Coface releases its 2024 half-year financial results. Net income (group share) at €142.3m, including €73.8m for Q2-24 and annualised RoATE1 at 15.3%
Turnover
€923m, down -3.1% at constant FX and perimeter
- Credit insurance premiums down -5.3%; client activity remains slightly negative
- Client retention still high (92.8%) but down from 2023 record; pricing effect remained negative (-1.4%) in line with historical trends
- Renewed double-digit growth in information services (+16.9% at constant FX) and debt collection (+20.3% vs. a low base); factoring down -2.6% but up 1.0% in Q2
Net loss ratio
Net loss ratio at 35.0%, improved by 5.3 ppts; net combined ratio at 63.4%, improved by 3.2 ppts
- Gross loss ratio at 32.5%, improved by 6.9 ppts with stable opening reserving and high reserve releases
- Net cost ratio up by 3.2 ppts to 28.4%, reflecting lower revenues, offset by a better product mix, while we continue to invest
Net income
Net income (group share) at €142.3m, including €73.8m for Q2-24 and annualised RoATE1 at 15.3%
Estimated solvency ratio at 195%2, above the target range (155%-175%)
Coface CEO's statement
Xavier Durand, Coface’s Chief Executive Officer, commented:
Our results reflect the disciplined execution of our strategy and a still sluggish economic environment. The continuing decline in inflation and the lack of a rebound in our clients’ activities are reflected in a fall in our insurance revenues of 5.3%, from a record high comparison basis.
In line with our strategic priorities, our service revenues (information services, debt collection) once again recorded double-digit growth, limiting the decline in our overall turnover to 3.1%.
Our combined ratio was resilient at 63.4%, an excellent level, due to our successful risk management. We benefited from the past rise in interest rates to record an increase in financial income.
Our net income rose once again, to €142.3m, which corresponds to a return on average tangible equity of 15.3%, well above our mid-cycle targets.
Our solvency ratio remains very high, at 195%, which provides our clients with a high level of security while enabling us to seize growth opportunities as they arise.
- Xavier Durand, Coface’s Chief Executive Officer
For more detailed information, you can download the Press Release or navigate the Investors' section.
Unless otherwise indicated, change comparisons refer to the results as at 30 June 2023
1 Return on average tangible equity
2 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.
