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ABSTRACT
The study empirically examined the determinants of insurance firms’ financial performance in Nigeria over the period 2001 to 2022. The specific objectives of the study were to find out whether leverage, liquidity, premium and firm’s size actually have significant relationship with insurance firms’ financial performance. Therefore, in order to ascertain how these factor affect the financial performance of insurance firms in Nigeria, the Autoregressive Distributed Lags (ARDL) technique was employed to analyze the data set. The results obtained generally indicate that insurance leverage (LEV) and insurance firm size (FSIZ), has a weak negative relationship with insurance firms’ financial performance in Nigeria; insurance premium (PRM) has a strong positive impact on insurance firms’ financial performance; while liquidity (LIQ) has a weak positive relationship with insurance firms’ performance in the long run. The study therefore recommends among others that, since insurance premium has proven to be a factor that is capable of enhancing the overall financial performance of insurance firms, managers should therefore up their current level of crusade by increasing the current enlightenments campaign programs to deliberately create more awareness of insurance products and services to the Nigerian markets, and by so doing more persons will definitely embrace the idea of taking insurance policy, and in turn receive more premium collection that will indirectly impact positively on the overall financial performance of insurances in Nigeria.
