The uncertain situation in terms of payment risks seems to be rather profitable for credit insurance. This is evidenced by the good results recorded by Coface in the first quarter of this year, on the back of the recovery.
Thus the overall turnover of the French credit insurer increased by 12.8%, to 431 million euros (EUR million) at constant scope and exchange rates, for a net profit (group share) of €66.2 millionup from +17.5% compared to the first quarter of 2021.
The turnover of thecredit insurance increased by 14.7% at constant exchange rates” benefiting from an increase in customer activity according to Coface, with a customer retention rate at a record level of 94.8%. Revenue from information services jumped 11% at constant exchange rates.
” This record increase for a first quarter reflects the extent of the economic recovery and the rise in the cost of raw materialscomments Coface in a press release. The price effect shows an inflection to -2.7% in Q1-22 compared to +2.9% in Q1-21. This decline is largely explained by a very low past loss experience. »
All of the group’s invoicing areas are concerned (constant exchange rate): North Europe and South (respectively + 13% and + 6%), Central and Eastern Europe (+21.8%), North America (+10.2%), Latin America (+34.8%); Asia Pacific (+15.7%).
The loss ratio are satisfactory. According to figures from Coface, the rnet loss ratio reinsurance amounted to 40.7% and the combined ratio net of reinsurance at 67.3% (respectively 30.4% and 55.3% excluding the effect of government reinsurance schemes). The gross loss ratio stood at 28.9%, an improvement of 0.6 points. The net cost ratio improved by 1.7 points to 26.6% due to positive operating leverage and high reinsurance fees.
These good results are obtained on the momentum of the generalized post-Covid-19 economic recovery which marked the year 2021. The outbreak of the war in ukraine and the new pandemic wave in China thwart the 2022 outlook.” These multiple pressures increase the complexity of the environment and confirm the scenario of gradual normalization, warns Coface. Leading indicators of the global economy, which has so far held up well, point to at least a temporary slowdown “.