Effect of Interest Rate On Profit of Insurance Companies in Nigeria

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EFFECT OF INTEREST RATE ON PROFIT OF INSURANCE COMPANIES IN NIGERIA
Article in International Journal of Management and Social Sciences · July 2018
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International Journal in Management and Social Science
Volume 6 Issue 07, July 2018 ISSN: 2321-1784 Impact Factor: 6.178
Journal Homepage: http://ijmr.net.in, Email: irjmss@gmail.com
Double-Blind Peer Reviewed Refereed Open Access International Journal
EFFECT OF INTEREST RATE ON PROFIT OF INSURANCE COMPANIES IN NIGERIA
1
EHIOGU CHIZOBA P. & 2 NNAMOCHA P.N
1
Department of Insurance and Actuarial Sciences, Imo State University, P.M.B. 2000 Owerri,
Imo State – Nigeria
2
Department of Economics, Imo State University Owerri., P.M.B. 2000 Owerri, Imo State –
Nigeria.
ABSTRACT
This study investigated the effect of interest rate on profit of insurance companies in Nigeria insurance
industry. Ex-post facto research design was used in the study. A hypothesis was formulated and tested.
The data was subjected to a Unit root test. Afterwards Ordinary Least Square Regression analysis
technique was used to test the hypothesis. The analysis of the study was at 5% level of significance. It
was found interest rate had a positive and insignificant individual effect on total profit of the Nigerian
insurance industry. The following respective implication of the finding shows that Interest rate can
reduce the returns of its investment. The study based on the aforementioned finding we conclude that the
insurance business profit margin is not significantly but positively influenced by interest rate. The
researcher recommends that insurers have to build and hold reserves over a long time horizon, which
makes investment, returns an important part of overall earnings.
1.0 INTRODUCTION
The primary role of interest rate is to help in the mobilization of financial resources and to ensure
efficient utilization of resources for the promotion of economic growth and development. When the
interest rate is changed, the resulting relative rates of return will induce shift in the assets portfolio of
both banks and the non-banks public institutions like insurance. Hence, the direction and magnitude of
changes in the market interest rates are of primary importance to economic agents and policy However,
the insurance business is significantly influenced by the state of the economy of a country and major
factors that influence it are the rate of growth of GDP, the levels of domestic savings, household
financial savings and disposable income (Kartheeswari and Rajeswari, 2012). Many of the products sold
by life insurance companies are sensitive to changes in interest rates. Consider a whole life policy, in
which the policyholder makes a set of fixed payments over time in exchange for the delivery of a larger
fixed payment in the future. Changes in interest rates alter the expected value today of such future
payments. Specifically, a decrease in interest rates causes future payments to carry more weight and thus
233 International Journal in Management and Social Science

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makes a life insurance company‟s liabilities larger in magnitude. This is a key form of interest rate risk
that must be managed by the life insurance industry.
The interest rate environment affects demand by policyholders for certain insurance products. For
example, fixed-rate annuities can promise a prespecified return for investments over a potentially
extended period. When interest rates are very low, as they are currently, life insurers can only make
money on these annuities if they offer policyholders a low return. There is less demand for annuities
under these conditions. Also, many insurance products offer policyholders the option to contribute
additional funds at their discretion or to close out a contract in return for a predetermined payment (in
the latter case, the policyholder is said to surrender the contracts). When interest rates change, it is more
likely that policyholders will act on these options. For example, they may contribute more to an annuity
with a high guaranteed return when interest rates are low or surrender an annuity with a low return
guarantee if interest rates rise significantly.
By nature, interest and savings rates basically encourage capital formation for investment, while in
effect their change induce shift in the assets portfolio. Interest rates are one of the economic variable
single strongest influences and have a profound effect on everything from individual investment
decisions, monetary policy and corporate profits and job creation. General insurer‟s growth in terms of
financial profit is influenced by both internal and external factors. While internal factors focus on
insurer‟s specific characteristics, the external factors concern both industry features and macroeconomic
variables like policy stability, gross domestic product, inflation; interest rate and political instability
among others affect the growth and performances of insurance. Profit is the essential pre-requisite for
the survival at the micro level. Without profits insurers cannot attract external capital to meet their set
objectives in this ever changing and competitive economy. Profit does not only improve upon insurers‟
solvency state but it also plays an essential role in persuading policyholders and shareholders to supply
funds to insurance firms. Thus, one of the objectives of management of insurance companies is to attain
profit as an underlying requirement for conducting any insurance business (Chen and Wong, 2004) and
(Harrington and Wilson, 1989)
Most of the studies that have been done have been on the effect of interest rates and have focused on
banks with no much findings on the insurance industry. Barquero & Segura (2011) , studied the
determinants of interest rate spread in Costa Rica. They established that the intermediation margin
tended in the short term to have an inertial tendency to increase and that higher short term deposits are
the result of more aggressive policies to depositors via attractive interest rates and thus lead to lower
interest rate spread. Kungu (2013) concludes that GDP, inflation and banks‟ lending interest rates were
established to be the macroeconomic factors that had the greatest positive effect on firms “financial

performance. Ndichu,(2014) set out to establish the effect of interest rate spread on the financial
performance of Deposit Taking Microfinance Banks (DTMBs) in Kenya and concluded that interest
rates spread negatively affect the financial performance. There is therefore a gap in literature as far as
the study on the relationship between interest rate and financial performance, thus the objective of the
study will seek to ascertain the effect of interest rate on profit of insurance companies in Nigeria. This is
because Interest rates are one of the economic variable single strongest influences and have a profound
effect on everything from individual investment decisions, monetary policy and corporate profits and job
creation. It covers Insurance industry operational in Nigeria. This involved obtaining and combining
data on Life and Non-Life sectors of the insurance industry, i.e. total industry data were used.
Operations of the selected variables and the insurance industry were covered from 1985 to 2016. 1985
was chosen as the base year of the study because it was a year following the beginning of the Structural
Adjustment Programme in Nigeria; a period that marked the upward swing of the selected
macroeconomic variables in this study from which they have not gone down till date.
2.0 REVIEW OF RELATED LITERATURE
CONCEPT OF INTEREST RATE
Babbel and Staking (1983) point out that rising interest rates have resulted in an increase in the real cost
in terms of the cash value of life insurance products. Outreville (1996) indicate that an ambiguous
relationship exists between the real interest rate and life insurance. Beck and Webb (2003) only find a
positive relationship between the interest rate and life insurance penetration in the five-year panel data
model. High interest rates are associated with low economic growth in industrialized countries.
Interest rate is the rental payment for credit usage by borrowers, investors and returns for parting with
lenders‟ liquidity (Obadeyi, Akingunola & Afolabi, 2013). Generally, interest rates are prices. They are
the price paid for the use of money for a period of time and are expressed as a percentage of the total
outstanding balance that is either fixed or variable (CBOP, 2015). Interest rate is a rate of return on
investment, when low interest rate is charged on loan to encourage investors and high on savings; and it
becomes cost of capital, when low interest is charged on ;savings and cost of borrowing by investors is
high (Obadeyi, Akingunola and Afolabi, 2013). There are two ways by which interest rates can be
defined: first, from the point of view of a borrower, it is the cost of borrowing money (borrowing rate);
and second, from a lender‟s point of view, it is the fee charged for lending money (lending rate). Think
of interest as being the cost of borrowing money. The rate of interest is the size of that cost. The higher
the rate, more it costs. Lenders charge different rates. Kudlacek (2010) observes that Short term interest
rates are determined by the central bank of the country while Long term interest rates are determined by
the market.

Udoka and Anyingang (2012) observe that in Nigeria, interest rate is determined by the following
factors:
i. The investment demand: The higher the level of investment demand the higher the level of interest
rates. On the other hand, the lower the investments demand, the lower the level of interest rates.
ii. The level of savings (or conversely the level of consumption): The higher the level of savings the
lower the interest rate while, the borrower the level of savings, the higher the level of interest rates,
iii. Demand for money or the liquidity preference: The higher the money demand, the lower the interest
rate while the lower the money demand the higher the interest rates,
iv. The quantity of money or money supply: In the Keynesian parlance as we increase money supply
the interest rate will reduce.
CONCEPT OF PROFIT
Profitability is the strength of a business to remain with surplus revenue after all the expenses related to
production have been paid for. A profitability measurement model is one of the most valued time-
phased tools used by firms to determine their growth and overall financial health over a given period of
time and can also be used to compare similar companies across the same industry or to compare
industries or sectors in aggregation. The evaluation of the profitability achieved via set standard
application of financial health enables companies to determine whether variation exists. Profitability is
core of any institution‟s long and short-term strategy and in today‟s global economic climate and
regulatory environment. The management of any firm should be able to identify its strength and
weakness, likewise exploit opportunities and tackle threats if it is determined to make profits.(Taylor,
2008).The importance of firms „profitability has made scholars, managers and regulatory authorities to
develop considerable interest on the firm specific, industry specific and macro factors that determine
firm profitability. Molyneux and Thornton (1992) found that internal factors like capital size, size of
deposit liabilities, size and composition of companies, objectives and staff strength etc. are factors that
affect a company‟s profitably.
Profit is a financial gain, especially the difference between the amount earned and the amount spent in
buying, operating, or producing something. Profit is a financial benefit that is realized when the amount
of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the
activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it
on the business. Profitability is one of the most important determinants of insurers‟ performance and
healthiness. Underwriting profit is a term used in the insurance industry. It consists of the earned
premium remaining after losses have been paid and administrative expenses have been deducted. It does
not include any investment income earned on held premiums. Many companies will eschew

underwriting profit in order to gain a greater market share. The total profit for a business forms the base
income that is used to compute tax and determine how much of a dividend to pay to shareholders of
record. For the insurance industry as a whole, total profit refers to the aggregate of profits made by all
insurance companies in a given year. Total profit = Total revenue minus Total cost
The theoretical framework for the study is the Endogenous “AK” Growth Theory. The endogenous
growth theory was developed by economists, including Paul Romer and Robert Lucas, in the mid-1980s.
The theory came about because economists had become increasingly dissatisfied with neo-classical
growth models that did not explain where the technological changes in economies came from. It is a
theory which explains the long-run growth rate of an economy on the basis of endogenous factors as
against exogenous factors of the neoclassical growth theory. Endogenous growth theory states that
economic growth is generated internally and not by external forces as the neo-classical model suggests.
The model shows three channels from financial development to economic growth: the marginal
Productivity of capital, the proportion of saving funneled to investment, and the savings rate. The other
view of the theory of endogenous growth, namely the Schumpeterian growth models, is focused on
technological innovations as channel through which the growth could be affected. Therefore, we could
add, to the above mentioned channels that connect financial intermediation to economic growth, another
one, the rate of technological innovation. Since the insurance company‟s act as financial intermediaries,
the same channels connect their functions with economic growth.
Dorofti & Jakubik (2013) empirically investigated the link between the macroeconomic environment
and insurers‟ profitability using cross-country European aggregate data. The dataset for this study was
constructed using a combination of firm-level information with country level indicators. We considered
the following macroeconomic variables as explanatory variables: real gross domestic product, long term
interest rates (Maastricht criterion), inflation, unemployment rates and stock market index. The
empirical analysis of complete panel data consisting of 25 countries for non-life insurance and 24
countries for life insurance for the period 2005-2012 is used to estimate the coefficients and the
significance of each input factor. Generalized Method of Moments as proposed by Arellano and Bond
(1991) was used as statistical analysis technique. The study used Ex-post facto research design and
regression to analyze the work. Our empirical results suggest that low interest rates along with limited
economic growth, poor equity market performance and high inflation has a negative impact on insurance
profitability. The conducted empirical analysis allows regulators to better understand and roughly
quantify those effects which might support discussion with insurers resulting in some mitigating actions.
Further research needs to be done to develop top-down stress test methodologies to fully assess the

impact of the low yield environment in combination with a sharp increase of risk premiums (the so
called double hit scenario), on insurers‟ profitability as well as solvency positions.
Ijaz (2015) undertook a study on macro economy and profitability of insurance companies: a post crisis
scenario in Pakistan. The study used firm level data of 39 companies of insurance industry of Pakistan
for the period 2006-11. This study used Ex-post facto research design and panel data analysis that
combines cross section and time series data and estimates panel least squares regression. Consistent with
the findings in Agiobenebo and Ezirim (2002) positive coefficient with past profitability indicates that
past profitability of the companies of non-life insurance and tactful significantly accounts for
profitability in current periods on account of information content confidence in the organization and
goodwill. However, the effect of past profitability for life insurance companies is insignificant. Size
effects though are negative for all three insurance subsectors, yet these effects are significant only for
life insurance companies. Negative coefficient with size is consistent with the findings in Ammar et al.
(2003) and Treacy (1980). However, it negates the proposition of higher degree of concentration and
efficient cost structure of bigger firms as noted in Whittington (1980). Regression results indicate that
relative firm size, financial leverage, underwriting risk, financial soundness, growth opportunities,
diversification, working capital management and equity market conditions are statistically significant
determinants of the profitability of insurance companies. Relative firm size, financial leverage and
underwriting risk have negative impact while rest of the variables have positive impact on profitability
of life insurance companies. However the impact of past profitability, underwriting risk, inflation and
macroeconomic environment is insignificant. For non-life insurance companies, on the other hand,
financial leverage, underwriting risk and working capital management have negative and significant
impact while past profitability, financial soundness, growth opportunities, diversification, equity market
conditions, macroeconomic environment and inflation have significant and positive impact. However,
the impact of relative firm size and working capital management is insignificant. It was recommended
that corporate managers of life insurance companies should especially focus on exploring opportunities
for growth and diversification and management of investment portfolios in view of changing equity
market conditions. Financial strength, firm size and financial leverage also cannot be ignored in
profitability management of life insurance companies. The management of non-life insurance companies
should also keep in view the macroeconomic environment, equity market conditions, inflation in
addition to firm specific characteristics including financial leverage, relative firm size, financial
soundness, growth opportunities and diversification in particular to manage profitability.

3.0 METHODOLOGY
RESEARCH DESIGN
Research design refers to all methods/techniques that are used for conduction of research (Kothari,
2004). The research design adopted in the study was ex-post facto design. This is a quasi-experimental
study examining how an independent variable, present prior to the study in the participants, affects a
dependent variable (Egbulonu, 2007). Ex-post facto design is considered appropriate when a study deals
with data that had already taken place (Onwumere, 2009). However, we use ex-post facto design when
we do not have control over the independent variables. The study relied on historical data from 1985 to
2014. The study examined the effects of inflation on the insurance penetration in the Insurance
Industry in Nigerian between 1985- 2014. Secondary data is data that has already been collected by and
readily available from other sources (Egbulonu, 2007). Secondary data was obtained from the Central
Bank of Nigeria Statistical Bulletin of 2014, as well as World Bank data website.
MODEL SPECIFICATION
The basis for modeling in this study was taken from Munir and Khan (2013) whose model is shown
below:
LnD = β0 + β1 FDt + β2 IPCt + β3 GSt + β4 Pt + μ ………………….. (1)
Where,
LnD shows the Natural Logarithm of Demand of Life Insurance as the Dependent Variable in the study.
FD shows the Financial Development at period t measured as M2.
IPC shows the Income Per Capita at period t.
GS shows the Gross Savings at period t
P shows the Price of Insurance at period t.
μ Is the Error Term at period t.
Munir and Khan (2013) empirically verified the link between macroeconomic and demographic
variables (i.e. financial development, income, savings, price of insurance, old age dependency ratio,
birth rate, death rate and urbanization) with the demand for life insurance (by sums insured) in the
context of Pakistan using annual time-series data from 1973 to 2010 of State Life Insurance Corporation
of Pakistan. The basic objective of the study was to examine the following hypotheses i.e.; that financial
development, gross savings, income level are directly linked while, price of insurance are inversely
linked with life insurance demand and the demographic variables of crude birth rate, crude death rate,
old age dependency ratio, urbanization are positively related with life insurance demand for Pakistan.
For this purpose, Ordinary Least Squares (OLS) was used and the evidence showed the significant

implications on policy establishment and the managing and marketing directors of Insurance
Corporation.
However, with respect to this study the equation was made. This was because the specific focus of both
studies was not the same. Primarily, variables were changed. As against five variables per equation the
present study was reduced to three variables (the dependent, independent and control variables only). In
relation to the hypothesis of the study the model is developed:
The model in their functional form is shown below.
TIPR = f (INR, GDP) …………… (4)
Where:
TIPR = Total Insurance Profit
INR = Interest rate
GDP = Gross Domestic Product
μ = Error term
UNITS OF MEASUREMENT PROBLEM
This study includes variables that are measured in different units (Naira and Percentages). This means
that the units of measurement for the estimated regression coefficients will also be different and
therefore lack comparability. Regression equation requires that the units of the term (Y) on the left side
of the equation be the same as those of the total right side of the equation. You can't equate apples with
oranges (Giles, 2013). For this reason, the estimated equations are modeled using the natural logarithm
of the variables to ensure like terms and comparability of the coefficients. Thus, from the above
functional relationships of the four models, the econometric equations estimated are presented below:
Where:
are parameters to be estimated. TIPR, INR, GDP and are as explained above.
Apriori Expectation The study expected the interaction between the independent variable and the
dependent variable as thus: Interest rate was expected to have a positive effect on profit
4.0 EMPIRICAL RESULT
Table 4.1 Summary of Unit Root Test Results
Variables ADF stat.* t-Statistic 5% t-Statistic 10% I(d)
Total Insurance Profit -6.564892 -2.976263 -2.627420 I(1)
Interest rate -3.656440 -2.967767 -2.622989 I(0)
GDP -5.706749 -2.971853 -2.625121 I(2)
Source: E-views 9.2

4.1.2: Descriptive Statistics Graph

EXR INFL
160 80
120 60
80 40
40 20
0 0
1985 1990 1995 2000 2005 2010 1985 1990 1995 2000 2005 2010
INTR savings rate

40 25
35
20
30
25 15
20 10
15
5
10
5 0
1985 1990 1995 2000 2005 2010 1985 1990 1995 2000 2005 2010
Figure 1: Trend analyses of independent variables (Interest rate, Exchange rate, Inflation rate and
Savings rate)
The above graphs represent trend analysis of independent variable over a given period. Interest and
saving rate recorded same trend of rise and fall during the entire period.
TOTAL PREMIUM (Millions) TOTAL PROFIT (Millions)
3.0E+11 600,000
2.5E+11 500,000
400,000
2.0E+11
300,000
1.5E+11
200,000
1.0E+11
100,000
5.0E+10 0
0.0E+00 -100,000
1985 1990 1995 2000 2005 2010 1985 1990 1995 2000 2005 2010
INSURANCE DENSITY (%) INSURANCE PENETRATION (%)

20 1.4
1.2
16
1.0
12 0.8
8 0.6
0.4
4
0.2
0 0.0
1985 1990 1995 2000 2005 2010 1985 1990 1995 2000 2005 2010
Figure 2: Trend analyses of dependent variables (Total Premium, Profit, Insurance Penetration
and Density)

The above table represents trend analysis of dependent variables over a given period. Total profit
showed a zero trend from 1985 to 2005 and made a progressive trend from 2006.
90,000
80,000
Gross Domestic Product (Nbillions)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
86 88 90 92 94 96 98 00 02 04 06 08 10 12 14
Year
Figure 3: Trend analyses of control variable (Gross Domestic Product GDP)

The above table represents trend analysis of control variable (Gross Domestic Product GDP) over a
given period. It showed a zero trend from 1985 -1992 and sluggishly rise from 1993 but progressed
throughout the period.
Table 4.2: Descriptive Statistics
TOTAL PROFIT
INTR GDP Nb
MILLIONS
Mean 75192.02 19.49608 17646.12
Median 10772.50 18.44500 5696.39
Maximum 588180.3 36.10000 89043.62
Minimum -74.40000 9.250000 134.59
Std. Dev. 149716.2 5.114675 26096.98
Skewness 2.698417 1.222261 1.662918
Kurtosis 9.441163 5.531744 4.376818
Jarque-Bera 88.26799 15.48177 16.19602
Probability 0.000000 0.000435 0.000304
Sum 2255761. 584.8825 529383.7
Sum Sq. Dev. 6.50E+11 758.6370 1.98E+10
Observations 30 30 30

The figures highlighted in blue shows the average mean values of the independent and dependent
variable over the given period of study. The standard deviation shows that total profit (149716.2)
connotes risk if there is fluctuation or period of instability.
RESULTS OF HYPOTHESES TESTS
Decision rule: In determining individual effect we will accept the null hypothesis where t-calculated is
less than t-tabulated. Where the result is otherwise, the alternative hypothesis will be accepted. This is at
5% level of significance.
RESTATEMENT OF HYPOTHESIS THREE
H0: Interest rate has no positive and significant effect on profit of insurance companies in Nigerian.
H1: Interest rate has positive and significant effect on profit of insurance companies in Nigerian.
Table 4.3 Analysis of Hypothesis
Variable Coefficient Std.Error t-statistic Prob.
C -3.084896 2.104018 -1.466193 0.1541
Interest rate -0.146894 0.654593 -0.224405 0.8241
GDP 3.381342 0.189650 17.82938 0.0000
The independent variable in hypothesis three (interest rate) had t-calculated statistic is equal to --
0.224405. T-tabulated, derived as t∞/2(n-k), t (0.05/2)(30-3) = 2.052. It is seen that interest rate had a
positive and insignificant individual effect on profit of insurance companies in Nigerian. The Durbin
Watson value of 1.492083 shows a positive autocorrelation between the variables.
IMPLICATION OF FINDINGS
For the third objective a unit change in the independent variable (interest rate) will facilitate an increase
in the growth of profits {(interest rate) had t-calculated statistic is equal to --0.224405. T-tabulated,
derived as t∞/2(n-k), t (0.05/2) (30-3) = 2.052}. This is applicable where the funds available to
insurance companies are deposited with banks. As interest rates rise, the benefits there from go more to
the banks than insurance companies. The gain insurance companies will receive as interest paid on
deposits will be small. On the other hand, the interest accruals from investment of fund of insurance
companies in say the capital market will also be of low magnitude as the rate of interest is insignificant.
Interest rate can reduce the returns of its investment. This tendency will be more pronounced in the
investments by the Life insurance segment of the industry than the Non-life. The Life insurance
segment has longer term investments and more fund invested than the Non-life segment. In the non-life
segment business tends to have a short time horizon. Policies are renewed annually, rates can be quickly
adjusted to changing market conditions and the bulk of claims are typically paid out a short time after
losses have been reported. Thus, the time interval between premium payments and claims payouts is

relatively short. Non-life insurers invest their reserves in short-term financial instruments that match the
expected payout, which mitigates the impact interest rate movements may have on the investment
earnings of non-life insurers. The case is different in the Life insurance line of business where there is an
appreciable time difference between premium payments and claims payouts. For these lines, insurers
have to build and hold reserves over a long time horizon, which makes investment, returns an important
part of overall earnings.
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
i. The findings emanating from this study show that Interest rate had a positive and insignificant
individual effect on profit of insurance companies in Nigeria.
ii. That Insurer has to build and sustain reserves over a long time horizon without plugging out from
the reserve.
iii. The result of this study shows that adjustment of Monetary Policy stimulates the effects of interest
rate on profit of the Insurance industry.
CONCLUSION AND RECOMMENDATIONS
The insurance business is significantly influenced by the state of the economy of a country. Economic
environments have a profound effect on the growth of the insurance industry. Such environment is
largely shaped by macroeconomic variables. Macroeconomic variables are factors that are pertinent to a
broad economy at the regional or national level and affect a larger population rather than a few select
individuals. The study based on the aforementioned findings we conclude that Interest rate has a positive
and insignificant individual effect on profit of the insurance companies in Nigerian and recommend
thus;
1. A special investigation should be conducted to assess the means and extent through which
adjustments of Monetary Policy stimulates the effects of these Macroeconomic variables on the
Insurance industry.
2. Insurers have to build and hold reserves over a long time horizon, which makes investment, returns
an important part of overall earnings.
3. Investments of the insurance industry should not be limited to the Nigerian economy. Financial
instruments in more advanced economies with possibility of high returns should be invested in by
the industry. The will help to offset the effect of the devaluation of Naira on their local investments.
4. The revitalisation of the key players by the injection of fresh ideas and best practices by the foreign
players.

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Effect of Interest Rate On Profit of Insurance Companies in Nigeria

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EFFECT OF INTEREST RATE ON PROFIT OF INSURANCE COMPANIES IN NIGERIA

Article in International Journal of Management and Social Sciences · July 2018

Ehiogu CHIZOBA Perpetua

EFFECT OF SAVINGS RATE ON INSURANCE DENSITY IN NIGERIA View project

INSURANCE COMPANIES GROWTH IN NIGERIA View project

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EFFECT OF INTEREST RATE ON PROFIT OF INSURANCE COMPANIES IN NIGERIA

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4.1.2: Descriptive Statistics Graph

INTR savings rate

INSURANCE DENSITY (%) INSURANCE PENETRATION (%)

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Figure 3: Trend analyses of control variable (Gross Domestic Product GDP)

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