Abstract:
The aim of the study was to investigate the influence of bond investment on financial
performance of insurance companies listed at Nairobi securities exchange. Theory underpinning
this study was Arbitrage Pricing Theory. The study adopted descriptive research design. Target
population of the study included 6 insurance companies listed in Nairobi Stock Exchange. The
target respondents were finance officers, internal auditors, credit managers, operations managers,
valuers and underwriters. Thus the total target population was 36 respondents from the six
insurance companies listed in Nairobi stock exchange. The study used questionnaires to collect
data. Questionnaires were tested for validity and reliability. The collected data was analyzed
using statistical package for social sciences. Data was analyzed using descriptive statistics and
inferential statistics and was presented in tables and relevant discussions. Findings indicated that
bond investment had a significant influence on financial performance of insurance companies.
Hence the study concluded that bond investment have a significant influence on financial
performance of insurance firms listed in NSE. The study recommended that the management of
insurance firms should focus their attention on coming up with policies to guide their decisions
in bond investments.
