and audience suitability
Actively contribute to planning, preparation and execution of member events and meetings; propose creative and innovative approaches to meeting programmes, including incorporating member feedback and recommendations as appropriate
Co-lead and/or lead events and meetings with a focus on technical and strategic issues
Facilitate active engagement from participants in advance and at member events and meetings
Work with industry colleagues to further promote the profile of the Berne Union and its member organisations
Develop and implement strategies to meet the needs of both established and new generation credit and investment insurers

Qualifications

Experience in the credit and/or investment insurance industry, preferably for at least 5 years, with experience in underwriting, claims or other related lines of business
Relevant degree of professional / academic qualification such as international affairs, business, finance and/or economics
Self-motivated, resourceful, and well-organised; proactive with an ability to multi-task, and manage priorities
Demonstrated ability to work independently and as part of a small diverse team; strong written and verbal communication skills including public speaking abilities and experience
Fluent in written and spoken English; fluency in other languages are an asset
Proficiency with the standard office software word, powerpoint, excel as well preferably experience in using intranet communication platforms
Qualified to work in the United Kingdom and ability to travel internationally

Please apply by enclosing a curriculum vitae and a covering letter by email to President Topi Vesteri (topi.vesteri@finnvera.fi) by Monday 30 January 2017. All applications will be treated in confidence.
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Forthcoming Events

India Trade & Treasury Conference 2017, 22 February. Mumbai.
Bringing India’s trade community together for discussion, debate and networking for well over a decade, GTR’s annual conference in India returns for its 14th year, taking place at the Taj Lands End, Mumbai on February 22, 2017. An exciting development this year will be the inclusion of treasury and fintech aspects relating to trade. For Indian companies involved in exporting their goods globally; for international corporates looking to enter the Indian market; for financial institutions providing funding options; for insurers and lawyers involved in covering these operations; for any institution involved in international trade finance, this established annual event is a prime opportunity to meet face-to-face with market peers – a place to share expertise and experiences first-hand at the only event of its kind in India. Click here for more information.

ExCred27: Insuring Export Credit & Political Risk, 28 February - 1 March 2017. Hilton Tower Bridge, London.
The leading event for the global export credit and political risk insurance industry promises to provide you with a detailed and insightful analysis of global events and trends impacting the industry right now, including: current affairs, political shifts, the world economy and risk profiles of key regions.
300+ Attendees: join leading executives from ECAs, DFIs, Commercial Banks, Private Insurers & Corporate Exporters and Buyers.
90+ Speakers: learn from industry leaders on the current macroeconomic environment and geopolitical risk climate.
26+ Years: as the leading industry event for Trade, Export & Project Finance, Credit, Political Risk & Investment Insurance.
Essential industry topics covered: • Global Economic Insight - Will Trump & Brexit Reshape ECA/PRI Worlds? • The Future of Private Insurers & ECAs • Key Market Analysis & Geopolitical Risk • Trade, Export / Agency & Project Finance • A Focus on Africa.
Don’t miss out on your exclusive 10% Credit Insurance News discount – quote VIP code FKW53357CINL when registering. For more information and to register please visit the event website.

GTR Africa Trade Finance Week 2017, 9-10 March. Cape Town.
Returning to Cape Town for its 11th year, the market’s premier pan-African trade finance gathering will take place at The Westin on March 9-10. Now also incorporating GTR‘s West Africa Trade & Export Finance Conference, for increased focus on developments in key markets such as Nigeria, Ghana and the Francophone region, the event will focus on the extensive trade, export, commodity and infrastructure financing opportunities available across the continent, providing unrivalled access to those companies and institutions currently doing business in Africa, including regional and global corporates, financiers and trade specialists. GTR’s ties to the market’s primary trade bodies, regulators and institutions allows on-stage discussion to focus on the latest challenges being experienced by those involved in African trade, as well as highlighting potential opportunities in a number of key countries and sectors. Click here for more information.

Malaysia Trade & Export Finance Conference 2017, 14 March. Kuala Lumpur.
Returning to Kuala Lumpur on March 14, GTR’s Malaysia Trade & Export Finance Conference will once again provide a key discussion forum for the region’s trade experts. Decision makers within the market will convene to hear timely updates on topical issues such as government initiatives to increase international trade & investment, the primary business challenges facing the commodity sector and the knock-on effect of the Chinese economic slowdown on Malaysian growth. Dedicated networking sessions positioned throughout the day will give delegates the opportunity to become acquainted with those looking to establish and grow their trade connections within the region. Click here for more information.

Receivables Finance International Convention, 15 - 16 March. London.
Over 150 receivables finance industry experts, government agencies, financiers, ‘Fintechs’ and alternative platforms, banks, insurers and corporates gathered in Lisbon at the 2016 Receivables Finance International Convention (‘RFIx’). In 2017 RFIX will be celebrating its 17th year in London and will continue to introduce attendees to new entrants to the market, update them on the latest regulation and compliance issues, evaluate new financing structures and much more. “RFIX is an excellent forum for sharing developments in receivables finance. I was especially pleased with how much the debates focused on the future of the industry.” Duncan Stevenson, Head of Legal, Fraud & Business Intelligence, RBS “Great initiative towards addressing industry issues through sharing of best practise.” Arup Roy, Head of Global Transaction Banking, Saudi Arabia British Bank BCR are delighted to offer Credit Insurance News members a 10% discount on booking in addition to the early bird booking discount which expires on 30th December 2016. Use code CIN17 and register now at www.bcrconferences.com.

Turkey Trade & Export Finance Conference 2017, 21 March. Istanbul.
For Turkish companies involved in international trade and investment, GTR‘s annual event in Istanbul has quickly become the primary industry gathering at which to meet and discuss their exporting and financing requirements with like-minded organisations, as well as with those institutions tasked with financing them. On March 21, over 350 delegates are expected to meet at the Swissotel the Bosphorus in this important city for global trade, a vital bridge between Europe, Mena and Asia. As the only event of its kind, and with established support from key industry associations, public bodies and institutions, 2017’s event features new and innovative content designed to foster maximum engagement between speakers and delegates. The event brochure will be released later in early 2017. Click here for more information.

Iran Trade Finance Business Briefing 2017, 26 April. London.
With 2017 looking set to be another hugely significant year for Iran, GTR gathers in London to hold its inaugural 2017 Iran Trade Finance Business Briefing.
Following the events of 2016, which saw the January implementation of the Joint Comprehensive Plan of Action (JCPOA) nuclear deal, countless signing agreements and huge excitement concerning the potential provided by a new global market economy, interest levels in Iran have continued, alongside political wrangling and ongoing expert discussions regarding issues such as sanctions and compliance.
With a new US administration potentially signalling further change to the terms of the JCPOA and with Iranian elections scheduled for May, this event provides the perfect opportunity for business professionals to come together to consider the country’s future trade prospects, sharing experiences and gaining crucial insight into the opportunities provided by this exciting market. Topics for discussion will include: The view from government - The future of Iranian trade; Experiences of doing business in Iran - What you need to know; Understanding the regulatory landscape (including the impact of sanctions); Bridging the gap - How can you build financing capacity in Iran; Which industry sectors hold the key to fostering Iran’s future trade growth? Click here for more information.

Next steps for the UK insurance sector - innovation, regulation and key issues post-Brexit Thursday, 4 May 2017. Central London.
The seminar will provide policymakers and key industry stakeholders with an opportunity to discuss the future for the UK insurance sector.
Delegates will consider the impact of the EU referendum result on the sector, including its implications for the future of passporting, skills, investment and market stability, as well as options for the future of Solvency II and its impact on both stability and competition. Further sessions will focus on latest trends and challenges facing insurers - including the future use of big data and ongoing initiatives to tackle insurance fraud - and will also bring out discussion on how Government policy in areas such as Flood Re and personal injury reform will impact on the future of the sector.
It is also timed to discuss the findings of the Treasury Select Committee inquiry into EU insurance regulation, as well as other ongoing policy developments such as the Prudential Regulation Authority (PRA) consultations on cyber insurance underwriting risk and the sector’s ability to deal with market turning events.

Speakers and other delegates at this conference are expected to be a senior and informed group numbering 120, including Members of both Houses of Parliament, senior officials from HMT, PRA, FCA and other relevant departments as well as representatives from life and general insurance sectors, brokers, business groups, lawyers, consumer bodies, consultants, academics, as well as members of the national and trade press. Click here for more information.

About this Issue's Sponsor: STA International

STA International is the recommended debt collection partner to four credit insurance underwriters. Systems alignment provides a secure and transparent service to reduce protracted default (PD) claims, and increase policyholders’ cash flow.

When UK and overseas accounts are referred at the end of the Maximum Extension Period (MEP) to STA, Late Payment Act interest and collection cost is added to the principal debt, and immediate contact made with the buyer.

This early intervention results in the majority of accounts being paid quickly, the policyholder receiving prompt remittance of the principal sum and interest, with STAs costs covered by the buyer paying the collection costs.

The underwriter has online access to each and every action taken by STA, including a consolidation of a single buyer across multiple policyholders. Simultaneously, the policyholder sees every STA action on each buyer it places for collection, along with collection success dashboard and recovery cost details. With PD claims reduced for the underwriter, cash flow and premium protection maximised for the policyholder, STA provides a win-win solution to the challenges of cash collection.

To find out more, please contact Karl Hague on 01622 600921 or via email: karl.hague@staonline.com or visit www.stainternational.com.

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