ECIC IR 2023

Integrated Report 2023

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D

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2

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1

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E X P O R T C R E

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C

R I

D I

F

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N

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U

U

R

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A

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N

F

C

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ECIC Insurance Portfolio

ECIC’s sum insured is accounted for in both ZAR and largely in US Dollars. However, for reporting purposes, the US Dollar exposure is converted into ZAR at the relevant US Dollar/ZAR exchange rate. For historic periods, exposures were converted at the prevailing US Dollar/ZAR exchange rate as at year end (31 March) and the relevant US Dollar/ ZAR exchange rates were: – 31 March 2020 at 1 US Dollar equivalent to R17,9822 • 31 March 2021 at 1 US Dollar equivalent to R14,8369

• 31 March 2022 at 1 US Dollar equivalent to R14,4705 • 31 March 2023 at 1 US Dollar equivalent to R17,8139 The sum insured for the next 5 years are converted at forecasted US Dollar/ZAR exchange rates as follows (rates applicable for the budget plan as of July 2022): • 31 March 2024 to 31 March 2028 at 1 US Dollar equivalent to R16,00

Insurance Portfolio for Existing Book

R25 000

R20 000

R15 000

R10 000

Millions

R5 000

R ‐

Mar - 19

Mar - 20

Mar - 21

Mar - 22

Mar - 23

Mar - 24

Mar - 25

Mar - 26

Investment Insurance

Export Credit (MLT)

Figure 14: Insurance portfolio (existing book)

discussion; this contributed towards the reduction of the investment insurance in March 2023. No new investment policy was added. • The export credit insurance increased slightly as a net effect of new loans. • Short-term insurance has a lifespan of up to 12 months. The sum insured including pipeline is presented below in figure 16 which depicts ECIC expanded mandate to cover short-term transactions. Pipeline represents projects on offer of cover and projects where ECIC has made an in principle commitment:-

The ECIC insurance portfolio is made up of export credit loans, short-term (under expanded mandate), and investment (including equity and shareholder loans). The sum insured excluding any pipeline projects, is presented in figure 15 above, which reflects a sharp reduction in the insurance portfolio. The reduction in the investment insurance follows the expiry of MTN Iran and CMG Mozambique policies. The restructuring of the Infralink debt which commenced in 2018 and became effective in March 2023. The borrower started servicing debt under the new profile during the restructuring

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