Coface Reports Strong Financial Performance for 2024
In its financial results for the full year 2024, credit insurer Coface announced a net income (group share) of €261.1 million, reflecting an impressive increase of 8.6% from the previous year’s €240.5 million. The company experienced a significant rise in net financial income, which reached €91.7 million, showcasing a marked improvement compared to 2023.
Coface attributed this positive outcome to several factors, stating, “This figure includes capital gains of €11.4 million, which more than offset negative market value adjustments on investments amounting to €2.9 million.” Additionally, while the foreign exchange (FX) effect was slightly negative at €2.7 million, it showed considerable improvement compared to the previous year. The challenges faced in 2023 were primarily due to the accounting effects of IAS 29 (hyperinflation) in Turkey and Argentina, alongside the drastic devaluation of the Argentine peso.
The consolidated turnover for 2024 totaled €1,844.8 million, which represented a slight decline of 0.6% when adjusted for constant FX and perimeter compared to 2023. Revenue derived from insurance activities, including bonding and Single Risk, experienced a decrease of 2.2% at constant FX, amounting to €1,512 million. However, the year concluded on a more optimistic note, as revenue from insurance activities in Q4 2024 rose by 3.7%, coupled with an overall revenue increase of 4.3%.
New business surged to €126 million, an increase of €9 million over the previous year. This growth was fueled by heightened demand and advantageous investments aimed at fostering growth, particularly within the mid-market segment. The combined ratio, net of reinsurance, stood at 65.5%, reflecting a year-on-year increase of 1.2 percentage points. Conversely, the gross loss ratio improved to 33.4%, marking a 2.4 percentage point enhancement from 2023. This improvement illustrates the gradual normalization of the loss experience, despite rising reserve releases. The net loss ratio also saw progress, improving to 35.2%, a decrease of 2.5 percentage points compared to the previous year.
As of December 31, 2024, the group’s shareholders’ equity reached €2,193.6 million, an increase of €142.8 million or 7% from €2,050.8 million in 2023. Notably, 2024 marked a significant milestone for Coface as it completed the acquisition of Cedar Rose, enhancing its capabilities in information services across the Middle East and Africa. Furthermore, the company appointed Gonzague Noël as the Group Chief Operating Officer (COO).
Xavier Durand, the Chief Executive Officer of Coface, emphasized, “2024 was defined by the launch of our Power the Core strategic plan, which is firmly focused on innovation. In an environment characterized by subdued economic growth, a decline in our clients’ activity, and a rise in bankruptcies, our disciplined underwriting practices allowed us to manage the increase in the combined ratio, which rose modestly to 65.5%.
“Additionally, we successfully repositioned our investment portfolio, achieving a return on average tangible equity of 13.9%, surpassing our mid-cycle targets. The net income of €261 million represents the highest level since the transition to IFRS 17. These accomplishments would not have been possible without the dedication of our employees. Given these strong results and a solid solvency ratio of 196%, we are pleased to propose a dividend payment of €1.40 per share to be presented at the upcoming Shareholders’ meeting.”
Source: Reinsurance News
