Funds Flow Analysis Of The Insurance Companies In Nigeria: A Retrospective Study Of The Nigerian Insurance Market Between 1992 To 1997

ABSTRACT Funds refer to cash equivalent or to working capital. The fundamental concept of working capital is relatively simple. It is used to denote the excess of current assets over current liabilities. The excess is sometimes referred to as “Net working capital and it can also be referred to as company’s assets which, in normal course of business, are convertible into other assets. The concepts of funds flow analysis may be referred to as the following terms: Sources and application of funds statement; funds flow statement; movement of funds statements, and statement of changes in financial statement. The need for funds flow analysis arises because the profit and loss account and balance sheet do only show the disposition of the company at the beginning and end of the accounting periods, but do not show or identify the movements in assets and liabilities during the year and the effects on the net liquid funds.
However, funds are important to an organization such that no organization can exist and continue to remain in business without adequate funds to meet its short term and long term obligations as well as meet their day transactions. Considering the peculiar nature of the industry, the following constitute the insurance funds; Premium income from clients; other incomes such as annuities receivable. The researcher decided to conduct a study on the funds flow analysis in an insurance industry to enable him to determine the peculiar ways by which this industry raises trades and uses their funds. To facilitate the study, empirically two hypothesis were drawn and subsequently a field study was under taken to establish the validity or non-validity of the hypothesis. Both primary and secondary data were collected. But due to insufficient primary data the researcher based most of his work on secondary data, which includes oral interviews held with top officials of some insurance companies and by distributing questionnaires to 100 insurance companies.
This research work did not only identify the problems but also offered solutions to the problems encountered by the insurance industry.

TABLE OF CONTENTS
Title Page Approval Page Dedication Acknowledgement Abstract Proposal Table of Contents
Chapter One 1.1 Introduction 1.2 Statement of Problems 1.3 Purpose / Objective of the Study 1.4 Significance of the Study 1.5 Scope and Limitations of Study 1.6 Research Hypothesis 1.7 Historical Development of Modern        Insurance in Nigeria 1.8 Definitions of Terms
Chapter Two 2.0 Review of Related Literature 2.1 Meaning of Insurance 2.2 Characteristics of Insurance 2.3 Funds Flow in the Endurance Industry 2.4 An Over View Of the Nigerian Insurance        Market   2.5 Nature of the Nigerian Insurance Market,        Insurance and Insurance Related Federal      Government Establishment 2.6 The Future of the Insurance Industry         In The Nigeria 2.7 Position and Premium Income Growth Of        The Nigeria Insurance Market in The Past        Two Decades 2.8 Structure and Composition Of The        Insurance Market in Nigeria
Chapter Three 3.0 Research Design and Methodology 3.1 Source of Data Collection 3.2 Methods of Data Collection 3.3 Sample Size 3.4 Nature of Data Analysis
Chapter Four 4.0 Data Presentation and Interpretation Introduction 4.1 Gross Premium Income Analysis And Explanation of Data 4.2 Investment Income Life 4.3 Total (Gross) and Net Claims by Class         Of Business for the Nigeria Insurance          Companies 1992-1996 4.4 Loss Ratio of All Companies by Class       Of Business from 1992-1996 4.5 Data Analysis Presented In a Graphical Firm 4.6 Analysis of Summary Table
Chapter Five 5.0 Findings 5.1Conclusions 5.2 Recommendations Bibliography Appendix