{"title":"在内罗毕证券交易所上市的保险公司的宏观经济指标和财务业绩","authors":"Margaret Aor Oburu, Richard Ngali, Joshua Matanda","doi":"10.47941/ijf.1450","DOIUrl":null,"url":null,"abstract":"Purpose: The general objective of the study was to determine how macroeconomic variables affected the financial performance of insurance firms listed on the Nairobi Securities Exchange. The study's specific goals were to identify how inflation, interest rates, exchange rates and gross domestic product affected those same companies' financial performance.
 Methodology: A descriptive survey research design was used for the investigation. All the six insurance companies listed on the Nairobi Securities Exchange made up the study's target group hence a census-style analysis. The panel regression model was used in the investigation and relied on secondary information that was gathered using a data collection sheet. The five-year period covered by the data was from 2017 to 2021.
 Findings: According to the report, insurance is severely impacted by inflation. There was a general increase in exchange rates and there was a fluctuation in the economic growth. From the findings, the study concludes that the insurance companies were operating on economic conditions that became increasingly challenging as shown by increasing inflation rates. The CBR and lending rates showed a general downward trend in the five years’ period, the exchange rates in the Kenyan economy were changing rapidly, there were major changes in the economic performance of the Country emanating from various occurrences including global oil crisis and COVID-19 pandemic. Despite the harsh economic conditions, the NSE listed insurance companies posted healthy financial performance as shown by ROA values above 5%.
 Unique contribution to theory, practice and policy: The study recommends that the NSE listed insurance companies to make ample adjustment for inflation so that during seasons of high inflation the firms do not run at a loss. The study also recommends the NSE listed insurance companies firms to employ strategies where they can purchase more futures contracts on government bonds or interest rate futures in order to be able to lock-in interest rate and hedge their various portfolios. The NSE listed insurance companies are also recommended to mitigate the exchange rate risks by hedging the foreign exchange risk by purchasing spot contract to cushion against any negative swing. The government through line ministries of finance and planning should undertake measures to ensure good performance of the economy.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"16 1","pages":"0"},"PeriodicalIF":2.8000,"publicationDate":"2023-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Macroeconomic Indicators and Financial Performance of Insurance Firms Listed at the Nairobi Securities Exchange\",\"authors\":\"Margaret Aor Oburu, Richard Ngali, Joshua Matanda\",\"doi\":\"10.47941/ijf.1450\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"Purpose: The general objective of the study was to determine how macroeconomic variables affected the financial performance of insurance firms listed on the Nairobi Securities Exchange. The study's specific goals were to identify how inflation, interest rates, exchange rates and gross domestic product affected those same companies' financial performance.
 Methodology: A descriptive survey research design was used for the investigation. All the six insurance companies listed on the Nairobi Securities Exchange made up the study's target group hence a census-style analysis. The panel regression model was used in the investigation and relied on secondary information that was gathered using a data collection sheet. The five-year period covered by the data was from 2017 to 2021.
 Findings: According to the report, insurance is severely impacted by inflation. There was a general increase in exchange rates and there was a fluctuation in the economic growth. From the findings, the study concludes that the insurance companies were operating on economic conditions that became increasingly challenging as shown by increasing inflation rates. The CBR and lending rates showed a general downward trend in the five years’ period, the exchange rates in the Kenyan economy were changing rapidly, there were major changes in the economic performance of the Country emanating from various occurrences including global oil crisis and COVID-19 pandemic. Despite the harsh economic conditions, the NSE listed insurance companies posted healthy financial performance as shown by ROA values above 5%.
 Unique contribution to theory, practice and policy: The study recommends that the NSE listed insurance companies to make ample adjustment for inflation so that during seasons of high inflation the firms do not run at a loss. The study also recommends the NSE listed insurance companies firms to employ strategies where they can purchase more futures contracts on government bonds or interest rate futures in order to be able to lock-in interest rate and hedge their various portfolios. The NSE listed insurance companies are also recommended to mitigate the exchange rate risks by hedging the foreign exchange risk by purchasing spot contract to cushion against any negative swing. The government through line ministries of finance and planning should undertake measures to ensure good performance of the economy.\",\"PeriodicalId\":47461,\"journal\":{\"name\":\"International Journal of Finance & Economics\",\"volume\":\"16 1\",\"pages\":\"0\"},\"PeriodicalIF\":2.8000,\"publicationDate\":\"2023-09-20\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"International Journal of Finance & Economics\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.47941/ijf.1450\",\"RegionNum\":3,\"RegionCategory\":\"经济学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q2\",\"JCRName\":\"BUSINESS, FINANCE\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Finance & Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.47941/ijf.1450","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
Macroeconomic Indicators and Financial Performance of Insurance Firms Listed at the Nairobi Securities Exchange
Purpose: The general objective of the study was to determine how macroeconomic variables affected the financial performance of insurance firms listed on the Nairobi Securities Exchange. The study's specific goals were to identify how inflation, interest rates, exchange rates and gross domestic product affected those same companies' financial performance.
Methodology: A descriptive survey research design was used for the investigation. All the six insurance companies listed on the Nairobi Securities Exchange made up the study's target group hence a census-style analysis. The panel regression model was used in the investigation and relied on secondary information that was gathered using a data collection sheet. The five-year period covered by the data was from 2017 to 2021.
Findings: According to the report, insurance is severely impacted by inflation. There was a general increase in exchange rates and there was a fluctuation in the economic growth. From the findings, the study concludes that the insurance companies were operating on economic conditions that became increasingly challenging as shown by increasing inflation rates. The CBR and lending rates showed a general downward trend in the five years’ period, the exchange rates in the Kenyan economy were changing rapidly, there were major changes in the economic performance of the Country emanating from various occurrences including global oil crisis and COVID-19 pandemic. Despite the harsh economic conditions, the NSE listed insurance companies posted healthy financial performance as shown by ROA values above 5%.
Unique contribution to theory, practice and policy: The study recommends that the NSE listed insurance companies to make ample adjustment for inflation so that during seasons of high inflation the firms do not run at a loss. The study also recommends the NSE listed insurance companies firms to employ strategies where they can purchase more futures contracts on government bonds or interest rate futures in order to be able to lock-in interest rate and hedge their various portfolios. The NSE listed insurance companies are also recommended to mitigate the exchange rate risks by hedging the foreign exchange risk by purchasing spot contract to cushion against any negative swing. The government through line ministries of finance and planning should undertake measures to ensure good performance of the economy.