CAPITAL MARKET PERFORMANCE AND THE INSURANCE INDUSTRY IN NIGERIA
Keywords:
Capital Market, Insurance Investment, Government Security, Bonds and StockAbstract
The study looked into how the Nigerian insurance industry performed in relation to capital market, specifically how the return on assets of insurance businesses is impacted by government securities, bonds and stocks as investible instruments. But the study used secondary data and then used the ARDL's multiple regression econometric technique. Every test choice was assessed at a five percent significance level, and a range of diagnostic analyses that were judged appropriate for additional reliability were conducted. Our analysis of the short-term ARDL regression result showed that the return on assets of insurance companies was not significantly impacted by the insurance companies' investments in stocks, bonds, and government securities. On the other hand, over time, the return on assets of insurance companies was significantly impacted by the insurance companies' investments in government securities, stocks and bonds. The study suggested that insurance companies in Nigeria should invest in stocks, bonds, and government securities because these investments yield returns on assets over time. Insurance companies should also reduce their level of investment once they have determined that these investments will yield returns on assets over time and also diversify so as not to impair the performance of their business. Finally, insurance companies should seek out other viable sources of investable firms that can yield returns on assets quickly, thereby increasing productivity within the insurance industry and diversifying the economy
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