Page 142 - Continental Reinsurance 2022 Annual Report

140 Notes to the Consolidated and separate financial statement - continued

For the year ended 31 December 2022

Company Naira USD Euro CFA Others Total
31 December 2021 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000
Assets
Cash and cash equivalents 3,420,395 5,184,396 95,296 - 766,704 9,466,791
Reinsurance receivables 7,981,420 1,445,954 85,342 - 2,766,392 12,279,107
Investment securities 4,609,674 7,187,929 - 12,404,227
Loans and other receivables - - 606,624
Other assets 124,481 - - - 50,844 175,325
Retrocession assets 2,851,228 - - - - 2,851,228
6,261,679 - - - 6,261,679
Liabilities - 20,079,958 180,638 43,438,357
Other liabilities 18,987,197 - 4,190,564
- - - 1,605,133
Net foreign currency exposure 1,605,133 - - - - 1,605,133
1,605,133 20,079,958 180,638 - 41,833,224
17,382,064 4,190,564

43.2.2 Credit Risk
Credit Risk is the risk that a party to a nancial instrument will fail to honor its obligations and cause the Group to incur a nancial loss. Credit risk
arises mainly from 3 sources: retrocession, reinsurance receivables and cash and investment securities.

On retrocession, the Group mitigates credit risk by applying minimum security standards for all its retrocession programmes in terms of the credit
rating of the retrocessionaires, and the proportion ceded to each retrocessionaire. The Group has a diverse panel of retrocessionaires to avoid
concentration risk. The credit rating prole of our retrocessionaires by product is shown below:

Credit Rating Fire and Marine and Motor, Energy
Engineering Aviation Accident and
A++ Liability 0%
A+ 0% 26%
A 24% 0% 0% 58%
A- 55% 17%
BBB+ 26% 3%
BBB- 9% 0%
B++ 7% 58% 10% 0%
B+ 3% 0%
Total 1% 17% 50% 0%
2% 100%
100% 0% 33%

0% 0%

0% 0%

0% 5%

100% 100%

The overdue premiums are considered by the Group on case by case basis. If an overdue premium is recognised by the Group as uncollectible, a
notication is sent to the cedants(ceding companies) and the reinsurance agreement is assigned for monitoring from the date of notication. The
uncollectible portion of the premium receivable are considered as impaired and charged through the prot or loss and comprehensive income

On insurance receivables, the Group has a credit control policy which is enforced by a credit control unit and which forms part of the underwriting

process. In addition, the Group re-assesses its insurance receivables on a regular basis and makes adequate provisions based on ageing and credit

quality. The table below shows the ageing of receivables: Maximum exposure
Maximum exposure to credit risk before collateral held or other credit
enhancements: Group Group Company Company
Cash and cash equivalents 2022 2021 2022 2021
Reinsurance receivables =N='000 =N='000
Loans and other receivables =N='000 16,239,808 11,246,049 =N='000
Debt securities 17,335,926 31,333,426 19,234,086 9,466,791
Total assets bearing credit risk 46,341,505 264,732 344,470 12,279,107
13,779,822 8,681,161
407,665 61,617,788 39,505,766 175,325
21,496,522 5,564,847
85,581,618 27,486,070

Credit quality of nancial assets per asset class-Group Cash and cash Reinsurance Loans and Debt securities
equivalents receivables other =N='000
At 31 December 2022 =N='000 36,176,597
Neither past due nor impaired 17,335,926 =N='000 receivables -
Past due but not impaired - 24,755,752 =N='000 985,063
Impaired - 14,987,259 407,664 37,161,659
Gross 17,335,926 - (985,063)
Impairment allowance - collective - 1,068,943 373,991 36,176,597
Net 17,335,926 40,811,954 781,655
(1,406,504) (373,991)
31 December 2021 39,405,450 407,664
Neither past due nor impaired
Past due but not impaired 16,239,808 17,600,099 264,732 24,252,080
Impaired - - - -
Gross - -
Impairment allowance - collective 1,074,664 373,991
Net 16,239,808 18,674,763 638,723 24,252,080
- (1,074,664) (373,991) -
17,600,099 264,732
16,239,808 24,252,080