ECIC AR 2024 9TH

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

Integrated Report 2024

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Financial Performance

2023 Restated

2023 Original

Reclassifi cation

in R'000

2024

Insurance revenue

499 453

448 208

241 761

206 447

Insurance service expenses

(1 586 431)

(784 715)

(1 594 152)

809 437

Net expenses from reinsurance contracts

18 499

47 882

146 064

(98 182)

Insurance service result

(1 068 479)

(288 625)

(1 206 327)

917 702

Net finance expense from reinsurance contracts issued Net finance income from reinsurance contracts held

(60 222)

(24 610)

-

(24 610)

8 691

30

-

30

Net insurance finance expenses

(51 531)

(24 580)

-

(24 580)

Net insurance results

(1 120 010)

(313 205)

(1 206 327)

893 122

IMU grant receipts

155 505

150 000

150 000

-

Other income

98

109

109

-

Loss on exchange differences

(191 384)

(550 195)

(611 631)

61 436

Operating expenses

(60 381)

(80 354)

(180 810)

100 456

Fair value movements on interest make up liability

(55 386)

(10 781)

(10 781)

-

Net investment income

671 778

277 589

277 589

-

Interest expense

(1 896)

(792)

(792)

-

Loss before taxation

(601 676)

(527 629)

(1 582 643)

1 055 014

Taxation

99 529

(285 648)

46 635

(332 283)

Loss for the year

(502 147)

(813 277)

(1 536 008)

722 731

With the implementation of IFRS 17, the loss of R1,5 billion which was originally reported in the 2023 audited AFS is now split into two financial years: • 2023 restated loss of R813 million is lower due to the recognition of salvages. Previously, the salvage receivable was limited to projects for which there is a signed salvage restructuring agreement in place and only accounted for salvages receivable in the next 12 months after year end. This therefore meant that for salvages relating to the 2023 claim payment had now been accounted for as there were no signed salvage restructuring agreement. Provision made for the claims which had not yet been paid at

year end was reduced as the IFRS 17 requires that both claim payments and salvage receipts be considered when calculating the Liability for Incurrent Claims. • Due to market movements, the salvages which were previously recognised in 2023 with restated figures were now reduced and thus resulting in the loss of R502 million reported in the 2024 financial year. The investments delivered a stellar performance by generating R672 million worth income due to a high allocation to global equities, as well as allocation to the Bloomberg 1-3 year and 3–5 year US Treasury buckets.

YOUR EXPORT RISK PARTNER

101