Coface publishes its 2024 annual results, with a net profit of €261.1 million, up 8.6%, and a proposal to pay a dividend of €1.40 per share.
Turnover
Turnover of €1,845m, down -0.6% at constant FX and perimeter and down -1.3% on a reported basis
- Trade credit insurance revenue decreased by -2.2% at constant exchange rates, with slightly positive customer activity in Q4-24
- Client retention is still high at 92.3% but down slightly from 2023 records; pricing remained negative at -1.4%, in line with historical trends
- Business information once again recorded double-digit growth (+16.3% at constant FX); factoring stabilised at +0.3% with solid growth in Q4-24
Net loss ratio
Net loss ratio at 35.2%, improved by 2.5 ppts; net combined ratio at 65.5%, up 1.2 ppt
- Gross loss ratio at 33.4%, improved by 2.4 ppts with still high opening year reserving and high reserve releases
- Net cost ratio increased by 3.6 ppts to 30.2%, reflecting slightly lower revenues and continued investment, in line with our strategy
- Net combined ratio in Q4-24 at 68.7%, up 9.7 ppts due to a higher net cost ratio and a very low combined ratio in Q4-23 (59.0%)
Net income
Net income (group share) of €261.1m, up +8.6%, of which €53.4m in Q4-24, the highest annual figure since the adoption of IFRS 17. Annualised RoATE1 at 13.9%
Coface continues to be backed by a solid balance sheet:
- Estimated solvency ratio at ~196%2, above the upper end of target range (155% to 175%)
- Proposal to distribute3 a dividend per share of €1.40 representing an 80% pay-out ratio
- Earnings per share reached €1.75
Coface signed the acquisition of Cedar Rose, strengthening its capabilities in information services in the Middle East and Africa
Gonzague Noël has been appointed as Group Chief Operating Officer (COO)
Unless otherwise indicated, change comparisons refer to the results as at 31 December 2023
Xavier Durand, Coface’s Chief Executive Officer, commented:
2024 was marked by the launch of our Power the Core strategic plan which is deliberately focused on innovation.
In an environment characterised by weak economic growth, a decrease of our clients’ activity and an increase in the number of bankruptcies, the discipline of our underwriting enabled us to contain the increase in the combined ratio, which rose moderately to 65.5%. Finally, we benefited from the repositioning of our investment portfolio to achieve a return on average tangible equity of 13.9%, above our mid-cycle targets. The net income of €261m marked the highest level since the transition to IFRS 17.
All these achievements would not have been possible without the engagement of our employees.
These good results and solid solvency ratio of 196% allow us to propose the payment of a dividend of €1.40 per share to the Shareholders’ meeting.
For more details, see the Press Release or the Investorssection.
1 RoATE = Return on average tangible equity
2 This estimated solvency ratio is a preliminary calculation made according to Coface’s interpretation of Solvency II regulations and using the Partial Internal Model. The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.
3 The distribution proposal will be submitted to the Shareholders’ Meeting to be held on 14 May 2025.
