Enterprise Group Ltd., an insurer in Ghana, fell to the lowest in more than a year on speculation that the company will say bad weather increased the number of claims paid in 2011, cutting the company’s earnings.
The stock dropped 10.5 percent to 34 pesewas by the 3 p.m. in Accra, the capital, the lowest since Nov. 16, 2010.
“The company was very much exposed to rain floods that took place in Accra in October last year,” Gerard Hagan-Aggrey, a stock trader at Accra-based First Atlantic Merchant Bank Ltd., said by phone today. “The claims payments likely affected Enterprise’s earnings in the year,” he said, declining to give an estimate.
Enterprise Group’s results will be released in the next week, Emmanuel Idun, director of finance, said by phone. He declined to comment on the company’s performance.
To contact reporter on this story: Moses Dzawu in Accra at +233-302-258-797 or email@example.com.