Page 19 - Continental Reinsurance 2022 Annual Report

2022 Investment Performance Review and Report 17

3.0 INVESTMENT PORTFOLIO

Group Portfolio

Investment Value Actual Actual Budget Movemen Return 2022 Annual Annusalised Yield
Asset Asset Asset t in Assets 31-Dec-21
Investment Asset 31-Dec-22 31-Dec-21 2022 allocation allocation allocation 31-Dec-22 YOY Budget 31-Dec-22 31-Dec-21 2022
2022 Dec 2021 YTD Actual Actual Growth
Actual A/Actual A/ 'Budget A/Budget Achieved Actual Actual Budget

=N=Millions =N=Millions =N=Millions % % % % =N=Millions=N=Millions % =N=Millions % % % %
22.83% 29.92% 25.06% 67% 4.27% 5.41% 5.05%
Cash & Cash Equivalent 12,969 13,379 16,328 -3.06% 563 785 -28.3% 841 4.82% 0.04% 2.99%
Statutory Deposit 1,000 1,000 1,000 1.76% 2.24% 1.53% 161% 17.27% 4.42% 1.60%
Equity 796 740 803 1.40% 1.65% 1.23% 0.00% 48 0 13449.6% 30 624% 6.80% 9.12% 4.70%
Investment Property 5,104 4,925 4,720 8.99% 11.01% 7.25% 154% 10.52% 10.12% 9.88%
Mutual Funds 4,597 4,475 5,088 8.09% 10.01% 7.81% 7.62% 133 35 279.7% 21 112% 11.26% 10.58% 13.48%
Sovereign Bonds - Local 9,606 7,857 22,802 16.91% 17.57% 35.00% 10.17% 6.78% 7.73%
Sovereign Eurobond 30.92% 18.79% 17.44% 3.63% 341 453 -24.7% 222 45% 10.35% 15.28% 12.20%
Corporate Bonds - Local 17,565 8,402 11,359 0.51% 0.65% 0.34% 202% 7.92% 9.43% 7.94%
Corporate Bonds - Eurobond 292 292 222 4.66% 5.29% 2.71% 2.74% 477 420 13.5% 425 111% 5.56% 4.71% 7.39%
Treasury Bills 3.92% 2.87% 1.63% 121% 8.45% 7.58% 8.84%
Total 2,644 2,364 1,763 100% 100% 100% 22.26% 983 584 68.3% 2,195 132%
2,227 1,284 1,061 90.05%
56,801 44,718 65,147 109.06% 1,320 456 189.3% 655

-0.04% 30 31 -3.8% 27

11.84% 198 187 6.0% 164

73.45% 98 38 156.2% 74

27.02% 4,191 2,990 40.15% 4,654

Table 1 Fixed income assets: 87.42% (Dec 2021:84.16%)
Note: Mutual fund is 100% Federal Government bonds and Term deposits for Nairobi and 100% Quoted equities for Nigeria.

Company Portfolio

Investment Value Actual Actual Budget Return Annual Annusalised Yield
Asset Asset 31-Dec-22 31-Dec-21 YOY
Investment Asset 31-Dec-22 31-Dec-21 2022 Asset alloca on alloca on Assets YTD 2022 Budget 31-Dec-22 31-Dec-21 2022
Dec 2021 Growth
Actual Actual A/Budget alloca on Actual Actual Growth A/Budget Achieved Actual Actual Budget
%
=N=Million =N=Million =N=Million 2022 % % =N=Million =N=Million % =N=Million %% % %
32.8%
% 4% 32.01% 10% 373 516
2.91% 0% 48 0
Cash & Cash Equivalent 8,184 7,442 11,016 26.6% 3.26% 2.33% 8% -28% 556 67.08% 4.77% 6.17% 5.04%
8% 5.28% 1% 133 35
Statutory Deposit 1,000 1,000 1,000 3% 2% 1.11% 50 110 13450% 30 161.19% 4.82% 0.04% 2.99%
36.70% -42% 00
Equity 796 740 803 2.59% 17.9% 16.03% 40% 280% 21 624.33% 16.66% 4.72% 2.65%
23.1% 0.59% 110% 528 216 -54% 95
Investment Property 1,850 1,826 1,816 6% 2.71% 932 373 52.55% 2.72% 5.51% 5.25%
0.9% 0.00% 0%
Mutual Funds 243 417 382 1% 6.7% 0.32% 14% 24 30 0% 0 0.00% 0.00% 0.00% 0.00%
0.0% 100% 129 122 144% 1,136
FGN Bonds 5,706 4,065 12,630 18.6% 0.9% 0% 46.45% 10.80% 8.87% 8.99%
100% 0% 00
FGN Eurobond 11,000 5,232 5,517 35.8% 35.72% 10 15 150% 408 228.48% 11.48% 8.60% 7.39%
2,226 1,417 -20% 26
Corporate Bonds - Local 204 204 204 0.7% 91.59% 11.67% 19.50% 12.75%

Corporate Bonds - Eurobond 1,735 1,528 933 5.6% 6% 98 131.37% 7.93% 8.86% 10.56%
0% 0
State Bonds 0 0 0 0.0% -33% 9 0.00% 0.00% 0.00% 0.00%

Treasury Bills 37 206 111 0.1% 108.99% 8.35% 14.80% 8.41%

Total 30,754 22,660 34,412 100% 57.15% 2,379 93.56% 8.68% 7.11% 6.91%

Table 2 Fixed income assets: 87.4% (2021:82.4%). Note: Mutual fund is 100% Quoted equities for Nigeria and under sale.

4.0 COMMENTARY securities at 5.17% (Dec 2021: 5.94%). We
reallocated a significant portion of cash to fixed
PORTFOLIO SIZE income during the year to optimise returns,
As of 31st December 2022, our group investment laddered the portfolio and pushed for collections
portfolio grew by N12.08 billion (USD 26.18 to mitigate the liquidity gap.
million, at NGN461.5/USD), being a 27.02%
growth to N56.80 billion (USD 123.08 million) Based on the system exchange rate obtained from
N44.72 billion (USD108.74 million) as of 31st Xe.com, Naira depreciated against United States
December 2021. This is attributed to some dollars by 12.22% from NGN411.24/USD as of
positive net inflows from operations, investment 31st December 2021 to NGN461.5/USD as of
income and FX gains. 31st December 2022. The currency however
marginally strengthened against Kenya Shilling
The portfolio is adequately diversified comprising and Botswana Pula but weakened against
different asset classes in various territories, XAF/XOF. Specifically, Naira appreciated against
different maturity profiles, different KES and BWP by 0.34% and 0.61% respectively
counterparties, and different currencies across the but depreciated against XOF/XAF and TND by
group. 2.32% and 0.51% respectively. All these
currencies depreciated against the USD as of the
The Group portfolio comprises substantially low- reporting date. The portfolio growth of 27.02%
risk liquid assets of 87.42% (Dec 2021: 84.16%). when adjusted for FX impact, will be 23.03%
These assets are placement with banks at 22.83% growth, i.e., 3.99% FX gain impact as seen in
(Dec 2021: 30.07%), government securities at Table 3.
59.42% (Dec 2021: 48.30%) and corporate