3M-2022 Financial Results: a strong start to the year with a net income of €66.2m
Turnover: €431m, up 12.8% at constant FX and perimeter
- Trade Credit Insurance premiums growing by 14.7% at constant FX driven by high client activity
- Client retention at record highs (94.8%); pricing impact negative (-2.7%)
- Information services continued to grow (+11.0% at constant FX
Net loss ratio at 40.7% and net combined ratio at 67.3% (respectively 30.4% and 55.3% excluding government schemes)
- Gross loss ratio at 28.9%, improved by 0.6 ppt
- Net cost ratio down by -1.7 ppt at 26.6% reflecting operating leverage and higher reinsurance commissions
- Government schemes have lowered pre-tax profit by €33m for the quarter (€199m cumulated); no further material impact expected going forward
Net income (group share) at €66.2m, up by +17.5% vs Q1-2021
Annualised RoATE1 at 13.2%2; a dividend of €1.502 for the 2021 financial year will be proposed to the Shareholders’ Meeting on 17 May 2022
*Unless otherwise indicated, change comparisons refer to the results as at 31 March 2021.
Xavier Durand, Coface's Chief Executive Officer, commented: "While the beginning of 2022 was encouraging for the global economy, Russia’s invasion of Ukraine, sanctions imposed against Russia and retaliatory sanctions have caused the global economic outlook to be revised down. Beyond the substantial human cost, this invasion has triggered another increase in commodity prices, especially energy and food. This crisis is causing repercussions across all regions and sectors. Many importer countries are being particularly affected and are seeing the risk of social unrest increase.
In this increasingly uncertain world, Coface has continued to support its clients and to implement its strategic plan.
The strong economic growth in 2021 and our solid operating performance led to double-digit growth in trade credit insurance and information services, where we are continuing our proactive investment policy.
Coface’s net income increased 17.5% to €66.2m. This figure is all the more impressive given that we booked the remaining cost of the government schemes (€33m, bringing the total to €199m). It corresponds to an annualised return on tangible equity of 13.2%, which is above our mid-cycle targets.
Finally, we are pleased to confirm that a dividend per share of €1.50 will be proposed at our next Shareholders’ Meeting, which represents 100% of our 2021 income."
For more detailed information, download the full press release below.
1 Return on average tangible equity
2 The distribution proposal will be submitted to the Annual General Shareholders’ Meeting to be held on 17 May 2022.