Progressive Life share price surges 30% in 6 days

The share price of Progressive Life Insurance skyrocketed by 30% within six trading days without any publicly disclosed information to justify the increase.

During these trading sessions, the company's share price reached Tk50.6 on 11 March from Tk39.20 on 3 March on the Dhaka Stock Exchange (DSE). The price was Tk32.7 on 29 January.

The DSE recently sent a query to the company regarding the sharp rise in its share price. 

In response to the query, Progressive Life said there is no undisclosed price-sensitive information related to the unusual hike in its share price. 

The share price of the company closed at Tk47.90 on the Dhaka bourse today (13 March).

In July 2023, the Bangladesh Securities and Exchange Commission (BSEC) downgraded Progressive Life to the "Z" or junk category from the "A" category for its failure to hold annual general meetings (AGMs) and declare dividends for two consecutive years.

Besides, the commission also nominated five Independent directors for the company's board. They were – Brigadier General Md Zakir Hossain, an ex-chairman of the Bangladesh Textile Mills Corporation; Mohammed Farashuddin, an ex-governor of the Bangladesh Bank; Md Jamil Sharif, an associate professor of Dhaka University; Tazrina Farah, an associate professor of Dhaka University; and M Shoeb Chowdhury, chairman of The Asian Age.

In 2022, the stock market regulator formed a three-member committee to look into the financial details of Progressive Life as customers' complaints regarding the non-settlement of insurance claims by it had been piling up.

The inquiry committee reported that the preparation and disclosures of the financial statements of the company did not reflect its actual condition. They also did not comply with the different provisions of accounting standards, indicating that the company and its directors seem to have violated the related securities laws.

The inquiry committee identified huge irregularities in Progressive Life's acquisition of fixed and other assets, which were reflected in the financial statements inaccurately and disseminated its net asset value that have been misleading the investors.

Such types of non-compliance led to detrimental outcomes, such as compromised transparency, compromised integrity of decision-making processes, erosion of trust among stakeholders, and potential financial losses for the company.

Insurance Development and Regulatory Authority officials said earlier thousands of insurance policies of the company had matured but the clients did not get any money against their claims.

Since 2020, the company has not been calling any general meetings of its shareholders, and over time, its financials have been on a declining trend.