<![CDATA[Purpose: This study investigates the relationship between technical reserves and solvency margins among non-life insurance companies in Nigeria. It aims to determine whether the composition and level of technical reserves significantly influence insurers’ solvency positions and financial stability. Design/methodology/approach: From a population of 40 non-life insurance companies, a purposive sample of 10 firms representing over 60% of the industry’s market share was selected. Secondary data were obtained from annual financial reports and analyzed using E-Views software. Multiple regression analysis was employed to test the study’s hypotheses and examine the effect of technical reserve components on solvency margins. Findings: The results reveal that technical reserves do not have a statistically significant effect on solvency margins. This indicates that current reserve levels or compositions may not be adequately aligned with solvency requirements in the Nigerian non-life insurance sector. Limitations and Research implications: The study is limited to ten insurers and may not fully capture industry-wide variations. Future research could incorporate more firms, longer timeframes, and post-regulatory-reform datasets to deepen understanding of reserve adequacy. Practical Implications: The findings suggest the need for insurers to reassess reserve management strategies and for regulators to strengthen supervisory mechanisms. NAICOM may consider revising solvency margin standards to reflect the differing impacts of reserve classes. Originality/value: This study provides rare empirical evidence on the reserve–solvency relationship in Nigeria’s non-life insurance industry and highlights the importance of reserve composition in shaping solvency outcomes in emerging markets.]]>
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