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ABSTRACT
This study investigate the effect of underwriting capacity on income of insurance companies in Nigeria for the period 1990 to 2022. The objectives of the study were to determine whether insurance income (INCOM), insurance premium (INPR), insurance investment rate (INVR), insurance penetration (INPEN), interest rate (INTR) significantly affect overall insurance income in Nigeria. To achieve this, the fully modified least square (FMOLS) technique was employed for analysis of data. The results from the analysis indicate that insurance premium and insurance investment rate have significant positive impact on insurance companies’ income in Nigeria; while insurance penetration has significant negative relationship with the income of insurance companies, those of interest rate has a weak negative effect on insurance companies’ income in Nigeria. The study therefore recommend among others that, since premium significantly impact insurance income, management should therefore sustain current policy regarding premium collection of improve on it. This will enable the firm cover liabilities associated with the policies they underwrite. They may also invest in the premium to generate higher returns. This can offset some costs of providing insurance coverage and help an insurer keep its prices competitive.
