COFACE (COFA) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 was €176.3 million, with €52.1 million earned in Q3, and annualized ROATE at 12% in a challenging environment.

• Total consolidated revenue reached €1,387 million, up 1.8% year-over-year at constant FX and perimeter, driven by strong service growth and high client retention.

• Services businesses, including Business Information and Debt Collection, now represent nearly 11% of total revenues, growing at double-digit rates.

• Client retention rate returned to 93.5%, close to record levels, while pricing declined by 1.8% in a competitive market.

• Major governance changes included new appointments to the Board and Executive Committee, and strategic acquisitions in the Middle East and Switzerland.

Financial highlights

• Net combined ratio for the first nine months stands at 71.9%, up 7.6 points year-over-year, with a quarterly net combined ratio of 73.1%.

• Net income declined by 15.1% year-over-year to €176.3 million; operating income fell 17.0% to €261.6 million.

• Loss ratio increased by 4.1 points year-over-year to 39.6%, reflecting higher claims and more material bankruptcies.

• Cost ratio rose by 3.4 points, mainly due to investments in distribution, technology, and business information.

• Book value per share at €14.4; tangible book value at €12.8 per share.

Outlook and guidance

• No change in risk appetite; disciplined approach to risk and growth remains.

• Continued focus on investing in data, technology, and distribution to support long-term growth.

• Guidance for Business Information ROTE contribution in 2027 remains unchanged.

• Revenues expected to remain resilient despite subdued economic conditions and low energy prices.

• Expectation that new business growth in TCI and BI will take time to materially impact profits.