Coface records a good start to the year with a net income of €56.4m
COFACE INSURANCE COMPANY Turnover: €378m, up 4.2% at constant FX and perimeter
- Trade credit insurance growing by 6.1% at constant FX benefiting from stabilising client activity
- Client retention close to record highs; positive price effect (+2.9%)
- Business Information continues to grow (+9% at constant FX)
- Factoring and debt collection down on lower volumes
Net loss ratio at 24.5%, down by 32.6 ppts; combined ratio at 52.8% (61.1% excluding the effect of government schemes)
- Gross loss ratio at 29.5%, an improvement by 25.7 ppts; low level of claims worldwide
- Net cost ratio down by 1.5 ppt to 28.3%, thanks to strict cost discipline and revenue growth
- Government schemes have lowered pre-tax profit by €15m
Net income (group share) at €56.4m, grew more than four-fold over one year, up 55% vs Q1-2019
- Annualised RoATE1 at 12.0%, benefiting from extraordinary low level of claims
- Financial strength reinforced; Fitch raises rating outlook to stable
- Coface pursues its strategy by appointing a Chief Operating Officer
1 Return on average tangible equity
Unless otherwise indicated, change comparisons refer to the results as at March 31, 2020.
Xavier Durand, Coface CEO, commented:
“Our first-quarter results reflect our continued strong operating performance and an exceptional environment, where the number of bankruptcies has declined. We anticipate that bankruptcies will increase again once the health crisis is over and special measures to support the economy are phased out.
In the context of a vigorous economic rebound, but one that is varying widely by sector and by region, we are supporting our clients' business recovery. This is reflected in a 2.7% increase in our exposures during the first quarter, while our preventive actions are back to pre-crisis levels. At the same time, we continue to cooperate with governments to support the withdrawal of governmental schemes, under which we paid €15m in the first quarter.
Finally, we are continuing to implement our strategic plan and to strengthen our operational efficiency and the quality of service we provide to our customers with the appointment of a Group Operations Director."
More detailed information in our press release.
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