JOHNSON, FOLORUNSO IDOWU and Covenant University, Theses (2018) LIQUIDITY RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF LIFE INSURANCE COMPANIES IN NIGERIA. Masters thesis, COVENANT UNIVERSITY.
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Abstract
Adequate liquidity enables Insurance companies to manage it liquidity risk and hereby helping to sustain its public confidence in the operation of the insurance institution which in turn leads to more patronage consequently, more profit. In addressing the objectives of the study, the first objective of the study was to identify the effectiveness of the liquidity risk management on premium collection by examining its exposure to liquidity risk, the liquidity ratio was used since it is the key measurement of liquidity risk in Insurance Companies. The study was undertaken using eight (8) Life insurance companies out of fourteen (14) life insurance companies in Nigeria. Secondary data was adopted in analyzing the data. Data for this study was source from the Annual report and statement of account (various issues) of the insurance companies under consideration for the period of eight years (2009-2016), the variables employed include: liquidity ratio as the dependent variable; premium income, underwriting revenue, claims expense paid and lending interest rates are the independent variables. This study recommends that insurance companies should embrace every business strategy for prompt premium collection from policyholders as at when due. The insurance companies should recognize that profit is a necessity for the survival, so therefore excess claims reserves that may unduly depress profitability should be avoided.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Financial performance, life insurance, liquidity, liquidity risk management, Premium |
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Hannah Akinwumi |
| Date Deposited: | 20 Mar 2020 13:10 |
| Last Modified: | 20 Mar 2020 13:10 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/13232 |
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