Investment policy and financial performance

Analysis of the data collected as part of this study, together with financial data from the CIMA market, enabled us to make the following observations: investment yields are low, there is excess liquidity, investments are not sufficiently diversified and are concentrated much more on bank deposits and securities (55% of total investments), etc. Faced with these various observations, we thought it would be worthwhile to conduct applied research into the investment policy and financial performance of insurance companies under the constraints of the CIMA environment. This study shed light on the reasons for low investment yields, and, using a single-site analysis, demonstrated the significant impact of investment policy on the financial performance of insurance companies. By analyzing financial data, investment strategies, the investment structure of insurance companies in the CIMA market and data collected from Cameroonian insurance companies, we found that investment choices play a crucial role.