ABSTRACT

This study investigates the unsystematic risk effect on quoted insurance firm’s performance in Nigeria. 7 year (2016 – 2022) annual panel data observations were sourced. The Panel unit root test, correlation Kao co-integration and Summary statistics were conducted as preliminary tests. The Fully Modified OLS framework was employed to ascertain the cause-effect relationship between the explanatory and explained variables. Findings show that capital adequacy risk and firm size risk have significant positive (capital adequacy) and negative (firm size) impact on quoted insurance firm’s performance in Nigeria; while leverage risk and firm age risk have an insignificant positive influence on quoted insurance firm’s performance in Nigeria. The unsystematic risk variables accounted for about 63% systematic variability in insurance firm’s performance in Nigeria. This suggests that the Nigerian accept the linear hypothesis linking risk and firm performance. Conclusion infers that there is a linear association between unsystematic risk factors and insurance firm’s performance in the sample considered during the studied period.