Underwriting Operations and Financial Performance: Evidence from Non-Life Insurance Firms in Nigeria

Authors

  • Taiwo Olarinre Oluwaleye Ekiti State University
  • Sunday Stephen Ajemunigbohun Lagos State University
  • Kehinde Emmanuel Abiodun Lagos State University

DOI:

https://doi.org/10.21512/becossjournal.v5i3.10232

Keywords:

Underwriting Operations, Financial Performance, Non-Life Insurance Firms, Nigeria

Abstract

This study investigated the relationship between underwriting operations and the performance of non-life insurance firms in Nigeria. Specifically, the study examined the combined metrics of claim ratio, insurance premium, and re-insurance claims on the return on assets using the non-life insurance firms as bases in Nigeria. The study engaged data within the period of 2011-2020 extracted from the financial statements of five selected non-life insurance firms and analysis of data was conducted with a panel regression procedure. The result showed that insurance premium had a positive significant effect on return on asset, while re-insurance claim and claim ratio had positive but insignificant effect on return on asset. Therefore, this study concluded that underwriting operations contribute to the performance of non-life insurance firms in Nigeria. Hence, this study recommended that non-life insurance firms should put more effort into harnessing strategies and resources that enhances insurance premium in order to improve financial performance.

 

Dimensions

Plum Analytics

Author Biographies

Taiwo Olarinre Oluwaleye, Ekiti State University

Department of Finance (Insurance Unit), Faculty of Management Sciences

 

Sunday Stephen Ajemunigbohun, Lagos State University

Department of Insurance, Faculty of Management Sciences

Kehinde Emmanuel Abiodun, Lagos State University

Department of Insurance, Faculty of Management Sciences

 

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Published

2023-09-30

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