Coface Sa (COFAF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much. Good evening. Welcome, everybody. Thank you for joining on the hot summer evening like this for our report on the mid-year 2026. You will have seen from the numbers, we had another strong quarter of execution in what I would qualify as a pretty tough environment at COFAS. Just reminding everybody of the headlines, net income at $108 million or close. solvency at 194%, so a very strong position. We had a quarter in Q2 where we saw a relative rebound of volumes versus the first quarter, so insurance premiums grew 1.4% versus a negative 1.3% in Q1, and I'll explain a little bit more in the next pages where that comes from. Most of the operating metrics, as you will see, have been strong. The retention is close to record at 93.6%. Pricing is negative, but above historic average at minus 1.3. We continue to grow business information double digits, including the total parameter. The organic growth is 12% for the semester and 19.1% with the acquisition of Cedar Rose. Debt collection growing almost 32%. And also good news on factoring, which is up 3.5%. After many quarters I was subdued of subdued performance, I would say, in the current economy. I think the other good news for the quarter is the losses. The net loss ratio is better by 2.7 points versus last year at 37.4. That brings a strong combined ratio, which is stable at 71.3% for the first half. The net cost ratio is increased by 2.7% as we continue to deliberately invest in line with our strategic plan. And I'll go through more of that detail in the next pages. If we step back a little bit, we are now past mid-plan for COFAS, two and a half years into Power the Core. and we'll take a look at our main financial targets but we are reconfirming these and actually over the last two and a half years w...