Determinants of financial performance among Kenyan insurance companies
| dc.contributor.author | Wainaina, E. N. | |
| dc.date.accessioned | 2024-05-15T09:14:57Z | |
| dc.date.available | 2024-05-15T09:14:57Z | |
| dc.date.issued | 2023 | |
| dc.description | Full-text thesis | |
| dc.description.abstract | The past two decades have seen the collapse or near-collapse of several insurance companies in the country because of the inability to honor their obligations due to diminished net worth. Covering risks lies in their ability to generate value for their shareholders and firms. Past studies had conflicting outcomes on the factors that influenced the insurance companies’s financial performance. The paper focused on assessing the factors that affected an insurance company’s financial performance. The study scrutinized the effects of underwriting risk, the influence of solvency, the impact of premium growth, and firm size on the financial returns of Kenyan insurance firms. The study also considered the moderating effect of market share on the financial performance of insurance companies. The research used data collected from 55 listed Kenyan insurance companies. Secondary data sourced from the financial statements of insurance companies from 2012 to 2020. The data analysis offered some critical insight into the issues that control the financial performance. The regression analysis showed that underwriting risk, firm size, premium growth together with solvency positively and substantially affected performance. However, once market share was introduced as the moderation variable, premium growth, underwriting risk, firm size, and solvency which are independent variables failed in having an influential relationship with the financial performance in the firm. The results from the present study indicate that insurance companies should focus on improving their premium growth, underwriting risk, firm size, and solvency, as this significantly impacts the company's performance. It is recommended that companies seeking a higher financial performance in the market should work to improve their premium growth, underwriting risk, firm size, and solvency. Although the results were insightful, a few limitations exist. The study was limited to a single sector. Similarly, the study’s completion was during the COVID-19 pandemic which affected many businesses. Therefore, this imposed some restrictions on the methodological choices made. Nevertheless, the study provides the basis for further research on the same subject. | |
| dc.identifier.citation | Wainaina, E. N. (2023). Determinants of financial performance among Kenyan insurance companies [Strathmore University]. http://hdl.handle.net/11071/15421 | |
| dc.identifier.uri | http://hdl.handle.net/11071/15421 | |
| dc.language.iso | en | |
| dc.publisher | Strathmore University | |
| dc.title | Determinants of financial performance among Kenyan insurance companies | |
| dc.type | Thesis |