Page 25 - Continental Reinsurance 2022 Annual Report

2022 Investment Performance 23
Review and Report

Top 10 Counters (79.73% of the quoted equities):

Counters that make up 76.84% of our quoted equities Counters that make up 76.84% of our quoted equities

Amount Amount Movement % 3.25% 0.00%
(N'million) (N'million) to date 31
S/No Counters (%) December
31 31 2022
1 December December 5.52%
2 4.44%
3 2022 2021
4 5.99%
5 Guaranty Trust Bank Plc 35 39 -12% 20.04% 20.04% 1. Guarantee Trust Bank Plc.
6 First Bank Of Nig Plc 2. First Bank of Nigeria Plc.
7 Updc Reit 27 28 -4% 15.34% 3. Updc Reit
8 Oando Plc 4. Oando Plc.
9 Fidelity Bank Plc 15 22 -32% 8.65% 5. Fidelity Bank Plc.
Zenith Bank Plc 6. Zenith Bank Plc.
Skye Shelter Fund 10 11 -11% 5.73% 7.87% 7. Skye Shelter Fund
Nahco 8. Nahco
Unilever Nig Plc 14 8 71% 7.87% 5.73% 15.34% 9. Unilever Nigeria Plc.
Total 8.65% 10. Unic Insurance
10 11 -5% 5.99%

8 7 13% 4.44%

10 5 105% 5.52%

6 7 -20% 3.25%

133 144 -7% 76.84%

Securities Held to Maturity (HTM)/ Fixed Income Securities: This constitutes 64.59% (2021: 48.46%) of the portfolio and it
contributed 74.12% of the group investment performance at an average annual yield of 10.05% (2021: 8.82%) compared with
the budget yield of 10.61%. The income from this class of asset is mainly interest/coupon income that provides steady cash flows.
It comprises corporate bonds and government securities denominated in local currencies (42%) and United States Dollars (58%).
The top holdings for CRe Plc constituted 60.01% of the total Plc fund and 44.68% of the total group fund and as below:

Company Fixed income assets exposure Company Fixed income assets exposure

Issuers Amounts % to Bond % to Total Issuers Amounts % to Bond % to Total
(NGN'Millions) Portfolio Portfolio (NGN'Millions) Portfolio Portfolio
Federal Govt Of Nigeria
Federal Govt Of Ghana 13,740.44 73.55% 44.68% Federal Govt Of Nigeria 14,103.12 38.44% 24.83%
Ecobank Nigeria 3,002.44 16.07% 9.76% Federal Government of Kenya 14,043.52 38.28% 24.72%
Fidelity Bank Plc 812.09 2.64% Federal Govt Of Ghana
Access Bank Plc 198.49 4.35% 0.65% Federal Government of Cameroun 3,306.23 9.01% 5.82%
First Bank Of Nig Plc 491.09 1.06% 1.60% Ecobank Nigeria 2,299.28 6.27% 4.05%
MTN 233.03 2.63% 0.76% First Bank Of Nig Plc 1,270.79 3.46% 2.24%
Total bond portfolio 203.99 1.25% 0.66% Access Bank Plc 1.86% 1.20%
Total company invest porfolio 1.09% MTN 684.06 1.34% 0.86%
Total group invest portfolio 18,681.56 100.00% 60.74% Fidelity Bank Plc 491.09 0.56% 0.36%
30,754.27 60.74% First National Bank Botswana 203.99 0.54% 0.35%
56,800.60 32.89% Stanbic Bank Botswana 198.49 0.19% 0.12%
Total 0.05% 0.03%
Total Group Fund 70.30 100.00% 64.59%
17.67 64.59%
36,688.54
56,800.60

Ghana Exposure
Our group exposure to Ghana bonds as of 31st December 2022 was N3.3 billion (USD 7.19 million). This represents 9.01% of the
fixed income portfolio of N36.69 billion and 5.82% of the group portfolio of N56.8 billion naira.

Ghana's credit rating was downgraded in 2022 from B+ to C by the Fitch Rating Agency leading to the significant increase in the
credit risk of Ghana Eurobonds. The downgrade reflects the deterioration of Ghana's public finance, which has contributed to a
lack of access to the capital market to raise funds, in turn leading to a significant decline in external liquidity.

The government has requested support from the IMF, but the government's high-interest costs and structurally low revenue as a
percentage of GDP have increased the likelihood that IMF support would necessitate some form of debt restructuring. Ghana's
debt to GDP has risen by 8.68% in 2022 to 90.74% from 82.12% in 2021 and that make it difficult to continue to service its debt.
In December 2022, the Ghanaian authority announced a restructuring program for it local debt and subsequently announced the
suspension of payment of interest on her foreign debts, including Eurobonds.

We are watching the space for updates and development.

Investment Property and Head Office: This alternative asset class provides the benefit of diversification to the entire portfolio. It
is uncorrelated with equity and fixed income yet provides two classes of income: rental income and fair value gains.