In the euro zone, the Euler Hermes turnover is up three percent thanks to the strong business increase in France (9.8 percent), Italy (7.6 percent), Benelux (4.1 percent) and in the Nordic countries (4.9 percent).

In Germany the revenues are down 1.8 percent compared to the first nine months of 2005. This drop in revenues is mainly due to the inwards reinsurance.

In the United Kingdom, the business during the third quarter improved, showing a lower decrease (-2.8 percent) compared to the first half of 2006 (-6.6 percent). This reduction is mainly due to a strong pressure on premium rates, following a period of very low claims.

The business in the United States shows a strong growth. The turnover went up 10.8 percent compared to the first three quarters of 2005.

In the new markets (Eastern Europe, Southern Europe, Latin America and Asia), the turnover growth is strong and amounted to more than 37 million euros, up 34 percent. As per end of September 2006, 52 percent of the overall group growth came from these markets which now represent approximately ten percent of the consolidated turnover.

As per September 30, 2006, the net combined ratio is 69.8 percent. Consequently, Euler Hermes confirms its forecast for a net combined ratio for the year between 70 and 72 percent.

Euler Hermes is the world-wide leader in credit insurance and one of the leaders in bonding and guarantees. With 5,400 employees in 46 countries, Euler Hermes offers a complete range of services for the management of customer receivables.

Euler Hermes, a subsidiary of AGF and a member of Allianz, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor's.

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