AWOLODE CHRISTINE BISOLA

Insurance

At the Insurance department office

Appointment on Visitation important

#	Certificate	School	Year
1.	M.Sc (Masters in Risk Management and Insurance)	Insurance/Lagos State University	2024

LEVERAGING FIRM S CHARACTERISTICS ON PROFITABILITY OF QUOTED NON-LIFE INSURANCE COMPANIES IN NIGERIA

Profitability of Insurance companies has been known to be sensitive either positively or negatively to various factors. This has overtime been studied across geopolitical spaces with different outcomes and a topic of concern in developing countries whose insurance penetration is very low. The study adopted a panel research design cross section of 15 quoted non-life companies for 15 years and quota purposive sampling technique was employed to choose these companies based on more than 75% market capitalization published by the Nigeria Exchange Group , data were gotten from financial statements of these companies and panel least square was the method of analysis .The study finds reasonable evidence to support that only loss ratio is significantly and explicitly relevant and adverse to profitability. Of note is that five other variables are negative such as liquidity, retention rate, expense ratio, firm size and firm leverage to profitability. it is implicit that liquidity and leverage is not well managed indicating that some companies are borrowing to pay claims. Premium growth rate contributed the least positive to profitability. The study recommends that insurance firms should focus on underwriting strategy, risk management practices and claims management to improve profitability as well as leverage data analytic to understand customer behavioral trends in identifying profitable business lines. Regulators should also consider risk-based supervision because of the twin effect of loss ratio and premium growth rate on profitability and possible solvency. The study contributes by filling empirical gap and methodology gap

AWOLODE BISOLA is a Graduate Assistant at the Department of Insurance

AWOLODE has a M.Sc in Masters in Risk Management and Insurance from Insurance/Lagos State University