COFACE’S MISSION:
HELPING BUSINESSES TAKE THE RIGHT DECISIONS
COFACE
AT A GLANCE
FOR SAFER TRADE
Global Credit Insurance
underwriting
35,000 Credit
Insurance clients
4,440 employees
Rated AA - by Fitch
and A2 by Moody’s
€1.8 billion consolidated shareholders’
equity and €1.440 billion revenue in 2013
TRADE RISK EXPERT AND A WORLDWIDE LEADER IN CREDIT INSURANCE
STRONG AND LONGSTANDING PRESENCE IN
EMERGING ECONOMIES
• 1998 Brazil – 122 employees
• 1998 Peru – 97 employees
• 2001 India – 104 employees
•2
005 South Africa
- 75 employees
•2
013 China, Hong Kong,
Taiwan - 106 employees
(IN € MILLION)
1,763
1,780
Asia
Pacific
No1
Latin
America
No1
Coface position by share
of credit insurance market
STEADY SOLVENCY
UK
No3
North
America
No2
France
No2
South
Africa
No2
Germany
No2
COFACE IN 2013 – GOOD COMMERCIAL DYNAMICS
AND IMPROVEMENT IN LOSS RATIO
• Strong growth - new production up +29%
• Loyal clients - increased retention rate - up 2 points at 88%
• Financially robust - net income (group share) €127million, up +2.7%
• Effective risk management – loss ratio at 51% in 2013
2012
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EFFECTIVE UNDERWRITING
Constant review and active
scoring of 2.5 million debtors
on which Coface is ‘at risk’
Debtor Risk Assessment
assigned to each corporate with
exposure above £5 million
Information available on
65 million companies worldwide
350
risk underwriters
10,000 underwriting
decisions taken every day
1.5 days average
response time
91% of credit insurance
clients satisfied overall
Risk underwriting to meet client needs – organised into 44 underwriting centres with business-sector
specialists to reinforce autonomy, proximity and flexibility.
POLITICAL RISK COVER PROVIDING GLOBAL COVERAGE AND LOCAL EXPERTISE
Increasing economic globalisation presents companies and financial institutions with new challenges, opportunities and
uncertainties. Coface’s dedicated London based Political Risk team offers a broad range of trade credit and political risk
capability - focused on export single risk, political risks and non-standard insurance linked to underlying trade finance.
CORRELATION OF WORLD GROWTH (GDP) WITH INDUSTRIAL CONFIDENCE INDICATOR
Recession
in the US
Internet bubble
and 9/11
Securitisation crisis
and fall of Lehman
9
101.5
8
101.0
7
100.5
6
100.0
5
99.5
4
%
99.0
3
98.5
2
98.0
1
97.5
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
-1
1988
0
97.0
96.5
-2
World growth (% GDP)
Industrial confidence indicator*
*OECD and Major Six NME refers to all OECD member countries and six major non-member countries: Brazil, China, India, Indonesia, Russian Federation, South Africa
Sources : OECD, IMF, Coface.
GLOBAL COUNTRY RISK EXPERTISE
Country Risk Conferences are held around
the world bringing together economists,
policy experts, researchers and business
leaders to review major economic
trends and an outlook for the
world economy.
2014
April:
Romania, Argentina, Turkey
May:
Portugal, Spain, Germany
June:
UK - 5th (London)
Chile, Morocco
For the latest country risk and business sector analysis and Coface’s product offer visit
www.coface.com
www.cofaceuk.com www.coface.ie
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COFACE IN THE UNITED KINGDOM AND IRELAND
Manchester
Dublin
Birmingham
Watford
London
Cardiff
WHY CHOOSE COFACE?
TO BE WELL INFORMED: detailed analyses of the sector risks, geographical risks, tools that
really work for monitoring and evaluating the risk of your clients defaulting.
O TAKE THE RIGHT DECISIONS: help and guidance from experts well-versed in techniques
T
for obtaining information, underwriting risks and recovering debts.
O BE SUPPORTED: protection of your trade receivables through insured credit limits, as well
T
as dialogue and assistance from commercial staff, underwriters and credit analysts.
TO BE ABLE TO ACT AT THE RIGHT TIME: highly responsive thanks to the physical proximity
of our teams in the regions where you operate.
COFACE’S OFFER - CREDIT INSURANCE PRODUCTS TO MEET OUR CLIENTS’ REQUIREMENTS
Global Solutions
Full range of services
for multinationals
Premier Trader
Straightforward
protection at
a fixed premium
Medium
£10m - £100m
Large
>£100m
Small
<£10m
Open Trader
Whole turnover cover
Top Trader
Select cover for key customers
SPECIFIC PROTECTION
POLITICAL RISK
1 day
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within 2 days
100%
90%
80%
70%
60%
50%
40%
Jan 14
30%
74% of decisions are made within
one day.
June 13
20%
Over the year the percentage
of credit decisions made in under
2 days increased from 74% to 84% and
those turned around in under 3 days
from 79% to 90%.
Jan 13
10%
As a result of client and business partner
feedback we have focused on speeding
up the delivery of domestic credit limits
during 2013.
SINGLE BUYER
FASTER CREDIT LIMIT PROCESSING
84% of UK domestic decisions in under 2 days
0%
IMPROVED DELIVERY OF
CREDIT LIMIT DECISIONS
TOPLINER
within 3 days
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SUPPORTING OUR CLIENTS
100
CLIENT NOTIFICATIONS AND
CLAIMS MADE EASIER
90
80
In 2013 we launched the ability for clients
to input notifications and claims directly into
Cofanet - the online management tool - which
has resulted in 97% of all notifications now being
submitted on-line.
70
60
%
50
40
We have further streamlined our claims
assessment process in 2014 and clients can now
upload their claims documentation on-line and
follow the progress of their claim/recovery.
30
20
10
0
The chart (left) shows claims payment.
Qtr 3
Qtr 4
Qtr 1
2013
0-10 days
10-20 days
2014
20-30 days
30+ days
BEVERAGES SECTOR
RETAIL SECTOR
Global soft drinks manufacturers are
experiencing lower sales for carbonated
drinks in the US and Europe, partly offset
by increased demand for still drinks and
healthier sugar-free drinks.
A recent CBI survey confirms that retail sales
in UK High Streets are rising at their
fastest level since June 2012. The 2014
outlook for much of the retail sector is
optimistic. Discount non-food retailers
are reporting strong sales and although
consumers are still reluctant to spend
on expensive items, confidence is
returning but within the recovery
there will still be winners and losers.
Changing consumer tastes in the UK
have seen beer sales declining, as
consumers change to wines and
spirits. However some ‘craft’ beers
are attracting a premium price.
Coface UK and Ireland has over
£1 billion of exposure covering
over 2,000 companies in the
beverage sector both in the
UK and overseas.
Coface UK and Ireland has
in excess of £3bn of exposure
covering over 10,000
companies in the retail
sector both in the UK
and overseas.
CLIENT SATISFACTION
Coface UK and Ireland won the prestigious Institute of Credit
Management Award for Credit Insurer of the Year 2014.
The Judges’ comments were
“This company shows how even the major players can react
and adapt to customer needs, regardless of whether they
are Blue Chip or SME. A clear focus on partnerships was
evidenced in a high level of client satisfaction”.
Award presented to Managing Director, Coface UK and Ireland Frédéric Bourgeois
by Clive Colman, Awards host and Emma Caister Director of Company Watch
Coface is authorised in France by the Autorité de Contrôle Prudentiel and subject to limited regulation by the Financial Conduct Authority and the Central Bank of Ireland.
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