Credit insurer Coface has reported a net income of €190.9 million for the first nine months of 2021, a 264.2% increase from the $52.4 million achieved in the prior year period.
A net loss ratio of 25.4% for 9M represents an improvement of 29.8 ppts.
The combined ratio, net of reinsurance, stood at 56.1%, an improvement of 29.2 ppts compared to 9M20.
Operating income for 9M-2021 was €265.3 million, a 2.7-fold increase on the previous year, mainly due to the improvement in the loss ratio.
9M net cost ratio rose 0.6 ppt to 30.7% with investments continuing and variable costs returning to normal
Coface recorded consolidated turnover of €1,158.4 million over the first nine months of the year, up by +7.9% to 30 September 2020.
The gross loss ratio for 9M was 25.2%, an improvement of 32.4 ppts compared to the previous year.
“During the third quarter, Coface delivered very good operating performances in an environment that still remains atypical,” said Xavier Durand, Coface’s Chief Executive Officer.
“While government measures to support the economy are progressively coming to an end, the rate of corporate failures has now passed the trough.
“In this context, the continuation of potential reserve releases attached to underwriting years 2020 and the first semester 2021 would mostly benefit to the governments who signed public reinsurance schemes.
“Since the beginning of the year, these plans have reduced Coface’s pre-tax profit by €57m.
In this environment, Coface continues to invest in its operational efficiency, the quality of its services, its technological resources and its commercial effectiveness,” Durand added.
“These investments are bearing fruit as evidenced by the resilience of its core credit insurance business and a new quarter of growth in adjacent businesses such as information services and factoring which are both growing at a double digit rate.”