FINANCIAL PERFORMANCE OF INSURANCE COMPANIES IN NIGERIA

ABSTARCT

The study empirically investigates financial performance of 11 insurance companies in Nigeria for the period 2011 to 2018. The panel least square econometric technique was employed for the analysis of the data. The results from the analysis generally showed that firm size, leverage and claims settlement have significant negative relationship with financial performance of insurance companies in Nigeria. Hence, the variables are significant determinant of financial performance of insurance firms in the country within the investigating period. While insurance premium does not have any significant impact on financial performance, asset tangibility is positive and is an indispensable tool for enhancing the overall financial performance of insurance firms in Nigeria. The study recommend among others that, management should ensure that proper combination of debt-equity ratio (leverage) in the company’s capital structure is employed at the right time for the right investment. This is the only way to ensure profitable return on investment. Also, management of the Nigerian insurance firms should effectively manage their firm’s claims processes, in order to reduce the amount of claims for every earned premium and enhance the overall performance of the industry.