Coface refines medium term targets, shares in focus among European insurers

By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-27, 14:00.

Coface (FR0000064784) sharpened its medium term profitability and capital targets earlier this year with its 2025 strategic plan, underlining ambitions for a higher payout and a robust solvency ratio as detailed in its latest investor materials.Coface strategic and financial objectives presentation European investors follow the stock alongside peers such as Allianz and AXA, with Coface active on Euronext Paris in the financials segment.

What Coface targets for 2025

In its "Build to Lead" strategic plan running to 2025, Coface sets a target combined ratio of around 80 percent through the cycle, reflecting tighter underwriting discipline in its trade credit insurance portfolio.Coface 2024 investor day materials The group also aims for a return on tangible equity between 12 and 14 percent over the cycle, supported by risk selective growth and cost control.

The insurer complements these profitability goals with a solvency ratio ambition between 155 and 175 percent, measured under Solvency II, which it considers consistent with a strong financial strength profile.Coface annual report and solvency disclosures Management links this capital stance to a dividend payout target of at least 80 percent of earnings, subject to regulatory and rating agency constraints.

How the business model is positioned

Coface earns the majority of its revenue from trade credit insurance, where it covers corporate clients against non-payment risk on both domestic and export receivables, complemented by information services on counterparties worldwide.Coface corporate profile The group operates in more than 100 countries, with Western Europe and North America as key regions, serving exporters that also work with insurers such as Allianz Trade and Atradius.

The company’s operating model is sensitive to the economic cycle, with lower claims costs in benign periods and higher loss ratios when insolvencies rise; Coface stresses rigorous risk underwriting and frequent limit reviews to control exposure across sectors like construction, automotive and consumer goods.Coface economic research publications Its information business, including company reports and ratings, provides a recurring revenue stream that complements the more cyclical insurance earnings.

The product behind the stock

One representative offering is Coface’s trade credit insurance for exporters, which protects businesses against customer insolvency or protracted default on both domestic and international receivables. Policies typically include credit limit decisions, collection support and country risk assessments across multiple markets.

Where the stock trades today

The Coface shares (FR0000064784) trade on Euronext Paris; the latest available data from the exchange shows the stock quoted around 15 euros in recent sessions, with prices reported in euros.

This article is for information purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any securities. Investors should conduct their own research or consult a qualified financial adviser before making investment decisions.