Last year, SERV achieved a profit of 88.1 million francs, after a loss year in 2020.
After a loss-making year in 2020, the Swiss Export Risk Insurance (SERV) returned to a positive result of 88.1 million francs. The Federal Council approved the 2021 annual report on Wednesday.
Around 78% of SERV’s customers are SMEs. The amount of operations insured in 2021 ranged from 19,000 francs to 264 million francs, the government said in a press release.
Insurance and guarantees issued as well as agreements in principle, which allow exporters to offer competitive financing in the context of calls for tenders, increased compared to 2020, from 3.8 billion francs to 4.6 billion .
The growing demand for agreements in principle is a sign that exporters have once again stepped up their efforts to land contracts overseas, according to the report. The initiative to facilitate access for Swiss companies to major foreign infrastructure projects, approved by the Federal Council in April 2021, is also contributing to this development.
SERV’s largest commitment per country at the end of 2021 for insurance cover goes to Russia (CHF 782 million), followed by Turkey (CHF 765 million), Bangladesh (CHF 557 million) and Brazil (CHF 552 million). ). At sectoral level, the focus was on electricity generation and distribution (CHF 1.9 billion) and machine building (CHF 1.6 billion).
War in Ukraine
In the 2021 financial year, SERV paid CHF 109 million in compensation (CHF 83 million in 2020). Due to the situation in Ukraine, it will have to manage claims related to operations insured in Russia from the 2022 financial year. All operations insured at the time of the outbreak of the crisis will not suffer partial or total damage. The policyholders and SERV must take all measures to reduce them to a minimum.
It is not yet possible to quantify the remaining damages that SERV will have to compensate, but according to a current estimate, they should be bearable, the statement said. SERV’s equity amounted to CHF 2.8 billion at the end of 2021.