Coface reports first-half net income of €123.2m, confirming an excellent start to the year
Turnover for the first half-year: €768m, up 7.4% at constant FX and perimeter
- Trade credit insurance premiums increased by 8.5%, reflecting the improvement in the economic environment
- Retention reached 92.4% in a more competitive market The price effect remains positive (+2.3%) during the
- semester but pricing has now turned negative
- Information services rose by +11.0% and factoring by +10.9%
Net loss ratio at 21.4%, down by 36.0 ppts; net combined ratio at 51.9% (51.0% for Q2-2021)
- Gross loss ratio decreased by 29.4 ppts to 29.5%, in an environment still characterised by a low level of claims
- Net cost ratio improved by 0.8 ppt to 30.4%, reflecting revenue growth and continued investments
- In the first half of the year, government schemes have lowered pre-tax profit by €24.9m
Net income (group share) at €123.2m, including €66.9m for Q2 2021; annualised RoATE1 at 13.5%
Estimated solvency ratio at 191%2, and 186%2 excluding government schemes, above the target range (155% - 175%)
Unless otherwise indicated, changes are expressed by comparison with the results as at 30 June 2020
1 RoATE = Average return on equity | 2 This estimated solvency ratio disclosed 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.
Xavier Durand, Coface CEO, commented:
“Coface’s second-quarter 2021 results are fully in line with those of the first quarter. They reflect its excellent operating performance in an environment that remains highly unusual. Indeed, the expected increase in the number of post-COVID-19 bankruptcies has not yet materialised. However, Coface continues to expect a progressive rise in claims when the numerous business support measures are finally withdrawn.
"In this period of economic rebound, Coface continues to support its clients with guarantees that are now very close to pre-pandemic levels. Since the beginning of the COVID-19 crisis, the cost for Coface of the risk-sharing agreements signed with several governments amounts to €31m.
"Finally, Coface is also continuing to invest in the improvement of its trade credit insurance business as well as in adjacent businesses. Factoring and information services confirmed their growth potential with respective increases of 10.9% and 11.0% during the first half of the year.”
More detailed information in our press release.