Euler Hermes undertakes to repurchase 4.9% of its own shares under the share placement announced by Allianz Vie of its 8.6% stake in Euler Hermes

18 mei 2016

Press Release

Euler Hermes undertakes to repurchase 4.9% of its own shares under the share placement announced by Allianz Vie of its 8.6% stake in Euler Hermes

PARIS - 18 MAY 2016

• Allianz Vie has launched today a share placement of its entire stake in Euler Hermes representing 8.6% of the share capital of the company
• Euler Hermes has placed an irreducible order representing 4.9% of its own shares
• The repurchase price will be equal to the price of the share placement
• The repurchase will enable Euler Hermes to efficiently use its excess capital through an accretive transaction benefiting all shareholders
• Proposed dividend for 2015 increased by 6.3% to EUR 4.68 per share

Allianz Vie today announced that it has initiated the sale of 3,879,818 shares of Euler Hermes Group ("Euler Hermes" or the "Company") representing its entire stake, i.e., 8.56%, of the share capital of the Company, through a private placement to institutional investors via an accelerated bookbuilt offer (the "Share Placement").

Euler Hermes hereby announces that it has undertaken to participate to the Share Placement by placing an irreducible order, at the price of the Share Placement, on 2,200,000 of its own shares representing approximately 4.9% of the share capital of the Company, subject to completion of the Share Placement (the "Repurchase").

The Repurchase shall be completed pursuant to the share buyback program approved by the shareholders' meeting of 27 May 2015. Following completion of the Share Placement and the Repurchase, the Company intends to cancel the 2,200,000 shares so repurchased, together with 500,542 treasury shares it already holds, i.e., 2,700,542 shares in aggregate, representing 6.33% of the share capital of the Company.  Further to the disposal of Allianz Vie's shares and cancellation by the Company of its own shares, the Allianz group's aggregate shareholding would be reduced from 67.80% to 63.00% of the share capital and theoretical voting rights of the Company. 

This transaction would enable Euler Hermes to efficiently use its excess capital ^[1] through an accretive transaction benefiting all shareholders. To finance the Repurchase, the Company would use its available cash, enabling it to eliminate a substantial portion of the amount of such excess capital.  Once completed, the Repurchase and the subsequent cancellation of shares would improve the return on equity while being accretive on the earnings per share and on the dividend per share (about 6.3%), as the proposed dividend would be increased to EUR 4.68 per share, subject to the vote of shareholders at the annual general meeting to take place on 25 May 2016, since the number of shares composing the share capital of the Company will be reduced to 42,641,635.

An amendment would be submitted to the shareholders during the annual general meeting to be held on 25 May 2016 to reflect the modification of the dividend per share.

BNP Paribas acts as financial advisor to Euler Hermes in connection with this transaction.

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Financial and regulated information are available on Euler Hermes' website
http://www.eulerhermes.com/finance/

CONTACTS

Euler Hermes Group Media Relations	Publicis Consultants
Remi Calvet +33(0)1 84 11 61 41 remi.calvet@eulerhermes.com	Romain Sulpice  +33 (0)1 44 82 46 21 romain.sulpice@mslfrance.com

Cautionary note regarding forward-looking statements : The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Euler Hermes Group's core business and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the development of loss expenses, (iv) persistency levels, (v) the extent of credit defaults, (vi) interest rate levels, (vii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (viii) changing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the European Monetary Union, (x) changes in the policies of central banks and/or foreign governments, (xi) the impact of acquisitions, including related integration issues, (xii) reorganization measures, and (xiii) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.
The company assumes no obligation to update any forward-looking statement.

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