Coface releases its 2024 9M financial results. Net income (group share) at €207.7m, of which €65.4m in Q3-24 and annualised RoATE1 at 14.8%
Turnover
€1,376.6m, down -2.1% at constant FX and perimeter
- Insurance revenue decreased by -4.0% at constant FX with continued subdued client activity contribution
In Q3-24, total revenue stabilised at -0.1% with other services up +6.0% - Client retention is still high at 92.7% but down from 2023 records; pricing is down by -1.4%, in line with historical trends
- Business Information once again recorded double-digit growth (+17.2% at constant FX); factoring down by -3.6% on the back of slow industrial activity in Germany
Net loss ratio
Net loss ratio at 35.5%, improved by 4.8 ppts; net combined ratio at 64.4%, improved by 1.6 ppt
- Gross loss ratio at 32.9%, improved by 5.9 ppts with high opening year reserving and high reserve releases
- Net cost ratio increased by 3.2 ppts at 28.9%, reflecting lower revenues and continued investments
Net income
Net income (group share) at €207.7m, of which €65.4m in Q3-24 and annualised RoATE1 at 14.8%
Coface CEO's statement
Xavier Durand, Coface’s Chief Executive Officer, commented:
After several quarters of lower revenues due to lower inflation and a slow economy, especially in Europe, the third quarter turnover stabilized. Despite a moderate decline of -1.3%, credit insurance recorded a positive net production.
Information services sales recorded another quarter of double-digit growth and have increased +17.2% year-to-date. Debt collection services rose +18.9% from a still low base. These activities, which are structurally profitable, are strategic for Coface and benefit from our continued investments.
Our combined ratio remains excellent at 64.4% thanks to sound risk management, and despite a slow and steady rise in the number of losses recorded by Coface in a context of higher business failures. The period of high inflation has left its mark on the weakest companies, and a number of cyclical sectors – especially automotive – are continuing to suffer. This deteriorated risk environment is expected to continue, despite the recent rate cuts implemented by central banks.
Our financial income is improving and has not been affected by negative mark to market movements.
Finally, our net income rose by 9% to €207.7m, which translates into a return on average tangible equity of 14.8%, well above our mid-cycle targets.
- Xavier Durand, Coface’s Chief Executive Officer
For more detailed information, you can download the Press Release or navigate the Investors' section.
1 Return on average tangible equity
