New business developments 2017
Good figures in 2017: With EUR 12.7 million, revenues from new business reached a new historical high. All in all, AKA achieved respectable new signings of EUR 1,538 million, which is equivalent to an increase of 7 % compared to the previous year. Given the sustained decline in the syndication markets’ part being relevant for AKA, this is a very satisfactory result.
Risk management
AKA manages and monitors its risk exposure with the aim of optimising its risk profile and earnings potential and of safeguarding the necessary risk bearing capacity at all times. With its coherent risk management structures and reinforced personnel base, AKA is well positioned to meet upcoming requirements. Reasonable provisions for risks in lending business were also recognized in the annual financial statements for 2017. All in all, allocations to loan loss provisions came to EUR 11.3 million, while reversals were valued at EUR 8.5 million.
Earnings position 2017
Despite the substantial changes in Hermes cover volumes, AKA was able to perform successfully in the secondary market in particular. ECA business grew substantially. Thus, net earnings from lending business, which is one of the relevant performance indicators, rose by 9.5 % over the previous year to EUR 38.0 million.