Underwriting Capacity and Financial Performance on Non-Life Insurance Companies in Nigeria (original) (raw)

nsurance business model is uniquely different from other financial institutions. This is because its operation relies on the projection of expected future risk (claims cost) before risk can be accepted. Hence, performance this role rests on the available underwriting capacity before risk can be assumed. Cumulative underwriting capacity of insurance companies in Nigeria seems weak compared to the quantum of gross premium generated. This is evident in their inability to assume larger unexpected risks especially in energy and aviation market. Therefore, the aim of this study is to examine the impact of joint underwriting capacity variables on the financial performance of non-life insurance companies in Nigeria. The study adopted correlational research design. A census of forty-one (41) non-life insurance companies operating in Nigeria as at December, 2019 were used for the study. The study made use of aggregate annual reports of all the forty-one companies operating in Nigeria over a t...