“Unprecedented” withdrawal of insurance hits thousands

More than 12,000 companies, and as many as 20,000, have had credit insurance withdrawn the FT reports today.

It quotes one broker as describing the move as “unprecedented in my life” and says Atradius is cutting back the most.

The FT reports that Atradius is aiming to reduce exposure to risk in the UK by about 7 per cent compared with a 5 per cent cut in the rest of the world – a reduction of approximately £25 billion worth of exposure. The FT quotes Atradius as saying “We are reacting prudently to our view of current economic conditions and our own economic forecasts for 2009.”

Atradius was not available for comment this morning.