0751 GMT - While Allianz Trade is likely to see an increase in claims from the fallout of the new U.S. tariffs, their impact should be manageable, Jefferies says in a research note. German group Allianz's division--formerly Euler Hermes--is the world's largest trade credit insurer. "Given the sudden imposition of tariffs globally, it's at least possible that these claims rise materially in 2025, especially for protracted defaults, as customers may delay payments in the hope that tariffs are dropped," analyst Philip Kett writes. Higher claims are a near-certainty if tariffs trigger a recession, he adds. The fact that Allianz Trade has bought a stop loss reinsurance--a policy that protects against unpredictable costs above a specified threshold--means that its probable maximum loss is meaningfully lower than what Euler Hermes had in previous recessions. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
April 09, 2025 03:52 ET (07:52 GMT)
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