Authors : Oyowei, Ovieni Rejoice; Oyowei Esueze Augustine; Temeoweimienebi Mercy Mezeh; Thompson Walker

Volume/Issue : Volume 11 - 2026, Issue 5 - May

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Google Scholar : https://tinyurl.com/mvm4nj89

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DOI : https://doi.org/10.38124/ijisrt/26may1764

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Abstract : This study investigates how Enterprise Risk Management (ERM) influences the profitability of insurance companies listed on the Nigerian stock exchange. Using an ex-post facto research design, secondary data were collected from five insurance firms covering the period 1996 to 2025. After removing two extreme outliers (2024-2025), which represented abnormal post-COVID surges, a log transformation was applied to correct skewness in earnings per share (EPS), reducing skewness from 2.96 to -0.19. Severe multicollinearity was detected between Return on Assets (ROA) and Return on Equity (ROE), with a correlation coefficient of 0.994 and a Variance Inflation Factor of 87.68. Consequently, ROA was excluded from the final model.

Keywords : Enterprise Risk Management, Profitability, Earnings Per Share, Return on Equity, Insurance Companies, Multicollinearity, Nigeria.

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