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Abengoa collapse could lead to EUR250mn of losses

  • Publish Date: Posted about 7 years ago

The collapse of Abengoa, the multinational renewables group, could mean trade credit and surety reinsures have to deal with EUR250mn worth of losses. It has been reported that those with the largest exposure are Swiss Re, Hannover, Munich Re, Zurich, Scor and Partner Re. Initial estimates were three times as high as this but it is expected that many will be able to mitigate claims payments via subrogation. It has however been said that the total figure could change due to the complexities surrounding the collapse. The three big trade credit carriers, Atradius, Coface and Euler Hermes, were initially thought to be exposed to the largest losses but it has since been confirmed they are well reinsured. In protracted disputes or insolvencies such as that of Abengoa, trade credit carriers typically indemnify the affected entity.