This study investigated ownership structure and financial performance of listed insurance companies in Nigeria. It specifically examined how board diversity, board size, and directors’ shareholding affect return on capital employed of listed insurance companies in Nigeria. An ex-post facto research design was used in the study. Only ten (10) listed insurance businesses in Nigeria were chosen as the sample size, out of the nineteen (19) listed insurance firms in Nigeria that are listed on the Nigerian Exchange Group. The annual reports and accounts of the chosen companies served as the secondary source of the data, which was then subjected to multiple regression analysis and descriptive statistics. The findings showed that while directors’ shareholdings had no discernible effect on return on capital employed of Nigerian listed insurance businesses, board diversity and size had a substantial effect. The study concluded that board diversity and board size served as good predictors of return on capital employed of Nigerian listed insurance businesses. As a result, the study recommended that Nigerian listed insurance firms should emphasize and improve board diversity with regard to gender, as a diverse board promotes more creative thinking, more viewpoints, and better decision-making, all of which raise return on capital employed, while also focusing on maximizing the size of their boards by making sure that there are enough directors to strike a balance between representation and efficiency.
Keywords: Board size, Financial Performance, board diversity, directors’ shareholding, ownership structure and return on capital employed
