Corporate Diversification and Financial Performance

Corporate diversification in product line, subsidiary, income or regional line is crucial for firms to compete favourably and survive in the long run. To key into this trend, managers invest heavily in human and material resources in diversifying their portfolios. However, despite this huge investment, firms' especially the insurance industry in Nigeria is still performing below expectation and the need to investigate its relevance in insurance performance becomes imperative. It is advised that insurance companies that are seeking higher performance should diversify their revenue base through merger, acquisition and expansion as operational, financial and managerial synergy will be achieved in the insurance industry.