Core Insights - Coface reported a net income of €62 million in Q2-25, a decrease from the record Q2-24, amid rising global bankruptcies above pre-COVID levels [3][6] - The company continues to grow its revenues in credit insurance and services, driven by strategic investments [4][7] - The annualized return on tangible equity (RoATE) stands at 12.6% as of June 30, 2025 [26] Financial Performance - Total revenue for H1-25 reached €936.6 million, reflecting a 1.5% increase compared to H1-24 [10][11] - Insurance revenue increased by 0.8% to €760.0 million, while other revenues rose by 4.9% to €176.6 million [6][8] - The underwriting income net of reinsurance decreased by 21.2% to €153.6 million, and investment income fell by 35.4% to €26.3 million [6][25] Operational Metrics - The net loss ratio increased to 40.1%, up 5.1 percentage points year-on-year, while the net combined ratio rose to 71.3%, up 7.9 percentage points [7][19] - Client retention improved to 94.0%, with client activity up by 1.8% [7][11] - The company made two acquisitions in information services and launched a Lloyd's syndicate to enhance its offerings [5][32] Regional Performance - Revenue growth varied by region, with Latin America showing a significant increase of 17.5% at constant FX, while Central and Eastern Europe saw a decline of 3.8% [14][18] - Western Europe reported a 2.1% increase in turnover, driven by strong sales in services and credit insurance [15] - The Asia-Pacific region experienced a 10.5% increase in turnover, benefiting from high client retention and activity rebound [18] Strategic Developments - Coface is focusing on strengthening its credit insurance business and enhancing its data strategy through new appointments and acquisitions [7][32] - The company is navigating a challenging economic environment marked by rising tariffs and increased business failures in advanced economies [28][31] - Coface's solvency ratio remains robust at 195%, well above the target range of 155%-175% [27]