COFACE (COFA) Q3 2024 earnings summary

Executive summary

• Net income reached EUR 207.7 million for the first nine months of 2024, up 9.5% year-over-year, with EUR 65.5 million in Q3 and annualized ROATE at 14.8%.

• Turnover was EUR 1,376.6 million, down 2.1% at constant FX and perimeter, mainly due to lower credit insurance premiums and subdued client activity.

• Services, including business information and debt collection, posted double-digit growth, offsetting insurance revenue declines.

• Net combined ratio improved to 64.4%, reflecting lower loss ratio and higher cost ratio.

• Client retention remained high at 92.7%, though slightly below 2023 levels, with pricing trends in line with historical averages but down 1.4%.

Financial highlights

• Net income up 9.5% year-over-year to EUR 207.7 million; operating income rose 15.2% to EUR 315.1 million.

• Net earned premiums fell 5.5% to EUR 816.3 million; total revenue down 2.1% year-over-year.

• Net investment income increased to EUR 59.8 million, up 273.2% at constant FX, driven by higher yields and realized gains.

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

• Tax rate stable at 27%, up from 24% in 9M 2023.

Outlook and guidance

• Inflationary and disinflation headwinds have largely passed, with client activity stabilizing but not yet rebounding.

• Management refrains from providing forward-looking statements but continues to invest in growth and technology.

• Market conditions remain uncertain, with focus on agile risk management and close monitoring of economic and geopolitical developments.

• Coface aims to maintain strong execution and expand its profitable, differentiated services offering.