In 2010, MEHIB continued the maintenance and operation of the database with bank ratings in connection with specific transactions, and in response to bank requests. In 2010, the number of banks that were assessed by the Insurer, and given limit, increased by 8 new banks and the number of banks is 138 at present. Based on the above mentioned limits, those Hungarian companies who are intending to export have access, through MEHIB, to important information related to the circumstances and backgrounds of their potential customers.
All medium and long-term transactions handled by MEHIB are governed by the company’s rating and limit system, based on a set of uniform assessment criteria. In 2010, the trend of previous years continued; an increased interest was noted, both in number and volume, in the so-called sub-sovereign risk background transactions.
The risk assessment activities which characterize short term transactions entail the full scope of the classic, so-called, underwriting activities. These includes, setting new customer limits, periodically reviewing existing limits, evaluating the requests for higher limits, and special activities.
A further significant business milestone in 2010 was the realization of a syndicated export financing transaction with the participation of several banks, to which MEHIB was the credit insurance provider. This is the first transaction of its kind that the company has been involved in since 2001.
An agreement of co-operation was signed between MEHIB and Eximbank in December 2010.
Although already outlined in 2010, another of our MEHIB’s main goals in 2011 is to work out and define the joint medium-term business strategy between MEHIB and Eximbank, for the period extending up to the end of 2014. This business strategy, which is in line with current government policies, and is in accordance with the provisions of the New Széchenyi Plan and the country’s Foreign Economy Strategy, is going to focus on promoting the growth of Hungarian exports; by effectively utilizing the budgetary resources available for export incentives and the synergies existing in the MFB group.
Product development
MEHIB intends to implement its product development concepts in accordance with the essential strategic aims of the Company, which are the following:
MEHIB playing a pro-active part in stimulating and fostering the export activities of Hungarian companies, thus enabling them to enter foreign markets;
Establishing an up-to-date, competitive, and client-friendly product range which is in line with international (primarily EU) development trends; broadening the scope of acceptable risks which are covered by MEHIB, within the framework set out by the EU legislation;
Marketing activity The main type of marketing activity MEHIB engaged in during 2010 was event marketing. The Company participated at several professional forums and formal meetings, in co-operation with state governmental institutions, which were promoting Hungarian export activities. The message, particularly towards exporting SMEs, also stresses the expert management of export risks in addition to the importance of export product quality.
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