French credit insurer Coface SA reported a net income of €222 million ($262 million) for 2025, marking a 15% drop from the previous year. The company attributed this decline to rising claims and increased competition in the market, which put pressure on earnings.
Coface, based in Paris, saw its consolidated turnover rise slightly by 0.1% compared to 2024, reaching €1.8 million. When adjusted for foreign exchange rates and business scope, the growth was a bit stronger at 1.3%. This improvement mainly came from its non-insurance activities and steady client retention.
However, the company’s net combined ratio, a key measure of profitability, increased by 7.6 percentage points to 73.1% due to a higher loss ratio and greater operating costs. Notably, the loss ratio climbed to 40.3%, up 5.1 points year over year, as claims returned to more typical levels after being historically low. Additionally, the cost ratio rose 2.6 points to 32.8%, driven by ongoing investment spending despite modest revenue growth.
Despite these challenges, Coface’s financial health remains strong. Its solvency ratio improved slightly to around 197%, well above its target range of 155% to 175%. The company’s board approved a dividend of €1.25 per share, which corresponds to an 84% payout ratio—higher than its minimum target of 80%. Earnings per share were €1.49, while the annualized return on average tangible equity decreased by 2.5 points to 11.4%.
Looking at specific sectors, non-insurance activities grew 7.8% to €166.2 million. This was fueled by a 16.2% jump in information services and a 24.4% increase in debt collection. Factoring revenue, however, dropped 2.7% due to lower interest rates and weak client business in Germany and Poland.
Regionally, the Mediterranean and Africa segment posted the strongest growth at 3.7%, while North America and Central and Eastern Europe experienced declines. Coface’s CEO, Xavier Durand, acknowledged the tough business climate marked by slow global growth, political uncertainty, and high insolvencies.
Durand said the company managed to keep claims from rising too much, achieving a net combined ratio close to mid-cycle goals. He also highlighted Coface’s solid balance sheet as the reason behind the dividend decision.
Looking forward, Coface expects global trade to remain fragile. Tariffs in the United States remain high, averaging nearly 15%, which the company says contributes to subdued market conditions. Despite this, demand for credit risk management is increasing. Coface plans to continue investing in technology, data, and ways to broaden its reach.
In 2025, Coface made some strategic moves. It acquired Cedar Rose Group, a business information provider in the Middle East and Africa, and Novertur International SA, a Swiss startup known for its business-monitor.ch platform covering over 730,000 active Swiss companies. The Cedar Rose deal was announced early in the year and completed in July. Novertur helps boost Coface’s data and digital abilities in Switzerland.
Additionally, Coface launched a new syndicate at Lloyd’s of London, offering clients access to an AA-rated insurance product. Durand said these actions aim to improve distribution, expand product offerings, and enhance risk analysis.
Earlier, in May 2024, rating agency AM Best confirmed an A (Excellent) financial strength rating for Coface’s main operating subsidiaries. Despite headwinds, Coface appears well placed as it heads into 2026.