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Credit Insurance

Coface H1-2015 results: a profit of EUR 66 million in spite of an increase in claims in emerging countries

By CreditMan Wednesday, July 29, 2015

H1-2015 results: Coface posts a profit of EUR 66 million in spite of an increase in claims in emerging countries

  • Growth in turnover: + 5.1% at current scope and exchange rates (+ 2.1% at constant scope and exchange rates)

  • Combined ratio after reinsurance impacted by the increase in claims’ frequency at 81.9% (up 3.9 percentage points compared with H1-2014 and up 0.5 percentage point compared with H2-2014)

  • Good quality net income (Group share), at €66M (vs. €69M in H1-2014 and €56M in H2-2014)

  • Agreement in principle concluded today with the French government on the transfer of the public guarantees activity in France valuated at approximately €90M

Jean-Marc Pillu, CEO of the Coface Group, commented:

"Since the end of last year, on the occasion of our periodic results publications, we have noted weaknesses affecting the macro-economic environment. The first half of this year confirms this trend, and it was marked by an increase in the frequency of claims, in particular in emerging markets.

Given this context, we are publishing good quality half-year results. The Group thus confirms the robustness of its business model: product innovation and multi-channel distribution, while controlling risks and costs.”

Commenting on the agreement in principle concluded on the transfer of the French State public guarantees activity, Jean-Marc Pillu added:

“Otherwise, the uncertainty which weighed on the future of our public guarantees activity is now lifted and the financial terms of the transfer have been agreed. Coface aims to limit the impact of this on the Group’s results and is currently studying the implementation of an operational efficiency programme.”

Coface press release