IMPACT OF REINSURANCE ON PROFITABILITY OF INSURANCE COMPANY IN NIGERIA
Abstract
The research work examines the impact of reinsurance on profitability of insurance companies in Nigeria (A case of NEM Insurance Plc Lagos). The difficulty that may happen to any insurance company may be loss or collapse of the company if they experience financial expenses that are beyond their capacity but reinsurance of such company may prevent it against high losses and global distribution of risk. The objectives of the study are to; investigate the impact of reinsurance dependence on profitability of insurance company, examine the influence of reinsurance practices on customers’ satisfaction of insurance company and determine the relationship between reinsurance and performance of insurance company.
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