Analysis of Insurance Companies' Investment on Capital Market in Nigeria

Premiums accruing from insurance companies' longer-term (life insurance) business represents an important proportion of both the stock, and flow of long-term financial savings that influence the direction of investment into capital markets in the economy. This study is carried out to investigate the impact of insurance companies' investment on capital market in Nigeria, using ordinary least square regression and correlation analysis. The secondary data for this study was sourced from insurance companies listed on the stock exchange market during the period of 2002 to 2015. The observation of the fourteen years' data was analyzed using the Eviews 9 and descriptive statistics. The findings of the study revealed that three independent variables: the life insurance premiums and other Insurance investments, have no significant effect on the Nigeria capital market within the period of study. Therefore, the study recommends that the government should implement more effective laws to ensure an increase in the investment volume of insurance companies and the deepening of insurance penetration through financial inclusion of insurance to contribute meaningfully to the capital market