Coface Reports a Net Profit of 222 Million Euros in 2025 with a Solvency Ratio of 197%
Coface records strong results for the year 2025 with a net profit of 222.0 million euros, despite a competitive market environment and increased claims. The group maintains a robust capital position with a solvency ratio of 197% and proposes a dividend of 1.25 euros per share.
Financial Performance in a Challenging Environment
The credit insurance group Coface recorded a net profit of 222.0 million euros in 2025, down 15.0% from 2024. This decrease is mainly due to the increase in the net reinsurance combined ratio, which stands at 73.1% compared to 65.5% the previous year, an increase of 7.6 percentage points. The gross reinsurance claims ratio rose to 37.5%, up by 4.1 points, reflecting the normalization of claims offset by high reserve releases. The net claims ratio reached 40.3%, up by 5.1 points. Concurrently, the gross reinsurance cost ratio advanced to 35.6%, up by 1.9 points, primarily due to the impact of inflation and ongoing strategic investments. The operating result amounted to 332.5 million euros, down 18.7% year-on-year. Despite this challenging environment marked by persistent geopolitical volatility and a historically high number of bankruptcies, Coface manages to maintain a combined ratio close to its average cycle targets.
Revenue Growth Amidst Diverse Business Performance
Coface's consolidated revenue reached 1,847 million euros in 2025, up 1.3% on a constant scope and exchange rate basis. The insurance business, including bonding and single risk, grew by 0.6% on a constant scope basis, while non-insurance activities saw a growth of 7.8%. New business amounted to 129 million euros. Information services revenues increased by 16.2%, and debt collection gained 24.4%. Conversely, factoring contracted by 2.7% due to falling interest rates. The group's equity stood at 2,213.0 million euros as of December 31, 2025, up by 19.4 million euros or 0.9%. The net return on average equity excluding intangible assets (RoATE) was 11.4%, down 2.5 points. The effective tax rate was 24% in 2025 compared to 29% in 2024. The net financial result amounted to 65.8 million euros, including a negative currency effect of 21.0 million euros and a negative impact of 11.2 million euros related to hyperinflation in Turkey.
Robust Solvency and Dividend Proposal
The solvency ratio reached 197% as of December 31, 2025, up by 1 percentage point, remaining above the group's target range of 155% to 175%. Coface will propose to the general assembly a dividend of 1.25 euros per share, representing a payout ratio of 84% of the net result, in line with its capital management policy. This dividend adds to the acquisitions made in 2025, Cedar Rose and Novertur, aimed at enhancing the group's expertise and data quality in growing areas. The total dividends paid over five years reach nearly 7 euros per share.
