Asset Management
Liquid Assets
The liquid assets of the Company are being invested either in bank deposits or in Government treasury bills at prevailing market rates. As the financial markets are not well developed in Eritrea relative to other markets, the investment opportunities are very limited and as such the company is unable to invest it’s funds efficiently. As a result unlike other insurance companies, investment income do not significantly contribute to the profitability of the company.
Long-term Assets
NICE Sh.Co. has shares in the following companies:
Africa Re
NICE Sh.Co., as a member of Africa Re-insurance Corporation (Africa Re), based
in Lagos, Nigeria owns 5,000 shares (approximately 1%) in Africa Re.
NICE Sh.Co. also holds 3,400 shares in Africa Re in its name on behalf of the
Eritrean Government. Therefore, the 8,400 shares are currently
valued at US$989,268.
PTA Re-insurance Corporation (Zep-Re)
NICE Sh.Co. has been a member of Zep-Re since 1996 and has a 3.8% paid up
voting power in the Corporation. It purchased 500 shares (out of 500
allocated) for US$ 341,000. The shares are currently valued at a NAV of
US$ 709.61 per share as at the end of 2002 for a total investment value of
US$ 354,804.
AIO Trust Fund
NICE Sh.Co. is a member of the African Insurance Organization (AIO) Trust
Fund, a trust established to improve the viability of small insurance
companies. The Fund is developing a computer software programme to
help small companies better manage their underwriting, claims and
administration services. The software programme is likely to come on
line by the beginning of 2004. NICE Sh.Co. is currently test running the
software as part of a pilot programme. NICE Sh.Co.’s interest in the Trust
Fund is valued at US$50,000.
COMESA Yellow Card Re-insurance Pool
NICE Sh.Co. has a contribution of $75,000 in the COMESA Yellow Card
Re-insurance Pool allowing it to participate in the Yellow Card Scheme
that covers vehicles against third party legal liability within the COMESA
Region.
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