Corporate Governance Attributes and Financial Performance of Non-Life Insurance Companies in Nigeria: Panel Evidence From 2011 To 2023

Abstract

This study examines the effect of corporate governance attributes on the financial performance of non-life insurance companies listed on the Nigerian Exchange (NGX) from 2011 to 2023. It assesses how board structure and audit committee mechanisms influence firm performance in an emerging market insurance setting. An unbalanced panel of 130 firm-year observations from ten companies is analysed using Panel Least Squares estimation. The model tests the effects of non-executive directors’ size, board meeting frequency, audit committee size, and audit committee meeting frequency on return on assets (ROA) and return on equity (ROE), with Tobin’s Q included as a control for market valuation effects. The dataset reflects key regulatory developments, including the Corporate Governance Guidelines for Insurance and Reinsurance Companies (CGGIRC 2021) and the Nigerian Code of Corporate Governance (NCCG 2018). Results show a positive but statistically insignificant relationship between all governance variables and both performance measures. This indicates limited transmission from formal governance structures to financial outcomes in the Nigerian non-life insurance sector. The pattern suggests compliance-oriented governance practices that do not necessarily translate into improved profitability, influenced by regulatory uniformity, implementation delays, and macroeconomic instability between 2020 and 2023. The study contributes sector-specific evidence to corporate governance literature in emerging markets and highlights the need for stronger enforcement under evolving reforms, including the Nigeria Insurance Industry Reform Act (NIIRA) 2025.