ICISA NEWSLETTER, VOLUME 5, ISSUE 03! MARCH 30, 2010

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SID Bank, the owning entity of SID - First Credit Insurance Company Inc.(SID - First Credit), has decided to increase the capital of SID - First Credit by an additional EUR 4,2 million. This increase will now result in the SID - First Credit total share capital being doubled to EUR 8.4 million.

The mission of SID - First Credit remains to offer commercial insurance assistance to Slovene entities who are selling goods and services and to also promote trade and economic development.

The capital strengthening of SID - First Credit is particularly important in these times and will allow them to further assist the clients of SID - First Credit as they navigate their businesses on the road from the economic crisis. In addition this increase will permit SID - First Credit to continue to be in a position to respond to the needs of policyholders for trade credit insurance.

Inside this issue

Credit Insurance and Surety in the News ~ brief information of what has been mentioned in the media about ICISA, its members and other industry information# # PAGE 2

ICISA Members’ results full year 2009 ~ Summary of the published figures over 2009 of several ICISA Members# # PAGE 3

Member highlight ~ In every other issue one of the members of ICISA is highlighted# # PAGE 4

Appointments and Announcements ~ Information on staff changes and appointments at ICISA and its members companies

# PAGE 6&7

The ICISA Spring Meetings took place in Helsinki from 10 to 12 March 2010,. Key Note Speaker at this event was Mr Erkki Liikanen, Governor of the Bank of Finland who shared his insights into the present economic environment and the outlook for Europe.

The meetings included parallel session of the Credit Insurance Committee, the Committee of Underwriters and the Surety Committee.

The meeting was attended by over 90 delegates from Europe, Asia, Africa and the Americas.

SID - FIRST CREDIT CAPITAL INCREASED

Spring Meetings 2010 held in Helsinki

Mr Erkki Liikanen Key Note Speaker

Newsletter

On photo &om le' to right: Mr Jyrki Ohinen (Atradius), Mr Erkki Liikanen (Bank of Finland), Mr Rob Nijhout (ICISA) and Mr Timo Nisumaa (Euler Hermes)

Source: SID - First Credit

ICISA NEWSLETTER, VOLUME 5, ISSUE 03! MARCH 30, 2010

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CREDIT INSURANCE & SURETY IN THE NEWSRevista Mexicana de Seguros y Fianzas

The January / February issue of Revista Mexicana de Seguros y Fianzas published an article on the ICISA Catalogue of Credit Insurance Terminology and highlighted the Spanish language version of the publication.

Prisma press releasePrisma issued a press release at the beginning of March 2010 to highlight the fact that Prisma became market leader in Austria in 2009. Mrs Bettina Selden and Mr Ludwig Mertes, Members of the Board of Management at Prisma, stated: “Overjoyed as we are by this news, we are also aware of the responsibility this imposes on us.”The complete release (in German) and more information can be found on www.prisma-kredit.com.

STRESS TEST EXERCISE CONDUCTED BY CEIOPSCEIOPS conducted a stress

test exercise to evaluate the resilience of the insurance sector. The aim of the stress test exercise was to evaluate the overall resilience of the insurance sector under several stresses to the economic and financial market environment. This exercise included 28 large and important European insurance groups, covering over 60% of premiums of the European insurance market.

The result of the stress test exercise indicates that the large and important European insurance groups would remain resilient even in severe scenarios. In all scenarios the aggregated level of available capital exceeds the regulatory requirements.

The participating insurance groups were asked to calculate the impact of stresses on their solvency ratios under three scenarios:✓Adverse;✓Deep recession;✓Inflation.The stress within these scenarios focused on market risks with an

additional lapse risk stress in each scenario.

The ‘Adverse’ scenario mirrored the development of capital markets between end of September 2008 and end of September 2009. The exercise resulted only in a marginal impact of a loss of EUR 10 billion, representing a 3% reduction of the available capital of the participating groups. This scenario presumed weak macroeconomic conditions similar to the situation experienced during 2008/2009.

In the two severe scenarios ‘Deep recession’ and ‘Inflation’ the impact on available capital was considerably higher, up to a 25% reduction of the available capital of the participating groups. The ‘Deep recession’ scenario provides an indication of what it would take for the European insurance industry to become distressed. The ‘Inflation’ scenario presumed a sudden increase in inflation followed by a sharp rise in interest rates, in particular short-term rates.

The impact of the stress scenarios was measured against the solvency capital requirements in accordance with Solvency I and the Insurance Group Directive (IGD).

It should be noted that financial markets have improved since the reference date of end June 2009. As a result, most of the participating groups should have been able to build up additional capital buffers and may therefore have improved their solvency ratios.

CEIOPS Chairman Mr Gabriel Bernardino emphasized: “Moving forward to the new Solvency II, the regulatory solvency requirements will be more aligned with actual risks taken. Further, the Solvency II regime will also require a consistent measurement of assets and liabilities thus making future European-wide stress tests more comparable.”

Source: www.ceiops.eu

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ICISA MEMBERS 2009 FULL YEAR FIGURESFollowing our report on ICISA members’ 2009

results in the previous ICISA Newsletter, several other ICISA member companies published their 2009 figures:

TrygVesta GarantiGood results over 2009 were presented by TrygVesta Garanti. The company saw an increase in the gross premium income of about 13% to EUR 23.3 million against EUR 20.6 million in 2008.Mr Mads Løgstrup, Managing Director of TrygVesta Garanti, says: “2009 has been a positive year for TrygVesta Garanti. Our underwriting policy has proven right in view of the economic downturn. The economic cycle is very important, because it influences the ability of our clients to fulfill the contracts, for which TrygVesta Garanti has issued bonds.” Full release on www.trygvestagaranti.com

AXIS CapitalAXIS Capital, parent company of AXIS Re, reported an operating income of USD 766 million for 2009. Net investment increased 88% to USD 464 million. The reinsurance segment reported gross written premiums of USD 1,812 million for the full year 2009, compared to USD 1,548 million for 2008. The reinsurance segment published an underwriting income of USD 440 million over the year 2009, where in 2008 an underwriting income of USD 119 million was presented.More information on www.axiscapital.com.

SCORParent company of SCOR Switzerland, SCOR, published a net income of EUR 370 million over the full year 2009, a rise of 17.6% compared to 2008. The total gross written premiums were up 9.8%, reaching EUR 6,379 million.Mr Denis Kessler, Chairman and CEO of SCOR, mentioned: “In 2009 the Group grew significantly, by further strengthening its franchise and improving its technical performance and its financial results, whilst increasing its solvency.... SCOR is well positioned to further strengthen its competitive position, as seen by the success of the last renewals campaign.”Complete release on www.scor.com

CofaceAn increase in turnover of 3.8% was recorded by Coface over the full year 2009. Net profits in 2009 showed a loss of EUR 163 million, after a profit of EUR 41 million in 2008 and EUR 164 million in 2007. “This historic crisis should lead all players to deeply review their model and that is what we intend to do for credit insurance by relying, in particular, on our expertise in rating,” stated Mr Jérôme Cazes, CEO of Coface.More information: www.coface.com

AtradiusFor 2009 Atradius reported a net loss of 41.4% to EUR 113.3 million, compared to a loss of EUR 193.4 million in 2008. Where the net investment income was EUR 47.8 million in 2008; it grew to EUR 68.3 million in 2009, a rise of 42.9%. Atradius reduced the company’s exposure, which resulted in an improvement of the net claims ratio to 77.1% for 2009.“Our risk acceptance is now higher than that of a number of our competitors providing customers with the right assessment of risks and the right tools to manage exposure through the crisis,” said Mr Isidoro Unda, CEO of Atradius.Full release on www.atradius.com

QBE“QBE continued to produce strong underwriting and insurance profits despite the insurance industry experiencing a high frequency of large individual risk claims from severe downturn in economic conditions and historically low interest yields on policyholders‘ funds. 2009 is the fifth year in succession we have reported a combined operating ratio of less then 90%,” said Mr Frank O’Halloran, CEO of QBE. The company’s gross written premium over 2009 rose 10% compared to 2008, to USD 14,455 million, while the claims ratio went up to 60.3%, compared to 57.6% in 2008.Complete presentation on www.qbe.com

Hannover ReHannover Re presented a group net income of EUR 731.2 million, the largest net income of Hannover Re in history. An overall premium growth of 26.5% to EUR 10.3 billion, compared to EUR 8.1 billion in 2008 was reported. Hannover Re expects good results in both the non-life and life and health reinsurance business groups for 2010.Full release on www.hannover-re.com.

ICISA NEWSLETTER, VOLUME 5, ISSUE 03! MARCH 30, 2010

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SPECIAL STATUS HANNOVER RE IN FLORIDAHannover Re has become the

first reinsurer to qualify as an eligible reinsurer under new collateral terms introduced in Florida (USA).

Florida’s insurance regulator has agreed to allow Hannover Re to submit less collateral in

recognition of its commitments in the state.

Hannover Re is already participating in the market in Florida through several reinsurance lines. The company welcomes the agreement with the Florida Office of Insurance Regulation.

Insurance Commissioner Mr Kevin McCarty said: “Reaching an agreement with one of the world’s largest reinsurers is a significant accomplishment.”

MEMBER HIGHLIGHT: CENTRE OF EXCELLENCE CREDIT & SURETYAt the Centre of Excellence Credit & Surety in

Frankfurt am Main (Germany), Zurich Group Germany has brought together the expertise required to control and extend its international trade credit and surety business. Ms Marita Kraemer, CEO of the Centre of Excellence, laid the foundation stone for central strategy development and cross-border credit analysis in 1999. Today, with offices in Italy, France, the United Kingdom, Switzerland and some Eastern European countries, the Centre of Excellence coordinates business in all of the major markets throughout Europe. Its global network also places Zurich in a position to offer this service worldwide.

The Centre of Excellence Credit & Surety offers individually tailored solutions for enterprises of all sizes, from medium-sized companies to large-scale industrial businesses and multinational corporate groups. Zurich has made a name for itself with sureties for cross-border projects involving complex international contracts and a very high economic capacity. The more prominent examples of this large lines of surety bonds in consortium financing for extensions of the Panama Canal and the Gotthard Tunnel.

At the Centre of Excellence Credit & Surety, Zurich has brought together experienced and dedicated experts bringing knowledge from the banking sector to their intensive collaboration with

international banks and credit insurers: for transactions in the Mergers & Acquisitions area, the Centre of Excellence Credit & Surety offers quick chains of decision-making as an arranger with syndication responsibility within consortial financing schemes.

The Centre of Excellence Credit & Surety also benefits from the extended Zurich network with offices all over the world as well as the financial strength of its parent company, the Zurich Financial Group (with a Standard & Poor’s “AA” rating). Zurich Financial Services Group is an insurance-based financial services provider with a

global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.The Executive Management consists of Mr Stefan Dillmann, Head of Trade Credit Insurance, Mr Sigurd Jander,

Head of Surety German speaking countries, Mr Ralf Knispel, Head of Fidelity Insurance, Mr Luc Reuter, Head of International Surety, Mr Markus Deubert, Head of Credit Analysis, Mr Klaus-Jürgen Noll, Head of Special Commitments and Ms Patrizia Rhoades, Head of Operations and Business Integration.

Ms Marita Kraemer is CEO of the Centre of Excellence Credit & Surety as well as Board Member of Zurich Group Germany.

On photo: Ms Marita Kraemer

ICISA NEWSLETTER, VOLUME 5, ISSUE 03! MARCH 30, 2010

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NEW SUPERVISOR FOR FINANCIAL SERVICES AND INSURERS IN FRANCEA new single regulator for the financial services

and insurance industries is introduced in France.Main reason for introducing this new authority

is to improve the supervision of the insurance, banking and mutual benefit sectors through a merger of four authorities which have, until now, been in charge of licensing and supervision of each sector:

✓the Insurance and Mutual Benefit Supervisory Authority (ACAM);✓the Banking Commission (CB);✓the Insurance Companies Committee (CEA);✓the Credit Institutions and Investment Firms Committee (CECEI).

Once established, which is expected to happen shortly, but a firm date has not been set, the authority will be in charge of licensing and supervision of the financial services industries (e.g. credit institutions, investment firms and payment institutions) as well as the insurance industry (e.g. insurance and reinsurance companies, group insurance companies).

According to Ms Christine Lagarde, French Minister for the Economy, Industry and Employment, the reform will give the French

authorities more of a voice in international forums and raise the profile of the French two-pillar supervisory model, with its prudential and market authorities.

Source: www.lexology.com

NO ROOM TO NEGOTIATE SOLVENCY II DEADLINEHead of insurance and pensions at the European

Commission, Mr Karel van Hulle, has announced that Solvency II will come into place in October 2012. There will be no room to negotiate the deadline.“There is no pressure to push back [the deadline], and it makes absolutely no sense to do so. Solvency II is a project that is in the best interests of both the insurance industry and policyholders. Do not underestimate the problems we have with the regulation today,” Mr Karel van Hulle mentioned.Mr van Hulle’s statements follows a request of Mr Thomas Steffen, head of Germany’s insurance

watchdog BaFin and former chairman of CEIOPS, to delay the introduction of Solvency II until 2013. Mr Steffen said that we need to avoid demanding too much from the industry.

Source: www.insuranceday.com

On photo: Mr Karel van Hu.e

ICISA NEWSLETTER, VOLUME 5, ISSUE 03! MARCH 30, 2010

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UPDATE FROM THE ICISA SECRETARIATICISA 68th General and Associated

MeetingsInvitations and registration forms for ICISA’s 68th General and Associated Meetings have been sent out. The meetings will take place from 9 to 12 June 2010 in Marseille (France). Registration for this event closes on 6 May 2010. The meeting is open to ICISA members only. Invitation and registration forms can be downloaded from www.icisa.org (FILE 2010022 and FILE 2010023 respectively).

ICISA Secretariat closed over EasterThe ICISA Secretariat is closed on Friday 2 April (Good Friday) and on Monday 5 April (Easter Monday). Due to a public holiday the Secretariat is also closed on Friday 30 April.

ICISA publicationsThe ICISA Directory 2010 and the ICISA

Catalogue of Credit Insurance Terminology in English and its translations are available free of charge from the secretariat. With over 12,000 copies distributed the catalogue of terminology is in particular high demand.All publications can be requested via Saskia Cruz at the ICISA Secretariat; saskia.cruz@icisa.org.

ICISA on LinkedInThe ICISA Group on LinkedIn has grown to 420 members who joined the group to read about or participate in questions raised or to join industry discussions. Go to www.linkedin.com to join the ICISA Group for networking and news.

APPOINTMENTS AND ANNOUNCEMENTSQBE appointments

The Chairman of QBE Insurance Group, Mr John Cloney, has announced his retirement from the Board of the company as of the 4th of July 2010. Mr Cloney started working for QBE as CEO in 1981 and after his retirement as CEO in 1998, he

was appointed Non-executive chairman. Ms Belinda Hutchinson, Board Member of QBE Insurance Group since 1997, will take Mr Cloney’s position after the 4th of July 2010.QBE

European Operations has streamlined its product underwriting and distribution structure, which QBE feels simplifies accessibility for brokers and clients. One of the four product underwriting divisions is the reinsurance and specialist division, led by Mr Jonathan Parry. Mr Trevor Wi.iams will be in charge of credit lines, which falls under the umbrella for the current reinsurance business.

New CEO Euler Hermes BelgiumAs of the 1st of May 2010, Mr Bruno Verhofstede will take the position of CEO of Euler Hermes in Belgium. He will take over from Mr Etienne De&aigne, who has been acting CEO of Euler Hermes Belgium since June 2009.

Mr Verhofstede has spent his career at ING Group where he took the position of CEO of ING Commercial Finance Belux, a factoring company in Belgium and Luxembourg.

Mr Defraigne will take up the position of Finance Director for the Northern Europe region of Euler Hermes.

On photo on the le': Mr John Cloney - QBEOn photo on the right: Ms Belinda Hutchinson - QBE

ICISA NEWSLETTER, VOLUME 5, ISSUE 03! MARCH 30, 2010

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APPOINTMENTS & ANNOUNCEMENTS

Mr Benoît Claire retiresAfter a distinguished career of 34 years at Coface, Mr Benoît Claire has decided to retire as of the 31st of March 2010. Mr Claire was a member of the Management Committee of ICISA from

2006 until 2008. TrygVesta Garanti

changes company nameWhen parent company TrygVesta changes its name to Tryg, ICISA Member TrygVesta Garanti will also change its name to Tryg Garanti. The changes will be effective as of the 18th of August 2010. The name changes aim for a common name and logo which will give Tryg and its subsidiaries and even more powerful presence in the Nordic region.More information can be requested from Mr Mads Løgstrup, Managing Director of TrygVesta Garanti by phone:

+45 44 20 3930.

Appointments at Mitsui SumitomoStarting 1 April 2010, Mr George Manabu Shoji, Manager, Guarantee and Credit Department, and Mr Shinichi, team leader of the Guarantee and Credit Department of Mitsui Sumitomo, will assume a new position in the group. Mr Tatsuo Watanabe will succeed Mr Shoji, while Mr Naoyuki Sakaki will take over Mr Shinichi’s position with the official title of Manager, Guarantee and Credit Department.

New Head of Corporate Communications ZurichMr Pierre Goad has been appointed Global Head of Corporate Communications of Zurich Financial Services Group, parent company of ICISA Members Zurich Versicherung in Germany, Zurich Surety, Credit & Political Risk in the USA and Zurich Global Corporate UK, Surety in the UK.Mr Goad will take his new position as of 1 May 2010, succeeding Mr Francis Bouchard, who will at the same time take the position of General Insurance Head of Proposition Development.

CalendarSolvency II Expert

Group MeetingMunich - 9 April 2010

68th General and Associated MeetingsMarseille - 9-12 June 2010

Accounting & Regulatory Committee MeetingMadrid - 23 June 2010

Autumn Meetings 2010Amsterdam - 23-24 September 2010

Spring Meetings 2011Belgium - 9-11 March 2011

ICISA InformationThe International Credit Insurance & Surety Association (ICISA) brings together the world’s leading companies that provide credit insurance and/or surety bonds. Founded in 1928 as the first credit insurance associa-tion, the current members ac-count for 95% of the world’s credit insurance business. Today, with over USD 2 trillion in trade receivables insured and billions of dollars worth of construction, services and infrastructure guar-anteed, ICISA members play a central role in facilitating trade and economic development on all five continents and practically every country in the world.

! ICISA! Herengracht 473! 1017 BS, Amsterdam! the Netherlands

Comments and contributions are welcome and may be sent to saskia.cruz@icisa.org.

Photo on the le': Mr Benoît Claire - CofacePhoto on the right: Mr Pierre Goad - Zurich