You have no items in your shopping cart.
ABSTRACT
This study examined the determinants of insolvency in insurance firms in Nigeria using panel data from the twenty-two listed insurance firms in Nigeria from 2010 to 2020 (eleven years). The study adopted four explanatory variables as determinants of insolvency in insurance firms in Nigeria, these variables included debt to asset ratio, cash to asset ratio, firm size and inflation, while the dependent variable insolvency was proxied by solvency ratio (premium/claims). The empirical analysis was conducted using descriptive statistics and regression analysis techniques, The empirical analysis of the data for the study showeed that: leverage has significant but negative i influence on the insolvency of insurance firms in Nigeria; liquidity has no significant effect on insolvency of insurance firms in Nigeria; firm size has no significant effect on the insolvency of insurance firms in Nigeria; and inflation does not have significant effect on the insolvency of insurance firms in Nigeria. Based on these findings, the study recommended thus: that effective assets and liability management will enhance the solvency position of insurance firms in Nigeria; that manager of insurance firms should not tie up liquid assets in a bit to reduce insolvency. These liquid assets that may be tied up can be used to earn returns in the financial market to increase the financial performance of the firm and ultimately the solvency position of the firm; that those seeking to purchase insurance contract should seek insurance firms that can effectively manage its assets and liability to be sure that such firm can meet it claim payment should the event insured against occurred; among others.
