Corporate and government debt Included in the category designated at fair value through profit or loss are interest instruments of corporate and government debt. Management recognises and accepts that losses may occur through the inability of corporate debt issuers to service their debt. To mitigate this risk, management has formulated guidelines based on ratings from Standard & Poor’s, an industry accepted credit ratings agent. The Group’s total exposure to corporate debt amounted to R22.4 billion (2021: 18.1 billion) at 31 December 2022. The following represent the major industry sectors to which the Group is exposed as at 31 December 2022: Group R'm 2022 2021 Government 10 611 12 169 Banks 5 304 4 349 Utilities 538 682 Corporate 5 983 895 Total 22 436 18 095 Concentrations of credit risk The maximum exposure to credit risk for its financial assets, including unit trusts, at the reporting date by credit rating category was as follows: Group AAA Below AAA Below A 2022 and but no lower but no lower BBB- and R'm Government than A than BBB- Below Unrated Total Debt securities* 11 627 7 428 42 291 3 048 22 436 Reinsurance assets – 118 – – – 118 Insurance receivables – – – – 311 311 Cash and cash equivalents* – 3 252 419 476 155 4 302 Other receivables – – – – 1 073 1 073 Reinsurance receivables – 253 – – – 253 * Including assets held in unit trust funds. Group AAA Below AAA Below A 2021 and but no lower but no lower BBB- and R'm Government than A than BBB- Below Unrated Total Debt securities* 11 970 5 177 219 442 287 18 095 39. Management of risks (continued) 39.3 Financial risk management (continued) 181 Notes to the Consolidated Financial Statements
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