Page 27 - Continental Reinsurance 2022 Annual Report

2022 Investment Performance 25
Review and Report

As of 31st December 2022, Asset cover for the Non-life and Life funds were 104% (December 2021: 78%) and 103% (December
2021: 80%) respectively. The assets, however, included retrocession assets of N6.461 billion.

6.0 Alm and Currency Matching/congruence Framework
The Liabilities of the company are mainly short to medium-term in nature than long-term. As such, the company's focus is on
short-term liquidity management and currency matching to mitigate exchange rate fluctuations.

6.1 Liquidity management
The focus of liquidity is both funding of liability and the ability to timely realize assets in the market without taking significant cuts
in the prices of the assets or losing income. 87.42% of the portfolio assets are liquid assets comprising placement with banks,
Treasury Bills, corporate Eurobonds, and Federal Government bonds. 22.834% of the portfolio assets are in term deposits, which
is adequate to meet our obligations as they crystalize. The following is the liquidity profile of the assets and technical liabilities
(OCR).

Liquidity Profile of company Investment assets by month

Assets 31.00 59.00 90.00 120.00 151.00 181.00 212.00 243.00 273.00 304.00 334.00 365.00 Above Total
Currency 31.01.23 28.02.23 31.03.23 30.04.23 31.05.23 30.06.23 31.07.23 31.08.23 30.09.23 31.10.23 30.11.23 31.12.23 365
days

1 2 3 4 5 6 7 8 9 10 11 12 13

N'Million N'Million N'Million N'Million N'Million N'Million N'Million N'Million N'Million N'Million N'Million N'Million N'Million N'Million

Sovereign NGN 47 84 133 899 0 0 47 84 133 99 0 0 4,450 5,976
Sovereign USD 35 136 0 130 0 12,036 12,890
Corporate NGN 125 35 136 0 130 0 125 0 13 0 200 226
Corporate USD 00 0 1,846 1,989
Treasury Bill NGN 0 0 0 0 13 0 0 8 18 45 0 00 0
Treasury Bill GHS 00 00 0 0 39
Term deposit NGN 0 8 18 45 0 0 0 00 00 0 0 2,191
Term deposit USD 00 00 0 0 3,675
Term deposit EUR 000000 0 00 00 0 0 171
Term deposit TND 00 00 0 0 1,619
Term deposit KES 0 39 0 0 0 0 0 00 00 00 7
Term deposit GHs 00 00 0 0 57
Rental Income 1,461 0 480 100 0 0 150 00 00 00 0
Interest on statutory Deposit 00 00
Total monthly maturity 15 79 3,581 0 0 0 0 0
0 18,532 28,839
0 0 171 0 0 0 0

441 360 133 148 216 321 0

007000 0

39 17 0 0 0 0 0

000000 0

2,129 622 4,659 1,192 359 321 322 127 288 144 143

Liability monthly maturity (OCR) 572 1,199 1,913 2,175 1,954 1,078 900 1,347 1,081 1,974 1,879 917 0 16,990

Surplus/(Deficit) 1,557 -577 2,746 -982 -1,595 -757 -578 -1,220 -793 -1,830 -1,736 -917 18,532 11,849
Cumm surplus/(deficit) 1,557 980 3,726 2,743 1,148 391 -187 -1,406 -2,200 -4,030 -5,766 -6,683 11,849 2,122

Liquid Asset/OCR 31 Dec. 2022 372.04% 51.87% 243.52% 54.83% 18.38% 29.78% 35.82% 9.44% 26.60% 7.29% 7.63% 0.00% NA 169.74%
Liquid Asset/OCR 31 Dec. 2021 NA 143.12%
209% 154% 312% 21% 8% 198% 17% 9% 16% 10% 4% 0%

Table 9 Adequate and Available. All liquid assets have access and are held with reputable and low-risk counterparty
institutions.

In line with the liability monthly liquidity requirement, as depicted in Tables 9 and 11, we are adequately covered in the initial
months and will actively manage investment durations in order to spread some instruments for medium to longer secure tenures
that give superior returns. We have high liquidity, which also indicates improving collections.

Liquidity Profile of the company by quarter

Assets Currency 90 days 180 days 270 days 360 days Above Total
N'Million N'Million N'Million N'Million 360 days N'million
FG Bond NGN
FG Eurobond NGN 264 899 264 99 N'Million 5,976
Corporate Bond NGN 297 130 297 130 4,450 12,890
Corporate Bond USD
Treasury Bill NGN 0 13 0 13 12,036 226
Treasury Bill NGN 27 45 27 45 200 1,989
Term deposit NGN
Term deposit USD 0 0 0 0 1,846 0
Term deposit EUR 39 0 0 0 0 39
Term deposit TND 1,941 100 150 0 0 2,191
Term deposit kes 3,675 0 0 0 0 3,675
Term deposit GHS 171 0 0 0 0 171
Interest on statutory Deposit 934 685 0 0 0 1,619
Total quarterly maturity 0 0 0 0
7 0 0 0 0 7
57 0 0 0 0 57
1,873 737 287 0
0 0
7,410 18,532 28,839

Liability monthly maturity (OCR) 3,685 5,207 3,328 4,770 16,990

Surplus/(Deficit) 3,726 -3,334 -2,591 -4,483 18,532 11,849
Cumm surplus/(deficit) 3,726 391 -2,200 -6,683 11,849

Liquid Asset/OCR 201% 36% 22% 6% 0% 170%

Table 10 Adequate. All liquid assets have access and are held with reputable and low-risk counterparty institutions.