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ABSTRACT
This study seeks at investigating the Firm Specific Determinants of Insurance Firms Performance in Nigeria. The study was carried on 22 Insurance Companies listed in the Nigerian Stock Exchange as at year ending December, 2020, and covered a panel data for 6 years(from 2015 to 2020). The firm specific determinants indicators are Leverage (LEV), Liquidity (LIQ), Earnings Per Share (EPS) and Firm Size (FSIZE), while Return on Assets (ROA) was used as proxy for insurance firms performance. A panel data regression model was specified and estimated using Ordinary Least Squares (OLS) technique. The empirical results revealed that Leverage (LEV) has a significant negative relationship with Insurance Firms Performance; Liquidity (LIQ) has a positive relationship with insurance firms performance; Earnings per Share (EPS) has a positive and significant effect on the performance of Insurance firms in Nigeria, and Firm Size (FSIZE) with a negative but significant relationship with insurance firms performance in Nigeria for the period investigated. Based on the critical evaluation of the findings made in this study, it was recommended that the companies should watched their capital combination with utmost care and understand their portfolio mix so as to continually maximize their profits since Leverage (LEV) has a very strong negative effect on Insurance Firms Performance in Nigeria. It was also recommended that Insurance firms should adopt optimum liquidity model for maximum return on investment, survival, stability, growth and development of the insurance sector in Nigeria, among others.
