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 solvency ratio of 195%, well above the target range.

• Revenue grew 2.3% year-over-year at constant FX and perimeter, reaching €936.6m–€937m, driven by insurance and strong growth in business information (+14.7%) and debt collection (+35%).

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

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

• The company continues to invest in data, technology, and services despite a tougher economic and insolvency cycle.

Financial highlights

• Net income: €124.2m (down 12.7% year-over-year); operating income: €186.0m (down 14.4%).

• Combined ratio after reinsurance: 71.3% (up 7.9 ppts year-over-year); net loss ratio: 40.1%; cost ratio after reinsurance: 31.2%.

• Gross loss ratio: 37.8% (up 5.3 pts); earnings per share: €0.83 (vs. €0.95 in H1 2024).

• Solvency ratio: 195%, above the target range of 155%-175%.

• Shareholders' equity stood at €2,098m, down 4.4% from year-end 2024, mainly due to dividend payments.

Outlook and guidance

• Management remains cautious due to global trade, inflation, and geopolitical uncertainty, with US tariffs and sector/country downgrades weighing on growth.

• Continued investment in technology, data, and business information is expected to drive future growth and resilience.

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