admin/ January 29, 2019/ Journal of Business and Social science/ 0 comments

SOLVENCY RISK AND FINANCIAL PERFORMANCE: EVIDENCES FROM LISTED INSURANCE FIRM IN NIGERIA

Zainab DABO, Helen Afang ANDOW ; Helen Kas JAMES
Department of Business Administration, Faculty of Social and Management Sciences,

Kaduna State University, Tafawa Balewa Way, Kaduna-Nigeria
E-mail: 1 zeemuhdabo@yahoo.com; 2 haandow@gmail.com
Corresponding Author: 3 helenkas.james@yahoo.com

Abstract

This study examineed the impact of solvency risk on performance of listed Insurance firms in Nigeria. The objective of the study is to investigate the impact of solvency risk on the performance of listed Insurance Firm in
Nigeria. The population covered 25 listed insurance firms in Nigeria and a census was used to determine the sample size of the study. Secondary data was employed for the study and data were extracted from the annual
report of listed insurance firms in Nigeria. Simple Regression Analysis was employed to determine the impact of solvency risk on performance of listed insurance firm in Nigeria. The results revealed that solvency risk has a
positive and significant influence on the performance of listed insurance firms in Nigeria. The study concluded that solvency risk has impact on financial performance in listed insurance firms in Nigeria. The study
recommended that management of insurance firms in Nigeria should lower their solvency risk by buying reinsurance contracts from reinsurers and solvency risk guidelines should be established in order to mitigate
against solvency risks for a better performance.

Keywords: Solvency, Risk, Performance, Liability, Management

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