COFACE (COFA) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 was €124.2m, down 12.7% year-over-year, with annualised ROATE at 12.6% and a robust solvency ratio of 195%, well above the target range.

• Turnover reached €937m, up 2.3% at constant FX and perimeter, driven by insurance (+1.7%), business information (+14.7%), and debt collection (+35%), while factoring declined 1.5%.

• Client retention remained near record levels at 94%, with new business in trade credit insurance up 21% in Q2.

• Strategic investments included acquisitions (Cedar Rose, Novertur), creation of a Lloyd's syndicate, and a new technology hub.

• Continued investment in technology, data, and services is driving growth and operational improvements despite a tougher economic and insolvency cycle.

Financial highlights

• Net income (Group share) was €124.2m for H1 2025; operating income declined 14.4% to €186.0m.

• Net combined ratio after reinsurance increased to 71.3% (up 7.9 ppts year-over-year), with net loss ratio at 40.1% and cost ratio at 31.2%.

• Gross loss ratio rose to 37.8%, reflecting higher claims severity and normalization post-pandemic.

• Investment income was €26.3m, with a portfolio economic return of 2.6%.

• Book value per share at €14.1; tangible book value per share at €12.5.

Outlook and guidance

• Management remains cautious due to global economic uncertainty, tariffs, and a tougher insolvency cycle.

• Combined ratio expected to remain close to mid-cycle levels as investments and risk prevention continue.

• Continued strategic investments in technology, data, and business information are expected to drive future growth.