Determinants of financial performance with emphases on profitability of the listed insurance companies in Nigeria

AFRAG042

Determinants of financial performance with emphases on profitability of the listed insurance companies in Nigeria Jamilu Muhammad Ibrahim

Ishaq Alhaji Samaila PhD ishaqabuhaidara@gmail.com Department of Accounting Bayero University, Kano

Abstract

This study examined the determinants of financial performance with emphases on profitability of the listed insurance companies in Nigeria. 19 out of the 26 insurance firms listed on the Nigerian Stock Exchange were used as the sample of the study. Data of the study covering a period of ten years (2009 to 2018) were collected from the Annual report and account of the selected Insurance companies and were analyzed using Descriptive Statistics, Correlation and regression analysis. The study uncovered that liquidity, investment, reinsurance dependence and retention ratio are the major determinants of financial performance of listed insurance companies in Nigeria. The study recommended that listed insurance companies should convert significant part of their cash and cash equivalent into productive assets that can improve their financial performance, increase investment in profitable sectors, give adequate attention to reinsurance facilities, view reinsurance as an important risk management mechanism and retain a good portion of their net income to grow the company.

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