Premium Growth and Underwriting Performance: Empirical Evidence from Quoted Non-life Insurance Companies in Nigeria

There has been a dichotomous finding among researchers in area of insurance companies’ underwriting performance indices and premium year in year out. This study examined the relationship between insurance premium growth and underwriting performance of quoted non-life insurance companies in Nigeria. The study adopted a panel research design using an ex-post facto approach as data were sourced from annual financial reports of ten (10) sampled general insurance companies from a population of twenty-nine (29) based on market leadership in terms of market capitalization and data availability for fifteen (15) years spanning 2010-2024. The finding of the study revealed that Premium Growth Rate (PGR) exhibited a statistically significant negative association with the Combined Ratio (CR) and a positive and statistically significant correlation between Net Premium Growth (NPG) and Underwriting Profitable Margin (UPM). Therefore, insurance companies are advised to play a strategic role in managing their premium growth by prioritising Net Premium Growth (NPG) over simply expanding Gross Premium Growth (GPG) in order to maximise profitability. Based on empirical evidence, the study showed a strong positive relationship between NPG and Underwriting Profit Margin (UPM), net premium retained pos reinsurance drives technical profitability.