PPS Integrated Report 2021 205 | Notes to the Consolidated Financial Statements Ageing of financial assets The following table provides information regarding the credit quality of assets which expose the Group to credit risk: Financial assets that are past due Group 2021 Neither past due nor Between 0 – 2 Between 2 – 5 More than Carrying R’m impaired months months 5 months value Insurance receivables 77 5 3 196 281 Reinsurance assets 165 – – – 165 Reinsurance receivables 351 17 33 27 428 Other receivables 601 71 2 1 675 Cash and cash equivalents 3 921 – – – 3 921 Financial assets that are past due Group 2020 Restated Neither past due nor Between 0 – 2 Between 2 – 5 More than Carrying R’m impaired months months 5 months value Insurance receivables 135 3 4 90 232 Reinsurance assets 43 – – – 43 Reinsurance receivables 164 22 3 8 197 Other receivables 464 69 2 1 536 Cash and cash equivalents 2 515 – – – 2 515 The Group does not have collateral or other credit enhancements for its credit risk exposure from financial assets and insurance contract assets during the current or prior year. Insurance receivables can be settled from the Profit-share Account on arrangement with the policyholder. Expected credit losses on Insurance receivables are determined using a provision matrix. Receivables are categorised per individual policyholder arrangement. Impairment rates applied to various categories are set out below: Category 1 Balances older than 60 days in excess of recoverable Profit-Share Account balance Category 2 Balances in excess of recoverable Profit-Share Account balance Category 3 Total balances for members aged 51 and older. Before age 51, balances in excess of recoverable Profit-Share Account balance There are no financial assets where the terms have been renegotiated for the current or prior year. Individually impaired assets The analysis of overall credit risk exposure indicates that the Group has receivables from contract holders that are impaired at the reporting date. The impaired assets are analysed below: 2021 2020 Group Impairment Impairment R'm Gross losses Net Gross losses Net Due from contract holders 295 14 281 245 13 232 Loan to associate company 433 234 199 334 234 100 Due from investment property lessees 9 3 6 10 3 7 Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in raising funds to meet commitments to policyholders under policy contracts and in respect of financial liabilities.
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