Coface achieves record net income of €67.7m in the third quarter
Turnover of first nine months: €1,158m, up +7.9% at constant FX and perimeter, and up +8.9% in Q3-2021
- Trade credit insurance premiums increased by +9.3% due to growth in activity on the back of the economic recovery and past price adjustments
- The price effect was positive over nine months (+1.6%) but pricing has been negative for the past two quarters
- Information services growing +13.4% year-to-date and +18.0% in Q3-2021
9M-2021 net loss ratio at 25.4%, improved by 29.8 ppts; Net combined ratio at 56.1%, improved by 29.2 ppts
- Q3-2021 net loss ratio at 31.4%, better by 18.6 ppts vs Q3-2020, reflecting continued low loss activity
- 9M-2021 net cost ratio up 0.6 ppt to 30.7%, but improved vs 9M-2019 (31.7%), with investments continuing and variable costs returning to normal
- Q3-2021 net combined ratio at 62.4%, but 53.5% excluding the temporary impact of government schemes
- Government schemes had a negative impact of -€32m on income before tax in Q3-2021, taking the total impact to -€57m for 9M-2021
Net income (group share) of €190.9m, of which €67.7m in Q3-2021
Annualised RoATE1 of 13.9%
Xavier Durand, Coface’s Chief Executive Officer, commented:
"During the third quarter, Coface delivered very good operating performances in an environment that still remains atypical. 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. 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.”
Key figures and more information in the Press Release below.
Unless otherwise stated, evolutions are expressed by comparison with the results as at 30 September 2020.
1 RoATE = Average return on equity