Effect of Enterprise Risk Management (ERM) Practices on Performance of Listed Insurance Companies in Nigeria

Despite growing regulatory emphasis on Enterprise Risk Management (ERM), many insurance companies in Nigeria struggle to demonstrate its measurable impact on firm performance. This study examined the effect of ERM strategic and operational objectives on the performance of listed insurance companies in Nigeria. Using a panel dataset of 19 firms over a 10-year period (2015–2024), the study employed ex-post facto research design with secondary data analyzed through descriptive statistics, correlation analysis, and fixed effects regression. Tobin’s Q was adopted as the performance proxy. The findings revealed that ERM Operational Objective has a statistically significant and positive impact on firm performance, while ERM Strategic Objective, although positively related, was not statistically significant. These results suggest that Nigerian insurers are more effective at implementing ERM practices at the operational level than strategically. Anchored in Contingency Theory, the study concludes that ERM enhances performance only when its implementation aligns with contextual organizational realities. It recommends deeper integration of ERM into strategic planning, continued reinforcement of operational ERM, and supportive regulatory frameworks to optimize performance outcomes. The study contributes to literature by providing evidence from an emerging market context and offers practical implications for insurance leaders and policymakers.