Tajudeen Olajide Salaudeen, Rafiu Adekunle Salam, Ganiyat Abiola Mudashiru


The role of reinsurance in insurance companies cannot be overemphasized as it plays significant impact on economic development of any nation. The management of the risks assumed by insurance companies is fundamental to the success of their operations. This study therefore examined hedging risk through reinsurance in the Nigerian insurance companies. This study is longitudinal in nature as data was gathered for period of10 years (2009 to 2018). Ten insurance companies out the fifty-eight registered companies were randomly chosen for this study. Data was analyzed via regression analysis. The results revealed that, Net Claim ratio, Net Commission ratio, Net Retention ratio and Ratio of Ceded Reinsurance all have significant impact on performance of insurance companies in Nigeria. The study concluded that, hedging through reinsurance has effect on the profitability of insurance companies in Nigeria. Recommendations were proffered in line with the findings of the study.


Hedging risk, Reinsurance, Net Claim ratio, Net Commission ratio, Net Retention ratio and Ratio of Ceded Reinsurance.

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