ABSTRACT

Economic growth in industrialized economies is also explained by the stock market, which has been cited as a factor in the development of emerging economies. As a result, this study focuses on how the market capitalization of listed insurance companies affects the Nigerian stock exchange. Ordinary least square (OLS) regression model was applied to the secondary data collected for this study and the result revealed that there is a significant relationship between the market capitalization of the Nigerian stock exchange, the number of trades made on the stock exchange overall, and the insurance businesses listed there. The regression model also that the numbers of the listed insurance companies (NINCSL) had a positive effect on market capitalization on the Nigerian stock exchange. Meanwhile, R-squared = 0.850 in the model summary and this indicates that 85% of the variability in total annual market capitalization on the Nigerian Stock Exchange can be explained by NINCSL, the total number of deals on the Nigerian Stock Exchange (NDEALS) and the total value of deals on the Nigerian Stock Exchange (VDEALS) while the remaining 15% is attributed to other factors.  Consequently, the Nigerian stock market is without a doubt one of the most significant contributors to the Nigerian economy. Therefore, all stakeholders, including the listed insurance companies and the government, should work together to foster an environment that will lead to the development of a robust stock market.