Coface releases its Q1-2024 financial results with a net income of €68.4m, up 11.9%
Turnover
€464m, down -1.6% at constant FX and perimeter
- Trade credit insurance premiums decreased by -3.3%; growth in client activities was nil at the start of the year, after a negative H2-23
- Client retention still high (93.8%) but down from records; pricing effect remained negative (-1.3%)
- Double-digit growth in business information (+21.6% at constant FX) and debt collection (+24.1%); factoring down by -6.3%
Net loss ratio
Net loss ratio at 35.8%, improved by 4.9 ppts; net combined ratio at 63.1%, improved by 3.2 ppts
- Gross loss ratio at 33.2%, improved by 7.5 ppts with stable opening year reserving and high reserve releases
- Net cost ratio up by 1.6 ppt to 27.3%, reflecting lower revenues and continued investments partially offset by better product mix
Net income
Net income (group share) at €68.4m, up +11.9% compared to Q1-23
Annualised RoATE1 at 14.8%
Unless otherwise indicated, change comparisons refer to the results as at 31 March 2023
Coface CEO's statement
Xavier Durand, Coface’s Chief Executive Officer, commented:
Our results for the first quarter demonstrate the good execution of our strategy and reflect the current economic cycle. Our credit insurance revenues were affected by the decline in inflation and sluggish client activity, and they were down 3.3%, against a high comparison basis. Negative repricing has eased (-1.3%) in a still competitive market while our new business picked up, on the back of our past investments, in particular in the mid-market segment. Service revenues, which are less cyclical, continued their double-digit rise.
Consistently with the strategy developed in our Power the Core plan, we continued to invest in our risk infrastructure, to better serve our clients.
Last, our net income increased by +11.9% year on year, to €68.4m, as the combined ratio remained under control at 63.1%. RoATE stood at 14.8%, above our mid-cycle objectives.
Donwload the Press Release for more key figures.
1 Return on average tangible equity
