Coface confirms its very good start to the year

08/10/2023

Corporate news

Turnover for the first half of the year: €960m, up 11.1% at constant FX and perimeter and 9.9% on a reported basis

Trade credit insurance rose +11.2% at constant FX, driven by increased client activity and growth in fee and commission income (+11.3%)

Client retention stood at a record high (94.4%); the price effect was still negative (-2.0%) but less so than in H1-22

Business information momentum continues with double-digit growth (+14.8% at constant FX); factoring up by +5.4%, reflecting clear economic slowdown in Germany and Poland

Net loss ratio at 40.3% in H1-23, up by 3.8 ppts; net combined ratio at 65.5%, up by 2.2 ppts (and +8.3 ppts compared to H1-22, excluding the impact of government schemes)

Gross loss ratio at 39.4%, up 7.4 ppts in a risk environment that is still normalising

Net cost ratio down by 1.6 ppt to 25.2% as a result of an improved product mix and high reinsurance commissions, while investments continue

Net income (group share) at €128.8m, including €67.7m for Q2-23; annualised RoATE1 at 14.3%Estimated solvency ratio at 192%2 above the target range (155% – 175%) Xavier Durand, Coface’s Chief Executive Officer, commented:

“In the first half of the year, Coface’s turnover grew by 11.1%, against a backdrop of falling commodity prices with lower energy prices easing, at least temporarily, inflationary pressures. With economic growth still weak particularly in China and Europe, and rising financing costs, the…