Coface: Net income down 13.2% in H1, combined ratio stable at 71.3%
Coface published its first-half results on July 30, 2026, marked by a decline in net income of 13.2% to €107.8 million. The group nevertheless maintains a balanced position: its combined ratio remains stable at 71.3%, its net loss ratio improves by 2.7 percentage points and its solvency remains high at 194%, above its target range. In a slowed economic environment marked by rising insolvencies, the group confirms the relevance of its Power the Core strategic plan.
Stable revenue, information services accelerating
First-half revenue stands at €939.3 million, up 0.8% at constant exchange rates and scope. Credit insurance, which represents approximately 80% of revenue, grows by 0.1% at constant scope and exchange rates, with client retention close to its records (93.6%). Growth stems mainly from non-insurance activities, which grow by 8.8% to €88.6 million.
Within this portfolio, information services reach €42.8 million (+9.9% excluding exchange rate effects) and continue double-digit growth of 12.0% at constant exchange rates including non-consolidated subsidiaries. This activity is part of the overall growth of non-insurance businesses, alongside credit collection (+31.6%) and factoring (+3.5%). Client activity records slight growth of 1.5%, supported notably by a rebound in Germany, while the price effect remains slightly negative at -1.3%.
Loss ratio improving, costs rising
The net combined ratio remains stable at 71.3% in the first half, in a context of insolvencies at record levels. This stability is based on an improvement in the net loss ratio which moves from 40.1% to 37.4%, a gain of 2.7 percentage points. The gross loss ratio improves by 1.1 percentage point to 36.7%, confirming portfolio quality despite repeated economic shocks (trade tensions, closure of the Strait of Hormuz).
In return, the net cost ratio increases by 2.7 percentage points to 33.9%, reflecting both controlled inflation and continued investments in line with the group's strategy, particularly in data and artificial intelligence. Current operating income decreases by 8.3% to €171.1 million, penalized by insurance financial charges of €-29.1 million, including an exchange loss of €-9.1 million on technical liabilities.
Strategic objectives confirmed except for information services in the short term
Halfway through the execution of its Power the Core plan, Coface confirms its main financial objectives: an unadjusted average combined ratio of 72.2% since the start of the plan (versus 78% target), a RoATE above the cycle target of 12.3%, and solvency consistently above the target range of 155-175%. The annualized RoATE as of June 30 comes out at 10.9%, down from the previous year in line with the decline in half-year net income.
However, the group revises one element of its roadmap: the objective of positive contribution of 50 basis points to the RoATE of information services alone in 2027 is no longer relevant in light of the medium-term value creation potential of this activity. In compensation, Coface plans to increase by approximately 4 percentage points the distribution rate on the 2027 dividend (paid in 2028), relying on its solid balance sheet and overall financial performance.
