Credit Risk

This study examines the impact of credit risk modeling techniques on the performance of life insurance companies in Nigeria., focusing on a sample of 12 life insurance companies in Nigeria over the period 2018 to 2024. The variables analyzed included credit scoring, structural model and Altman Z-score model. Various statistical and econometric tools were applied to analyze the data. The findings revealed that credit scoring and Altman Z-score model have positive and statistically insignificant effects on the financial performance of life insurance companies in Nigeria, while the structural model has a negative and statistically insignificant influence on the financial performance of life insurance companies in Nigeria. Based on these findings, the study recommended that life insurance firms in Nigeria strengthen the adoption and integration of credit scoring systems using advanced data analytics and artificial intelligence and firms should review and customize structural models to better suit the operational and regulatory environment of the Nigerian insurance industry.

he research looks at how Nigerian life insurance policies are affected by the credit risk modeling approach. From 1995 to 2023, time series quarterly data were obtained from the World Bank Financial Development Database and the CBN statistics bulletin. The multiple regression methods known as Ordinary Least Square (OLS) and General Least Square (GLS) were used. Among other things, the results show that Nigeria's renew life policy is significantly impacted by the human development index. In Nigeria, government spending on health has a big impact on the renew life policy. Nigeria's renew life policy is significantly impacted by life expectancy. Nigeria's renew life policy is not significantly impacted by the rate of inflation. Nigeria's renew life policy is not significantly impacted by the exchange rate. The research comes to the conclusion that life expectancy, government health spending, and the human development index are important factors that influence Nigeria's renew life strategy

This study considered the influence of credit risk management on the financial performance of deposit money banks in Nigeria. Data for the study was collected from investigated annual financial report spanning 2020 to 2024. The banks investigated includes First Bank, Access Bank, United Bank for Africa, Wema Bank, Unity Bank, First City Monument Bank, Zenith Bank and Fidelity Bank. The fixed effects and random effects regression procedures were applied on panel data and the Hausman test diagnostic technique was applied on the random effect regression output to determine the most efficient estimate which was selected for analysis. The estimation was carried out using E-view 9.0 econometric software. This study found that credit risk management negatively and significantly influence the financial performance of deposit money banks in Nigeria. Precisely, non-performing loan, loan loss provision among others negatively and signficantly impact the financial performance of deposit money banks. Based on these findings, this study recommends that bank manager should intensify action to minimize the rate of non-performing loan because of the risk it poses to financial performance and that banks should limit the amount set aside as loan loss provision because it diminishes the fund that would have been available for credit creation, thus depressing financial performance.