July 5 (Lagos) - Trading in shares of following companies has been suspended by the Nigerian Stock Exchange.
Total 8 Companies are affected out of which seven are Insurance Companies.
It is a good move which will improve reputation of Insurance sector on the exchange. Insurance sector is the most punished sector on the exchange with investors losing most of their investments over the years. A lot of it is due to the fact that Insurance Companies don't give the return that they should.
1) African Alliance Insurance Plc ( AFRINSURE ) 2) Cornerstone Insurance Plc ( CORNERST ) 3) R. T. Briscoe Plc
6) Standard Alliance Insurance Plc ( STDINSURE ) 8) Veritas Kapital Assurance Plc ( VERITASKAP )
In our opinion, the Insurance sector is due for consolidation. The number of Insurance Companies operating in Nigeria is detrimental to growth of the sector.
NAICOM took a step with mandating minimum charges for GROUP LIFE Premium but did not do so for other classes of Insurance Policies.
Unless NAICOM introduces the same for other Policies expect the Insurance sector to keep suffering.
The result is out in front of everyone to see. Only few Insurance stocks trade above 50 Kobo levels such as
AIICO ,
NEM ,
MANSARD ,
CUSTODYINS .
reporting for easykobo.com on Thursday, July 5 2018 from Lagos, Nigeria