COFACE SA launches Power the Core, its 2024-2027 strategic plan with a view to develop a global ecosystem of reference for credit risk management

COFACE SA launches Power the Core, its 2024-2027 strategic plan with a view to develop a global ecosystem of reference for credit risk management

Paris, 4 March 2024 – 18.15

• Power the Core will build upon the successes of the previous strategic plans. Coface has laid strong foundations which will support its development. It has indeed:
  • Built a best in industry risk infrastructure
  • Developed a high-performance sales organisation in key markets
  • Simplified its operating model
  • Established Business Information services (BI) foundations
  • Defined a clear Corporate Social Responsibility roadmap
  • Nurtured a strong leadership culture
    
    
• The new plan will deepen and broaden the quality of Coface’s franchise. Its targets are, in particular, to:
  
  
  • Reach data and technology excellence
  • Deepen and broaden Coface’s historical Trade Credit Insurance (TCI) franchise
  • Grow profitably Business Information services at double digit growth rate
  • Leverage its unique culture of a human-sized multinational with a strong commitment to sustainability
    
    
• Coface, again, raises its through-the-cycle financial targets:
  
  
  • An undiscounted combined ratio at ~78% through-the-cycle, a 2 ppts improvement compared to Build to Lead
  • A RoATE of 11.0% through-the-cycle, an increase of 1.5 pt at the current level of interest rate environment
  • A solvency ratio towards the upper end of the 155%-175% target range with a payout ratio of at least 80%
  • An additional contribution from Business Information services to group RoATE of 50bp starting in 2027
    
    

Xavier Durand, Coface’s Chief Executive Officer, commented:
“The numerous successes of our strategic plans Fit to Win and Build to Lead have built solid foundations for Coface. We have demonstrated that our businesses complement each other, allowing for the development of a credit risk management ecosystem of reference to increase our value proposition to our customers.
Our new plan Power the Core aims at building upon our strengths and our employees’ commitment and expertise in order to accelerate our transformation. We will in particular deliberately invest in data and technology, for our Trade Credit Insurance and our Business Information services. We will further reinforce our leadership in credit insurance while pursuing a double-digit profitable growth in information services.