| Popis: |
The study examined diversified income sources and wealth of shareholders of insurance firms in Nigeria. The specific objectives of the study are to ascertain the effect of gross premium income, investment income and interest income on net assets of insurance firms in Nigeria. The sample consist of five (5) insurance firms listed on Nigeria Exchange Group during 2011-2020 periods. The time series data extracted from the selected firms were analyzed using Descriptive Statistics and multiple regression analysis. Findings from the study suggest that gross premium income and investment income positively, but non-significantly affect net assets of the insurance firms while interest income positively and significantly affects net assets of the firms during the period. The implication of these findings is that in modern business world, income source diversification is a sine qua non for achieving insurance firms’ main objective of shareholders’ wealth maximization. In view of this, the study recommends that firm managers should increase gross premium income through aggressive sales promotion of their products and services and also by developing new insurance products and services and by repositioning existing insurance products in order to attract fresh clients. Secondly, the managers should invest some gross premium incomes in viable investments like real estate and stocks of other firms quoted on the Nigeria Exchange Group to diversify income source of the insurance firms. Finally, the managers should diversify income sources of their firms by investing excess premium incomes in financial instruments such as government bonds, commercial papers and treasury bills which can yield interest income to augment premium incomes. |
