You do business. We provide the guarantee.

Transcription

1 1 You do business. We provide the guarantee.

2 We are Nordic Guarantee. When doing business, your customer or supplier often demands some kind of guarantee. The type of guarantee depends on the nature of the service or product you are selling or buying. In both cases the point of the guarantee is to ensure that the undertakings in the contract can be completed even if a party becomes insolvent. Much faster We are the insurance company that offers guarantees that are neither complicated nor high-cost. Our guarantees are as secure and fulfill the same function as bank guarantees. Much smarter Compared to bank guarantees our guarantee products are simple to administer and use, but more importantly, they are more cost-effective. No pledged collateral We make comprehensive risk assessments of our client companies, their counterparties and the business deal in question. In normal cases we do not require pledged collateral for the guarantee we subsequently offer. You, the client, do not need to tie up capital, and your credit line with your bank is not affected. When we provide a guarantee, the client pays an insurance premium. Premium levels depend on the size of the deal and the risks that come with the guarantee. Our strengths also include the speed and effectiveness of our internal processing. Guarantee administration to our clients is smart and simple, either through direct contact with our dedicated staff members or via our web service Fast Track. Fast, smart and secure, quite simply. Welcome to Nordic Guarantee! 2 3

3 Insurance the future s guarantee product. As risk awareness in society increases, more and more companies and organisations are demanding guarantees in connection with agreements and contracts. This applies particularly to tender guarantees and payment guarantees which have increased significantly in recent years. Additionally, a guarantee should not only provide the right security, but also be quick and easy to administer. Bank guarantees are by far the most common guarantee product and are estimated to account for about 80 percent of all guarantee undertakings on he Nordic market. The remaining part is made up of various insurance solutions, where Nordic Guarantee s market share in Sweden, Norway and Finland is about 30 percent. Specialists in guarantee insurance Nordic Guarantee is unique in the market because we operate solely in the Nordic market, and because we specialise in contractual guarantee insurance. The other actors besides the banks focus mainly on credit insurance and financial services. The changing market COLLABORATION WITH STRONG REINSURERS Nordic Guarantee has collaborated with a number of highly-reputable, financially-strong reinsurers, over a long period of time. This enables Nordic Guarantee to offer its clients guarantees for very substantial amounts. The reinsurers Standard & Poor s ratings are: A 13% AA- 37% Nordic Guarantee has long held a strong position in the construction and site engineering sectors where guarantees are very common and where a contractor is expected to pledge collateral to the employer as a guarantee that the undertaking will be fulfilled. The travel industry is another important customer segment for us. Here the products are linked to the legal requirements which travel companies must follow. Guarantees are also used in the industrial and engineering sectors, for instance, for large investments in new equipment or facilities. Today a bank guarantee is the most common solution but we believe that the interest in insurance solutions is increasing. One underlying reason for this is the tightening of capital requirement for banks through Basel III. The requirements are expected to cause banks to cut back on the number of guarantees issued and to offer them at less favourable terms. These changes will create business opportunities for a contractual guarantee insurance specialist like Nordic Guarantee. A+ 50% 4 5

4 Nordic growth global outlook. Nordic Guarantee specialises in the Nordic market with operations in Sweden, Norway, Finland, and Denmark. We are close to our clients in their home markets, have extensive knowledge of local conditions in the different industries, and so can satisfy their demands and wishes in a simpler and more customer-specific way. Expansion into more sectors From our Nordic base, our sights are set on growth into more sectors where there is a need for secure, tailored guarantee solutions. As part of this expansion, we also envisage new forms of cooperation being developed which will strengthen our customer offering for guarantee insurance. Strategic alliances Our business is now taking on a clear international focus, where we are looking beyond our traditional home markets. The background for this is our strategic collaboration with the international insurance group, Lombard Insurance Group, which is also a part owner of Nordic Guarantee. The collaboration with Lombard gives us a stronger financial base and enables us to offer significantly larger guarantees than before. Exchange of experience Another advantage is the network to which we have access through Lombard. This allows us to support Nordic companies who want to expand outside the Nordic area, primarily in the increasingly attractive African market, but also in other parts of the world. Both Lombard and Nordic Guarantee have long experience of risk assessment and technical analysis which opens the way for comprehensive knowledge-sharing in this area. 6 7

5 Securing the business in a smarter way. Nordic Guarantee s guarantee solutions increase the security and safety of our clients business transactions. A guarantee insurance is based on an agreement between two contractual parties, where we guarantee one or the other party s undertakings. Lower cost without affecting the credit line Our guarantees are as secure as bank guarantees and fulfill the same function. Compared with bank guarantees our insurance solutions are easier to administer and use, but most of all they are more cost-effective. We conduct thorough risk assessments of our client companies, their counterparties and the business deal in question. In normal cases we do not require pledged collateral for the guarantee we subsequently offer. Thus the client s capital is not tied up and there is no impact on its credit line with its bank. When we provide a guarantee the client pays a premium. Premium levels depend on the size of the deal and the risk that is associated with the guarantee. High competence We have been working with guarantee solutions for more than 20 years and have built up a level of specialist competence and a product range portfolio that few can match. By specialist competence we mean, first and foremost, our knowledge of business analysis, contract and agreement management, risk assessment, and not least our in-depth knowledge of many different industries. Based on this knowledge, we tailor the guarantee solution to best suit the needs of our client. Through our long experience of guarantee insurance, we can also assist with quality assurance of the content of agreements and contracts. FASTTRACK ONLINE AROUND THE CLOCK Via our portal FastTrack, clients have control of their own guarantee portfolios and can log in anytime, day or night, to administer and control their guarantees, contract sums, guarantee amounts and duration periods - easily and free of charge WE OFFER Fast processing Our strengths also include the speed and effectiveness of our internal processing. The administration is smart and simple, regardless of whether clients are in direct contact with our staff or using our web services. This simplicity characterises all processing, regarding everything from orders of new guarantees and access to engagement reports to the administration of existing guarantees. Our web service FastTrack gives clients control of their guarantee portfolio and they can log in anytime, day or night, to administer and check the contract sums, guarantee amounts and duration periods. Clients are also able to monitor the status of their applications, and can download or print out their guarantees and the associated documents. This is an online service, i.e. accessible and updated 24/7 simple and free of charge. Specialist competence and knowledge of guarantees and contracts. In-depth knowledge of our clients sectors. Fast, efficient and reliable service. User-friendly and fully comprehensive, online web services for monitoring, administration and follow-up of guarantee portfolios. Dedicated and knowledgeable staff members. 20-years experience of risk assessment, procurement and contract management. Cost-effective, tailored guarantee solutions. 8 9

6 Our guarantee solutions. We offer about ten guarantee insurance solutions, divided into four areas Construction and project bonds, Payment bonds, Advance payment bonds, and Travel bonds. Based on our competence in business analysis and risk control, we also develop client-specific products for companies if they so wish. Construction and project bonds Bid Bonds Buyers in larger contracts usually demand collateral as a guarantee that the contractor can fulfil the terms of the tender. Bid bonds apply in the same way irrespective of the form of the contract. They always follow the contract and are easy to include in bid and contract documentation. If the bid is not taken up the bond ceases to apply. Performance Bonds Performance bonds are often required from contractors and suppliers. These ensure that they fulfill their undertakings to the client in a construction or industrial project. The bond compensates the buyer financially for mistakes which may arise in connection with non-delivery or non-completion if the contractor becomes insolvent. Furthermore, the bond guarantees that the delivery is completed if the contractor goes bankrupt. Maintenance Bonds When a construction project or installation is complete, it is usual to have a guarantee period which may extend over several years. The maintenance bond ensures that any possible mistakes and shortcomings are taken care of, even if the supplier goes bankrupt or ceases its activities during the guarantee period. Combined Construction Bonds There is a bond specifically for the construction industry called a combined construction bond which is a combination of a performance bond and a maintenance bond. A combined construction bond protects the buyer against any additional costs that may arise if the contractor becomes insolvent and thus cannot fulfill its undertakings in accordance with the contract agreement. The bond also applies during the guarantee period that comes after the work is completed

7 Payment bonds Payment bonds are used in many industries. They ensure that a seller or a contractor receives payment in accordance with the underlying contract, even if the buyer becomes insolvent. Customs bonds Companies engaged in trade with foreign countries must pay taxes and fees to the customs authorities in each country. For practical reasons, the authorities can issue a so-called credit permit, in which case companies must also provide security for the customs debt that accompanies the credit. Such a surety can be provided through a customs bond. This bond means that the customs authority may recoup its money even if the company becomes insolvent. Rental bonds In many cases, landlords require some form of security from their tenants so that rent is paid according to the terms of the rental contract. The bond is signed by the tenant and ensures that the landlord will receive rent according to the contract even if the tenant becomes insolvent. Advance payment bonds Advance payment bonds ensure the repayment of advance payments to the buyer or employer if a delivery fails to arrive or is wrong, for example, due to insolvency. It is the buyer or purchaser who requires the seller to buy the bond, which applies from the time the seller receives the advance payment. The value of the bond is equal to the advance payment. Travel bonds According to the law in the Nordic countries, companies engaged in package tours must provide a guarantee to the authorities. The guarantee is called a travel bond and serves as security for travellers advance payments, and any possible repatriation costs. REINSURANCE It is of vital importance that Nordic Guarantee s clients and bond-holders are confident that the protection offered by the guarantees is permanent and totally reliable. 10 globally-active reinsurance companies, all with at least a Standard & Poors A rating, together share the risks within Nordic Guarantee s guarantee portfolio

8 Premium SUPPLIER NORDIC GUARANTEE Complete the contract Compensation for possible damage BUYER/EMPLOYER Owners and networks. Since 2003, Nordic Guarantee has been a part of the Fairford Group an international family-owned group of companies that invests in growth companies. We also cooperate closely with the international insurance company Lombard Insurance Group, who are also part-owners of Nordic Guarantee. EXAMPLE OF A GUARANTEE INSURANCE Pay according to the contract 1. The buyer and supplier draw up a contract proposal. 2. Based on the agreement and the financial strength of the supplier, Nordic Guarantee carries out a risk assessment. Thereafter we can decide to issue a guarantee insurance. 3. The supplier then pays an insurance premium to us and completes the delivery to the buyer. 4. The buyer then pays the supplier for the completed delivery. 5. If the supplier is not able to complete the delivery according to terms of the contract, perhaps because the supplier has become insolvent, the insurance guarantee then comes into force. Nordic Guarantee then compensates the buyer according to the terms of the guarantee. ABOUT LOMBARD Lombard Insurance Group is a privately-owned insurance company based in Johannesburg, South Africa. The company specializes in guarantees, with its biggest products being guarantees for the construction and engineering industries, credit insurance, as well as life insurance. Financial overview (Group): (ZAR millions) Net sales Result before tax Assets Shareholders equity (1 ZAR = 0.68 SEK per 30 june 2013) For more information: : OUR HISTORY 1993 Nordic Guarantee is founded in Sweden 1998 Our office in Norway opens in Oslo 2003 Nordic Guarantee is acquired by the Fairford Group 2006 We open in Helsinki, Finland 2007 Nordic Guarantee establishes in Denmark with an office in Copenhagen 2010 Our second office in Sweden opens in Malmo 2012 Nordic Guarantee enters into collaboration with Lombard Insurance 2014 Lombard becomes part-owner of Nordic Guarantee ABOUT FAIRFORD Fairford Holdings Ltd is a family owned investment Financial overview (Group): company that aims to create a stable, diversified and (EUR million) professionally-managed European investment portfolio. Net sales The goal is to achieve sustainable value creation through Result before tax the acquisition, development and disposal of privatelyowned Assets companies, and by creating long-lasting partner- ships with interested parties who share the company s core values. Fairford actively seeks opportunities in unlisted companies, predominantly in the UK and Swedish markets. The major holdings are: Safegate (systems for airports), Axel Christiernsson (fats and lubricating oils), AP&T (automation, presses and tooling). Shareholders equity For more information:

9 What do our clients think about us? What do our clients think about us and what should we improve? These are the starting points in the survey which we conduct on a regular basis, where Nordic Guarantee scores high on the Customer Satisfaction Index. It s a huge advantage for us to have one single guarantee supplier for all our markets. As a travel agent you don t normally have many tangible assets, so we gain a lot by not having to tie up funds in sureties with the banks. Lars Ohlsén, CFO Select Travel The survey is designed to produce a Customer Satisfaction Index (CSI) which tells us how satisfied clients are in total with our business activities. Naturally, the index score can be compared with other sectors. The average CSI within banking and insurance is 67. We are proud that we exceed that figure by a very good margin, but of course we aim to improve even more and to ensure even more satisfied customers. Focus on the right things Several hundred clients respond anonymously in the survey which is conducted by an independent market research company. They refer to our reliability, our speed and the quality of our administrative processing. Many clients tell us how much our services help them in their business activities, which is precisely the type of customer benefit we want to deliver and be associated with. With Nordic Guarantee we got a guarantee supplier who could arrange a perfectly tailor-made solution for us, and who did it within a very limited time frame. We got a guarantee solution which works for our whole Nordic operation. Anders Holst, CFO LensWay 16 17

10 Breadth, competence and engagement Our aim is to be able to deliver all the guarantees needed by businesses in the Nordic countries. If you have special requirements which are not met by our existing product portfolio, we promise to do everything we can to tailor a solution for you. This stated aim places high demands on our knowledge and working methods. Our two corner stones long experience of guarantees and a basic understanding of the specific needs in different sectors are important and take us a long way. However, just as important are our main guiding principles, namely that we go that extra mile, and stay one step ahead. We believe in new ways and in meeting you the client in your situation and on your terms. So try a faster and smarter way of securing your next deal. We are in Sweden, Norway, Finland and Denmark. About us. Nordic Guarantee exists to make business easier for Nordic companies. Top quality service, delivered with passion one step ahead. You do business. We provide the guarantee. Our activities were started in 1993 by a number of Sweden s largest insurance companies. Since then we have become one of the leading actors within guarantees and are now owned by the international groups Fairford Group and Lombard Insurance. Our staff members all have long experience of guarantees and risk analysis, and are well acquainted with corporate finance and professional contractual terms and conditions. Our processes and tools for analysis, control and follow-up are well tested and approved. Reinsurance and risk-spreading Through reinsurance we share our risks with reinsurance companies while they continuously follow-up our business activities. As an insurance company we are also under the supervision of the Financial Supervisory Authority. Our guarantee portfolio is spread across several different sectors and companies of various sizes. This ensures that our clients and guarantee holders can feel secure at all times. THIS IS NORDIC GUARANTEE Nordic Guarantee is an insurance company which was founded in 1993 and offers secure, flexible guarantee insurance to the Nordic business sector. A guarantee insurance means that we guarantee one or the other party s undertakings in a contract. Our offering is divided into four areas - Construction and Project Bonds, Payment Bonds, Advance Payment Bonds and Travel Bonds. We have about 30 employees and about 3,000 clients. Our competitive advantages are; our sole focus on guarantees, the simplicity and cost-effectiveness of our products, our broad industry knowledge and long experience of business analysis and risk assessment, as well as our smart, acknowledged fast service and our dedicated staff members. Our market is the Nordic countries, where we have offices in Sweden, Norway, Finland and Denmark. The largest customer segments are the construction and travel industries. Nordic Guarantee is an independent player in the guarantee market. We collaborate with highlyreputable reinsurers with high credit ratings and can provide guarantees for very large sums. The insurance business is regulated and supervised by the regulatory bodies in each country. Since 2003 Nordic Guarantee has been part of the Fairford Group - an international family-owned company group that invests in growth companies. We collaborate with the international Lombard Insurance Group, who are also part-owners of Nordic Guarantee. The cooperation gives us a stronger financial base, and the opportunity to help our clients to expand globally

11 DENMARK Tuborg Boulevard 12 DK-2900 Hellerup Denmark Tel Internet FINLAND Äyritie 12 A FI Vantaa Finland Tel info@nordg.fi Internet NORWAY Sørkedalsveien 10 C NO-0369 Oslo Norway Tel info@nordg.no Internet SWEDEN Kista Science Tower SE Kista Sweden Tel info@nordg.se Internet 20