COFACE (COFA) Q2 2026 earnings summary

Executive summary

• Net income for H1 2026 was €107.8m, down 13.2% year-over-year, with annualized ROATE at 10.9% and solvency at 194%, both above target ranges.

• Revenue reached €939m, up 0.8% at constant FX and perimeter, with non-insurance activities and business information driving growth amid a challenging macroeconomic environment.

• Combined ratio after reinsurance remained stable at 71.3%, outperforming long-term targets.

• Strategic focus is on long-term value creation in business information, with continued investment in digital and AI capabilities.

• Board expanded with two new directors, strengthening insurance expertise.

Financial highlights

• Insurance revenue was €754m, nearly flat year-over-year (+0.1% at constant FX), while non-insurance activities rose 8.8% to €88.6m.

• Net loss ratio improved by 2.7 points year-over-year to 37.4%; net cost ratio after reinsurance increased to 33.9%.

• Investment income increased to €47.7m, while operating income declined 9.3% to €168.7m.

• Book value per share at €14.5; shareholders' equity stood at €2,166.3m, down 2.1% from year-end 2025.

• Factoring assets increased to €3.5bn, reflecting growth in factoring activities.

Outlook and guidance

• All main financial targets under the Power the Core plan are reaffirmed, with consistent outperformance on combined ratio, ROATE, solvency, and payout ratio.

• 2027 dividend (paid in 2028) will be increased by €0.04–0.05 per share to compensate for BI-related ROATE guidance changes.

• Continued prioritization of long-term BI growth and digital investments over short-term profitability.

• Economic growth remains weak with persistent shocks and record bankruptcies.

• The group plans to expand business information services and outperform the shrinking credit insurance market.