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Credit insurance optimisation for a European agri-food group
The AU Group team
Ladislas Cassin
Head of AU Group Iberica
Challenge addressed
Our client, a leading player in the agri-food sector in Europe, was facing two major challenges:
1) Their credit insurer no longer covered a strategic buyer representing over €6M in annual turnover.
2) They were subject to a high premium rate compared with the performance of their programme, with no prospect of improvement.
Objectives:
Secure a €1.5M credit limit for this strategic and hard-to-cover buyer.
Reduce the special premium applied to this client.
Renegotiate the overall contract to obtain more competitive terms.
- Role
- Credit insurancre advisor
- Duration
- 6 month
- Sector
- Agri-food
Proposed solution
We advised the client to switch to a new credit insurance provider in order to strengthen their programme’s competitiveness. The new insurer agreed to grant full coverage of the requested €1.5M credit limit for the strategic buyer, which had previously been left uninsured. We also negotiated a significant reduction in costs, securing a premium three times lower than the one previously applied.
Our approach
We carried out a full audit of their credit insurance programme and implemented a three-step strategy:
Conduct a consultation with several specialised market players, leading to a change of credit insurance provider.
Negotiate 100% coverage of the desired credit limit (€1.5M) for the strategic buyer.
Secure a premium three times lower than the one previously applied.
Key actions
Identified the lack of coverage for a key client (€6M in annual turnover uncovered).
Researched and obtained a rare credit limit on the market.
Increased other credit limits across the portfolio.
Achieved an overall reduction in the contract’s premium rate.
Leveraged AU Group’s expertise to negotiate and secure the best possible terms.
Results
Full credit limit
obtained for the buyer
More than
€30K
saved annually on premium
Secured annual turnover
of more than
€6M
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