Abstract

This study investigates the impact of risk management on insurance firm performance in Nigeria applying the ordinary least square (OLS) technique using time series data from 2002 to 2022.  Return on asset (ROA) is  the  dependent  variable  and  proxy  for insurance firm performance  while risk transfer (LRR), risk retention (CRR) and ORR were proxies for risk management. A major finding is that the three measure of risk management (risk transfer (LRR), risk retention (CRR) and ORR) has no significant effect on the performance of insurance firms in Nigeria. The study recommends that regulators should come up with policies that will ensure insurance firms adopt appropriate risk management strategies to enhance performance. Also, directors and managers of insurance firms should put in place proper risk management strategies to control risk transfer and risk retention in order to enhance their performance. Furthermore, insurance firms should redesign their current risk transfer and risk retention strategies since it has no influence on their performance.