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 and non-insurance activities, including Business Information and Debt Collection, grew strongly, now representing nearly 11% of total revenues.

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

• Strategic acquisitions, including Cedar Rose and Novertur, and the launch of a Lloyd's syndicate supported data and service excellence.

Financial highlights

• Net combined ratio for the first nine months was 71.9%, up 7.6 points year-over-year, with net loss ratio at 39.6% and net cost ratio at 32.3%.

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

• Cash and cash equivalents decreased to €375.6 million from €507.8 million at year-end 2024.

Outlook and guidance

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

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

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

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

• New business growth in TCI and BI expected to take time to materially impact profits.