Page 141 - Continental Reinsurance 2022 Annual Report

Notes to the Consolidated and separate financial statement - continued 139

For the year ended 31 December 2022

(b) Sensitivity analysis - Market price risk (continued)
A 1% movement in market prices will result in an unrealised gain or loss for the Group of =N=10.72 million and Company =N=10.534
million (December 2021: Group =N=11.89 million, Company =N=11.686)

Management monitors movements of nancial assets and equity price risk movements on a monthly basis by assessing the expected changes
in the different portfolios due to parallel movements of a 1% increase or decrease in the Nigeria All share index with all other variables held
constant and all the Group's equity instruments in that particular index moving proportionally.

(c) Sensitivity analysis - foreign currency risk

Foreign currency risk is the risk that the fair value of a nancial instrument will uctuate due to changes in foreign exchange rates.

The Group carries out an asset liability matching exercise to ensure an adequate currency match between assets and liability so that any net
movement in currency is minimal on the nancial statements.

A 1% movement in foreign exchange rate in USD against the Naira will result in =N=526.9 million gain or loss for the Group and Company
of =N=203.6 million (2021: Group =N=478.83m and Company =N=200.8m). In Euro, Group =N=4.96 million and Company =N=2.48
million (2021: Group =N=4.38 million and Company =N=1.81 million). And in other currencies, Group =N=364.31 million and Company
=N=136.27 million (2021: Group =N=241.13 million and Company =N= 41.91 million).

In addition, the Group's retrocession programme is denominated in US dollars and provides a stable hard currency platform to hedge against
the uctuations of the various African currencies. The following table analyses the group's exposure to foreign currency risk:

Group Naira USD Euro CFA Others Total
At 31 December 2022 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000
Assets
Cash and cash equivalents 2,209,911 8,613,311 662,996 2,500,475 3,498,521 17,485,215
Reinsurance receivables 13,271,519 9,474,544 654,643 5,074,647 17,866,151 46,341,505
Investment securities 20,896,611 2,702,735 37,249,855
Loans and other receivables 6,101,757 - 7,548,752
Other assets 105,309 - - 64,746 237,610 407,665
Retrocession assets 106,454 - - 98,642 567,923 773,019
- 26,952,004 - - 26,952,004
Liabilities 65,936,470 1,317,639 - 129,209,262
Other liabilities 21,794,949 10,441,245 29,718,958
- - 2,863,201
Net foreign currency exposure 1,333,317 - - 165,343 1,364,541 2,863,201
1,333,317 65,936,470 1,317,639 165,343 1,364,541 126,346,061
20,461,632 10,275,902 28,354,417

31 December 2021 Naira USD Euro CFA Others Total
Assets =N='000 =N='000 =N='000 =N='000 =N='000 =N='000
Cash and cash equivalents 3,420,395 7,675,331 2,779,661 2,269,128 16,239,810
Reinsurance receivables 7,981,420 5,786,648 95,296 2,838,766 14,383,611 31,333,426
Investment securities 4,609,674 12,050,102 342,982 1,410,043 7,350,823 25,420,643
Loans and other receivables
Other assets 124,481 - - 56,343 83,908 264,732
Retrocession assets 42,321 - - 112,321 41,906 196,548
- 16,046,933 - 16,046,933
Liabilities 41,559,014 - - - 89,502,092
Other liabilities 16,178,290 438,278 7,197,134 24,129,375
- 1,323,252
Net foreign currency exposure 1,323,252 - - - - 1,323,252
1,323,252 41,559,014 - - - 88,178,840
14,855,038 438,278 7,197,134 24,129,375

Company Naira USD Euro CFA Others Total
At 31 December 2022 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000
Assets
Cash and cash equivalents 2,209,911 6,144,551 662,996 549,064 1,875,675 11,442,197
Reinsurance receivables 12,502,156 1,764,543 65,431 - 4,901,956 19,234,086
Investment securities 12,195,747 - 18,835,399
Loans and other receivables 6,101,757 - 334,123 203,773
Other assets 244,574 - - - 99,896 344,470
Retrocession assets - - - 63,531 2,283,063
2,219,532 5,944,876 - - 5,944,876
Liabilities - 26,049,717 728,427 58,084,091
Other liabilities 883,187 7,144,831
23,277,929 - - 1,718,486
Net foreign currency exposure - - - 453,432 1,718,486
1,265,054 26,049,717 728,427 - 453,432 56,365,605
1,265,054 883,187 6,691,399
22,012,875