NICE Sh.Co. - ABOUT US

Highlights of NICE Sh.Co.

Other Sources of Income

In addition to premium income, NICE Sh.Co also has other sources of income. These include:

Survey Income

The Corporation charges a fee for performing inspection surveys of damaged cargo, boilers, engineering surveys and various other required inspections. Prior to the Ethiopian War, the Corporation would survey and inspect all cargo destined to Ethiopia.

Crane Rental

When the Corporation is not utilizing the Kato Crane it is hired out for a fee to those who need heavy moving equipment.

Office Rent

The Corporation rents out office premises within its offices in Asmara, Massawa and Assab. Tenants are typically small businesses who can operate their businesses without creating interference to NICE Sh.Co’s operations.

Roof Garden Restaurant

In November 2002, NICE entered into a 10-year management contract with effect from 1 January 2003 to lease the Roof Garden Restaurant, located on the 5th floor of NICE Building, Asmara for the operation of an up-market Indian and Chinese restaurant. The contract includes a fixed monthly payment and a share of revenue. The restaurant was valued at Nfa 30,022,666 as at September 2003 by GEDECC.

Shishay Feed Plant P.L.C.

In September 2000, the Corporation became a 60% shareholder in newly formed Shishay Feed Plant through a Nfa 6,000,000 investment in the agro-industry related company. The feed mill plant, the only one of its kind in the country, supplies feed to chicken and beef farmers as well as other supplemental products for farmers.

The Company operates from within the newly built Adi Seghdo industrial area in Asmara. Facilities include an administration office, equipment warehouse, a plant hall building, a canteen and changing room as well as a store under construction. The structures, totaling a covered area or 11,781 sq. m. was recently valued at Nfa 49,471,993.

The Company has been profitable from inception registering a net profit of Nfa 2,663,966 in the first full year of operation with a subsequent net profit of Nfa 2,479,239 in 2002.

While Shishay has its own personnel to operate the Company on a daily basis, NICE Sh.Co oversees management responsibilities. For this service, NICE Sh.Co receives a management fee.

As Shishay Feed Plant is in a vastly different industry than the insurance business, the Management of NICE Sh.Co decided not to consolidate the Feed Mills’ accounts with its own but rather account for the investment through dividends it receives from the Company.