Page 21 - Continental Reinsurance 2022 Annual Report

2022 Investment Performance 19
Review and Report

Units of NGN to other currencies Currency exchange rate to USD
Currency
Exchange rate 31-Dec-22 31-Dec-21 31-Dec-20 Movement NGN 31-Dec-22 31-Dec-21 31-Dec-20 Movement
411.24 380.47 12.22% CFA 461.50 411.24 380.47 12.222%
USD 461.50 TND 635.41 579.34 533.50 9.678%
1.00 1.00 0.00% BWP 3.22 2.88 2.67 11.651%
NGN 1.00 0.7098 0.7132 2.32% KES 13.25 11.73 10.79 12.907%
142.75 142.76 0.51% GHS 127.41 113.14 109.16 12.607%
CFA 0.7263 -0.34% GBP 10.32 6.15 5.88 67.877%
3.63 3.49 -0.61% 0.86 0.74 0.73 15.632%
TND 143.49 35.05 35.26 -33.15%
66.88 64.68 -2.95%
KES 3.62 555.07 518.56

BWP 34.84

GHS 44.71

GBP 538.70

The table below shows the currency mix of the group portfolio with a 49.71% USD holding.

Currencies =N= USD KES CFA GBP TND EUR GHS Total
% to total asset at 31 Dec 2022 19.56% 49.71% 14.22% 12.43% 0.28% 2.80% 0.30% 0.16% 100.00%
% to total asset at 31 Dec 2021 19.86% 44.40% 16.17% 14.51% 0.39% 1.79% 0.00% 0.36% 100.00%

Portfolio size by company
The table below shows the portfolio by company and the year-to-date growth.

Company 31-Dec-22 31-Dec-21 FX Impact Gross % Ex-FX % Group portfolio size
Change Change
C Re Plc N'million N'million N'million 6% 54% C Re Plc
C Re Gaborone 30,754 22,660 1,704.70 35.72% 28.20% 12% C Re Nairobi
C Re Nairobi 3,511 2,959 18.67% 19.39% C Re Douala
C Re Douala 15,766 12,757 -21.44 23.59% 24.01% 28% C Re Gaborone
Group 6,769 6,342 -54.12 6.72% 4.30%
56,801 44,718 153.42 27.02% 23.03%
1,782.55

Table 3 (1.41% FX loss impact)

The portfolio of the companies in the group experienced growth during the year. The main growth came from investment income
and premium collections led by C Re Plc in relative terms. We had significant lump sum operating expenses payments at the start
of the year which were amortised during the year such as Lagos NAICOM regulatory levies in Q12022 N349m, group bonus
totalling N541m, other hefty payments in Q122 included some upfront payments, claims, taxes/levies, and retrocession MDPs
and Q42021 returns. All these obligations were paid from current collections.

Portfolio Performance
For the year ended 31st December 2022, we achieved 90% of the annual budget of N4.65 billion (2021 budget: N2.767 billion);
the same period the prior year ended 31st December 2021 was 108%. Income from bonds and cash contributed 88.7% of the
investment performance.

Group investment return was N4.2 billion which represents yield on average assets of 8.45% (2021: 7.58%) compared to budget
yield of 8.84%. Year on year, investment return grew by 40.15% and lagged the annual budget by 10%. The major reason for the
lag is less than expected growth in investment assets from collections. Our investment income budget assumed significant
collections during the year to grow the portfolio, however, the growth did not materialise as collections lagged.

At an individual company level, all the companies in the group except CIMA have year-on-year income growth. CRe Plc, Lagos, C
Re Ltd Nairobi and C Re Ltd Gaborone experienced year-on-year income growth of 57.13%, 38.97% and 39.05% respectively in
naira terms. CIMA experienced year on year decline of -7.43%, which is partly attributable to a decline in portfolio following
payments of various obligations (retro premiums, claims) exacerbated by low collections.

The tables below show the comparative figures for returns year on year and the budget for the period:

Performance for the period Actual YTD YOY Yield on 2022 Budget peformance Contri- % Contribution
31-Dec-21 Asset Income Investment Return YTD Budget Annual bution to return
Companies 31-Dec-22 31-12-21
Income Assets Income Assets Achieved Budget
C Re Plc Asset Growth Growth 31-12-22 31-12-21 Budget to 2022
Gaborone Budget 31-12-22 31-12-21
Nairobi
Douala N'million N'million N'million N'million N'million % % % % N'million % % %% %
Group
2,226 30,754 1,417 22,660 22,660 35.72% 57.13% 8.68% 7.10% 2,379 94% 94% 51% 53% 47%

220 3,511 158 2,959 2,959 18.67% 39.05% 7.83% 6.37% 165 133% 133% 4% 5% 5%

1,302 15,766 937 12,757 12,757 23.59% 38.97% 9.11% 8.47% 1,702 76% 76% 37% 31% 31%

443 6,769 479 6,342 6,342 6.72% -7.43% 7.34% 7.45% 408 109% 109% 9% 11% 16%

4,191 56,801 2,990 44,718 44,718 27.02% 40.15% 8.47% 7.58% 4,654 90% 90% 100% 100% 100%

Table 4