After seven months’ hiatus, share trading of the troubled Everest Insurance Company (EIC) resumed at the stock exchange from today.
The company’s 1,000 units of shares were traded in a single transaction at Rs 215 per unit at the Nepal Stock Exchange (Nepse) today. Nepse had suspended share trading of the non-life insurer since October 11, 2013, following its management takeover by Insurance Board (IB). The shares were traded at Rs 211 per unit on October 10, 2013.
“We’ve received numerous inquiries from investors about EIC shares due to ongoing boom in the insurance prices,” informed Narendra Raj Sijapati, president of Stock Brokers Association of Nepal. “At Rs 215 per unit, EIC is one of the cheapest insurance stocks in the market, so we can expect to see large number of transactions in the future.”
Back in October, the IB had suspended the company’s board members, former chairman and then CEO of the company for not running the business properly and flouting insurance regulators. IB took control of the company’s management by deploying its own team. The company had run into troubles with the regulator from mid-2012.
Moreover, since the beginning of this fiscal year, the company’s staff began protesting against its board and management alleging their unwillingness to operate the business and using the excuse of non-renewal of licence to shut it down. EIC had even stopped publishing its quarterly financials from the fourth quarter of last fiscal year.
After taking the reins of the company, the IB drafted team conducted a special general meeting on February 13 and elected a governing board.
The company earned Rs 37.6 million as net profit during the third quarter of current fiscal. EIC had recorded loss of Rs 13.29 million during third quarter of last fiscal. However, last year’s troubles at the company affected number of its issued policies and premiums. The amount of premiums collected till third quarter stand at Rs 83.8 million, against Rs 301.5 million a year ago. Similarly, number of outstanding policies issued stand at 2,569 — three times less than the number issued a year ago.
There are 1.02 million units of EIC shares listed at stock exchange.
source:the himalayan times,5 may 2014
LINK
The company’s 1,000 units of shares were traded in a single transaction at Rs 215 per unit at the Nepal Stock Exchange (Nepse) today. Nepse had suspended share trading of the non-life insurer since October 11, 2013, following its management takeover by Insurance Board (IB). The shares were traded at Rs 211 per unit on October 10, 2013.
“We’ve received numerous inquiries from investors about EIC shares due to ongoing boom in the insurance prices,” informed Narendra Raj Sijapati, president of Stock Brokers Association of Nepal. “At Rs 215 per unit, EIC is one of the cheapest insurance stocks in the market, so we can expect to see large number of transactions in the future.”
Back in October, the IB had suspended the company’s board members, former chairman and then CEO of the company for not running the business properly and flouting insurance regulators. IB took control of the company’s management by deploying its own team. The company had run into troubles with the regulator from mid-2012.
Moreover, since the beginning of this fiscal year, the company’s staff began protesting against its board and management alleging their unwillingness to operate the business and using the excuse of non-renewal of licence to shut it down. EIC had even stopped publishing its quarterly financials from the fourth quarter of last fiscal year.
After taking the reins of the company, the IB drafted team conducted a special general meeting on February 13 and elected a governing board.
The company earned Rs 37.6 million as net profit during the third quarter of current fiscal. EIC had recorded loss of Rs 13.29 million during third quarter of last fiscal. However, last year’s troubles at the company affected number of its issued policies and premiums. The amount of premiums collected till third quarter stand at Rs 83.8 million, against Rs 301.5 million a year ago. Similarly, number of outstanding policies issued stand at 2,569 — three times less than the number issued a year ago.
There are 1.02 million units of EIC shares listed at stock exchange.
source:the himalayan times,5 may 2014
LINK
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