Coface has stepped up action to cut its exposure to riskier buyers as corporate defaults remain at record levels and large claims return, the French trade credit insurer said.
Net income (group share) for the first nine months of 2026 fell 11.8% to €155.5 million, including €47.7 million in the third quarter. Annualised return on average tangible equity was 10.7%, down 0.7 points.
“As Coface expects corporate defaults to continue their upward trend, we have once again significantly stepped up the number of prevention measures, while remaining committed to our clients,” said chief executive Xavier Durand.
Coface said the number of claims was almost stable, down 0.9%, but the amount provisioned rose 10.8% as large claims returned in the third quarter. Durand said corporate defaults remained at a record high, resulting in larger claims for credit insurers.
Even so, Coface’s loss ratio after reinsurance improved by 1.9 points to 37.7%, helped by reserve releases that remain stable at a high level. Its combined ratio after reinsurance rose 0.5 points to 72.4%, as a 2.4-point rise in the cost ratio to 34.7%, reflecting continued investment, outweighed the better loss ratio.
Revenue rose 1.7% at constant exchange rates and scope to €1,413.3 million. Third-quarter revenue grew 5.4%. Credit insurance revenue rose 0.9%, with client retention at 93.1% and new business at a record €105 million.
Pricing remained negative, at minus 1.3%, though Coface said this was slightly better than its historical average. Client activity, which reflects how much policyholders trade, added 2.5%.
Non-insurance businesses grew faster. Revenue from factoring, business information and debt collection rose 10.0% to €134.9 million.
Coface pointed to a difficult outlook. High energy prices, heavy investment in AI and data centres, and persistent public deficits have pushed up interest rates, putting the weakest corporate and sovereign borrowers under pressure. It cited the uneven recovery of shipping through the Strait of Hormuz, strikes on Russian refineries affecting diesel supplies, and renewed doubts about the finances of some highly indebted technology companies.
It also highlighted France’s fiscal position. Coface said France represents 14% of its revenue and 10% of its risk exposure, and French government bonds make up about 5% of its investment portfolio.
Coface has also co-opted John Gaines, executive vice president and chief actuary at Arch Mortgage Insurance in the US, to its board as a non-independent director, replacing Yves Charbonneau.
For brokers placing trade credit insurance, Coface’s comments on prevention measures are the key point. In practice, this usually means reducing or withdrawing credit limits on buyers in weaker sectors or countries. Clients should expect more limit reviews and should keep their buyer information up to date to avoid sudden reductions.
The combination of falling prices and rising large claims is also worth watching. Trade credit pricing has been softening for some time, but if large losses keep building, insurers may stop cutting rates. Clients renewing in the next few months may be negotiating close to the bottom of the market.
The growth in Coface’s non-insurance businesses also gives brokers more to offer clients. Business information, debt collection and factoring can complement a credit insurance policy, especially for clients who want better data on their buyers.
