Reinsurance and Performance of the Ceding Companies: The Nigerian Insurance Industry Experience

Aduloju, Sunday Adekunle; Ajemunigbohun, Sunday Stephen

doi:10.1515/eb-2017-0015

Cited by 6 publications

(7 citation statements)

References 25 publications

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“…Nevertheless, this variable was not significant. This finding is inconsistent with the works of Ma and Elango (2008), Soye and Adeyemo (2017) and Aduloju and Ajemunigbohun (2017).…”

Section: Regression Resultscontrasting

confidence: 96%

Reinsurance and Financial Performance of Non-life Insurance Companies in Ghana

Andoh

Yamoah²

2021

Management and Labour Studies

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The study examines how premiums ceded to a reinsurer affect the profitability of non-life insurance companies in Ghana. Secondary data on reinsurance ceded, combined ratio, assets, liabilities and return on assets for 20 non-life insurance companies over the period 2008–2018 were sourced from National Insurance Commission whilst interest and exchange rates variables were obtained from the Bank of Ghana. Panel regression model was employed for the analysis of the data collected. The results show that purchasing high levels of reinsurance alone does not affect the profitability of non-life insurance companies, but the combined effect of reinsurance and solvency ratio significantly impact their profitability. Managers of non-life insurance companies in Ghana should increase their ability to repay all financial obligations in the short, medium and long term in combination with reinsurance. This will enable insurers to stabilize growth, earn profits and meet their obligations to policyholders in a timely fashion. JEL Code: G22

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“…Nevertheless, this variable was not significant. This finding is inconsistent with the works of Ma and Elango (2008), Soye and Adeyemo (2017) and Aduloju and Ajemunigbohun (2017).…”

Section: Regression Resultscontrasting

confidence: 96%

Reinsurance and Financial Performance of Non-life Insurance Companies in Ghana

Andoh

Yamoah²

2021

Management and Labour Studies

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“…It was recommended that non-life insurance companies should take into consideration the availability of capital before underwriting risks. Aduloju and Ajemunigbohun (2017) studied the effect of reinsurance on the profitability of the ceding companies in Nigeria by adopting a descriptive research design. A correlation was also employed to analyze the data.…”

Section: Reinsurance Study In Nigeriamentioning

confidence: 99%

Reinsurance With R: Pricing, Reserving, Solvency and Portfolio Analysis

Chukwudum

Ekanem

2022

OJMS

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The lack of education and training has been highlighted as one of the highest factors stifling the growth of the re/insurance industry in Africa. Although reinsurance is offered as a course in the insurance/actuarial undergraduate and postgraduate study programs, many higher institutions of learning in Nigeria lack the sufficient mathematical and technical faculty expertise required to thoroughly deliver the reinsurance subject matter particularly at the masters and doctorate levels. As a result of the general absence of the required expertise in the re/insurance field of study, only a couple of universities offer postgraduate programs in insurance within Nigeria. The ripple effect of this gap is consequently felt in the re/insurance sector. This paper, therefore, is meant to serve as a teaching aid to boost the postgraduate teaching and classroom experience in reinsurance and to strengthen the technical capacity of researchers in this field. First, contributions to literature from the Nigerian academic landscape is reviewed and then the computational aspect is implemented. The study aims to bridge the gap between theory and application. Both simulated and real data are used to illustrate the different concepts in reinsurance with techniques ranging from Monte Carlo simulations to various statistical distributions. The R language has been adopted because of its ease of use.

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“…(Owolabi, et al, 2017). For insurers to attain operational efficiency and effectiveness in claim process, they must look directly at implementing modern claims system; leveraging advanced fraud detection technologies and creating innovation around their self-service claim processing activities (Aduloju, &Ajemunigbohun, 2017).…”

Section: Literature Review Conceptual Review Claims Paymentmentioning

confidence: 99%

Claims Payment, Risk-Based Capital as Determinants of Life Assurance Companies’ Profitability in Nigeria

ADEJUWON¹

2022

ijmei

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The study assessed the relationship between claims payment, risk-based capital and profitability of Life Assurance Companies in Nigeria. There are fourteen listed life insurers in the industry where data of six insurers were randomly selected from the companies` annual reports for the periods of 2011-2019. The data were made available in the Nigerian Insurers Association Digest. Ex-post factor research design was employed. Findings show that claims payment, proxied by Net Claim, Net Premium and Net Expenses and Risk-Based Capital have significant effect on profitability of life Insurance Companies in Nigeria. Four hypotheses were tested. The first hypothesis showed the p-value of 0.0095<0.005, confirming that Net Claim has significant effect on Profitability of listed Life Assurance Companies in Nigeria. The second hypothesis showed that, Net Premium has significant influence on Profitability of listed Life Assurance Companies in Nigeria with a p-value of 0.0081<0.05. The third hypothesis showed a coefficient of 0.003, p < 0.05), indicating that there is significant relationship between Expenses Ratio and Profitability of Life Assurance Companies in Nigeria. Finally, the fourth confirmed that Risk-Based Capital has significant effect on Profitability of listed Life Assurance Companies in Nigeria with a p-value 0.0089>0.05. The study therefore concluded that the life insurance companies should put in place strategies to ensure proper management of Net Claim, Net Premium, Net Expenses and Risk-Based Capital and also entrust these in the hands of experts to yield high results. The study recommended that the claim managers should work in cooperation with other sections of the insurer from the policy formation stage to its cessation to promote timely payment of genuine claims and increase the profitability of insurance firms through effective cost control.

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Reinsurance and Performance of the Ceding Companies: The Nigerian Insurance Industry Experience

Cited by 6 publications

References 25 publications

Reinsurance and Financial Performance of Non-life Insurance Companies in Ghana

Reinsurance and Financial Performance of Non-life Insurance Companies in Ghana

Reinsurance With R: Pricing, Reserving, Solvency and Portfolio Analysis

Claims Payment, Risk-Based Capital as Determinants of Life Assurance Companies’ Profitability in Nigeria

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