SIC’s investment portfolios are managed by SIC-FSL, a wholly-owned subsidiary of SIC, and an authorized investment advisor with a broker-dealer certification from the SEC. SIC-FSL provides investment advisory and asset management services to SIC, other corporate clients, and high net worth individuals.

Investment Philosophy

SIC’s investment philosophy is to adhere to the guidelines under the Insurance Law and the Company’s investment objectives.

The Structure of the Investment Portfolio

The Insurance Act, 2006 (Act 724) requires that general insurance companies invest 25% of their gross premiums written in Government bills and notes, and the remainder in securities approved by the National Insurance Commission. Investments are also structured to meet the company’s profitability objectives and solvency requirements.

SIC places emphasis on optimizing investment returns over the long term. SIC’s investment portfolio mix as of May 31, 2007 consisted largely of high quality, fixed deposits and foreign currency cash equivalent and short-term investments, as well as a significant amount of listed and unlisted equity securities.

The Company believes that prudent levels of investments within its investment portfolio are likely to enhance long term total returns without significantly increasing the risk profile of the portfolio.

The table below presents the composition of SIC’s investment portfolio as of May 31, 2007.