Federal Export Credit Guarantees (Hermes Cover)

What Federal Export Credit Guarantees (Hermes Cover) does

Federal Export Credit Guarantees — internationally marketed as "Hermes Cover" — is the Federal Republic of Germany's official export credit guarantee instrument, operational since 1949 and managed by Euler Hermes Aktiengesellschaft on behalf of the German government. It insures German exporters and the banks financing their transactions against commercial and political payment defaults, including country risks in markets where private insurance is unavailable. Cover volume exceeded EUR 13 billion in 2025, positioning the program as a central pillar of Germany's foreign trade and industrial policy.

The product suite spans standard multi-year cover for large-ticket export contracts, the digital click&cover EXPORT and BANK products for small-ticket transactions, and the newer Flex&cover approach combined with a Climate Check tool for climate-relevant projects. Underwriting is governed by the OECD Common Approaches and the program is structured to comply with EU and international standards. Distribution is delivered through Euler Hermes's regional consultant network (with dedicated presence in markets such as Dubai and African hubs), the program's own digital portals, and co-financing partnerships with KfW and the Africa Business Network.

The business model is that of a state-backed guarantee scheme rather than a commercial insurance carrier: premiums flow to the federal budget, the Federal Republic assumes the ultimate risk, and Euler Hermes earns a management fee. Strategic priorities include expanding cover to emerging and developing economies — particularly Africa, via the G20 Compact with Africa — and digitizing access for SMEs, with the program explicitly designed to mobilize transactions that private markets would not underwrite.

Name

Federal Export Credit Guarantees (Hermes Cover)

Legal name

Euler Hermes Aktiengesellschaft

Website

https://exportkreditgarantien.de

Company type

Private

Founded year

1949

Operating status

Operating

Headcount range

1–10 employees

Short description

Germany's official export credit guarantee scheme, operational since 1949 and managed by Euler Hermes on behalf of the Federal Republic. It insures German exporters and financing banks against commercial and political payment defaults, with EUR 13B+ in cover issued in 2025.

Ownership category

akta.pro rank

Product category

Export Credit Insurance

NAICS

Finance and Insurance (52), Insurance Carriers and Related Activities (524), International Affairs (92812)

SIC

Federal & Federally-Sponsored Credit Agencies (6111), Surety Insurance (6351)

akta.pro primary industry

Trade Finance, Export Credit & Risk Mitigation (BPADAMAG)

akta.pro secondary industries

Export Credit Agencies (ECAs) & Official Export Finance (FSABAKAC), Guarantee, Insurance & Risk Mitigation Facilities (BPADACAK), Trade Finance Operations (LCs, Collections, Guarantees) (FSABALAF)

Keywords

• Export credit guarantees
• Trade finance insurance
• Political risk coverage
• Sovereign-backed guarantees
• Export financing protection

Headquarters

HQ city

Hamburg

HQ country

Germany

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Others

Revenue model

1. Export Credit Guarantee Premiums: Policyholders pay premiums calculated based on the risk involved in the transaction. Premiums are calculated considering factors such as country risk, buyer creditworthiness, and transaction terms. In the event of a loss, the Federal Government indemnifies the policyholder for the amount of the receivable covered (less uninsured percentage).

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

Federal Export Credit Guarantees (Hermes Cover) are government-backed insurance instruments that protect German exporters and financing banks against commercial and political payment defaults in international trade transactions. The program is mandated by the Federal Republic of Germany and administered by Euler Hermes Aktiengesellschaft on its behalf, providing cover for export contracts, supplier credits, and buyer credits across diverse markets and risk profiles.

Product overview

Federal Export Credit Guarantees (Hermes Cover) is a comprehensive suite of export credit insurance and guarantee products managed by Euler Hermes on behalf of the Federal Republic of Germany since 1949. The portfolio addresses the entire export value chain from production and delivery to payment, protecting exporters and banks from commercial and political payment defaults. The product ecosystem comprises three main customer segments: (1) Products for Exporters including single-transaction covers (Supplier credit cover, Hermes cover click&cover EXPORT, Manufacturing risk cover, Contract bond cover, Leasing cover), revolving/wholeturnover business products (Wholeturnover policy/APG, APG-light, Revolving supplier credit cover), and supplementary covers (Flex&cover, Forfaiting guarantee, Constructional works cover, Confiscation risk cover); (2) Products for Banks including buyer credit facilities (Buyer credit cover, Hermes cover click&cover BANK, Revolving buyer credit cover), revolving business (Shopping line cover, Framework credit cover), and refinancing supports (Covered bond guarantee, Securitisation guarantee, Airbus guarantee); and (3) Products for Importers providing access to 'Made in Germany' products. Additional instruments include Untied Loan Guarantees for raw materials and Investment Guarantees for investors. Digital service tools including Premium calculator, Cost calculator, Online inquiry, Climate Check, Product finder, and Solution finder support the product ecosystem.

Differentiator

Problem solved

Functional benefit

Brands

• Hermes cover click&cover: Digital form of supplier credit cover for small-ticket transactions up to EUR 5 million with credit periods up to 5 years, applied for online.
• Flex&cover
• APG (Ausfuhr-Pauschal-Gewaehrleistung)
• APG-light

Products and services

• Hermes Cover (Ausfuhrgewährleistungen) Sovereign-backed export credit guarantee covering German exporters and banks against commercial risks (buyer insolvency, protracted default) and political risks (transfer restrictions, moratorium, war, sanctions) in cross-border trade transactions. Available as supplier credit cover, buyer credit cover, and project finance cover.
• APG Online Portal Online portal enabling German exporters to digitally apply for, track, and manage Hermes Cover applications and supporting documentation.
• myAGA Customer Portal Self-service digital portal for Hermes Cover policyholders providing access to policy documents, country risk information, premium calculations, and guarantee management.

Quantifiable outcome

• EUR 13+ billion in export credit guarantees covered in 2025
• +1 more outcomes

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Eight partnerships are on record, tiered core and major.

• Africa Business NetworkcoreStrategic or Co-development PartnerEstablished by German Federal Ministry for Economic Affairs (BMWi) as part of the development investment fund. Integrates German export promotion with development cooperation programs to provide German companies with advisory services and support for African business. Euler Hermes provides complementary export credit guarantee advisory services.
• Africa Business Guide (GTAI)coreStrategic or Co-development PartnerDigital platform developed by Germany Trade and Invest (GTAI) for the German Federal Economic Affairs Ministry providing information, event calendar, and contact details for businesses interested in African markets.
• German Chambers of Commerce AbroadcoreChannel Partner/ Reseller/ DistributorFinancing experts stationed at German Chambers of Commerce in Dubai (VAE), Côte d'Ivoire (Abidjan), and other locations provide local advisory services for exporters and importers in Middle East, North Africa, and Sub-Saharan Africa regions.
• G20 Compact with AfricacoreStrategic or Co-development PartnerG20 initiative to expand economic cooperation with Africa. The Federal Government has improved terms of export credit guarantees for deliveries to and services in Compact with Africa nations, lowering uninsured percentage from 10% to 5% for public buyers.
• KfW GroupmajorStrategic or Co-development PartnerSecuritization guarantee of the Federal Government enables banks to participate in KfW refinancing programme and obtain long-term refinancing with congruent maturities for transactions covered under buyer credit or airbus guarantees.
• OECDmajorStrategic or Co-development PartnerExport Credit Guarantees operate under OECD Common Approaches for officially supported export credits. Regular updates to country risk classifications and international agreements govern the framework.
• Federal Ministry for Economic Cooperation and Development (BMZ)coreStrategic or Co-development PartnerMarshall Plan with Africa initiative to strengthen African nations' development capabilities. Partnership focuses on sustainable economic growth that generates jobs and prosperity.
• Federal Ministry for Economic Affairs and Climate Action (BMWK)coreStrategic or Co-development PartnerMandator for export credit guarantees. BMWK establishes policy framework and initiatives including market entry program (MEP) for SMEs and various funding guidelines for entering African markets.

Scale indicators3 records

Recent moves5 records

Expansion highlights5 records

Regional players

• Afreximbank: African multilateral trade finance institution providing trade credit and guarantees across African markets. Increasingly relevant peer competing for African export/import financing where Hermes Cover has growing exposure.

Direct peers

• SACE (now SACE SIMEST): Italian official export credit agency providing government-backed export credit insurance and guarantees to Italian exporters and banks. Directly comparable peer under the OECD Common Approaches regime.
• Bpifrance Assurance Export: French official export credit agency managing public export credit guarantees on behalf of the French state. Closely analogous to Hermes Cover in mandate, OECD framework adherence, and product structure.
• UK Export Finance (UKEF): UK's official Export Credit Agency, providing government-backed loans, guarantees, and insurance to UK exporters and banks. Directly comparable as a peer OECD-aligned ECA focused on supporting domestic exporters in politically and commercially difficult markets.

Emerging players

• Coface: Major private trade credit insurer operating globally with government-backed activities in France. Adjacent peer offering trade credit insurance that competes with the commercial-risk portion of Hermes Cover's product portfolio.
• Atradius: Major private trade credit insurer, comparable to Euler Hermes Trade. Adjacent peer in trade credit insurance, partially overlapping the commercial-risk cover that Hermes Cover provides in markets where private insurance is unavailable.
• Euler Hermes Trade Credit Insurance (Allianz Trade): Private trade credit insurance arm of the same parent that manages Hermes Cover. Competes with Hermes Cover's mandate by serving commercially insurable markets, freeing Hermes Cover to focus on markets where private cover is unavailable.

Broad incumbents

• Export-Import Bank of the United States (US EXIM): US official Export Credit Agency providing loans, loan guarantees, and insurance to support US exports. Comparable in function as an OECD-aligned ECA, though operating under different statutory and budget frameworks.
• Nippon Export and Investment Insurance (NEXI): Japanese official Export Credit Agency providing export credit insurance and guarantees for Japanese exporters. Comparable peer under the OECD Common Approaches with similar product range and emerging-market focus.

Others

• Multilateral Investment Guarantee Agency (MIGA): World Bank Group political risk insurance and credit guarantee agency. Thematically related as a multilateral guarantor, though it insures foreign direct investment rather than export transactions.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/channel/UCn4eeQStidAifrvbkYFpmXw
• LinkedInlinkedin.com/company/exportkreditgarantien-der-bundesrepublik-deutschland

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Federal Export Credit Guarantees (Hermes Cover)