dc.description.abstract | The purpose of this study was to investigate, by analyzing and comparing, investment
performance between the fixed and variable income securities held by insurance
companies in Kenya, with a view to determine the investment category with better
performance, The hypotheses, theoretical framework and the methods of data collection
used were presented in the study. The results are intended to assist managers and
potential investors in making investment decisions that maximize the value of their firms
and thus the wealth of their shareholders.
The study looked at the investment performance of fifteen randomly selected insurance
companies over a five-year period between 1997-2001. The study was based on
secondary data in which data collected include securities market values, net annual
disposals, interest and dividends received. Annual returns and arithmetic means were
computed and results compared.
The notion of expected returns and the annual investment data necessitated the use of the
Percentage Return Model as the appropriate financial tool. The comparison of annual
returns and their arithmetic means together with the empirical evidence on the hypothesis
testing suggest that the variable income secu;ities performed better than the fixed income
securities over the five-year period under study. It is evidesr from the study findings that
the components of the model used are critical variables in determining securities
performance. There is therefore need for good precision of those variables if reliable
results and credible comparisons are desired. | en |