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An Analysis of Asset Utilisation and Profitability of Quoted Non-life Insurance companies in Nigeria

Author

Listed:
  • Olufemi Adebowale Abass

    (Lagos State University)

  • Jimoh Gbolagade Fabiyi

    (Old Mutual Nigeria)

  • Abibat Bukola Shomuyiwa

    (Lagos State University)

Abstract

Asset utilisation is a multi-task exercise conceived because it measures how efficient an insurance company uses its resources for improved profitability. However, the inverse cycle nature of insurance has made asset utilisation precarious in operation of insurance business. Therefore, the study investigated the effects of asset utilisation on the profitability of quoted non-life insurance companies in Nigeria. This study adopted ex-post facto research design. The population of the study comprised of all twenty-six (26) quoted non-life insurance companies operating in Nigeria as at 31st of December, 2020 spanning a ten (10) year period through census sampling technique. Data were extracted from the companies’ financial statement. The study employed a multiple linear regression to determine the joint effect of asset utilisation proxies (financial essets, reinsurance utilisation and firm size) on profitability measured with Return on Asset (ROA). The study revealed a significant joint relationship of asset asset indicators on profitability. The study therefore recommended that quoted non-life insurance companies in Nigeria should optimize their assets in order to increase profit.

Suggested Citation

  • Olufemi Adebowale Abass & Jimoh Gbolagade Fabiyi & Abibat Bukola Shomuyiwa, 2025. "An Analysis of Asset Utilisation and Profitability of Quoted Non-life Insurance companies in Nigeria," The Journal of Accounting and Management, Danubius University of Galati, issue 2(15), pages 122-129, August.
    • Handle: RePEc:dug:jaccma:y:2025:i:2:p:122-129
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    File URL: https://dj.univ-danubius.ro/index.php/JAM/article/view/2471/3110
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    Cited by:

    1. Mfon N.U. Akpan & Emem Matthew Joseph & Mfon Solomon Jeremiah, 2025. "Risk Retention and the Performance of Nigeria Reinsurance Corporation (1994-2024)," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 15(4), pages 87-126.

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