Gotthard tunnel: Euler Hermes insures tunnel boring machines

With Gabi and Sissi through the wall: the tunnel boring machines Sissi, Heidi, Gabi 1 and Gabi 2, insured by Euler Hermes, laid the foundation stone for the Swiss Gotthard Tunnel, which will open on 1 June 2016. As guarantor, the credit insurer participated in the world's longest railway tunnel with guarantee credits amounting to more than CHF 170 million.

In addition to the four tunnel boring machines, the world's leading credit insurer also acted as guarantor for the consortium of the four leading construction companies from Switzerland, Austria, Italy and Germany. Euler Hermes also acts as guarantor for trains that will travel through the Gotthard Tunnel in the future.

Sissi & Co. do the work - but hedging made this possible in the first place

"As guarantor for the tunnel boring machines, we identify with such a project and followed every single milestone," said Stefan Ruf, CEO of Euler Hermes Switzerland. "It all started in November 2002 and on September 6, 2006, 'Sissi' had made it: the breakthrough, with the expected precision."

The deviation was two centimeters vertically and five horizontally - for a tunnel diameter of ten meters.

"We are very proud to be a part of this success," Ruf said. "Even though Sissi, Heidi and the two Gabis had done the actual work, we as an insurer made it possible and covered it."

Euler Hermes' experience as a guarantor in numerous major infrastructure projects also stood it in good stead for the Gotthard Tunnel. Euler Hermes provided substantial guarantees and counter-guarantees for the consortium of four international construction companies.

 Financing of trains through Gotthard tunnel via Euler Hermes guarantee credits

The tunnel will continue to accompany the credit insurer after the opening - at least indirectly: "Our relationship with the Gotthard is not over yet - we also provide guarantees for the trains that will travel through the tunnel in the future, in which 'our' tunnel drillers played a significant role. That's where the circle closes," said Ruf.

In addition to its traditional credit insurance business, Euler Hermes insures companies against losses resulting from employee fraud and hacker damage, as well as medium-term projects such as factories, production lines or highly specialised machinery against payment defaults and insolvency on the part of the buyers.

"When most people think of Euler Hermes, they only think of classic receivables insurance," Ruf said. "But that is only half the truth. We are one of the world's largest guarantors and surety lenders, especially for large construction and infrastructure projects. Our advantage is our great financial strength as part of the Allianz Group and the rating that comes with it. This means that our clients often need to hold less risk capital than with less financially strong partners."

Further information can be found at: www.eulerhermes.ch