National Insurance Corporation of Eritrea

It is a few months after the country’s independence in 1991 that National Insurance Corporation of Eritrea (NICE) started operating. As of 1992, the company, which acquired the portfolio of Ethiopian Insurance Corporation, developed a network of branches and general agents which it ran from its head office in Asmara. NICE has a monopoly over the insurance business in Eritrea where it underwrites life and non life insurance contracts.

The State, for a long time the sole shareholder, accepted in 2004 to make the company’s capital accessible to Eritreans. Today, more than 1600 individuals and companies are sharing the 40% shares made available on the market by the authorities.

These shareholders have not been disappointed as the technical results have been positive for more than a decade. Likewise, the profits have shown an upward trend. The turnover reported in 2011 is slightly above 12 million USD. With a shareholder’s equity three times as high as its turnover, NICE is now intent to extend the range of its activities to include microinsurance and takaful insurance. Undoubtedly, the company would reach its objectives thanks to its long-term corporate training policy.

Girmai Abraham	Zeru Woldemichael
Chairman	General manager/CEO

Main technical highlights: 2007-2011

in USD

	2007	2008	2009	2010	2011
Gross written premiums	9 749 388	9 450 408	10 512 018	10 392 492	12 269 334
Written premiums net of reinsurance	7 028 604	6 417 576	7 041 210	7 346 953	7 832 352
Net earned premiums	7 230 498	6 780 576	6 937 260	7 345 866	7 652 766
Net incurred losses	2 093 058	1 592 910	1 960 794	2 276 406	3 351 546
Management expenses	1 728 738	1 746 954	1 846 878	1 729 794	1 749 924
Net loss ratio1	28.9%	23.5%	28.3%	31%	43.8%
Expenses ratio	18%	18.8%	17.8%	16.9%	14.5%
Combined ratio1	46.9%	42.3%	46.1%	47.9%	58.3%
Pre-tax profit	5 041 014	4 813 050	4 558 620	4 543 339	4 378 584
Net profit	3 082 926	2 928 948	2 760 120	2 738 159	2 816 917

¹Non life insurance only in thousands USD

Gross written premiums per class of business: 2007-2011

in USD

	2007	2008	2009	2010	2011	Shares 2011	2010/11 evolution
Motor	5 289 108	4 767 576	5 196 972	5 349 828	5 753 616	46.9%	7.5%
Fire & accident	2 170 146	2 186 910	3 040 950	2 880 570	4 325 178	35.2%	50.2%
Marine	1 291 818	1 470 612	1 161 864	946 440	870 210	7.1%	-8.1%
Aviation	836 286	879 582	971 784	1 069 332	1 148 070	9.4%	7.4%
Life	162 030	145 728	140 448	146 322	172 260	1.4%	17.7%
Total	9 749 388	9 450 408	10 512 018	10 392 492	12 269 334	100%	18.1%

Breakdown per class of business in 2011

Net earned premiums per non life insurance: 2010-2011

in USD

	2010	2011	2010/11 evolution
Motor	5 274 192	5 490 606	4,1%
Incendie & accident	1 113 552	1 153 482	3,6%
Marine	397 320	378 378	-4,8%
Workmen’s compensation	560 802	630 300	12,4%
Total	7 345 866	7 652 766	4,2%

Net incurred losses per non life insurance: 2010-2011

in USD

	2010	2011	2010/11 evolution
Motor	1 633 896	2 810 346	72,0%
Fire & accident	162 096	131 274	-19,0%
Marine	238 656	366 762	53,7%
Workmen’s compensation	241 758	43 164	-82,1%
Total	2 276 406	3 351 546	47,2%

Non life net loss ratios: 2010-2011

	2010	2011	2010/11 evolution
Motor	31.0%	51.2%	65.2%
Fire & accident	14.6%	11.4%	-21.8%
Marine	60.1%	96.9%	61.4%
Workmen’s compensation	43.1%	6.8%	-84.1%
Total	31%	43.8%	41.3%

Technical ratios: 2007-2011

Fixed exchange rate as at 31/12 of the years 2007 to 2011: 1 USD = 0.066 ERN Source: http://fxtop.com