Sonali Life Insurance upgraded to 'A' category as AGM approves dividend

Sonali Life Insurance
Company Limited has been reclassified to the 'A' category from the 'Z' category
on the Dhaka Stock Exchange (DSE), effective from yesterday, following the
company's successful annual general meeting (AGM) and approval of a 10% cash dividend
for the year ended 31 December 2023.
The reclassification marks a significant
improvement in the company's compliance status, as only firms declaring at
least 10% dividend and holding timely AGMs are eligible for the 'A' category.
Following yesterday's announcement, Sonali
Life's share price rose by 3.33% to Tk77.50 at the DSE, reflecting renewed
investor confidence.
However, as per the Bangladesh Securities and Exchange Commission (BSEC)
directive, stockbrokers and merchant bankers have been instructed not to
provide margin loan facilities for trading Sonali Life shares during the first
seven sessions after the category change.
At its AGM held on Sunday through a hybrid
system, the company confirmed the dividend declaration.
The insurer reported earnings per share
(EPS) of Tk1.49, net asset value (NAV) per share of Tk35.60, and net operating
cash flow per share (NOCFPS) of Tk20.16 for 2023, compared to Tk3.94, Tk55.28,
and Tk70.49, respectively, in 2022.
Meanwhile, in the January-September period
of 2024, the life insurance fund also shrank by Tk77 crore year-on-year to
Tk791 crore.
The upgrade to the 'A' category is
expected to boost market sentiment around Sonali Life, though analysts caution
that the company must address its declining life fund and cash flows to ensure
sustainable growth.
















