France's Coface 9M revenue rises on non-insurance growth

Overview

• France trade credit insurer's 9M revenue rose 1.7% at constant FX and perimeter

• Net income for 9M fell 11.8% year-on-year

• Combined ratio after reinsurance at 72.4%, up slightly from prior year

Outlook

• Coface says it will continue investing in data and technology amid economic uncertainty

• Company expects service activities growth to continue outpacing insurance business

Result Drivers

• NON-INSURANCE GROWTH - Double-digit growth in non-insurance activities, especially Business Information and Debt Collection, supported revenue

• RECORD NEW BUSINESS - Record level of new business production contributed to revenue growth, per company

• HIGH CLIENT RETENTION - High client retention rate of 93.1% helped maintain revenue, though pricing was slightly negative

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Coface SA is €17.50, about 12.2% above its October 30 closing price of €15.60

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Nov 2 - Forvia quarterly revenue broadly stable despite auto market weakness

• Nov 2 - French manufacturing back in contraction in October, PMI shows

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)