Coface: Net Income Down 13.7% in Q1, Services Compensate
Coface recorded a net income of 53.6 million euros in the first quarter of 2026, down by 13.7% year-on-year. This decline reflects a slowdown in the economic activity of its clients, particularly in Southern Europe and emerging countries, due to tariffs and geopolitical tensions. The credit insurance company partly offsets this decline with a 9.2% increase in its service activities.
Credit Insurance Declines, Non-Insurance Services Progress
The consolidated revenue stands at 465.1 million euros, remaining stable when adjusted for scope and exchange rates. In reported data, it slightly declines by 1.7%. Credit insurance revenues decrease by 1.3%, hampered by the contraction of client activity (only a 0.7% increase, below the historical average) and a negative price effect of 1.1%. Client retention remains close to its historical highs at 94.8%. Non-insurance activities (factoring, information services, and debt collection) increase by 9.2% to 43.9 million euros. Information services maintain a double-digit growth of 11.8% at constant exchange rates. Debt collection significantly accelerates with a 31.6% increase, while factoring grows by 2.2%.
Improved Claims Ratio Despite High Bankruptcy Context
The net claims ratio improves to 37.6%, down by 1.6 percentage points compared to Q1-25. The net combined ratio after reinsurance stands at 70.0%, better than the average cycle objectives. The net cost ratio increases by 3.0 percentage points to 32.5%, reflecting ongoing investments aligned with the group's strategy. Equity slightly progresses to 2,254.2 million euros (+0.9%), supported by the positive net income of 53.6 million euros, partially offset by a decrease in the value of financial assets by 28.1 million euros.
