COFACE (COFA) Q4 2025 earnings summary

Executive summary

• Net income for FY 2025 reached €222 million, with €45.8 million in Q4, and a proposed dividend of €1.25 per share, representing an 84% payout ratio.

• Revenue increased 1.3% year-over-year to €1,847 million at constant FX, with insurance up 0.6% and business information sales up 16.2% organically.

• Client retention was a record 92.9%, while pricing declined 1.6% in a competitive market.

• Continued investment in technology, data, and sales, including the acquisition and integration of Cedar Rose.

• Solvency ratio stood at 197%, above the 155%-175% target range.

Financial highlights

• Net income of €222 million, down 15% year-over-year; operating income fell 18.7% to €332.5 million.

• Combined ratio at 73.1% for the year, with Q4 at 76.6%, both above through-the-cycle targets.

• Net loss ratio increased by 5.1 points to 40.3%; cost ratio net of reinsurance rose to 32.8%.

• ROATE was 11.4%, down 2.5 points year-over-year.

• Investment income increased to €102.3 million, with an accounting yield of 3.3%.

Outlook and guidance

• No forward-looking guidance provided; management emphasizes resilience and ability to deliver through-the-cycle targets despite record insolvencies.

• Market expected to remain volatile with slow economic growth, rising insolvencies, and geopolitical tensions.

• Continued focus on investment in business information, technology, and sales to drive future growth.