IMPACT OF RECAPITALIZATION ON THE SUSTAINABILITY OF QUOTED INSURANCE COMPANIES IN NIGERIA

ABSTRACT

This study evaluates the effect of recapitalization on the sustainability of Quoted insurance companies in Nigeria. The study utilized the multiple regression and correlation, with the aid of SPSS version 20 in data analysis. The sample of the study comprises of twelve (12) insurance companies quoted in Nigerian Exchange Group. The findings of the study revealed there is positive relationship on earnings per share on the pre and post Recapitalization of the Nigerian insurance companies on the profitability of Nigeria economy. Its recommended that the government and regulatory authorities (National Insurance Commission) should monitor the recapitalization activities and encourage a free market economy of recapitalized insurance firms to be able to extend their operations to the highest level in the economy. The study further suggest that the government should stands as checks and balances to non-compliance of their laid down recapitalization procedure. It also recommended that recapitalization of insurance companies should be given a pride place in Nigeria economy as it remains one of viable tools for capital market growth and sustainable development. The viability of the insurance companies is much important for growth of the Nigerian capital market and sustainable development. In conclusion, the issue and impact of recapitalization is not new to the academic and business literature since the development of the modern corporation not just the insurance industry but also to other corporation like the banks too. It has accounted for the demise of major corporations worldwide in developed economies and gradually creeping into developing economies especially Nigeria.