Credit risk

We are exposed to credit risk in connection with the collection of receivables. In the case of the insurance operations, counterparties may be customers, suppliers or reinsurers, while in connection with the investment activities, our primary counterparties are issuers of bonds and counterparties in other financial instruments.

Receivables from policyholders arise on an ongoing basis and amounted to DKK 901m or 5.3% of gross premiums at 31 December 2007. The risk related to receivables from customers is limited because the insurance cover lapses if they fail to pay.

The sub-prime crisis in 2007 emphasised the importance of managing risk, including credit risk. The crisis affected the financial markets, but TrygVesta has no investments in sub-prime loans, CDOs and similar products. Read more in the section on Investment activities.