ECIC IR 2023

Integrated Report 2023

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commitments is considered adequate, but adverse changes in circumstances and in economic conditions is more likely to impair this capacity. 5: Speculative. “5” rating indicates that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. 6: Highly speculative. “6” rating indicates that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favourable business and economic environment. 7: High default risk. “7” rating indicates that default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favourable business or economic developments.

Below are the country rating definitions: 1: Highest credit quality. “1” rating denotes the lowest expectation of credit risk. Its assigned only in case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. 2: Very high credit quality. “2” rating denotes a very low expectation of credit risk. It indicates very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. 3: High credit quality. “3” rating denotes a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. 4: Good credit quality. “4” rating indicates that there is currently a low expectation of credit risk. The capacity for timely payment of financial

Summary of Total Sum Insured by Country – 31 March 2023

South Africa 0,76%

Tanzania 0,42%

DRC 1,48%

Other countries 1,35%

Angola 3,13% Malawi 2,50% Lesotho 1,69%

Mozambique 7,19%

Ethiopia 8,48%

Ghana 46,91%

Zimbabwe 26,10%

Other countries include: Botswana, Cote d’ Ivoire, Republic of Congo (Brazaville), Zwaziland and Zambia

Figure 5: Impact of sums insured by country

The top country exposure in the insurance portfolio is skewed substantially towards Ghana comprising 46,91% of the insurance portfolio exposure, followed by Zimbabwe and Ethiopia at 26,1% and 8,48% respectively as the top three country exposures.

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