Woolworths exposure hits credit insurer

Credit insurer Euler Hermes Group released a profits warning in the wake of exposure to the Woolworths administration.

The Paris-based insurer expects net income for 2008 between 100m and 110m euros. In November, Euler Hermes reported nine-month income of 152m euros and forecast a profit for the fourth quarter.

Although Euler Hermes Group has business worldwide, it still faces big claims from suppliers who had trade credit insurance when Woolworths Group Plc went into administration last month.

A company statement said: “Reduced consumer spending combined with tightening financial conditions will continue to maintain pressure on the liquidity of corporates."