TOP

Surety

Partly guaranteed project: New Dolce Vita Shopping Centre, Lisbon (2009)
Partly guaranteed project: New Dolce Vita Shopping Centre, Lisbon (2009)

The Gracher Group of Companies, with a managed volume of business of over 4 bill. euro (€ 44 bill. of coverage 2016 in Germany, Austria and Switzerland) and annually mediated new business of between 600 and 700 mill. euro, is market leader in the bond sector in Germany and Austria. We contribute up to 30 % of new business at reputable insurers and manage about 20 % of existing business. In Austria the Gracher Group mediated 300 mill. euro of new business in 2016 alone.

Gracher has its head office in Trier and branches in Frankfurt and Sofia, Bulgaria. As a member of the Surety Alliance, the group has indirect representatives in the USA, in Canada and in South America. Gracher serves a number of large company groups on both sides of the Atlantic. Our largest customer has a turnover of 27 bill. euro.

Bond insurers have for decades taken a different approach from banks. Banks have to back surety credit with capital resources (BaFin) just as they do any other credit. Bond insurers, on the other hand, need not put up any security. Insurers, just like banks, calculate probability of insolvency but then combine this with their default statistics for the individual kinds of surety. The result is fundamental differences in the valuation of the securities that you, as a business operator, have to provide.

In our Sureties and Bonds core business field we currently serve about 700 small to medium-sized companies and company groups. We have at our disposal the most comprehensive database in the bond sector. In the last ten years we have compiled 1,500 data sets with the key figures of building contractors and machine and original equipment manufacturers. For each data set there is an insurer’s loan commitment with security and premium. These we use to set up benchmarks. With the help of these benchmarks we manage new arrangements or annually optimise our existing customers' terms and conditions. To help you better understand your balance sheet, every year you receive an evaluation from our analysis department.
As market leader, we understand the market and so can offer you an optimum solution. We know virtually all the insurers' benchmarks and guidelines. With our long-standing and first-class contacts we can support you flexibly in times of crisis. Restructuring and pool meetings are not foreign words to us.
Our rating of 1.63 on the rating scale shows how satisfied our customers are with us. For 67 % of our customers with a premium volume of 70 to 2,000 th. euro we have been able to lower security provision and/or the premium rate of the existing guarantee lines. For 81 % of our customers with improved balances we have been able to achieve an optimisation of their conditions.
 

Graphs for customer statistics (position in 2011)

Through our customer portal you have rapid and easy access to the complete form procedure of all the credit and bond insurers.

Your benefits at a glance:

  • Hedging normally between 0 % and 30 %
  • No personal guarantees or approvals
  • Possible extension of surety facilities
  • Minimisation of business management liability thanks to sound legal agreements
  • Software tool for sureties (cost calculation and administration) – saving on premiums approx. 10 %
  • Access to 27 bond insurers
  • Arrangement of consortium solutions with bond insurers and banks
  • Worldwide local management: Surety Alliance
  • Arrangement of vertical and horizontal syndicates
  • Help with the arrangement of subcontractor guarantees
  • Hedging of syndicate partners among themselves for max. 0.1 % additional cost
  • Current surety judgements
  • High standard of service from a single source: time and cost savings
  • Identification of the best conditions amongst all providers
  • Specialisation in security pools
  • High level of market knowledge
  • Swift confirmations
  • Fronting with banks around the world is possible, if bank guarantee is desired
     

 

Further reading:

Kind of surety bonds

Countries

Potential clients:

Practical example
More information

 

 Letters of credit >>