ECIC IR 2023

Integrated Report 2023

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

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

Available Capital

Capacity

Investment Activities

Appetite

Underwriting Activities

Figure 20: Illustration of risk capacity and appetite The composition of the portfolio determines the size that can be supported by available capital. A key feature is the diversification of the portfolio across countries. This heat map shows how this aspect is monitored. The projected reduction in the portfolio exposure is due to anticipated pre-payment of large projects.

Political Exposure $’billion

45%

48%

51%

54%

57%

60%

63%

66%

Current

69%

72%

75% Portfolio Diversi cation by Country

2023

78%

81%

84%

0.5

0.7

1.1

1.3

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

Sum Insured (political risk

Figure 21: Political exposure Asset Liability Matching (ALM) determines the Strategic Asset Allocation (SAA) of the investment portfolio across various asset classes. The ALM modelling considers the capital required to support the market risk associated with the identified optimal portfolios. The amount of capital allocated for investment activities is limited to ensure that sufficient capital is available for underwriting activities. The relative allocation of capital between the two activities has a risk preference of 60% – 80% and 20%-40%, respectively, between underwriting and investment activities. This risk preference is applied as a risk budget allocation.

YOUR EXPORT RISK PARTNER

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