THE EVALUATION OF REINSURANCE MECHANISMS ON NIGERIAN INSURANCE COMPANIES: ITS PERFORMANCE AND SUSTAINABILITY

The Insurance companies always stand as the backbone of most developed economy, in which reinsurance companies serve as insurance companies' bedrock. This study investigated the evaluation of reinsurance mechanisms on listed Nigerian insurance companies’ performance and sustainability. The population of the study is to cover all listed insurance firms in Nigeria and a five-insurance company is randomly selected as sample size for seven years (2012-2018) in Nigeria. Multiple regression analysis is adopted to analyze the data. The study findings established the statistically insignificant relationship between return on assets (ROAs) and net retention ratio (NRR), net claim ratio (NCR), the net commission ratio (NCoR), the ceded reinsurance ratio (CRR) respectively because the p-value (0.481) in the ANOVA table is greater than 0.05, the study therefore, suggested the acceptance of null hypotheses. It is therefore concluded that the reinsurance mechanisms do not have effect on listed insurance companies' performance and sustainability in Nigeria.