Coface 2015 results: net income €126M and proposed dividend stable at €0.48 per share (5)
- Growth in turnover: 3.4% at current scope and exchange rate (+1.2% at constant scope and exchange rates)
- Loss ratio net of reinsurance stabilized over the last six months; combined ratio at 83.1%
- Net income (group share): €126M for 2015, €28M in 4Q
- Stable net income per share at €0.80, distribution rate5 60% of net income
- Xavier Durand takes over as CEO as of today
Unless otherwise stated, variations are expressed in comparison with results at 31 December 2014
Published results for 2014 have been restated to take into account the impact of IFRIC 21
The annual results 2014restated from IFRIC 21 are equivalent to those published in 2014
At the end of 2015, a year marked by a deterioration in the global economic environment, Coface recorded a slight increase in net income (group share), at €126M (€125M in 2014). Turnover for the year grew by 3.4% (+1.2% at constant scope and exchange rate), supported by emerging markets. The Group’s loss ratio net of reinsurance has stabilized over the last six months, at 52.5%. Coface is prepared for Solvency II, which came into force on 1 January 2016. The ratio of capital required to cover subscribed risks stands at 147%7, a level in line with Coface’s risk appetite and dividend pay-out policy of 60% of net income.
On the basis of its net income per share, stable at €0.80, the Group will thus propose a dividend5 of €0.48 per share.
1 Constant scope and exchange rates. Published results for 2014 have been restated to take into account the impact of IFRIC 21.The annual results 2014restated from IFRIC 21 are equivalent to those published in 2014
2 See annex, "Reconciliation table", for the calculation of operating income excluding restated items. For the calculation of net income (group share), a normalised tax rate has been applied to restated items for fiscal years 2014 and 2015.
3 Internal overheads are restated to exclude an exceptional provision of €3.2M
4 Investment income net of expenses, excluding cost of debt.
5 Distribution subject to approval by the Annual General Meeting of Shareholders on May 19th 2016.
6 Subject to the signature of the agreement regarding the establishment of this contingent capital line
7 Coverage ratio calculated according to Coface’s interpretation of Solvency II standard formula. Preliminary calculation.
8 Finance Law No. 2015-1786, Article 103, from December 29th 2015
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