Coface returns to profit

The insurance division contributed €43 million to operating profit with a 51 point drop in the loss ratio from 109% to 58%.

Growth in turnover over the period was 1.9% and the company added that all geographical zones are profitable in 2010.

The insurer highlighted a continuing improvement in its balance sheet with consolidated equity reaching €1,334 million, compared to €1,311 million at 30 June and €1,084 million at 31 December 2009.

Coface stated that the outlook for the end of 2010 is positive and expects ongoing commercial acceleration, reduction in claims expenses and the control of general expenses.

While it revised its forecast for 2010 global growth upwards from 3.7% to 3.9% it downgraded its growth forecast for 2011 by 0.1% to 3.4%.

Xavier Denecker, managing director of Coface in the UK and Ireland, commented: "The current low level of notifications of possible claims shows that companies have been resilient to the most severe crisis since the war, owing to strict cost control and the use of risk mitigating facilities such as Credit Insurance and Receivables Finance. As the current crisis in Ireland shows, structural issues remain and cautious credit management, supported by specialists in ratings, insurance and financing, remains on top of the agenda."

Jérôme Cazes, chief executive officer of Coface, added: "The setting up in the first quarter of 2011 of Coface's new worldwide organisation (new offer, ACCESS programme of consolidated resources in a single team, and the simultaneous monitoring of risks and premiums) should increase our customers' satisfaction, our risk control and gains in productivity."