IMPACT OF INVESTMENTS PORTFOLIO ON PROFITABILITY OF INSURANCE COMPANIES IN NIGERIA.

Authors

Ladan C. Lekmang
Gloria Benard Soepding Department of Insurance, Faculty of Management Science University of Jos, Jos, Plateau State.
Prof. Msheliza S kaku Department of Insurance, Faculty of Management Science University of Jos, Jos, Plateau State.
Dr. Adenike O. Owolabi Department of Insurance, Faculty of Management Science University of Jos, Jos, Plateau State.

Keywords:

Insurance investment portfolio, profitability, equity investments, fixed income securities, real estate investments, cash and cash equivalents, diversification strategy

Abstract

Investment portfolio in the insurance industry has been facing significant challenges in exploring its profitability opportunities in Nigeria. Over the years, the insurance industry in Nigeria is faced with challenges of investment portfolio such as equity investments, fixed income securities, real estate investments, cash and cash equivalents, and investment portfolio diversification which have affected their performance. This study examined the impact of investment portfolio on the profitability of insurance companies operating in Nigeria. Adopting a quantitative research design with a causal approach, the study seeks to establish a cause-and-effect relationship between the performance of investment portfolios and the profitability of insurance firms. The population consisted of all registered insurance companies in Nigeria, from which a purposive sampling technique was employed to select companies with complete and consistent financial data spanning 2015 to 2024. Data analysis was carried out using multiple regression analysis, with the aid of IBM SPSS 23 software in order to determine the effects and relationship between investment portfolio on profitability of insurance companies in Nigeria for the periods under review. The findings reveal that equity investments, fixed income securities, including government and corporate bonds, real estate investments, cash and cash equivalents, investment portfolio diversification significantly influence the profitability of insurance companies in Nigeria. The study recommended that insurance companies in Nigeria should strengthen their equity investment strategies by conducting thorough market analysis and investing in fundamentally strong and well-regulated stocks.

Author Biographies

Ladan C. Lekmang

Investment portfolio in the insurance industry has been facing significant challenges in exploring its profitability opportunities in Nigeria. Over the years, the insurance industry in Nigeria is faced with challenges of investment portfolio such as equity investments, fixed income securities, real estate investments, cash and cash equivalents, and investment portfolio diversification which have affected their performance. This study examined the impact of investment portfolio on the profitability of insurance companies operating in Nigeria. Adopting a quantitative research design with a causal approach, the study seeks to establish a cause-and-effect relationship between the performance of investment portfolios and the profitability of insurance firms. The population consisted of all registered insurance companies in Nigeria, from which a purposive sampling technique was employed to select companies with complete and consistent financial data spanning 2015 to 2024. Data analysis was carried out using multiple regression analysis, with the aid of IBM SPSS 23 software in order to determine the effects and relationship between investment portfolio on profitability of insurance companies in Nigeria for the periods under review. The findings reveal that equity investments, fixed income securities, including government and corporate bonds, real estate investments, cash and cash equivalents, investment portfolio diversification significantly influence the profitability of insurance companies in Nigeria. The study recommended that insurance companies in Nigeria should strengthen their equity investment strategies by conducting thorough market analysis and investing in fundamentally strong and well-regulated stocks.
Prof. Msheliza S kaku, Department of Insurance, Faculty of Management Science University of Jos, Jos, Plateau State.

Investment portfolio in the insurance industry has been facing significant challenges in exploring its profitability opportunities in Nigeria. Over the years, the insurance industry in Nigeria is faced with challenges of investment portfolio such as equity investments, fixed income securities, real estate investments, cash and cash equivalents, and investment portfolio diversification which have affected their performance. This study examined the impact of investment portfolio on the profitability of insurance companies operating in Nigeria. Adopting a quantitative research design with a causal approach, the study seeks to establish a cause-and-effect relationship between the performance of investment portfolios and the profitability of insurance firms. The population consisted of all registered insurance companies in Nigeria, from which a purposive sampling technique was employed to select companies with complete and consistent financial data spanning 2015 to 2024. Data analysis was carried out using multiple regression analysis, with the aid of IBM SPSS 23 software in order to determine the effects and relationship between investment portfolio on profitability of insurance companies in Nigeria for the periods under review. The findings reveal that equity investments, fixed income securities, including government and corporate bonds, real estate investments, cash and cash equivalents, investment portfolio diversification significantly influence the profitability of insurance companies in Nigeria. The study recommended that insurance companies in Nigeria should strengthen their equity investment strategies by conducting thorough market analysis and investing in fundamentally strong and well-regulated stocks.

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