Coface SA: Coface confirms its good start to the year and continues its strategic investments. Annualised return on tangible equity at 12.6%
Coface confirms its good start to the year and continues its strategic investments. Annualised return on tangible equity at 12.6%
Paris, 31 July 2025, 5.35 p.m.
Turnover: €937m, up +2.3% at constant FX and perimeter
Trade Credit Insurance revenue up +1.7%; client activity up +1.8%
Client retention back up at near-record (94.0% vs. 92.8% in H1-24); pricing remained negative(-1.6%), in line with historical trends
Business Information growing again double-digit (+14.7% at constant FX); Debt Collection up +35.0%; Factoring down slightly by -1.5% due to lower interest rates
Net loss ratio at 40.1%, up 5.1 ppts; net combined ratio at 71.3%, up 7.9 ppts
Gross loss ratio at 37.8%, up 5.3 ppts year-on-year but improving slightly in Q2-25 relative to the previous quarter, showing good risk control
Net cost ratio up 2.8 ppts at 31.2%, reflecting past inflation as well as continued investments
Coface continues to strengthen its credit insurance business and is rolling out its data strategy:
Strengthening governance with the appointment of Joerg Diewald as Director of Information Services and Partnerships and Thibault Surer as head of a new technology division focused on data, connectivity and product innovation
Creation of a new Lloyd's syndicate allowing Coface to offer AA solutions to its clients
Acquisition of Cedar Rose and Novertur International
Net income (Group share) at €124.2m, down 12.7% compared with the record set in H1-24. Annualised RoATE1 at 12.6%
Estimated solvency ratio of 195%2, above the target range (155% - 175%)
Unless otherwise indicated, changes are expressed by comparison with the results as at 30 June 2024.
Commenting, Xavier Durand, CEO of Coface, said: "Coface generated net income of €62m in Q2-25, down from a record Q2-24. The number of bankruptcies worldwide has continued to rise steadily and is now well above pre-COVID levels. Through constant vigilance and flawless execution, we have contained the increase in the loss experience, with the uncertainties created by the increase in tariffs in the United States having probably yet to fully materialise.However, our revenues are growing, both in credit insurance and services. This growth is being driven by our investments, which have brought new business to a record level in insurance and services.These deliberate investments strengthen our distribution capabilities, the range of products and services available to our clients, and our risk analysis tools. Since the beginning of the year, we have made two acquisitions in information services, Cedar Rose and Novertur. We have also announced the launch of a Lloyd's syndicate to offer AA solutions to some of our clients. Lastly, our solvency ratio remains high, at 195%."
Key figures at 30 June 2025
The Board of Directors of COFACE SA examined the consolidated financial statements at 30 June 2025 at its meeting of 31 July 2025. These statements were also previously reviewed by the Audit Committee at its meeting of 30 July 2025. These interim consolidated financial statements have been subject to limited review by the Statutory Auditors. The limited review report is being issued.
Income statement items in €m
H1-24
H1-25
Variation
% ex FX*
Insurance revenue
754.3
760.0
+0.8%
+1.7%
Other revenues
168.5
176.6
+4.9%
+4.8%
REVENUE
922.7
936.6
+1.5%
+2.3%
UNDERWRITING INCOME (LOSS) NET OF REINSURANCE
195.0
153.6
(21.2)%
(20.3)%
Investment income, net of management expenses,excluding finance costs
40.8
26.3
(35.4)%
(36.0)%
Insurance finance expenses
(18.1)
6.7
(137.1)%
(130.8)%
CURRENT OPERATING INCOME
217.7
186.6
(14.3)%
(14.1)%
Other operating income and expenses
(0.5)
(0.6)
+21.8%
+12.2%
OPERATING INCOME
217.2
186.0
(14.4)%
(14.2)%
NET INCOME (GROUP SHARE)
142.3
124.2
(12.7)%
(12.7)%
Key ratios
H1-24
H1-25
Variation
Loss ratio after reinsurance
35.0%
40.1%
5.1
ppts
Cost ratio after reinsurance
28.4%
31.2%
2.8
ppts
COMBINED RATIO AFTER REINSURANCE
63.4%
71.3%
7.9
ppts
Balance sheet items in €m
2024
H1-25
Variation
Total equity (Group share)
2,193.6
2,098,0
(4.4)%
H1-24
H1-25
Solvency ratio
195%1
195%1
0
ppt
* Excluding scope effect.1 This estimated solvency ratio is a preliminary calculation made according to Coface's interpretation of Solvency II regulations and using the Partial Internal Model. The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.
1. Revenue
Coface posted consolidated turnover of €937m in the first half of 2025, up +2.3% at constant FX and perimeter compared with H1-24. On a reported basis (at current FX and perimeter), turnover was up +1.5%.
Revenues from insurance activities (including Bonding and Single Risk) increased +1.7% at constant FX and perimeter, benefiting from a slight increase in client activity and the return to a record retention level at 94.0%. New business reached €76m, the highest since H1-20, driven by an increase in demand and benefiting from growth investments made by Coface.
Growth in client activity had a positive impact of +1.8% in H1-25 against a backdrop of extreme political uncertainty, particularly in terms of tariffs, and modest economic growth. The price effect remained negative at -1.6% in H1-25, in line with long-term trends. This decrease is largely explained by a very low past loss experience, offset by today's return to normal.
Turnover from non-insurance activities was up +8.2% compared with H1-24. Factoring turnover fell -1.5% in H1-25 and -2.2% in Q2 25 on lower interest rates and weak client activity in Germany and Poland. Information services turnover continued to post double-digit growth, at +14.7%. Debt Collection commissions increased, from a still modest base, by +35% due to the increase in claims to be collected. Fee and commission were up +2.3%.
Total revenue in €m(by invoicing region)
H1-24
H1-25
Variation
% ex FX3
Northern Europe
185.0
185.2
+0.1%
+0.1%
Western Europe
187.6
191.6
+2.1%
+1.0%
Central and Eastern Europe
87.0
83.9
...
