Coface has reported H1 2022 income of €144.4m in its latest results.
According to the Paris-based firm, it saw turnover in the period of €895m. The insurer said in a statement that Trade Credit Insurance premiums were growing by 16.1%, growth that was driven by ‘high client activity’ in an inflationary environment. It also reported that net loss ratio had risen to 39.4% and net combined ratio stood at 66%.
Xavier Durand, Coface’s chief executive officer of Coface, said: “During the second quarter, the macroeconomic outlook shifted significantly due to the combined effect of the conflict in Ukraine and the actions of central banks, who have showed how determined they are to bring rampant inflation under control. Against this backdrop, Coface’s economists have downgraded the economic outlook for several countries and sectors.”
He added: “In this increasingly uncertain environment, Coface has supported its clients more than ever amid a rebound in activity, while maintaining a conservative underwriting policy. Once again, our second-quarter 2022 results show an excellent Group operating performance amid a normalising risk environment. The rise in bankruptcies in different countries is uneven: while numbers have barely risen in some places, other countries (UK, Spain) have seen bankruptcies exceed their pre-pandemic levels, and the return of large claims.”
Duran also said that Coface posted a net income of €78 million, which he called a record performance for a single quarter, despite taking into account the impact of crisis in Ukraine. Exposure to losses arising from Russia’s invasion of its neighbour, said Deutsche Bank in March, equated to €5bn.
The German banking giant explained at the time that Coface’s total exposure to Russia’s invasion of Ukraine equated to €5bn, with 95% Russia, and 5% Ukraine, which was equivalent to less than 1% of total group insured exposure, adding that these exposures would significantly decline in the following weeks.
This has resulted in Coface being able to deliver an annualised RoATE of 15.4% since the beginning of the year.
Durand said: “Finally, Coface also continues to invest in the improvement of its trade credit insurance business, as well as in its adjacent businesses. Factoring and information services confirmed their growth potential with respective increases of 11.6% and 15.5% during the first half of the year.”
