Relationship Between Investment Portfolio Choice And Financial Performance Of Insurance Firms In Kenya.

Abstract

The study sought to determine the relationship between investment portfolio choice and financial performance of insurance firms in Kenya. The study used a descriptive research design. Data for a 5-year period (2014-2018) was collected for 50 insurance1firms in1Kenya. Secondary1data collected from published financial1statements of insurance1firms in Kenya was1collected. Annual data1was used1for the study. The data1was analysed giving a total of 250 data points. Multiple regression, corelation and descriptive analysis were done. From the findings, investment1in government securities, investment1in real estate, investment1in bank deposits and investment1in corporate1bonds had a positive1relationship with1return on assets. However, investment in stocks had an negative1relationship with return1on assets. All the variables except investment in stocks displayed a significant relationship. The study concluded that investmet portfolio choice had1a relationship with1financial perfromance of1insurance firms in1Kenya. It was recommended that policy makers come up with policies that support the investment efforts made by1the insurance firms1in Kenya in1order to enhance their financial1performance.