- Good commercial performance: premiums up +3.1%, buoyed by emerging markets* +18%
- Sharp rise in operating profit of +62% (+10% excluding 2011 restructuring costs)
- Significant increase in net profit of +80% (+6.6% excluding 2011 restructuring costs)
- Combined ratio at 82.2%, continuously improving
- Robust financial profile: shareholders’ equity up +8.7%
In 2012, results showed a positive trend resulting from the overhaul of Coface via the implementation of the “Strong Commitment” plan. Current operating profit totalled €189 million, up 62% compared to 2011 (10% excluding restructuring costs from the first half of 2011). Net profit totalled €129 million, up 80% (6.6% excluding restructuring costs from the first half of 2011).
The net combined ratio of reinsurance improved to 82.2%, compared to 82.7% in 2011. This improvement reflects a fall in both the loss ratio and cost ratio.
In 2012, the loss ratio was controlled at 56.6% compared to 56.9% in 2011. Coface has strengthened the local presence of its underwriters and teams dedicated to the production of enhanced information, closer to the clients and their debtors. Despite a difficult environment for companies, this policy has enabled risks to be finely managed, while still supporting customers: insured receivables are up 3.5% since the turnaround in the economic cycle mid-2011.
The continuation of a policy of strict cost control has borne fruit, the cost ratio stands at 25.5%, compared to 25.8% in 2011
“In 2012, Coface achieved good results: we succeeded in combining profitability and growth in the difficult context of a Europe still in crisis. Our claims and costs are under control. The support offered to our customers has been the driver of our commercial activity. We continue to make their exchanges safer through innovative solutions,” commented Jean-Marc Pillu, Chief Executive Officer of Coface.
Source: Coface Press Release
