In its 9M results, Coface recorded net income of €189.7m, which includes €60.9m for Q3 alone.
Coface recorded a consolidated turnover of €1,417.8m for the first 9M, up +7.1% at constant FX and perimeter compared to the first 9M of 2022.
According to the firm, revenues from insurance activities (including surety bonds and single risk) increased by +6.6% at constant FX and perimeter.
Coface explained that this growth was bolstered by a rise in client activity at the beginning of the year which fell into negative territory in Q3 following a decline in inflation and the economic slowdown.
The firm disclosed that its combined ratio net of reinsurance was 66% at 9M, up +0.3 ppt year on year.
Meanwhile, Coface’s net financial income was +€14.5m over the first 9M. The firm said that this amount includes market value adjustments for -€19.6m (including -€25.8m for real estate funds), positive hedging results and currency effect of -€17.8m due to the application of IAS 29 (hyperinflation) in Argentina and in Turkey as well as the rise of the euro against the other currencies in which the group operates.
Xavier Durand, Coface’s Chief Executive Officer, commented, “In the third quarter, both the global economy and inflation, particularly for commodities, experienced a net slowdown which led our clients’ turnover to contract over the period.
“Coface’s turnover has nevertheless risen +7.1% year to date at constant FX due to an excellent performance at the start of the year, client retention which remains at record highs and a continued increase in service revenues. Business information revenue in particular was up +14.7%, confirming it is less cyclical.
“Coface has a significant historical presence in Israel, particularly in business information. Despite its horrific human cost, the current conflict does not yet appear to have had a major economic impact. While there is a real risk that the conflict will persist or expand, we continue to support our local teams and clients in the region.”
Durand continued, “In an environment of rising business insolvencies, risk prevention measures from the beginning of the year so far enabled us to limit claims, and our sound cost management let to a net combined ratio of 66.0% for the first nine months of the year.
“Over the last quarter, Coface’s net income was €61m with a year-to-date annualised RoATE of 14.1%, which is well over our mid-cycle targets.
“Lastly, we welcome Moody’s decision to raise Coface’s credit rating from A2 to A1, associated with a stable outlook. This recognizes our team’s hard work and attests to Coface’s agility and resilience, as well as the quality of its risk management, which are at the heart of our culture and expertise.”
