The Influence of Risk Management on the Financial Performance of Listed Insurance Companies in Nigeria

Abstract

This study examined the impact of risk management on the financial performance of listed insurance companies in Nigeria. The study specifically examined the extent to which operational risk and liquidity risk influence the return on asset of listed insurance companies in Nigeria. A sample size of the 25 listed insurance companies was selected which is equally the population of the study. The study made use of secondary data. The data were obtained from the annual reports of the insurance companies and Nigeria Stock Exchange (NSE) fact book from the year 2011-2017. Data collected was analyzed using descriptive and inferential statistics. The descriptive statistics used include meaning, standard deviation, minimum and maximum values while the inferential statistics used were Pearson movement correlation coefficient and multiple linear regression analysis. The result of the correlation analysis revealed that all the variables have a relationship with each other. Also, the results of regression analysis revealed that operational risk positively influenced the financial performance of listed insurance companies with a coefficient of 0.0316899 and a p-value of 0.0000 significant at 5%. Similarly, liquidity risk also showed a positive influence on the financial performance of listed insurance companies with a coefficient of 0.0123241 and a p-value of 0.010. Therefore, the study concluded that risk management significantly influenced the financial performance of listed insurance companies in Nigeria.

Cite as

Ezekiel Oluwadamilare Oyerogba, & Adekola Sikirulahi Gbolagade. (2023). The Influence of Risk Management on the Financial Performance of Listed Insurance Companies in Nigeria. Research Application of Thermal Engineering, 6(1), 8–21. https://doi.org/10.5281/zenodo.7807996