Economic Risk Mitigation and the Securities Market Financial Performance of Listed Insurance Firms at Nairobi Securities Exchange.

Abstract

The performance of the global securities market plays a crucial role in both local and international economies. The rise of these markets has increased the risks associated with firms listed on the stock market. This study aimed to examine the effect of economic risk mitigation on the financial performance of listed insurance firms in Kenya's securities market. A descriptive research design and a quantitative research approach were adopted. The target population consisted of 548 staff members working in finance, investment, risk, actuarial, and operations departments across the six insurance firms listed on the Nairobi Securities Exchange. The sample size was determined using Yamane's Formula, and stratified random sampling was employed to select the sample. Both primary and secondary data were utilized in this study. Secondary data were collected using a data extraction tool from the annual reports and financial statements of the insurance companies, while structured questionnaires were used to gather primary data. The collected data were analyzed using descriptive and inferential statistics with the help of SPSS (version 24). Descriptive statistics included frequency distribution, percentages, mean, and standard deviation, while inferential data analysis was conducted using Pearson correlation coefficient and linear regression analysis. The study found that economic risk mitigation has a positive and significant effect on securities market financial performance of listed insurance firms in Kenya.