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

Business Economic, Communication, and Social Sciences Journal (BECOSS) Pub Date : 2023-10-13 DOI:10.21512/becossjournal.v5i3.10232

Taiwo Olarinre Oluwaleye, Sunday Stephen Ajemunigbohun, Kehinde Emmanuel Abiodun

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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.

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承保业务和财务业绩:来自尼日利亚非寿险公司的证据

本研究调查了尼日利亚非寿险公司承保业务与业绩之间的关系。具体而言，该研究以尼日利亚的非寿险公司为基地，考察了索赔比率、保险费和再保险索赔对资产回报的综合指标。本研究采用了从五家选定的非寿险公司的财务报表中提取的2011-2020年期间的数据，并使用面板回归程序对数据进行了分析。结果表明，保费对资产收益率有显著的正向影响，再保险理赔和理赔比例对资产收益率有显著的正向影响。因此，本研究得出结论，承销业务有助于尼日利亚非寿险公司的业绩。因此，本研究建议，非寿险公司应更努力地利用提高保费的策略和资源，以改善财务绩效。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Business Economic, Communication, and Social Sciences Journal (BECOSS)

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