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dc.contributor.authorNjeri, Irungu E
dc.date.accessioned2017-01-09T09:13:51Z
dc.date.available2017-01-09T09:13:51Z
dc.date.issued2016-10
dc.identifier.urihttp://hdl.handle.net/11295/99887
dc.description.abstractInterest rates are one of the economy single strongest influences and have a profound effect on everything from individual investment decisions to job creation, monetary policy and corporate profits. Economic environments have an intense consequence on the growth of the insurance companies. A strong insurance industry promotes a developed contractual saving sector which contributes to a more resilient economy that would be less vulnerable to interest rates and demand shocks while creating a more stable business environment, including macroeconomic stability. The main objective of the study was to establish the effect of interest rates changes on financial performance of insurance firms; A survey of life insurance policy in Kenya. The study will be guided by the following research objectives; to establish the effect of interest rates changes on loan performance of insurance firms in Kenya; to examine the effect of interest rates changes on investment income of insurance firms in Kenya; to assess the effect of interest rates changes on liquidity position of insurance firms in Kenya and to determine the effect of interest rates changes on stock returns of insurance firms in Kenya. The study adopted a descriptive survey design. The target population was licensed insurance firms. The target population was therefore be 43 insurance firms in Kenya. The study targeted the top managers of these insurance firms. The sample size was 115 respondents. Data collected was majority secondary data and was collected using a data sheet. Data was analyzed using descriptive and inferential statistics and presented using tables. The study findings indicated that there was a significant relationship between loan performance and financial performance (p=0.009); there was a significant relationship between investment income and financial performance (p=0.016); there was a significant relationship between Stock returns and financial performance (p=0.003) and there was a significant relationship between Stock returns and financial performance (p=0.003). The study concluded that interest rate changes affect performance of assets as it increases the cost of loans charged on the borrowers, regulation on interest rates have far reaching effects on assets non-performance. The study recommended that there is need for government to regulate interest rates as this would help to safeguard borrowers from exploitation by insurance firms.en_US
dc.language.isoenen_US
dc.publisherUniversity of Nairobien_US
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 United States*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/us/*
dc.subjectFinancial Performance Of Insurance Firms; A Survey Of Life Insurance Policy In Kenyaen_US
dc.titleEffect Of Interest Rates Changes On Financial Performance Of Insurance Firms; A Survey Of Life Insurance Policy In Kenyaen_US
dc.typeThesisen_US


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