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

Olufemi Adebowale Abass (), Jimoh Gbolagade Fabiyi () and Abibat Bukola Shomuyiwa ()
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Olufemi Adebowale Abass: Lagos State University
Jimoh Gbolagade Fabiyi: Old Mutual Nigeria
Abibat Bukola Shomuyiwa: Lagos State University

The Journal of Accounting and Management, 2025, issue 2(15), 122-129

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.

Keywords: asset; asset utilisation; financial asset; reinsurance utilisation (search for similar items in EconPapers)
Date: 2025
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