Coface releases its half-year financial results for 2025 with an annualised return on tangible equity at 12.6%.
Turnover
€937m, up +2.3% at constant FX and perimeter
- Trade Credit Insurance revenue up +1.7%; client activity up +1.8%
- Client retention back up at near-record (94.0% vs. 92.8% in H1-24); pricing remained negative (-1.6%), in line with historical trends
- Business Information growing again double-digit (+14.7% at constant FX); Debt Collection up +35.0%; Factoring down slightly by -1.5% due to lower interest rates
Net loss ratio
Net loss ratio at 40.1%, up 5.1 ppts; net combined ratio at 71.3%, up 7.9 ppts
- Gross loss ratio at 37.8%, up 5.3 ppts year-on-year but improving slightly in Q2-25 relative to the previous quarter, showing good risk control
- Net cost ratio up 2.8 ppts at 31.2%, reflecting past inflation as well as continued investments
Net income (group share) at €124.2m, down 12.7% compared with the record set in H1-24. Annualised RoATE1 at 12.6%
Estimated solvency ratio of 195%2, above the target range (155% - 175%)
Coface continues to strengthen its credit insurance business and is rolling out its data strategy:
- Strengthening governance with the appointment of Joerg Diewald as Director of Information Services and Partnerships and Thibault Surer as head of a new technology division focused on data, connectivity and product innovation
- Creation of a new Lloyd’s syndicate allowing Coface to offer AA solutions to its clients
- Acquisition of Cedar Rose and Novertur International
Coface CEO's statement
Coface generated net income of €62m in Q2-25, down from a record Q2-24. The number of bankruptcies worldwide has continued to rise steadily and is now well above pre-COVID levels. Through constant vigilance and flawless execution, we have contained the increase in the loss experience, with the uncertainties created by the increase in tariffs in the United States having probably yet to fully materialise.
However, our revenues are growing, both in credit insurance and services. This growth is being driven by our investments, which have brought new business to a record level in insurance and services.
These deliberate investments strengthen our distribution capabilities, the range of products and services available to our clients, and our risk analysis tools.
Since the beginning of the year, we have made two acquisitions in information services, Cedar Rose and Novertur. We have also announced the launch of a Lloyd’s syndicate to offer AA solutions to some of our clients.
Lastly, our solvency ratio remains high, at 195%.
- Xavier Durand, Coface’s Chief Executive Officer
> More information in the press release and our Investors section <
Unless otherwise indicated, changes are expressed by comparison with the results as at 30 June 2024.
1 RoATE = 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.
