Abstract:
This study evaluated the effect of capital structure on financial performance of quoted composite insurance companies in Nigeria for the period 2015- 2019.The study data which was collected by secondary means was analyzed using STATA 13 to test the relationship between the independent variable (capital structure) and the dependent variable (financial performance). Findings from the study indicate that there is a negative relationship between debt to asset ratio and return on equity of the companies during the study period, i.e. increase in debt to asset ratio lead to decrease in return on equity. And that there is a positive relationship between return on equity and Debt to equity ratio, i.e. increase in debt to equity ratio leads to increase in return on equity. The study therefore recommends that insurance companies in Nigeria deploy more debt in their capital structure mix, but should endervour to minimize their debt to assets ratio.
