What we do

Business as usual with reinsurance

When Bramidan lost part of its usual credit insurance due to the financial crisis, it nearly cost the company the partnerships it had spent many years establishing with customers in Eastern Europe and Asia. With assistance from EKF's reinsurance scheme, the company was able to maintain its exports.
What
Bramidan exports machinery for compacting recyclable packaging waste
How much
85-90 per cent of ongoing trade
EKF's role
EKF took over a significant percentage of the risk entailed by customers especially in Eastern Europe and Asia from the company's private credit insurance company
EKF product
Reinsurance
When
2009-2010
  • Quote

    The reinsurance scheme has meant that we are almost back to business as usual – even on the affected markets. We have regained peace of mind so we can concentrate on what we are good at.

    Henrik Dueholm Madsen,, Managing Director, Bramidan A/S
    When the economic crisis struck, a number of Bramidan's key markets in Eastern Europe and Asia were hard hit.

    Bramidan's credit insurance company was no longer willing to bear the risk in these markets and withdrew its cover. This put Bramidan's long-standing customer relationships to the test, because the customers needed to make purchases on credit, but Bramidan was very reluctant to bear the credit risk itself.

    "With one good South Korean customer, we had to withdraw the line of credit when it was cancelled because of the economic storm South Korea was weathering in autumn 2008," says Henrik Dueholm Madsen, Managing Director, Bramidan.

    Bramidan manufactures equipment for compacting recyclable packaging waste and exports more than 90 per cent of its production to more than 40 countries.
  • Bramidan's situation arose just a few months before EKF introduced its scheme for reinsurance for credit insurance companies.

    As soon as the scheme was introduced, Bramidan didn't delay in contacting its credit insurance company to request insurance for customers in markets where the financial crisis had sent creditworthiness plummeting.
    ​ The credit insurance company had registered for the EKF reinsurance scheme, which made it easier to grant Bramidan's request to reestablish a proportion of the insurance cover that had been withdrawn in the wake of the financial crisis.

    The reinsurance scheme means that EKF assumes the greater share of the risk entailed by Bramidan's export orders, while the private credit insurance company bears a smaller share of the risk.
  • ​With reinsurance from EKF, Bramidan was again able to insure its exports and so continue trading with their distributors in a number of countries.
    Among other things this meant that in spring 2009, Bramidan was able to regain credit insurance on its sale of products to its South Korean customer.
    ​Bramidan was affected by the financial crisis, but has since returned to business as usual. One positive effect of the reinsurance has been the recovery of trade stability between Bramidan and their distributors in a large number of countries.
     
    "The reinsurance scheme was hugely important in our dealings with customers in regions where the economic situation makes it difficult to arrange credit insurance on normal commercial terms," says Henrik Dueholm Madsen.
Index for robots