The Nigerian Stock Exchange (NSE) has lifted the suspension it placed on the trading in the shares Niger Insurance Plc (NSE – NIGERINS).
In a circular to dealing members, NSE said that “the suspension placed on trading on the shares of Niger Insurance Plc was lifted today, Thursday, 10 December 2020.”
The Exchange had in a Market Bulletin dated 1 September 2020 with Reference Number: NSE/RD/LRD/MB43/20/09/01, notified dealing members of the suspension of six (6) listed companies including Niger Insurance for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange.
Niger Insurance Plc, one (1) of the six (6) listed companies that were suspended on 1 September 2020, has now filed its outstanding financial statements with The Exchange.
NSE said that in view of the Company’s submission of its outstanding financial statements, and pursuant to Rule 3.3, of the Default Filing Rules, which states that; the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided, The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.
Niger Insurance is plagued by the company’s inability to pay matured policies to policyholders.
In its latest financial statements for the nine months ended 30 September 2020, Niger Insurance Plc reported a 48% decline in gross premium written to N775.9 million from N1.5 billion recorded in the same period in 2019.
The company’s loss for the period almost doubled from minus N323.1 million in 2019 to minus N613.9 million in 2020.
The equity price of Niger Insurance Plc has remained at N0.20 per share since March 2020.
The 52 high and low prices are N0.22 and N0.20 per share respectively.
At the time of writing this report, a single unit of Niger Insurance stock has not been traded on the floor of the exchange on Thursday.
Although shareholders are willing to sell over 13 million units of the stock at the floor price of N0.20 per share, no one is willing to buy, as can be seen from the order book.
By: Ifunanya Ikueze