Loading...
Please wait, while we are loading the content...
Similar Documents
Influence of bond investment on financial performance of insurance companies listed at Nairobi securities
| Content Provider | Semantic Scholar |
|---|---|
| Author | Shaaban, Ramadhan Ndirangu, Antony Wahome |
| Copyright Year | 2018 |
| Abstract | The aim of the study was to investigate the influence of bond investment on financial performance of insurance companies listed at Nairobi securities exchange. Theory underpinning this study was Arbitrage Pricing Theory. The study adopted descriptive research design. Target population of the study included 6 insurance companies listed in Nairobi Stock Exchange. The target respondents were finance officers, internal auditors, credit managers, operations managers, valuers and underwriters. Thus the total target population was 36 respondents from the six insurance companies listed in Nairobi stock exchange. The study used questionnaires to collect data. Questionnaires were tested for validity and reliability. The collected data was analyzed using statistical package for social sciences. Data was analyzed using descriptive statistics and inferential statistics and was presented in tables and relevant discussions. Findings indicated that bond investment had a significant influence on financial performance of insurance companies. Hence the study concluded that bond investment have a significant influence on financial performance of insurance firms listed in NSE. The study recommended that the management of insurance firms should focus their attention on coming up with policies to guide their decisions in bond investments. Keyword: Asset Allocation Asset, Bond Investment, Financial Performance, Insurance Companies, Nairobi Securities INTRODUCTION The insurance industry contributes to economic efficiency and fosters economic growth in several ways. First, insurance improves risk allocation of an economy and reduces transaction costs. Second, by protecting existing assets, insurers provide economic agents with a more stable financial basis. Third, insurers foster governance through their asset holdings by encouraging risk mitigation through warranties and/or risk exclusions, and direct monitoring of risks. Fourth, insurance can be an alternative and supplemental financial support in the event of economic losses caused by, for example, accidents, catastrophes and bankruptcies (Grundl, Dong & Gal, 2016). The primary purpose of the insurance business is the spreading of risks. Because the risks associated with different policies are not perfectly correlated, the total risk of a portfolio of policies is smaller than the sum of the policies’ risks. Thus, insurance functions as a mechanism to diversify Property and Casualty (PC) insurers and Life and Health (LH) insurers’ risks, similar International Journal of Business Management and Economic Review Vol. 1, No. 05; 2018 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://ijbmer.org/uploads/BMER_1_55.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
