French credit insurer Coface SA reported net income of €222.0 million (US$262 million) for the full year 2025, down 15.0% from the previous year, as rising claims and a more competitive market weighed on earnings, the company announced Thursday.

The Paris-based insurer posted consolidated turnover of €1.8 million, up 1.3% at constant foreign exchange rates and scope, driven largely by non-insurance activities and steady client retention. On a reported basis, turnover edged up 0.1% compared with 2024.

The company’s net combined ratio rose 7.6 percentage points to 73.1%, reflecting a higher loss ratio and increased operating costs. The net loss ratio climbed to 40.3%, up 5.1 ppts year over year, as claims normalized from historically low levels. The net cost ratio rose 2.6 ppts to 32.8%, driven by continued investment spending and modest revenue growth.

Despite the decline in net income, Coface’s solvency ratio improved slightly to an estimated 197%, remaining well above the upper end of its 155%–175% target range. The board of directors approved a proposed dividend of €1.25 per share, representing a payout ratio of 84%, above the company’s minimum threshold of 80%.

Earnings per share stood at €1.49, while the annualized return on average tangible equity reached 11.4%, down 2.5 ppts from a year earlier.

Sector performance

Non-insurance activities grew 7.8% to €166.2 million, led by information services, which surged 16.2% at constant exchange rates, and debt collection, which rose 24.4%. Factoring revenue dipped 2.7%, weighed down by lower interest rates and weak client activity in Germany and Poland.

Among regions, the Mediterranean and Africa segment posted the strongest growth at 3.7% at constant exchange rates, while North America and Central and Eastern Europe recorded declines.

Chief executive officer Xavier Durand said in a statement that the company navigated a difficult environment marked by sluggish global growth, geopolitical volatility, and historically high insolvencies.

“Our strategy and disciplined execution have enabled us to contain the rise in claims and achieve a net combined ratio of 73.1% for the year, a level now close to our mid-cycle targets,” Durand said. “Our strong balance sheet allows us, in line with our capital management policy, to propose a dividend of €1.25 per share, corresponding to a payout ratio of 84%.”

Looking ahead, Coface said global trade conditions remain subdued, citing historically high tariff levels in the United States and an average effective tariff rate of nearly 15%. The company said demand for credit risk management solutions is growing amid market turbulence, and it plans to continue investing in technology, data, and distribution.

Strategic moves in 2025

The full-year results reflected notable strategic activity. Coface completed two acquisitions in its information services division: Cedar Rose Group, a provider of business information in the Middle East and Africa, and Novertur International SA, a Swiss startup operating the business-monitor.ch platform with data on more than 730,000 active Swiss companies.

Following the Cedar Rose acquisition, the firm became Coface’s information provider in the Middle East and Africa region for both credit insurance and information services. The deal was first announced in February 2025 and closed in July of that year. Novertur, launched in 2016, was acquired to strengthen Coface’s data quality and digital capabilities in Switzerland.

Coface also launched a new syndicate at Lloyd’s of London in 2025, giving clients access to an AA-rated insurance solution. Durand said the syndicate, along with the two acquisitions, formed part of a broader push to strengthen distribution, expand the product range, and improve risk analysis tools.

Rating agency AM Best affirmed the financial strength rating of A (Excellent) for Coface’s main operating subsidiaries in May 2024.