City General Insurance share jumps 351% in 17 months amid probes

The company’s share price rose to Tk128.20 on 21 September 2026 from Tk28.40 in April 2025, gaining Tk99.80, or 351%, during the peri

The share price of City General Insurance Company has surged 351% in around 17 months, despite the insurer making no major price-sensitive disclosure that could clearly explain the sharp rally.

The company’s share price rose to Tk128.20 on 21 September 2026 from Tk28.40 in April 2025, gaining Tk99.80, or 351%, during the period.

The sharp price appreciation has drawn regulatory scrutiny, with the Bangladesh Securities and Exchange Commission (BSEC) completing an investigation into the company’s share trading and the Dhaka Stock Exchange (DSE) recently conducting a separate inquiry, according to people familiar with the matter.

The BSEC investigation has reportedly moved to the enforcement stage, a source said.

The investigation reportedly found evidence of manipulation in the trading of the company’s shares, according to the source.

The DSE also recently conducted a separate inquiry into the trading of City General Insurance and found what the source described as serious indications of manipulation.

However, neither the BSEC nor the DSE has so far issued a final decision holding any individual or institution responsible for market manipulation in the company’s shares.

As a result, the reported findings remain subject to regulatory action and any final determination by the authorities.

City General Insurance Company reported improved financial performance in the first half of 2026, although the growth in earnings has been considerably lower than the increase in its share price.

The insurer’s net profit rose 66% year-on-year to Tk18.41 crore during January-June 2026, from around Tk11.10 crore in the same period a year earlier. Its earnings per share (EPS) increased to Tk2.70 from Tk1.63.

The company’s net asset value (NAV) per share stood at Tk26.30 at the end of June 2026. At today’s (21 September) closing price of Tk128.20, the share was trading at nearly 4.9 times its NAV.

Although the company’s financial performance has improved, it has not disclosed any major business development that, on its own, would explain the more than fourfold increase in its share price since April 2025.

City General Insurance reported EPS of Tk3.40 for 2025 and declared a 10% cash dividend for the year.

City General Insurance, a second-generation non-life insurance company, was incorporated on 18 March 1996 under the Companies Act, 1994.

The insurer provides a range of general insurance products, including fire, marine cargo, marine hull, motor, engineering, overseas mediclaim and miscellaneous insurance coverage.

The company was listed on the Dhaka Stock Exchange in 2007, with trading beginning on 12 November that year. It was subsequently listed on the Chittagong Stock Exchange on 22 October 2008.

The company currently operates under the trading code CITYGENINS and is classified as an ‘A’ category company in the general insurance sector.

The company’s shareholding structure also shows a significant presence of institutional investors.

As of August 2026, sponsors and directors held 36.06% of the company’s shares, while institutional investors held 38.59%. Foreign investors held only 0.01%, while general investors held 25.34%. Combined, sponsors, directors and institutional investors held 74.65% of the company’s shares.

The insurer has also maintained a strong credit profile. Credit Rating Information and Services Ltd assigned the company an ‘AAA’ rating in July 2026, with a stable outlook.

Despite the improvement in earnings and the strong credit rating, the scale of the share-price rally has raised questions in the market.

The key issue now is whether the company’s improved financial performance and other publicly disclosed information can adequately explain the sharp increase in its share price, or whether trading-related factors played a significant role.

The ongoing BSEC enforcement process and the DSE inquiry could provide further clarity on the factors behind the unusual movement.

Until the regulatory process is completed, however, no individual, institution or investor can be held responsible for market manipulation on the basis of the investigations alone.

Source: The Business Standard