dc.description.abstract | Despite premium growth over the years, Kenyan non-life insurance penetration has continued
on the downward trend from 2.28% in 2013 to 1.63% in 2017; Pro tability has also been
on the negative side since 2015; recording an underwriting loss of Kenyan shilling 0.02
Billion in 2015; 2.1 Billion in 2016 and 1.013 Billion in 2017. Against this background, the
present study establishes the internal factors a ecting Kenyan non-life insurers nancial
performance, Return on Asset (ROA) being the proxy indicator. The study was mainly
based on secondary data collected from audited nancial statements of all the 37 non-life
insurance companies in Kenya for the period 2013 to 2017 (5 years). For this purpose,
xed e ects panel data regression analysis was used to assess the relationship of insurance
companies speci c characteristics such as expense ratio, retention ratio, liquidity, company’s
size, loss ratio and shareholders equity ratio against return on assets. The statistical
ndings revealed that liquidity has a signi cant positive e ect on Kenyan non-life insurers
nancial performance; company size and loss ratio have a signi cant negative e ect; and
no signi cant relationship with expense ratio, shareholders equity ratio, and retention
ratio. The study recommends that for non-life insurers in Kenya to enhance their nancial
performance in terms of their return on assets, they should embrace technological
disruptive innovations by leveraging on new technologies that boosts their operational
e ciency and meets the evolving customer demands. | en_US |