CORPORATE GOVERNANCE AND PERFORMANCE OF INSURANCE FIRMS IN NIGERIA

Abstract

The study examined corporate governance and financial performance of insurance firms, which aim is to reduce the poor performance of insurance companies in Nigeria. Secondary of data was used for this research and was generated from the Annual Report of the Financial Statements of 4 selected insurance firms. Multiple Regression analysis with the aid of SPSS version 24 was used to test the hypotheses stated in this study. The results of the study revealed that board meetings have no significant effect on return on assets of insurance companies, board remuneration has positive significant effect on the financial performance of insurance companies
and board size has no significant effect on the financial performance of insurance companies. This means that corporate governance can increase the performance of insurance companies in Nigeria, since the model summary showed a significant relationship. Based on the aforementioned results of the study, the following recommendations were provided: insurance firms should refocus their meeting
agenda to prioritize strategic discussions, especially on risk management, financial performance and long-term planning. Insurance companies should align Board Remuneration with performance indicators of the company, by creating incentives for directors to actively contribute to the company's financial success. Insurance companies should avoid excessive board expansion that could lead to inefficiencies and challenges in coordination, by establishing clear business policies that are directly tied to the financial performance and strategic goals of the organization. These business policies could include revenue growth, profitability, market share, customer satisfaction, and risk management.