Bell Micro has confirmed that credit insurance giant Euler Hermes has pulled cover on its European operation.

However the distributor, which reported a record second quarter this week, has stressed that the action will have 'minimal impact' on business.

In an exclusive statement to CRN, Graeme Watt, president of worldwide distribution said: "Euler has withdrawn cover from Bell Micro Europe with effect from this week. It was providing only low levels of cover forming a very small fraction of our vendor cover lines.

"The vast majority of our partners will be unaffected and this action by Euler is not expected to have any material impact on our business.

"There is no specific trigger for this action from Bell's perspective. Euler appears to be reducing cover across all sectors in light of difficult trading conditions."

Watt added: "Our day to day business in Europe continues to operate totally normally and I am happy to comment that we have just concluded our strongest bottom line performance for two years."