This paper investigated the connection between portfolio allocation and financial performance of insurance industry in Nigeria. The data was obtained from secondary sources and estimated with autoregressive distributed lag (ARDL). The study discovered a long-run relationship between portfolio allocation to cash and equivalents, financial assets, reinsurance assets, investment properties, other receivables and prepayments, property and equipment and financial performance proxied by growth in gross premium income (GPI). Further research reveals that allocation to in cash and equivalents, other receivables and prepayments and properties and equipment had an insignificant negative effect on GPI. Furthermore, the study discovered that investment in financial assets, reinsurance assets and investment properties had positive statistically significant relationship with GPI. This result implies that insurance companies’ investment in financial assets, reinsurance assets, investment properties is relativ ely high and do have strong correlation with financial performance. Hence, portfolio management in insurance industry plays a crucial role in finance. Policy should be geared towards purchase of valueadding property and equipment, purchase of intangibles, efficient utilization of proceeds from sale of property and equipment and retention of cash and cash equivalents for prompt payment of claims.
The aim of this paper is to assess the relative performance efficiency of leading international banks listed in Nigerian exchange ltd using the data envelopment analysis (DEA) technique. The selection of inputs and outputs plays a key role when applying DEA for assessing the efficiency of decision –making units (DMUs). In the conducted research inputs and outputs were selected. the sample consisted of five (5) international banks (viz. First Bank Holding Plc, United Bank of Africa Plc, Guarantee Trust Bank Plc, Access Bank Plc and Zenith Bank Plc, popularly known as “FUGAZ” international banks the five biggest banks by capital based listed in Nigerian Exchange Limited and the period that is being observed is five year span from 2017 to 2021. According to the average efficiency score for the whole observed period, all the FUGAZ are relatively efficient international banks and the average overall efficiency score is 94%. Technical inefficiency was the major source of inefficiency which calls for managerial development in order to scale up the efficiency levels in the area of interest income, interest received from loans and advances, interest expense and interest paid on customers’ deposit. The average inefficiency of the FUGAZ international banks under the constant returns to scale to scale model could be attributed to the excess of customers deposits on the balance sheets of the banks and the need for the FUGAZ banks to step up efforts in area of reducing interest expense impairment loss on the financial assets and other financial assets, depreciation charges, amortization charge, fees and commission expense and administration and operating expenses
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