COFACE RAISES FINANCIAL TARGETS AND STRENGTHENS UNDERWRITING

Trade credit insurer Coface has launched its 2023 strategic plan, raising all its financial targets. It will now target a combined ratio of around 80% over the next three years, a three point improvement on its previous strategy, and will aim for an average return on tangible equity of 9.5%. The higher targets are despite the expected decline in the investment portfolio return due to low interest rates. The new strategy will also see Coface strengthen risk management and underwriting discipline as the trade credit insurer anticipates a slowdown in global growth and trade. However, Coface says it has chosen not to change its risk appetite.