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; annualized ROATE at 12.0%.

• Total revenue reached €1,387 million, up 1.8% year-over-year at constant FX and perimeter.

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

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

• Disciplined underwriting and risk prevention activities helped avoid large bankruptcies in a tougher credit cycle.

Financial highlights

• Net combined ratio for the first nine months stands at 71.9%, up 7.6 points year-over-year; net loss ratio at 39.6% (up 4.1 points); net cost ratio at 32.3% (up 3.4 points).

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

• Recurring investment income increased to €77.7 million, but FX volatility and hyperinflation in Turkey had a negative impact.

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

• Shareholders' equity at €2,153.2 million as of September 30, 2025, down 1.8% from year-end 2024.

Outlook and guidance

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

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

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

• Ongoing disciplined risk underwriting and active risk prevention to manage credit cycle challenges.