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

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U

U

R

O

A

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N

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C

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E

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C

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R

Provision for claims reserve vs Total country exposure (Sum insured) (R Millions)

30 000

15

10%

10

25 000

5

4%

0%

20 000

0

-5

15 000

-10

-15

10 000

-20

-22%

5 000

-25%

-25

-28%

0

-30

2021

2022

2023

Provision for claims reserve Provision for claims reserve as % of Total country exposure (Sum insured) % movement of the Total country exposure (Sum insured) Total country exposure (Sum insured)

Figure 12: Provision for claims

The IBNR raised in the current financial amounts to 10% of the total sum insured which is an increase of 6% when comparing to the previous financial year. Despite raising this IBNR of R1.6 billion, the Corporation still has a strong solvency portion with the both the Regulatory capital cover ratio and the Economic capital cover ratio exceeding the 100% as required by the Prudential Authority. The Regulatory capital cover ratio and the Economic capital cover ratio stood at 267% and 291% respectively. The litigation action which was instituted against ECIC as disclosed in the 2022 annual financial statements, in respect of certain rejected insurance claims, has been formally withdrawn by the applicant on the matter.

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