Tuesday , January 26 2021

COFACE: Investors offer good annual results

Coface wins 4.32% 8.21 euros the day after the publication of results in 2018 solidly accompanied by a generous return shareholder policy. In 2018, the creditor insurer's net profit was multiplied by 1.5 122.3 million euros, while operating profit was multiplied by 1.3 208.9 million euros. Revenue increased by 2.2% to EUR 1.38 billion. Adjusted currency effects increased by 4.6%.

Coface has benefited from the decline in the loss ratio, excluding reinsurance, which fell by 7 points to 79.6%. As a key indicator of the sector, this ratio represents the ratio of the magnitude of the claims claimed to the size of the premiums received. The lower it is, the more profitable the activity is. He benefited from lower losses and from the group's disciple of costs.

The credit insurance specialist has thus realized EUR 39 million in savings in 2018 and exceeds by 9 million the planned year for the strategic plan "Fit to Win".

With respect to financial solidity, the solvency ratio at the end of 2018 was 169% higher than the Group's target area (140% / 160%) and better than expected: 163%.

Due to the strength of its balance sheet, Coface will distribute 100% of its net income, including at least 60% in terms of dividends. The market expected a distribution of only 70%.

Referring to his outlook, Coface says it will pursue a policy of discipline approval in an economic environment that is now clearly more volatile. In fact, the previously known risk centers (Argentina, Turkey) have added new risk factors (Chinese slowdown, Brexit, US "shutdown", commercial war).

Finally, the objective of delivering a net linked ratio of around 83% throughout the cycle is maintained, achieving an average return on equity of more than 9%.

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