Northern Islami Insurance shares surge nearly 10% after return to “A” category
Earlier the company had been moved to the “Z” category from “A” for failing to distribute its approved dividend within the regulatory timeframe
Shares of Northern Islami Insurance PLC soared by 9.76% to close at Tk31.50 yesterday, after the Dhaka Stock Exchange (DSE) announced the company's reinstatement to the "A" category from "Z."
The sharp rise in share price followed investor optimism sparked by the firm's compliance with dividend disbursement requirements and improved regulatory status.
In a disclosure on Sunday, the DSE said Northern Islami Insurance would be reclassified into the "A" category effective from 6 October 2025, as the company had reported successful disbursement of a 10% cash dividend for the year 2024. The reclassification marks the insurer's return to the main trading category after a brief downgrade last month.
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The DSE also reminded stockbrokers and merchant bankers to refrain from offering margin loan facilities for purchasing Northern Islami Insurance shares between the first and seventh trading days following the category change, as per the Bangladesh Securities and Exchange Commission (BSEC) directive issued in December 2021.
Earlier, on 28 September, the company had been moved to the "Z" category from "A" for failing to distribute its approved dividend within the regulatory timeframe.
However, on 5 October, Northern Islami Insurance confirmed that it had completed the cash dividend distribution to shareholders, prompting the DSE to restore its previous "A" classification.
The company's board had earlier recommended a 10% cash dividend for 2024 in a meeting held on 29 April, which was later approved in the annual general meeting (AGM) on 16 August 2025.
For the year ended 31 December 2024, Northern Islami Insurance reported an earnings per share (EPS) of Tk1.81, a net asset value (NAV) per share of Tk24.80, and a net operating cash flow per share (NOCFPS) of Tk3.13. In the previous year, the EPS was Tk1.83, NAV Tk23.99, and NOCFPS Tk6.17.
As per the company's latest quarterly report, its EPS for April–June 2025 stood at Tk0.33, compared to Tk0.35 in the same period of the previous year.
For the January–June period, EPS was Tk0.98, slightly lower than Tk1.05 in 2024.
The NOCFPS declined to Tk0.49 during the first half of 2025, down from Tk3.20 a year earlier, mainly due to reduced income from net premiums and investments.
