Liquidity of assets as a determinant of premiums at Nossa Seguros: econometric evidence (2012–2024)

Abstract

This study aimed to analyze the relationship between the volume of premiums issued and the main financial indicators of Nossa Seguros, with emphasis on asset liquidity, in the period 2012–2024, using a multiple linear regression model with 13 observations. The results indicate that premiums are mainly explained by gross technical provisions, followed by net assets, while net income was not statistically significant. These findings reinforce the importance of the structural dimensions of solvency and liquidity in the Angolan insurance sector's commercial expansion. Contemporary literature supports the impact of gross technical provisions, showing that adequate levels increase an insurer's credibility and expand its underwriting capacity (Eling & Pankoke, 2023; Hardy & Wirfs, 2021). The positive, albeit moderate, relationship between net assets and premiums aligns with the Liquidity and Maturity Theory of assets, suggesting that adequate liquidity allows for rapid responses to market opportunities (Acharya, Naqvi & Tuckman, 2020; Brigham & Ehrhardt, 2022). The lack of significance in net income confirms that profitability and growth can follow independent dynamics (Shikur, Ahmed & Hussen, 2022; Mihelle & Lukman, 2024). The model revealed substantial robustness, with R² = 0.996 and no autocorrelation. The findings suggest that asset liquidity and the consistency of technical provisions are central to the sustainable growth of the premium portfolio. It is recommended that insurers strengthen actuarial governance and adopt conservative technical reserve policies, aligned with international best practices.