Credit insurer Coface has reported a net income of €56.4m (USD 68.1m) for Q1 2021, a vast improvement from the €12.7m (USD 15.3m) recorded in Q1 2020.
The insurer announced an improved combined ratio at 52.8% compared to 86.8% for the year prior.
This is comprised of a loss ratio, net of reinsurance, of 24.5% and a cost ratio, net of reinsurance, of 28.3%.
As a result, Coface has reported an underwriting income (after reinsurance) improvement for the period, which came in at €74.3m (USD 89.7m) compared to €28.2m (USD 34m) in 2020.
Gross earned premiums increased by 3.6%, year-on-year, to €312.1m (USD 377m).
Xavier Durand, Coface CEO, commented: “Our first-quarter results reflect our continued strong operating performance and an exceptional environment, where the number of bankruptcies has declined. We anticipate that bankruptcies will increase again once the health crisis is over and special measures to support the economy are phased out.
“In the context of a vigorous economic rebound, but one that is varying widely by sector and by region, we are supporting our clients’ business recovery. This is reflected in a 2.7% increase in our exposures during the first quarter, while our preventive actions are back to pre-crisis levels.
“At the same time, we continue to cooperate with governments to support the withdrawal of governmental schemes, under which we paid €15m in the first quarter.
“Finally, we are continuing to implement our strategic plan and to strengthen our operational efficiency and the quality of service we provide to our customers with the appointment of a Group Operations Director.”
