Coface reports FY’24 net income increase of 8.6% to €261m

For the full year 2024, credit insurer Coface has reported net income (group share) of €261.1 million, which increased by 8.6% compared to 2023’s €240.5 million.

For 2024, net financial income was €91.7 million, a sharp increase compared to 2023.

Coface stated, “This figure includes capital gains of €11.4 million, which more than offset negative market value adjustments on investments of €2.9 million.

“The FX effect remained slightly negative at €2.7 million but improved significantly compared to 2023, which was marked by the accounting effect of IAS 29 (hyperinflation) in Turkey and Argentina as well as the sharp devaluation of the Argentine peso.”

The firm’s consolidated turnover for 2024 was €1,844.8 million, down by 0.6% at constant FX and perimeter compared to 2023.

Revenue from insurance activities (including bonding and Single Risk) fell -2.2% at constant FX to €1,512 million, although the year ended on a slightly more positive note as Q4’24 revenue from insurance activities rose by 3.7% and total revenue increased by 4.3%, explains the firm.

New business rose to €126 million, an increase of €9 million compared to 2023 driven by the increase in demand and the positive effects of investments for growth, mainly in the mid-market segment.

The combined ratio, net of reinsurance, was 65.5%, an increase of 1.2 ppt year on year. Meanwhile, the gross loss ratio stood at 33.4%, a 2.4 ppt improvement from 2023. This reflects the gradual normalisation of the loss experience, offset by rising reserve releases. The net loss ratio improved to 35.2%, decreasing by 2.5 ppts compared to 2023.

As of December 31st, 2024, the group shareholders’ equity stood at €2,193.6 million, up €142.8 million or 7% compared to €2,050.8 million last year.

In 2024, Coface signed the acquisition of Cedar Rose, strengthening its capabilities in information services in the Middle East and Africa and appointed Gonzague Noël as Group Chief Operating Officer (COO).

Xavier Durand, Coface’s Chief Executive Officer, commented, “2024 was marked by the launch of our Power the Core strategic plan which is deliberately focused on innovation. In an environment characterised by weak economic growth, a decrease of our clients’ activity and an increase in the number of bankruptcies, the discipline of our underwriting enabled us to contain the increase in the combined ratio, which rose moderately to 65.5%.

“Finally, we benefited from the repositioning of our investment portfolio to achieve a return on average tangible equity of 13.9%, above our mid-cycle targets. The net income of €261m marked the highest level since the transition to IFRS 17.

“All these achievements would not have been possible without the engagement of our employees. These good results and solid solvency ratio of 196% allow us to propose the payment of a dividend of €1.40 per share to the Shareholders’ meeting.”

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