Global insolvencies: Record high failures of major companies | Article – HSBC VisionGo

Our latest monitoring points to record levels in the number of major insolvencies and the severity of major insolvencies.

On top of the upward trend in business insolvencies, we identify a record level of failures of large companies - those with over EUR50mn of turnover with 342 major insolvencies totaling more than EUR205bn in turnover in 2019.

The increase in major failures accelerated in the last quarter of 2019 with a record number of cases (94) and a new high in terms of severity (their combined turnover increased +16% y/y to EUR60.4bn).

North America (+29 cases) was the key contributor to the global rebound in major insolvencies, along with Asia (+5). Yet, Western Europe (-9) remained the most impacted region with 133 major insolvencies  compared to 96 cases in Asia).

The hotspots were retail and services in Western Europe, energy and retail in North America and construction in Asia.

What does this mean for companies? A higher risk of domino effects with adverse implications on fragile providers along supply chains.

 For the full report, please download it here.

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FORWARD-LOOKING STATEMENTS 
The statements contained herein may include prospects, statements of future expectations and other forward -looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements. 
Such deviations may arise due to, without l imitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (i ii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of c redit defaults, (vii) interest rate levels, (viii) currency exchange rates including the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorg anization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist act ivities and their consequences. 
 
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