Coface insurance revenues up 3.2%

French credit insurer Coface’s insurance revenues increased 3.2% to €930m in the first nine months of 2010 from €901m in the same period last year.

Insurance operating profit for the first nine months of the year was €43m, compared with an operating loss of €287m in the same period of 2009.

The company was hit by heavy claims in 2009, but the claims situation has been improving throughout 2010. Its loss ratio for the first nine months of 2010 fell 51 points to 58% from 109% in the same period of last year.

However, Coface made a smaller profit in Q3 than Q2 – €13m compared with €16m.

“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,” said Coface UK and Ireland managing director Xavier Denecker in a statement. “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."

Overall turnover, which includes Coface’s insurance, factoring and services income, increased 1.9% to €1.21bn in the first nine months of 2010 from €1.19bn in the same period of 2009. Operating profit was €89m compared with a loss of €240m, while net profit was €60m compared with a loss of €166m.