In 2011, Coface continued to conjugate profitability and growth. Current net profit* stood at €121 million, up 21%, and turnover was €1,550 million, up 7.4% compared to 2010.
The net combined ratio improved 2.7 points, reaching 82.2%, thanks to good cost control and a stable net loss ratio.
* Net profit restated to take restructuring costs into account for a total of €49 million after tax in 2011
2011 confirms an acceleration in the turnover for Coface's strategic entities, showing an exceptional growth of
+ 7.4% compared to 2010, which is above the average of 5% recorded for more than 5 years.All geographical platforms are contributing to this growth. Growth is particularly marked in the emerging markets: in Latin America (+11.4%) and in Asia and Pacific (+12.4%) where Coface is number 1, as well as in Central Europe (+20.2%).
Insurance is enjoying substantial development, benefitting from a sustained commercial activity, a new record production (€200 million) and with a remarkable client retention rate of 91%, in progression compared to 2010 (86%)
Factoring, continues to register solid growth (+11,8%), due to its good synergy with credit insurance. This activity is refocused on Germany and Poland, countries where Coface is number 1 and 2 respectively.
Results
Coface set up in 2011 a refined management for risks which allowed to support the strong commercial development of its policyholders. This is proven by the increase in overall exposure of 15.6% in one year, the double of the rise in premiums. The net loss ratio was therefore stabilised at 57% and remains very close to that of 2010 (57.2%).
The net cost ratio stands at 25.2%, a 2.5 point improvement, in particular due to rigorous management of costs.
Consequently, the net combined ratio stands at 82.2%, compared to 84.9% in 2010.
In a context of strong tension in the financial markets linked to the debt crisis in the euro zone, the investment portfolio had financial income of €37 million, which is a performance of 1.9% for the average exposure.
Operating profit grew sharply, reaching €207 million, up 17.6%.
Current net profit stands at €121 million, up 21% compared to 2010.
The effectiveness of Coface's new model is benefitting from the strengthening of its financial solidity. The shareholders’ equity reached €1,465 billion, up 5.7% compared to the end of 2010. This increase is accompanied by a reduction in the indebtedness ratio, which changed from 43% at the end of 2009 to 1% at the end of 2011.
The ratings assigned to Coface by Fitch and by Moody’s have been confirmed, as such reflecting Coface's solid competitive position in the worldwide credit insurance market.
Fitch |
AA- Stable outlook |
Moody's (20th september 2011) |
A2
Stable outlook |
Corporate brochure 2010 Edition