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ABSTRACT
The study empirically examined firms’ specific determinants of reinsurance companies’ performance in Nigeria for the period 1990 to 2022, with specific focus on three listed reinsurance companies in Nigeria. The specific objectives were to find out whether investment income (II), premium income (PI), reinsurance dependent ratio (RDR) and risk retention ratio (RRR) affect financial performance of reinsurance companies. To this end, the panel least square econometric technique was employed for analysis of data and the results obtained therefrom indicated that investment income (II) and risk retention ratio (RRR) have significant positive relationship with reinsurance companies’ financial performance; reinsurance dependent ratio (RDR) has a strong negative impact on performance; and premium income does not have any significant impact on financial performance of reinsurance companies in Nigeria. The study therefore conclude that, in the determination of reinsurance financial performance (FP) in Nigeria, investment income (II), reinsurance dependent ratio (RDR) and risk retention ratio (RRR) are the major factors to be considered by management and policy makers. The study recommends among others that, reinsurance companies should as a matter of importance embark on more productive investment outside the normal pool contributions received from various clients, so as to increase existing assets base from where claims can be promptly paid. This will ensure continuous positive impact of investment income on overall financial performance of the reinsurance companies in Nigeria.
