Risk
Claims trends in 2012
Euler Hermes UK enjoys an unrivalled position when it comes to proprietary information and assessing company risk. One aspect of our unique and proprietary information is claims data that we accumulate from our policyholders.
The top 5 trends identified by sector in 2012 for Euler Hermes UK customers show the following:
9% of Euler Hermes UK‘s total exposure in the UK but in 2012 represented 20% of all claims received. This is unsurprising as on average 10 construction companies have failed on a daily basis over the last 3 years. Construction claims also showed a 24% increase in volume on 2011. Major failures included MJN Colston, John Doyle and Airedale Mechanical & Electrical.
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in the Fuel & Transport sectors. We saw a 176% increase in the number of claims and an 89% increase in the value of claims in these sectors. Combined, these sectors
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The biggest percentage increase in claims came
The Construction sector represents
were our second worst performing sector, representing 18% of all claims received. Our own insolvency statistics also show that in 2012, failures in these sectors were 67% higher than the average for the whole of the UK. Claims values are generally lower in these sectors with the average claim value in 2012 being just £7k. Nevertheless we saw some major high profile names fail including Petroplus, United Petroleum and Samuel Cooke.
sector which was our third worst performing sector but the number was roughly in line with claims seen in 2011 in this sector. Major failures include DBC Foodservice, Swallow
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11% of the value of all claims came from the Food
Foods, Waverley TBS and Paramount Foods.
ding a European steel market that continued to suffer from low demand with a 12.3% reduction in demand year on year according to the World Steel Association, very encou- ragingly claims by value in this sector showed a 35% reduction and claims by number a 4% reduction.
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the number of claims by 29% and an increase in value of 83% against 2011. Major names on which we experienced losses included Alderson Print Group, Webb Ivory, and The Blue Printing Company.
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Paper & Printing showed an increase in
8% of all claims came from the Metals sector. Notwithstan-
Retail continues to generate most of the high profile media attention with failures continuously being reported.
Failures in this sector were numerous in 2012 as we saw many well known companies go into administration. Game, Peacocks, Clintons, La Senza and Comet were just a few. Nevertheless, there were tens of thousands of other UK failures in trade sectors other than Retail.
Claims by Sector - Volume 2012 2011
Claims by Sector - Value
2012
2011
Haulage & Travel Construction
Food Timber
Metals Electronics Engineering Miscellaneous Furniture
Paper & Printing
Construction Haulage & Travel Food Metals Timber
Paper & Printing Advertising Electronics Engineering Miscellaneous
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