Coface : 2024 results: net income at €261.1m, up 8.6%, and proposed
dividend at €1.40
2024 results: net income at €261.1m, up
8.6%, and proposed dividend at €1.40
Paris, 20 February 2025 –
17.35
- Turnover: €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 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 (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.”
Key figures at 31 December
2024
The Board of Directors
of COFACE SA approved the consolidated financial statements at 31
December 2024 at its meeting of 20 February 2025. The Audit
Committee at its meeting on 18 February 2025 also previously
reviewed them. Accounts are non-audited, certification is in
progress.
| Income
statements items in €m |
2023 |
2024 |
Variation |
% ex. FX* |
|
Insurance revenue |
1,559.1 |
1,512.9 |
(3.0)% |
(2.2)% |
| Services
revenue |
309.2 |
331.9 |
+7.4% |
+7.4% |
|
REVENUE |
1,868.2 |
1,844.8 |
(1.3)% |
(0.6)% |
|
UNDERWRITING INCOME/LOSS AFTER REINSURANCE |
395.4 |
368.7 |
(6.8)% |
(5.3)% |
| Investment
income, net of management expenses, excluding finance costs |
12.4 |
91.7 |
638.0% |
595.7% |
|
Insurance Finance Expenses |
(40.0) |
(42.5) |
6.4% |
12.9% |
|
CURRENT OPERATING INCOME |
367.9 |
417.9 |
+13.6% |
+12.8% |
| Other
operating income / expenses |
(5.0) |
(8.6) |
74.5% |
74.2% |
|
OPERATING INCOME |
362.9 |
409.2 |
+12.8% |
+12.0% |
|
NET INCOME (GROUP SHARE) |
240.5 |
261.1 |
+8.6% |
+6.3% |
| |
|
|
|
|
| Key
ratios |
2023 |
2024 |
Variation |
|
Loss ratio net of reinsurance |
37.7% |
35.2% |
(2.5)% |
ppts |
| Cost ratio net
of reinsurance |
26.6% |
30.2% |
3.6% |
ppts |
|
COMBINED RATIO NET OF REINSURANCE |
64.3% |
65.5% |
1.2% |
ppt |
| |
|
|
|
|
|
Balance sheet items in €m |
2023 |
2024 |
Variation |
|
Total equity (group share) |
2,050.8 |
2,193.6 |
+7.0% |
|
Solvency ratio |
199% |
196%1 |
-3 ppt |
* Also excludes scope impact
1 This estimated
solvency ratio constitutes 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.
1. Turnover
In 2024, Coface recorded a consolidated turnover
of €1,844.8 million, down by -0.6% at constant FX and
perimeter compared to 2023. As reported (at current FX and
perimeter), turnover was down -1.3%.
Revenue from insurance activities (including
bonding and Single Risk) fell -2.2% at constant FX and perimeter,
although the year ended on a slightly more positive note (Q4-24
revenue from insurance activities rose +3.7% and total revenue
increased +4.3%). Client retention remains high at 92.3% (but down
from the record level in 2023), in a competitive market where
Coface implemented risk mitigation plans that impacted renewals at
the beginning of the year. New business rose to €126m, up €9m
compared to 2023 driven by an increase in demand and the positive
effects of investments for growth, mainly in the mid-market
segment.
Client activity grew modestly at 0.5%, below the
historical average with an improvement in Q4-24 (+0.4%). Over the
year, the decline in activity in the metals sector, with lower
prices, partially offset the positive trend in the agri-food
sector. The price effect remained negative at -1.4% in 2024 (vs.
-1.9% in 2023), in line with long-term trends.
Turnover from non-insurance activities was up
+8.2% compared to 2023. Factoring turnover stabilised at +0.3% with
a positive Q4-24 that reversed the full-year trend. Information
services turnover rose +16.3%. Fee and commission income (debt
collection commissions) increased by +19.6%, from a low base, due
to the increase in claims to be collected and investments made in
third-party debt collection. Commissions were up +6.6%.
Total revenue - in €m
(by country of invoicing) |
2023 |
2024 |
Variation |
% ex. FX4 |
|
Northern Europe |
379.6 |
362.2 |
(4.6)% |
(4.6)% |
|
Western Europe |
380.1 |
391.8 |
+3.1% |
+0.4% |
|
Central & Eastern Europe |
177.1 |
173.8 |
(1.9)% |
(3.2)% |
|
Mediterranean & Africa |
526.3 |
538.5 |
+2.3% |
+5.6% |
|
North America |
171.8 |
176.6 |
+2.7% |
(6.4)% |
|
Latin America |
100.3 |
77.7 |
(22.5)% |
+4.0% |
|
Asia-Pacific |
133.1 |
124.3 |
(6.6)% |
(7.1)% |
|
Total Group |
1,868.2 |
1,844.8 |
(1.3)% |
(0.6)% |
In Northern Europe, turnover was down by -4.6%
at constant and current FX, due to the selective non-renewal of
some loss-making policies at the beginning of the year, despite the
stabilisation of client activity in Q4-24.
In Western Europe, turnover increased by +0.4%
at constant FX (+3.1% at current FX and perimeter following the
integration of certain African countries in the first half of the
year) thanks to a sharp increase in information services sales
(+30.3%) combined with a better Q4-24 in credit insurance under the
effect of significant business catch-up.
In Central and Eastern Europe, turnover fell
-3.2% at constant FX (-1.9% at current FX) due to the decline in
client activity, which weighed on credit insurance, despite a high
client retention rate. Factoring was down -1.0% at constant
exchange rates.
In the Mediterranean and Africa region, which is
driven by Italy and Spain, turnover rose +5.6% at constant FX and
+2.3% at current FX driven by robust sales in credit insurance and
services and a stronger economic environment.
In North America, turnover was down -6.4% at
constant FX but increased by +2.7% at current FX due to the
integration of Mexico in this scope. The region saw a slowdown in
client activity despite higher retention and a fairly strong
economic environment.
In Latin America, turnover rose +4.0% at
constant FX but fell -22.5% at current FX. The region is benefiting
from a recovery in client activity after 2023 was dominated by risk
prevention actions. However, the transfer of Mexico to the North
America region had a negative impact.
In Asia-Pacific, turnover decreased by -7.1% at
constant FX and -6.6% at current FX. This lower turnover was due to
a slowdown in client activity that robust sales were unable to
offset and selective non-renewal of certain policies.
2. Result
The annual combined ratio net of reinsurance was
65.5% in 2024, up 1.2 ppt year on year.
(i) Loss ratio
The gross loss ratio stood at 33.4%, a 2.4 ppts
improvement on the previous year. This improvement reflects both
the gradual normalisation of the loss experience, offset by rising
reserve releases. The amount of claims recorded is now higher than
in 2019. The total number of claims decreased, offset by an
increase in the number of mid-sized claims.
The Group’s provisioning policy remained
unchanged. The amount of provisions related to the underwriting
year, although discounted, reflects the increase in the claims
frequency. Strict management of past claims enabled the Group to
record 51.9 ppts of recoveries.
The net loss ratio improved to 35.2%, down 2.5
ppts compared to 2023.
(ii) Cost ratio
Coface is pursuing a strict cost management
policy and is continuing to invest, in line with its Power the Core
strategic plan. As a result, over the full year 2024, costs rose by
+5.5% at constant FX and perimeter, and by +5.3% at current FX.
The cost ratio before reinsurance was 33.7%, up
2.2 ppts year on year. This rise was mainly due to the decline
in revenues (1.0 ppt), embedded cost inflation (1.5 ppt)
and ongoing investments (1.5 ppt). In contrast, the improved
product mix (information services, debt collection and fee and
commission income) had a positive effect. High reinsurance
commissions explain the remainder of the variation.
Net financial income for 2024 was €91.7m, up
sharply compared to 2023. This figure includes capital gains of
+€11.4m, which more than offset negative market value adjustments
on investments of -€2.9m. The FX effect remained slightly negative
at -€2.7m but improved significantly compared to 2023, which was
marked by the accounting effect of IAS 29 (hyperinflation) in
Turkey and Argentina as well as the sharp devaluation of the
Argentine peso.
The portfolio’s current yield (i.e. excluding
capital gains, depreciation and FX impact) was €96.6m, of which
€25.7m in Q4-24. The accounting yield5, excluding
capital gains and fair value effect, was 2.9% for 2024. The yield
on new investments made year-to-date was 4.1% and fell in Q4-24 in
line with the trend in market rates.
Insurance Finance Expenses (IFE) stood at €42.5m
(€40.0m in 2023).
- Operating income
and net income
Operating income amounted to €409.2m in 2024, up
+12.0% at constant FX.
The effective tax rate was 29% for the year (vs.
27% in 2023), including the impact of Pillar 2 (global minimum
tax).
In total, net income (group share) was €261.1m,
up +8.6% compared to 2023.
3. Shareholders’
equity
At 31 December 2024, Group shareholders’ equity
stood at €2,193.6m, up €142.8m or +7.0% (€2,050.8m at
31 December 2023).
These changes are mainly due to the positive net
income of €261.1m and the dividend payment of -€194.3m. Other items
include changes in unrealised capital gains for €72.0m.
The annualised return on average tangible equity
(RoATE) was 13.9%, up 0.5 ppt mainly due to the improvement in
financial income, which more than offset the decrease in
underwriting income (decline in net premiums and slight increase in
the combined ratio).
The solvency ratio reached 196%6,
representing a decrease of 3 ppts compared to FY-23. It remains
well above the upper end of the target range (155%-175%).
Coface will propose €1.40 dividend per share at
the Shareholders’ meeting, corresponding to a payout ratio of
80%7, in line with its capital management policy.
4. Outlook
Once again, the global economy experienced
modest growth in 2024 (2.7%), in line with Coface’s forecasts and
still driven being by the United States. The electoral calendar,
which involved an unprecedented number of countries, delivered
generally unsurprising outcomes, with some exceptions.
For 2025, Coface is forecasting growth identical
to that of 2024 at 2.7%. Further downgrades to European growth are
likely to be offset by the good performance of the United States,
while political risk remains. Donald Trump’s return to power seems
to have been welcomed by economic circles so far, raising hopes of
deregulation, which is stimulating in the short term but often
carries longer-term risks. The announced introduction of tariffs
for many countries is also a destabilising factor for global
trade.
Against this backdrop, Coface is anticipating a
continued rise in bankruptcies, as businesses are caught between
depleted levels of cheap financing and sluggish growth. Coface and
its teams will continue to support their clients in this still
uncertain environment.
At the end of 2024, client activity finally
posted a slightly positive performance after several quarters of
decline. This slight rebound may give hope that the post-Covid
decline in client activity has come to an end. In 2025, Coface will
continue to implement its Power the Core strategic plan, which aims
to develop a leading global ecosystem in credit risk
management.
5. Governance
evolution
In the Executive Committee:
- As of February
1st, 2025, Carole Lytton leads the Specialties
Businesses, in addition to her role as General Secretary. She takes
over from Antonio Marchitelli who decided to leave and take another
appointment outside Coface after many years of dedication to the
Group.
- As of February
3rd, Gonzague Noël has been appointed as Group Chief
Operating Officer (COO). He takes over Declan Daly, joins the Group
executive committee and reports to Xavier Durand, Coface CEO.
Conference call for financial
analysts
Coface’s results for FY-2024 will be discussed
with financial analysts during the conference call on Thursday, 20
February 2025 at 18.00 (Paris time). Dial one of the following
numbers:
- By webcast:
Coface FY-2024 results - Webcast
- By telephone
(for sell-side analysts): Coface FY-2024 - conference call
The presentation will be available (in English
only) at the following address:
http://www.coface.com/Investors/financial-results-and-reports
Income
statements items in €m
Quarterly figures |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
Q3-24 |
Q4-24 |
|
% |
%
ex. FX* |
|
Insurance revenue |
395.3 |
407.8 |
384.7 |
371.3 |
378.6 |
375.6 |
375.9 |
382.7 |
|
+3.1% |
+3.7% |
| Other
revenue |
79.8 |
76.8 |
73.4 |
79.2 |
85.0 |
83.4 |
78.0 |
85.5 |
|
+8.0% |
+7.6% |
|
REVENUE |
475.1 |
484.5 |
458.1 |
450.4 |
463.7 |
459.1 |
453.8 |
468.3 |
|
+4.0% |
+4.3% |
UNDERWRITING INCOME (LOSS)
AFTER REINSURANCE |
95.3 |
103.5 |
91.2 |
105.4 |
100.3 |
94.7 |
88.8 |
84.9 |
|
(19.5)% |
(17.9)% |
|
Investment income, net of management expenses, excluding finance
costs |
(2.6) |
4.0 |
13.0 |
(2.0) |
17.9 |
22.8 |
19.0 |
31.9 |
|
(1667)% |
(1568)% |
|
Insurance Finance Expenses |
(2.4) |
(12.3) |
(15.4) |
(9.9) |
(11.4) |
(6.7) |
(7.3) |
(17.1) |
|
+73.3% |
+77.9% |
|
CURRENT OPERATING INCOME |
90.4 |
95.2 |
88.9 |
93.5 |
106.8 |
110.9 |
100.5 |
99.7 |
|
+6.7% |
+7.9% |
| Other
operating income / expenses |
(0.3) |
(0.4) |
(0.2) |
(4.0) |
(0.1) |
(0.5) |
(2.6) |
(5.5) |
|
+38.3% |
+36.4% |
|
OPERATING INCOME |
90.0 |
94.8 |
88.6 |
89.5 |
106.8 |
110.4 |
97.9 |
94.2 |
|
+5.2% |
+6.6% |
|
NET INCOME (GROUP SHARE) |
61.2 |
67.7 |
60.9 |
50.8 |
68.4 |
73.8 |
65.4 |
53.4 |
|
+5.1% |
+4.9% |
| Income tax
rate |
25.5% |
21.9% |
24.2% |
36.0% |
27.2% |
26.8% |
25.5% |
36.2% |
|
+0.2 ppt |
Appendices
Quarterly results
Cumulated results*
Income
statements items in €m
Cumulated figures |
Q1-23 |
H1-23 |
9M-23 |
2023 |
Q1-24 |
H1-24 |
9M-24 |
2024 |
|
% |
%
ex. FX* |
|
Insurance revenue |
395.3 |
803.1 |
1,187.8 |
1,559.1 |
378.6 |
754.3 |
1,130.2 |
1,512.9 |
|
(3.0)% |
(2.2)% |
| Other
revenue |
79.8 |
156.6 |
230.0 |
309.2 |
85.0 |
168.5 |
246.4 |
331.9 |
|
+7.4% |
+7.4% |
|
REVENUE |
475.1 |
959.7 |
1,417.8 |
1,868.2 |
463.7 |
922.7 |
1,376.6 |
1,844.8 |
|
(1.3)% |
(0.6)% |
UNDERWRITING INCOME (LOSS)
AFTER REINSURANCE |
95.3 |
198.8 |
290.0 |
395.4 |
100.3 |
195.0 |
283.8 |
368.7 |
|
(6.8)% |
(5.3)% |
|
Investment income, net of management expenses, excluding finance
costs |
(2.6) |
1.4 |
14.5 |
12.4 |
17.9 |
40.8 |
59.8 |
91.7 |
|
+638.0% |
+595.7% |
|
Insurance Finance Expenses |
(2.4) |
(14.7) |
(30.1) |
(40.0) |
(11.4) |
(18.1) |
(25.4) |
(42.5) |
|
+6.4% |
+12.9% |
|
CURRENT OPERATING INCOME |
90.4 |
185.5 |
274.4 |
367.9 |
106.8 |
217.7 |
318.2 |
417.9 |
|
+13.6% |
+12.8% |
| Other
operating income / expenses |
(0.3) |
(0.7) |
(0.9) |
(5.0) |
(0.1) |
(0.5) |
(3.1) |
(8.6) |
|
+74.5% |
+74.2% |
|
OPERATING INCOME |
90.0 |
184.8 |
273.4 |
362.9 |
106.8 |
217.2 |
315.1 |
409.2 |
|
+12.8% |
+12.0% |
|
NET INCOME (GROUP SHARE) |
61.2 |
128.8 |
189.7 |
240.5 |
68.4 |
142.3 |
207.7 |
261.1 |
|
+8.6% |
+6.3% |
| Income tax
rate |
25.5% |
23.7% |
23.8% |
26.8% |
27.2% |
27.0% |
26.5% |
28.7% |
|
+1.9 ppt |
|
* Also excludes scope impact
CONTACTS
ANALYSTS / INVESTORS
Thomas JACQUET: +33 1 49 02 12 58 – thomas.jacquet@coface.com
Rina ANDRIAMIADANTSOA: +33 1 49 02 15 85 –
rina.andriamiadantsoa@coface.com
MEDIA RELATIONS
Saphia GAOUAOUI: +33 1 49 02 14 91 – saphia.gaouaoui@coface.com
Adrien BILLET: +33 1 49 02 23 63 – adrien.billet@coface.com
FINANCIAL CALENDAR 2025
(subject to change)
Q1-2025 results: 5 May 2025 (after market
close)
Annual General Shareholders’ Meeting: 14 May 2025
H1-2025 results: 31 July 2025 (after market close)
9M-2025 results: 3 November 2025 (after market close)
FINANCIAL INFORMATION
This press release, as well as COFACE SA’s integral regulatory
information, can be found on the Group’s website:
http://www.coface.com/Investors
For regulated information on Alternative
Performance Measures (APM), please refer to our Interim Financial
Report for H1-2024 and our 2023 Universal Registration Document
(see part 3.7 “Key financial performance indicators”).
|
|
Regulated
documents posted by COFACE SA have been secured and authenticated
with the blockchain technology by Wiztrust.
You can check the authenticity on the website
www.wiztrust.com. |
COFACE: FOR TRADE
As a global leading player in trade credit risk management for more
than 75 years, Coface helps companies grow and navigate in an
uncertain and volatile environment.
Whatever their size, location or sector, Coface provides 100,000
clients across some 200 markets. with a full range of solutions:
Trade Credit Insurance, Business Information, Debt Collection,
Single Risk insurance, Surety Bonds, Factoring.
Every day, Coface leverages its unique expertise and cutting-edge
technology to make trade happen, in both domestic and export
markets.
In 2024, Coface employed ~5,236 people and registered a turnover of
€1.84 billion.
www.coface.com
COFACE SA is listed in Compartment A of Euronext Paris
ISIN: FR0010667147 / Ticker: COFA
|
DISCLAIMER - Certain declarations featured
in this press release may contain forecasts that notably relate to
future events, trends, projects or targets. By nature, these
forecasts include identified or unidentified risks and
uncertainties, and may be affected by many factors likely to give
rise to a significant discrepancy between the real results and
those stated in these declarations. Please refer to chapter 5 “Main
risk factors and their management within the Group” of the Coface
Group's 2023 Universal Registration Document filed with AMF on 5
April 2024 under the number D.24-0242 in order to obtain a
description of certain major factors, risks and uncertainties
likely to influence the Coface Group's businesses. The Coface Group
disclaims any intention or obligation to publish an update of these
forecasts, or provide new information on future events or any other
circumstance.
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.
4 Also excludes scope impact
5 Book yield calculated on the average of the investment
portfolio excluding non-consolidated subsidiaries.
6 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.
7 The distribution proposal will be submitted to the
Shareholders’ Meeting to be held on 14 May 2025.
- 2025 02 20 PR results FY-2024 COFACE
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