COFACE (COFA) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was €53.6m, down 13.7% year-over-year, but considered solid given the challenging economic environment and with ROATE at 11.0%.

• Turnover reached €465m, stable at constant FX and perimeter, with insurance revenue down 1.3% due to slow client activity.

• Services revenue, including business information and debt collection, grew nearly 20%, with business information up 11.8% organically and debt collection up 31.6%.

• Client retention remained high at 94.8%, with new business at a five-year record and pricing slightly negative at -1.1%.

• The company continues to invest in technology, data, and AI as part of its Power the Core plan, maintaining a differentiated platform with limited P&L impact.

Financial highlights

• Net income (group share) at €53.6m, down 13.7% vs. Q1 2025; operating income at €82.8m, down 9.3%.

• Turnover: €465m, stable at constant FX and perimeter, but down 1.7% on a reported basis.

• Insurance revenue down 1.3%; other revenues (factoring and services) up 9.2%.

• Net combined ratio at 70.0%, with net loss ratio at 37.6% (down 1.6 ppt year-over-year) and net cost ratio up 3 points to 32.5%.

• Book value per share at €15.1; tangible book value at €13.3.

Outlook and guidance

• The economic environment remains soft, with high insolvency rates, geopolitical headwinds, and trade tariffs impacting growth, especially in Southern Europe and emerging markets.

• Continued investment in digital, data, and AI is expected, with management convinced this is the right strategy.

• No forward-looking statements on combined ratio or profitability, but management notes the environment could shift depending on geopolitical developments.