dc.description.abstract | The goal of this research was to determine the effect of the practices on management on financial risk on profitability of life insurance companies in Kenya. The research adopted a survey research design that adopted a descriptive research design. Data was collected using primary data using questionnaires administered to 30 employees of the said life insurance companies and secondary on the financial performance of the Insurance Companies was correlated with respondent opinion on the impact of implementation of practices on management on financial risk on profitability. The data obtained was evaluated through the use of inferential and descriptive statistics. The findings indicate that the respondents strongly agreed that the gains in profits witnessed in the past four years as represented your company‟s profit growth rate is as a result of implementation of financial risk management practices of risk identification, assessment, mitigation, management, implementation and evaluation. In the results, it was indicated that insuring different types of risks has reduced the risk of loss ,the training of insured parties on ways to avoid or minimize the chances of losses occurring has enhanced profitability, the processes of reinsurance/hedging has reduced costs associated with claims hence higher profits, the training of employees on risk management policies reduces costs associated with losses hence enhancing profits, the evaluation of the efficiency of the risk management program leads to removal of inefficient process hence profitability. The findings indicate the life insurance companies have on average experienced annual growth in profits at the rate of 9% annually. The study‟s limitations included limited time set aside for the research and the limited scope of study. | en_US |