Journal on Banking Financial Services & Insurance Research Vol. 8, Issue 2, February 2018, Impact Factor: 5.601 ISSN: (2231-4288) www.skirec.org Email Id: skirec.org@gmail.com An International Double-Blind, Peer Reviewed, Refereed Open Access Journal - Included in the International Indexing Directories Page 1 CONTRIBUTION OF INTRA-INDUSTRY VARIABLES ON PROFITABILITY OF INSURANCE BUSINESS IN NIGERIA OKPARAKA, VINCENT CHUKWUKA Ph.D Department of Insurance and Risk Management, Faculty of Management Sciences Enugu State University of Science and Technology (ESUT), Enugu, Enugu State, Nigeria ABSTRACT This study investigated the factors that enhance the profitability of insurance organisations in Nigeria. Its specific objectives were to examine Total Premium as a factor that enhances the profitability of insurance organizations in Nigeria; analyse Total claims as a factor that enhances the profitability of insurance organizations in Nigeria; and evaluate Total Assets as a factor that enhances the profitability of insurance organizations in Nigeria. Ex-post facto research method was used in the study. Therefore, data was taken from Central Bank of Nigeria Statistical bulletin of various years. Three hypotheses were formulated for the study. The statistical technique used to analyse the hypotheses was Ordinary Least Square Regression. It was found that Total Premium contributes a positive and no significant enhancement to the profitability of insurance organizations in Nigeria; Total claims contributes a positive but no significant enhancement to the profitability of insurance organizations in Nigeria; and Total assets contribute a positive but no significant enhancement to the profitability of insurance organizations in Nigeria. Based on the findings, it is concluded that total premium, total claims and total assets contribute insignificantly to the profitability of insurance organizations in Nigeria. The study recommended that insurance companies should reduce their use of debt instruments in order to give room to their use of total premium, total claims and total assets to affect company operations; thereby allowing them to contribute meaningfully to profitability. KEYWORDS: Profitability, Insurance.