NICE Doubles Shareholders’ Number of Shares
Tuesday, 12 June 2012 12:19 | Written by Mansour Nouredin |
shaebia main
The National Insurance Corporation of Eritrea Share Company disclosed
that with the surplus realized the past fiscal year, shareholders would
have their number of shares doubled and receive this year’s dividend
accordingly.
The resolution to paying the dividends was passed during the 8th Annual
General Meeting and 1st Extraordinary Meeting held in Hotel Asmara
Palace on Saturday 2, 2012. The Annual General Meeting was preceded by
an Extraordinary Meeting convened pursuant to the Art. 423 and 425 of
the Transitional Commercial Code of Eritrea to discuss on agendas such
as transferring of Reserves to the share capital, determining the par
value of the ordinary shares, determining the valuation of shares and
amendment of election procedures of the Board of Directors.
Speaking during the occasion, Mr. Zeru Weldemichael, General Manager of
NICE Sh. Co, said that “despite the looming international financial
crisis ravaging especially the insurance industry in the year 2011,
NICE has shown an increment of 18% on Gross Premium Income. The total
amount which was put at Nakfa 185,899,000 has an increase of over 30
million Nakfa from the previous year-2010.”
He further noted that with the exception of marine class of business,
which has shown a slight decrease over the corresponding period, all
the remaining classes of business had performed reasonably well.
Mr. Zeru also pointed out that while the recent importation of
machinery by the Government and development of the mining sector in the
country, among others, have helped generating an encouraging revenue
compared to the previous year, the vast majority of NICE revenues have
been generated from general insurance underwriting with motor insurance
leading the others.
“The privatization of the National Insurance Corporation of Eritrea
represents the Eritrean Government’s largest privatization program to
date,”said Mr. Zeru. He further noted that the sale of up to 40% of the
equity of the Corporation offers Eritrean nationals the opportunity to
become shareholders in one of the country’s largest and most profitable
company. Currently there are 1606 Eritrean shareholders.
Mr. Zeru further underscored that the corporation has initiated a
program to help minimize loss from road accidents in the country. With
the cooperation of other stakeholders, campaigns have already begun in
Southern Region (Zoba Debub). Some of the terrible accidents happened
so far has been a result of bus owners carrying more people than their
buses’ maximum seat capacity. To mitigate further accidents the
Corporation is involved in various public awareness campaigns,
including the use of alcoholmeters by the Traffic Police. In the year
2011, NICE has paid over 50 million Nakfa for damages occurred from
major accidents including bus accidents in Menguda, Fishey Mirara and
sinking of a ship at the Red Sea.
With nearly 100 employees, the Corporation organizes various insurance
trainings including correspondences program with the Chartered
Insurance Institute of London (CII) with the objective of developing
its work force and securing professional insurance practitioners.
“The objective of NICE is to have as many qualified practitioners as
possible so as to maintain the reputation we have made in global
insurance industry,”Mr. Zeru noted.
“The opportunities being created by the corporation are remarkable,”
said Senait Ghebrehiwet, a young Finance graduate from the Halhale
College of Business and Economics. Pointing out that her desire to
engage in the insurance industry came about when her college sent her
to take part at the annual general meeting a couple of years ago.
Following her subsequent assignment at the Corporation, she is studying
various CII courses to become a Chartered Insurer. She has also been
participating in actuarial science training organized by the African
Insurance Organization and the World Bank in Ghana.
Similarly, Hanae Suleman Hassen, 23, an intern who will be graduating
this summer from the same college, said the lectures that are being
given by the general manager, who is a chartered insurer himself, were
a stroke of good luck for her as they “implanted a passion to grow up
in the industry.”
NICE Share Company tries to create conducive working environment to the
employees as well. As part of its benefits, the employees are
beneficiaries of medical insurance, life insurance, provident fund, day
care services, recognition certificates, incentives and others which
Fkremariam Yakob, a supervisor of the Fire and General Accident
Department, believed were winning the employees’ hearts and minds.
Established in 1992, NICE offers a range of life and non-life insurance
class business including motor vehicle, fire, accident, engineering,
marine, aviation and life. It also provides bonds to cover financial
obligations that may arise in connection with construction works and
other activities. It has alos Wina Medical Insurance, a medical
insurance policy that guarantees policy holders and their dependants
against hospitalization expenses arising from medical and surgical
treatment of any diseases or bodily injuries.
With its headquarters in Asmara and branches in Assab and Massawa, NICE
Share Company has 8 agents country-wide. Endeavors are being made to
open a new operation center in Tessenei in the near future.
The Corporation’s credit rating was determined to be AIO-B or “Strong”
by the AIO Credit Assessment Scheme. (The AIO Scheme is supported by
UNCTAD and Standard and Poor’s London.) NICE Sh. Co. is a member of
several African and International insurance organization and is a
shareholder in Africa Reinsurance Corporation (Africa Re), Zep Re (PTA
Reinsurance Company – a COMESA institution), and the New Sudan
Insurance Company in South Sudan.
The corporation places its re-insurance program with internationally
recognized companies with first class securities. Some of the renowned
numerous re-insurance companies include Munich Re and Swiss Re.
“Such a relation has a positive role in the distribution of risks and
make a reputed brand within the insurance industry” said Mr. Zeru.
As part of its future plans the National Insurance Corporation of
Eritrea is working on introducing Micro Insurance and Takaful (an
Islamic insurance scheme) to diversify its services.
Mr. Zeru in the end voiced concerns on around 350 shareholders who have
never claimed their dividends. He called on these shareholders to
contact the National Insurance Corporation of Eritrea Head Office in
Asmara or to fill out a form and send it there is if in the Diaspora.
The form can be easily downloaded at the corporation’s website
http://www.nice-eritrea.com.
Received on Mon Jun 25 2012 - 17:04:49 EDT
