EFFECT OF ASSET INVESTMENT ON FINANCIAL PERFORMANCE OFINSURANCE COMPANIES IN BAYELSA STATE, NIGERIA

Abstract

Effective asset investment is essential for enhancing the financial performance of insurance
companies, thereby enabling the industry to play a substantial role in Nigeria's economic
development. This study investigated the effect of asset investment on the financial
performance of selected publicly listed insurance companies in Bayelsa State, Nigeria. The
research employed an ex post facto design. The study's population comprised fifteen (15)
listed insurance companies in the Nigerian Exchange Group, sampled five (5) times by
purposive selection. The data utilized in this study was obtained from the annual reports and
financial statements of the selected organizations from 2014 to 2023. The data analysis
technique employs descriptive statistics and multiple regression using Ordinary Least
Squares (OLS) utilizing SPSS. The study's findings indicate that investment in non-current
assets significantly affects net profit margin, whereas investment in current assets has a
negligible effect. The study indicates that investing in non-current assets positively and
significantly affects the financial performance of publicly listed insurance companies. This
study recommends that Nigerian insurance companies maintain their investment in noncurrent assets, as these assets significantly impact net profit margins.