About Coface

Financial summary

2018 results

  • Turnover: €1,385m, up 4.6% at constant scope and FX
- Q4-2018 up 6.3% vs. Q4-2017 and 4.0% excluding one-off adjustments[1]
- Growth in credit insurance at 5.7% at constant FX
- Insured turnover and client retention at record levels
  • Net loss ratio at 45.1%, an improvement of 6.2ppts; annual net combined ratio at 79.6%
- Net loss ratio under control at 45.5% in Q4-2018, thanks to good management of past claims and rigorous underwriting
- Net annual cost ratio down by 0.7ppts to 34.5% compared to 35.2% in 2017 reflecting tight cost control and sustained investments
- Net combined ratio at 81.4% in Q4-2018
  • Net income (group share) of €122.3m; of which €24.1m in Q4-2018. Annualised RoATE[2] at 7.7%
- Earnings per share at record level of €0.79
  • Solvency ratio estimated to have risen to ~169%[3], above target range (140%-160%)
- Coface still aims to file for approval of its internal model in the summer of 2019, and to this end has initiated discussions with the regulator.
  • Coface continues to actively manage its capital base
- Proposed pay-out of 100% of the year's results of which at least 60% as a dividend[4]
Unless otherwise indicated, changes are expressed in comparison with the results as at 31 December 2017.
Xavier Durand, Coface's Chief Executive Officer, said:
“Our good 2018 results show the relevance of our Fit to Win strategic plan in a now more volatile economic environment. Our net income of €122 million is up 47% and corresponds to a return on equity close to our average through the cycle objective excluding further capital optimisation actions. Our 169% solvency ratio reflects the strength of our balance sheet and enables us to propose a pay-out ratio of 100% of our net income. These solid numbers have been achieved at a time when new risk factors (Chinese slowdown, Brexit, shutdown, trade wars) came in addition to risk areas that were already known (Argentina, Turkey).
In 2019, leveraging on our risk infrastructure, which has been strengthened over the past three years, we will continue with our rigorous underwriting policy and investments strategy. We plan to invest €25 million in major projects, including implementing new accounting standards.
Finally, we have started discussions with the French regulator on our internal model. We still aim to file our application for registration in the summer of 2019.”
Read more: https://www.coface.com/News-Publications/News/FY-2018-results-net-income-up-47-at-122.3M-and-pay-out-of-100-of-net-income

First half of 2019

  • Turnover reached €733m, up 6.6% at constant FX and perimeter
- All regions positively contributing to growth
- Growth of premiums at 7.1% in Q2-2019, at constant FX and perimeter, continues to be supported by past client activity and high retention
  • Net loss ratio at 44.0%, up by 0.8 ppt.; net combined ratio at 76.0%
- Gross loss ratio down (1.5) ppts. during the first semester
- Prior year revenues development at historical high levels & reserving policy remains unchanged
- Net cost ratio at 32.0% vs 33.8% in H1-2018, benefiting from good operational leverage
  • Net income (group share) at €78.5m, of which €42.2m in Q2-2019; annualised RoATE1 of 9.6%
- One-off positive impact of  €3m, linked to the integration of PKZ (badwill)
  • Solvency ratio estimated at 162%3, above the target range of 140% to 160%
- Coface submitted for validation its partial internal model, in line with its objectives
- The objectives of the second pillar of Fit to Win (capital efficiency) have been reinforced
  • Execution of Fit to Win plan continues
- Arrival of a new management team for Coface Finanz (factoring company in Germany)
- The plan’s objectives are on track to be fully attained
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