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Yahoo
31-07-2025
- Business
- Yahoo
Coface SA: Coface confirms its good start to the year and continues its strategic investments. Annualised return on tangible equity at 12.6%
Coface confirms its good start to the year and continues its strategic investments. Annualised return on tangible equity at 12.6% Paris, 31 July 2025 – 5.35 p.m. Turnover: €937m, up +2.3% at constant FX and perimeter Trade Credit Insurance revenue up +1.7%; client activity up +1.8% Client retention back up at near-record (94.0% vs. 92.8% in H1-24); pricing remained negative(-1.6%), in line with historical trends Business Information growing again double-digit (+14.7% at constant FX); Debt Collection up +35.0%; Factoring down slightly by -1.5% due to lower interest rates Net loss ratio at 40.1%, up 5.1 ppts; net combined ratio at 71.3%, up 7.9 ppts Gross loss ratio at 37.8%, up 5.3 ppts year-on-year but improving slightly in Q2-25 relative to the previous quarter, showing good risk control Net cost ratio up 2.8 ppts at 31.2%, reflecting past inflation as well as continued investments Coface continues to strengthen its credit insurance business and is rolling out its data strategy: Strengthening governance with the appointment of Joerg Diewald as Director of Information Services and Partnerships and Thibault Surer as head of a new technology division focused on data, connectivity and product innovation Creation of a new Lloyd's syndicate allowing Coface to offer AA solutions to its clients Acquisition of Cedar Rose and Novertur International Net income (Group share) at €124.2m, down 12.7% compared with the record set in H1-24. Annualised RoATE1 at 12.6% Estimated solvency ratio of 195%2, above the target range (155% - 175%) Unless otherwise indicated, changes are expressed by comparison with the results as at 30 June 2024. Commenting, Xavier Durand, CEO of Coface, said: 'Coface generated net income of €62m in Q2-25, down from a record Q2-24. The number of bankruptcies worldwide has continued to rise steadily and is now well above pre-COVID levels. Through constant vigilance and flawless execution, we have contained the increase in the loss experience, with the uncertainties created by the increase in tariffs in the United States having probably yet to fully our revenues are growing, both in credit insurance and services. This growth is being driven by our investments, which have brought new business to a record level in insurance and deliberate investments strengthen our distribution capabilities, the range of products and services available to our clients, and our risk analysis tools. Since the beginning of the year, we have made two acquisitions in information services, Cedar Rose and Novertur. We have also announced the launch of a Lloyd's syndicate to offer AA solutions to some of our clients. Lastly, our solvency ratio remains high, at 195%.' Key figures at 30 June 2025 The Board of Directors of COFACE SA examined the consolidated financial statements at 30 June 2025 at its meeting of 31 July 2025. These statements were also previously reviewed by the Audit Committee at its meeting of 30 July 2025. These interim consolidated financial statements have been subject to limited review by the Statutory Auditors. The limited review report is being issued. Income statement items in €m H1-24 H1-25 Variation % ex FX* Insurance revenue 754.3 760.0 +0.8% +1.7% Other revenues 168.5 176.6 +4.9% +4.8% REVENUE 922.7 936.6 +1.5% +2.3% UNDERWRITING INCOME (LOSS) NET OF REINSURANCE 195.0 153.6 (21.2)% (20.3)% Investment income, net of management expenses,excluding finance costs 40.8 26.3 (35.4)% (36.0)% Insurance finance expenses (18.1) 6.7 (137.1)% (130.8)% CURRENT OPERATING INCOME 217.7 186.6 (14.3)% (14.1)% Other operating income and expenses (0.5) (0.6) +21.8% +12.2% OPERATING INCOME 217.2 186.0 (14.4)% (14.2)% NET INCOME (GROUP SHARE) 142.3 124.2 (12.7)% (12.7)% Key ratios H1-24 H1-25 Variation Loss ratio after reinsurance 35.0% 40.1% 5.1 ppts Cost ratio after reinsurance 28.4% 31.2% 2.8 ppts COMBINED RATIO AFTER REINSURANCE 63.4% 71.3% 7.9 ppts Balance sheet items in €m 2024 H1-25 Variation Total equity (Group share) 2,193.6 2,098,0 (4.4)% H1-24 H1-25 Solvency ratio 195%1 195%1 0 ppt * Excluding scope effect.1 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. 1. Revenue Coface posted consolidated turnover of €937m in the first half of 2025, up +2.3% at constant FX and perimeter compared with H1-24. On a reported basis (at current FX and perimeter), turnover was up +1.5%. Revenues from insurance activities (including Bonding and Single Risk) increased +1.7% at constant FX and perimeter, benefiting from a slight increase in client activity and the return to a record retention level at 94.0%. New business reached €76m, the highest since H1-20, driven by an increase in demand and benefiting from growth investments made by Coface. Growth in client activity had a positive impact of +1.8% in H1-25 against a backdrop of extreme political uncertainty, particularly in terms of tariffs, and modest economic growth. The price effect remained negative at -1.6% in H1-25, in line with long-term trends. This decrease is largely explained by a very low past loss experience, offset by today's return to normal. Turnover from non-insurance activities was up +8.2% compared with H1-24. Factoring turnover fell -1.5% in H1-25 and -2.2% in Q2 25 on lower interest rates and weak client activity in Germany and Poland. Information services turnover continued to post double-digit growth, at +14.7%. Debt Collection commissions increased, from a still modest base, by +35% due to the increase in claims to be collected. Fee and commission were up +2.3%. Total revenue in €m(by invoicing region) H1-24 H1-25 Variation % ex FX3 Northern Europe 185.0 185.2 +0.1% +0.1% Western Europe 187.6 191.6 +2.1% +1.0% Central and Eastern Europe 87.0 83.9 (3.5)% (3.8)% Mediterranean & Africa 276.0 280.2 +1.5% +3.0% North America 88.7 87.7 (1.2)% +2.0% Latin America 38.2 41.5 +8.6% +17.5% Asia-Pacific 60.2 66.5 +10.5% +9.5% Total Group 922.7 936.6 +1.5% +2.3% In the Northern Europe region, turnover was up +0.1% at constant and current FX. The credit insurance business benefited from robust new business and a high retention rate. Factoring turnover was down -1.6%. In Western Europe, turnover rose +1.0% at constant FX (2.1% at current FX) on solid sales performances in services (+27%) and credit insurance, offsetting the loss of a contract with a financial institution. In Central and Eastern Europe, turnover was down -3.8% at constant FX (-3.5% at current FX) but improved significantly compared with the previous quarter (-6.9%). Credit insurance was negatively impacted by a non-recurring effect recorded in 2024, as well as the transfer of a major contract to the Asia-Pacific region. In the Mediterranean & Africa region, which is driven by Italy and Spain, turnover increased +3.0% at constant FX and +1.5% at current FX, the result of a high retention rate and a more dynamic economy overall. In North America, turnover rose +2.0% at constant FX (-1.2% on a reported basis). The region is benefiting from an improvement in new business. Reported figures have been adversely affected by the sharp fall in the US dollar since the beginning of the year. In Latin America, turnover was up +17.5% at constant FX and +8.6% at current FX. The region is benefiting from the persistently high level of local inflation, which is benefiting client activity. Turnover in the Asia-Pacific region was up +9.5% at constant FX and +10.5% at current FX, driven by a high retention rate, a rebound in client activity, and the transfer of a client from another region. 2. Result Combined ratio The combined ratio after reinsurance stood at 71.3% in H1-25 (up 7.9 ppts year on year) and 74.0% in Q2-25, reaching a level close to the cycle average. (i) Loss ratio The gross loss ratio stood at 37.8%, up 5.3 ppts year-on-year. This increase reflects the return to normal of the loss experience, offset by the reserve releases, which remain at a high level. The number of mid-sized claims increased but remains below long-term trends. The Group's reserving policy remained unchanged. The amount of provisions related to the underwriting year, although discounted, remained in line with the historical average. The rigorous management of past claims enabled the Group to record 41.0 ppts of recoveries. The net loss ratio increased to 40.1%, up 5.1 ppts compared with H1-24, but close to the level reached in H1-23 (40.3%), in today's more difficult economic environment. (ii) Cost ratio Coface is pursuing its strict cost management policy while maintaining its investments, in accordance with the Power the Core strategic plan. Costs were up +7.0% in H1-25 at constant FX and perimeter and +6.3% at current FX. The cost ratio before reinsurance stood at 34.6% in H1-25, up 2.0 ppts year on year. This increase mainly resulted from cost inflation (0.6 ppt) as well as continued investments (2.3 ppts). Conversely, the improved product mix (information services, debt collection and fee and commission income) had a positive effect of -0.9 ppt. The trend in reinsurance commissions explains the remainder of the variation. Financial income Income from financial investments was +€26.3m in the first half of the year. The total includes an FX effect of -€17.0m on financial assets, owing to the sharp fall in the dollar against the euro, as well as a negative impact of the application of IAS 29 (hyperinflation) in Turkey of -€6.7m. The portfolio's current income (i.e. excluding capital gains, depreciation and FX) was €52.1m. The accounting yield4, excluding capital gains and fair value effect, was 1.6% in H1-25. The yield on new investments was 3.7%. Insurance finance expenses (IFE) were positive at €6.7m in H1-25. They include a significant FX gain (+€23.1m) on technical liabilities, which reflects the expense recorded on assets and partially on net loss. Operating income and net income Operating income totalled €186.0m in H1-25, down 14.4%, approaching the level reached in H1-23. The effective tax rate in H1-25 was 25% (vs. 27% in H1-24). Overall, net income (Group share) was €124.2m, down 12.7% compared with H1-24, slightly below the result in H1-23 (€128.8m) in a more difficult economic environment. 3. Shareholders' equity At 30 June 2025, Group shareholders' equity was €2,098.0m, down €95.6m or -4.4% (€2,193.6m at 31 December 2024). The change is mainly due to positive net income of €124.2m, the dividend payment of -€209m, and the increase in unrealised capital gains (€21.9m). The annualised return on average tangible equity (RoATE) was 12.6% at 30 June 2025, down compared with the previous year, in line with the decline in net income. The solvency ratio stood at 195%5, stable compared with H1-24. It remains well above the Group's target range (155%-175%). 4. Outlook The second quarter of 2025 was marked by the continued increase in tariffs announced by the United States. The US administration's announcements of sharp increases alternated with deferments of varying duration and the signing of a few bilateral agreements. As things stand today, tariffs on imports from Europe should reach 15%. Some tariffs (automotive, metals) have already come into force and have had direct negative consequences on the trade flows of the goods concerned. Conversely, announcements of deferred tariffs triggered advance purchases, bolstering economic activity. Lastly, extreme uncertainty as to the final outcome of the tariff issue have led to a postponement of investments as well as the redirection of Chinese exports, particularly towards markets deemed more stable. This highly uncertain environment is impacting global trade and the health of companies in markedly different ways. During the second quarter, Coface downgraded the ratings of 23 sectors and 4 countries. Persistent inflationary pressures are preventing central banks from cutting rates for now. Demand is being supported solely by the maintenance of high public deficits and the continuation of an extremely strong investment cycle to foster the development of AI technology. Business failures have increased in 80% of advanced economies and are now at a decade high, 20% to 25% higher than in 2019. Coface's expertise in risk management and services (information services, debt collection) is more relevant than ever in this context of rapid change. The company is resolutely pursuing its investments while they weigh on the cost ratio in the short term. Since the beginning of the year, Coface has announced two acquisitions (Cedar Rose and Novertur) as well as the creation of a Lloyd's syndicate and a technology division. Conference call for financial analysts Coface's H1-2025 results will be discussed with financial analysts during the conference call that will take place on Thursday 31 July at 6.00 p.m. (Paris time). It will be accessible: By webcast: Coface H1-2025 results - Webcast By conference call (for sell-side analysts): Coface H1-2025 results - conference call The presentation will be available (in English only) at the following address: Appendices Quarterly results Income statement items in €mQuarterly figures Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 % % ex. FX* Insurance revenue 378.6 375.6 375.9 382.7 382.9 377.1 +0.4% +2.3% Other revenues 85.0 83.4 78.0 85.5 90.3 86.3 +3.5% +4.2% REVENUE 463.7 459.1 453.8 468.3 473.2 463.4 +0.9% +2.6% UNDERWRITING INCOME (LOSS) AFTER REINSURANCE 100.3 94.7 88.8 84.9 85.4 68.2 (27.9)% (25.5)% Investment income, net of management expenses, excluding finance costs 17.9 22.8 19.0 31.9 10.4 15.9 (30.3)% (29.5)% Insurance finance expenses (11.4) (6.7) (7.3) (17.1) (4.1) 10.8 (262.8)% (249.1)% CURRENT OPERATING INCOME 106.8 110.9 100.5 99.7 91.6 95.0 (14.3)% (12.9)% Other operating income and expenses (0.1) (0.5) (2.6) (5.5) (0.4) (0.3) (43.9)% (48.0)% OPERATING INCOME 106.8 110.4 97.9 94.2 91.2 94.7 (14.2)% (12.7)% NET INCOME (GROUP SHARE) 68.4 73.8 65.4 53.4 62.1 62.1 (15.9)% (14.7)% Income tax rate 27.2% 26.8% 25.5% 36.2% 23.0% 26.3% (0,5) ppt Cumulated results Income statement items in €mCumulated figures Q1-24 H1-24 9M-24 FY-24 Q1-25 H1-25 % % ex. FX* Insurance revenue 378.6 754.3 1,130.2 1,512.9 382.9 760.0 +0.8% +1.7% Other revenues 85.0 168.5 246.4 331.9 90.3 176.6 +4.9% +4.8% TURNOVER 463.7 922.7 1,376.6 1,844.8 473.2 936.6 +1.5% +2.3% UNDERWRITING INCOME (LOSS) AFTER REINSURANCE 100.3 195.0 283.8 368.7 85.4 153.6 (21.2)% (20.3)% Investment income, net of management expenses, excluding finance costs 17.9 40.8 59.8 91.7 10.4 26.3 (35.4)% (36.0)% Insurance finance expenses (11.4) (18.1) (25.4) (42.5) (4.1) 6.7 (137.1)% (130.8)% CURRENT OPERATING INCOME 106.8 217.7 318.2 417.9 91.6 186.6 (14.3)% (14.1)% Other operating income and expenses (0.1) (0.5) (3.1) (8.6) (0.4) (0.6) +21.8% +12.2% OPERATING INCOME 106.8 217.2 315.1 409.2 91.2 186.0 (14.4)% (14.2)% NET INCOME (GROUP SHARE) 68.4 142.3 207.7 261.1 62.1 124.2 (12.7)% (12.7)% Income tax rate 27.2% 27.0% 26.5% 28.7% 23.0% 24.7% (2,3) ppt * Excluding scope effect. CONTACTS INVESTOR/ANALYST RELATIONSThomas Jacquet: +33 1 49 02 12 58 – Rina Andriamiadantsoa: +33 1 49 02 15 85 - MEDIA RELATIONSSaphia Gaouaoui: +33 1 49 02 14 91 – Billet: +33 1 49 02 23 63 – FINANCIAL CALENDAR 2025(subject to change)9M-2025 results: 3 November 2025, after market close FINANCIAL INFORMATIONThis press release, as well as all of COFACE SA's regulated information, can be found on the Group's website: For regulated information on Alternative Performance Indicators (APMs), please refer to our Interim Financial Report for H1-2025 and our 2024 Universal Registration Document (see 3.7 'Key financial performance indicators'). Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by can check the authenticity on the website COFACE: FOR TRADEAs a global leading player in trade credit risk management for almost 80 years, Coface helps companies grow and navigate in an uncertain and volatile 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 2024, Coface employed +5,200 people and recorded a turnover of ~€1.845 billion. COFACE SA is listed on Compartment A of Euronext ParisISIN: FR0010667147 / Ticker: COFA DISCLAIMER - Certain statements 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 they may be affected by many factors likely to give rise to a significant discrepancy between the real results and those stated in these statements. Please refer to chapter 5 'Main risk factors and their management within the Group' of the Coface Group's 2024 Universal Registration Document filed with AMF on 3 April 2025 under the number D.25-0227 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 to 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 Excluding scope effect.4 Book yield calculated on the average of the investment portfolio excluding non-consolidated investments.5 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. Attachment 2025 07 31 COFACE SA - PR results H1-2025Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Encore Capital Group® Announces Findings of its Third Economic Freedom Study
Survey of over 6,000 U.S. and U.K. adults finds more optimistic outlook on personal finances than national economies, introduces new data on credit score awareness SAN DIEGO, July 31, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Encore) (Nasdaq: ECPG), an international specialty finance company, today announced the findings of its third Economic Freedom Study. The latest study surveyed over 6,000 adults in Encore's largest markets, the United States and United Kingdom, about their feelings toward their personal finances and the economy. Shop Top Mortgage Rates A quicker path to financial freedom Personalized rates in minutes Your Path to Homeownership Respondents were asked what causes them the most financial stress and the best ways to address their challenges, including attitudes toward working with debt collection companies to resolve past-due debt. The latest study also examines credit score awareness and financial literacy. The research was commissioned by Encore and conducted by Morning Consult. A detailed report of the findings is available on Encore's website. Key highlights from the study include: Most U.S. and U.K. adults feel somewhat or very positive about their personal financial futures, but they are less optimistic about their respective national economies. Nearly half (49%) of U.S. adults say their outlook on the future of the national economy is somewhat or very negative, compared to just over two-thirds (67%) of U.K. adults. 'Being debt-free' was the most-selected definition of economic freedom for adults in both countries, chosen by 27% of both U.S. and U.K. adults. Being debt-free was the most-selected definition for every generation in both countries except U.K. Gen Z adults, among whom 'having the independence to do/buy what I want' was the most-selected definition (25%). While U.S. adults are more aware of their credit scores than U.K. adults, most adults in each country desire a free way to check their credit score. Over four in five U.S. adults (83%) say they know their credit score, compared to just over half (51%) of U.K. adults. Of those who say they know their credit score, roughly half or more in each country report having a 'good' or better rating. Nearly three in 10 (29%) U.S. adults and just under one in five (19%) U.K. adults report currently having past-due debt, especially younger and low-income adults. Most adults with past-due debt in both countries say it will take a long time to pay back most or all of their balance. Today, significantly more U.S. and U.K. adults are requesting help to repay past-due debt compared to the 2022 Encore Economic Freedom Study, and significantly more signal intentions to work with debt collection companies to resolve their debt. 'Our company supports consumers who are actively dealing with financial stress every day, which makes these findings especially important for us,' said Ashish Masih, Encore's President and CEO. 'By understanding how consumers are thinking and feeling about their finances, which priorities matter most to them, and how they plan to address past-due debt, we can better fulfill our Mission to help them on their path to economic freedom.' The survey found that as U.S. consumers are accumulating credit card debt at record levels, and U.K. consumers continue to feel pessimistic about their national economy, adults in both countries are facing high economic concern and are focused on building emergency funds. 'We continue to be focused on meeting consumers where they are, and we're well-positioned to help them,' Masih said. 'We lead with empathy, tailor solutions to pay off past-due debt to consumers' unique circumstances, always seek to understand the consumer's needs and provide access to support in times of hardship.' The survey's findings affirm Encore's approach to working with consumers. For example, about one-quarter (24%) of adults in both countries said that receiving a discount on debt owed would be most helpful to getting out of debt. Nearly the same number in both countries said having more time to pay off debt would be most helpful, followed by learning better financial habits. Midland Credit Management (MCM), Encore's U.S. subsidiary, published its Consumer Bill of Rights almost 15 years ago, and it remains the only one of its kind in the industry. It clearly defines how MCM will suspend collection activities when a consumer demonstrates that they are experiencing significant financial hardship due to medical issues, natural disasters, job loss or other challenges. Similarly, Cabot Credit Management, Encore's U.K. and European subsidiary, has a Sensitive Support Team in the United Kingdom, which includes specialists trained to work with consumers facing mental or physical illness resulting in significant financial hardship. The team's goal is to ensure a consumer's debts don't become a barrier to their physical or financial recovery or well-being. 'It is heartening to see consumers prioritizing being debt-free and showing a willingness to seek help, learn new financial skills and work with companies like Encore to achieve it,' Masih said. 'The approach we take with consumers, including working with them one-on-one and tailoring solutions to meet their unique needs and circumstances, aligns well with the findings of the study.' The Economic Freedom Study online survey was conducted from April 24-May 2, 2025, among 6,406 adults, including 3,192 U.S. adults and 3,214 U.K. adults. The U.S. and U.K. samples are weighted on age, gender, education, race/ethnicity and region to reflect the demographic makeup of their respective adult (18+) populations according to most recently available census data from each country. The margin of error for the total sample in each country is plus or minus 2 percentage points. About Encore Capital Group, Capital Group® is an international specialty finance company that provides debt recovery solutions and other related services across a broad range of financial assets. Through our subsidiaries around the globe, Encore purchases or services portfolios of receivables from major banks, credit unions and utility providers. Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at ContactFaryar BorhaniVice President, Chief Communications Officerpress@ in to access your portfolio
