Multiattribute Assessment of the Financial Performance of Non-life Insurance Companies: Empirical Evidence from Europe

2017 ◽  
pp. 1-17 ◽  
Author(s):  
Michalis Doumpos ◽  
Emilios Galariotis ◽  
Giacomo Nocera ◽  
Constantin Zopounidis
Keyword(s):  
Financial Performance ◽  
Empirical Evidence ◽  
Life Insurance ◽  
Insurance Companies

A Comparative Financial Performance Analysis Of Selected Life Insurance Companies In India

2019 ◽  
Vol 118 (10) ◽  
pp. 341-351
Author(s):  
Dr.T. Thirupathi ◽  
S. Subhashini
Keyword(s):  
Standard Deviation ◽  
Performance Analysis ◽  
Comparative Study ◽  
Financial Performance ◽  
Correlation Coefficient ◽  
Life Insurance ◽  
Insurance Industry ◽  
Research Paper ◽  
Insurance Companies ◽  
Statistical Tools

 Insurance is a contract between the insurer and the insured where the insurer agrees to compensate for the losses suffered by the insured in return for the payment of specified sum of amount called premium. Insurance Industry in India is a huge sector which contributes much more for the overall development of the country. Using various descriptive statistical tools like mean, standard deviation, ANOVA, correlation coefficient, this research paper analyses and make a comparative study on financial performance of selected life insurance companies in India.

scholarly journals Impact of Firm Specific Factors on Financial Performance: A Comparative Study of Life and Non-Life Insurance Companies in Nepal

2021 ◽  
Vol 4 ◽  
pp. 39-55
Author(s):  
Bhupal Jaishi ◽  
Resam Lal Poudel
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Life Insurance ◽  
Stock Exchange ◽  
Insurance Companies ◽  
Debt Ratio ◽  
Return On Assets ◽  
Data Set ◽  
Tangible Assets ◽  
Specific Factors

The empirical research has been carried out to examine the firm specific factors composition and its impact on financial performance of life and non-life insurance companies in Nepal. This paper employs the descriptive as well as causal-comparative research design. The study comprises of a panel data set of 14 insurance companies listed in Nepal Stock Exchange (NEPSE) with 140 observations covering a period of 10 years from 2009/10 to 2018/19. The result exhibits that the insurance companies having a high debt ratio have better financial performance. It also reveals that a higher proportion of debt ratio and tangible assets increases return in assets. On the other side, a lesser proportion of equity, firm size and liquidity decreases the return on assets of the insurance companies in Nepal. The study raises understanding of impacts of firm specific factors on financial performance and provides an empirical evidence that the total debt ratio, equity to the total assets ratio, leverage, firm size, liquidity and tangibility are the significant factors in determining the financial performance of Nepal’s insurance companies. The non-life insurance companies tend to perform better in term of financial performance measured by earning per share and return on assets. The study leads to practical implications for insurance companies and regulatory bodies. The insurance companies of Nepal interested to improve their financial performance should focus on increasing their leverage and long-term investment and decreasing the proportion of equity, firm size and liquidity.

Impact of Firm Specific Factors on Financial Performance of Life Insurance Companies in Nepal

2020 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Janga Bahadur Hamal
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Life Insurance ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Secondary Data ◽  
Insurance Companies ◽  
Careful Examination ◽  
Specific Factors

The financial performance of life insurance companies determines the company’s ability to generate revenues and manage assets, liabilities and the financial interests of its stakeholders. However, there are limited studies discoursing major determinants of companies’ financial performance. To fulfill the gap, this study aimed to determine the effects of various firm-specific factors - firm size, liquidity ratio, short-term debt, long-term investment and firm age - on financial performance of life insurance companies in Nepal. The dependent variables influencing financial performance considered were return on assets (ROA) and return on equity (ROE). The study was based on secondary data of seven life insurance companies studied over a period of ten years, from 2009/10 to 2018/19. The data were collected from the financial statements published annually by the selected life insurance companies, Insurance Board of Nepal and Nepal Stock Exchange. In order to derive the impacts of firm-specific variables on ROA and ROE, descriptive statistics, correlation analysis and regression models were used. The study identified size and long-term investment to have negative and statistically significant relationship with financial performance. It also showed that higher the age of the company, the more difficult it will be to accumulate profit. The most influencing factors for the financial performance in Nepalese life insurance companies were firm size and long-term investment. Whereas, the explanatory power of liquidity seemed feeble. The findings elucidated that over-investment in long-term investments should be critically considered as it can have adverse effect on future profitability of the companies. Similarly, life insurance companies should increase their size only after careful examination over financial performance as it can result in diseconomies of scale and reduce the firm’s profitability.

Financial performance assessment using Grey relational analysis (GRA)

2019 ◽  
Vol 9 (4) ◽  
pp. 502-516 ◽  
Author(s):  
Anandarao Suvvari ◽  
Raja Sethu Durai S. ◽  
Phanindra Goyari
Keyword(s):  
Performance Analysis ◽  
Financial Performance ◽  
Life Insurance ◽  
Grey Relational Analysis ◽  
Statistical Distribution ◽  
Insurance Companies ◽  
Content Type ◽  
Relational Analysis ◽  
Grey Relational ◽  
Practical Implications

Purpose Traditional statistical methods to study the financial performance of any industry have many barriers and limitations in terms of the statistical distribution of the financial ratios, and, in particular, it considers only its positive values of it. The purpose of this paper is to estimate the financial performance of 24 Indian life insurance companies for the period from 2013 to 2016 using Grey relational analysis (GRA) proposed by Deng (1982) that accommodates the negative values in the analysis. Design/methodology/approach Financial performance of 24 Indian life insurance companies for the years from 2013–2014 to 2015–2016 is examined using a total of 14 indicators from capital adequacy ratios, liquidity ratios, operating ratios and profitability ratios (PR). The methodology used is GRA to obtain the Grey grades to rank the performance indicators, where higher relational grade shows better financial performance, and a lower score depicts the scope for improving the performance. Findings The results rank the insurance companies according to their financial performance in which Shriram insurance stands first with higher relational grade score, followed by the companies like IDBI Insurance, Sahara Insurance and Life Insurance Corporation of India. The main finding is that PR which have negative values are playing a crucial role in determining the financial performance of Indian life insurance companies. Practical implications This study has far-reaching practical implications in twofold: first, for the Indian life insurance industry, they have to concentrate more on PR for better financial health and, second, for any financial performance analysis, ignoring negative value ratios produce biased inference and GRA can be used for better inference. Originality/value This study is the first attempt to evaluate the financial performance of Indian life insurance using the GRA methodology. The advantage of GRA is that there is no restrictions on the statistical distribution of the data and it also accommodates the negative values, whereas all the other traditional methods insist on the statistical distribution of data, and, more importantly, they cannot handle negative values in the performance analysis.

scholarly journals Nexus of firm characteristics and financial performance of non-life insurance companies in the Southern African Development Community

2021 ◽  
Vol 18 (4) ◽  
pp. 95-110
Author(s):  
Thabiso Sthembiso Msomi ◽  
Celani John Nyide
Keyword(s):  
Financial Performance ◽  
Life Insurance ◽  
Insurance Industry ◽  
Generalized Method Of Moments ◽  
Operational Efficiency ◽  
Southern African Development Community ◽  
Equity Capital ◽  
Insurance Companies ◽  
Firm Characteristics ◽  
African Development

In almost all emerging and developed nations, the insurance industry is one of the most important participants of the financial services sector. As a result, the goal of this study is to investigate the firm characteristics and drivers of financial performance using 121 publicly traded non-life insurance companies from 16 Southern African Development Community (SADC) countries during the period from 2008 to 2019. The consolidated least squares and two-step generalized method of moments estimators were used to analyze a panel data set of 1,452 observations. The findings show that a lagged return on assets, equity capital, operational efficiency, leverage and investment capability are statistically significant determinants of financial performance in non-life insurance companies of SADC countries, even though equity capital, operational efficiency, and leverage are inversely significant. The insurance industry, policymakers, the state, and shareholders should consider these important variables when making decisions, and enhance their performance according to the findings. It is also suggested that the industry’s capital structures should be reformed to preserve a favorable balance of equity and debt amongst the businesses. Additionally, measures such as automated systems that may decrease operating costs should be used to improve financial performance.

scholarly journals Performance of the Polish Insurance Sector in the Second Decade of the 21st Century

2020 ◽  
Vol 15 (3) ◽  
pp. 251-264
Author(s):  
Ryszard Stempel
Keyword(s):  
Financial Performance ◽  
Life Insurance ◽  
Penetration Rate ◽  
Private Insurance ◽  
Insurance Market ◽  
Financial Supervision ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Insurance Density ◽  
Statistical Yearbook

The study analyzes the performance of the Polish insurance sector between 2010 and 2019. The analysis was based on source materials from the Statistical Yearbook published by Statistics Poland (GUS), reports of the Polish Financial Supervision Authority (KNF) and the Polish Chamber of Insurance (PIU). The main indicators describing the performance of the insurance market, including its concentration, number of policies, market structure, competitiveness, consumer behavior, and the financial performance of insurance companies were identified and analyzed. The strengths and weaknesses of the Polish private insurance market in the last ten years were determined. The main weakness was a considerable decrease in the sale of life insurance (branch I) policies, which was manifested by a steady decrease in gross premium, a continued decline in insurance density and penetration rate, deteriorating financial performance, and a decrease in the number of branch I insurance companies. Considerably better results were reported in the non-life insurance segment (branch II), where gross earned premium continued to improve and increased by around 64% over the analyzed decade. The non-life sector was also characterized by a steady improvement in density (increase of PLN 436), penetration rate (increase of 0.07%) and financial performance (net technical result increased by PLN 4.2 billion, net profit increased by PLN 1.5 billion).

scholarly journals KINERJA KEUANGAN PADA PERUSAHAAN ASURANSI UMUM SYARIAH DAN ASURANSI JIWA SYARIAH DI INDONESIA PERIODE 2014-2016

2019 ◽  
Vol 5 (7) ◽  
pp. 606
Author(s):  
Fitriati Fatimatuzzahra ◽  
Puji Sucia Sukmaningrum
Keyword(s):  
Financial Performance ◽  
Life Insurance ◽  
Research Method ◽  
Sampling Technique ◽  
T Test ◽  
Insurance Companies ◽  
Purposive Sampling ◽  
Whitney Test ◽  
General Insurance ◽  
The Difference

This research is to know the difference of financial performance between islamic general insurance companies and islamic life insurance companies in the periods of 2014-2016. This research used quantitative for the research method, purposive sampling for the sampling technique, islamic general insurance companies and islamic life insurance companies for the sample. This research conduct the comparative analyzed with independent sample t-test and mann-whitney test. This research used nine variables to evaluate the financial performance which was SMR, TKD, BK, BM, PI, LK, ABSR, PP, and CT. The cmparative analysis showed that there are no differences on SMR, BK, BM, PI, PP, and CT, whereas there aredifferences on TKD, LK, and ABSR

scholarly journals Financial Performance Assessment of Non-Life Insurance Companies Traded in Borsa Istanbul via Grey Relational Analysis

2016 ◽  
Vol 8 (4) ◽  
pp. 277 ◽  
Author(s):  
Emine Oner Kaya
Keyword(s):  
Financial Performance ◽  
Performance Assessment ◽  
Life Insurance ◽  
Grey Relational Analysis ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Insurance Companies ◽  
Relational Analysis ◽  
Grey Relational ◽  
Profitability Ratios

<p>The analysis of the financial performances of non-life insurance companies traded in Borsa Istanbul (BIST) as of the end of 2014 via the grey relational analysis (GRA) method has been aimed in this study. Financial performances of non-life insurance companies in the 2010 to 2014 period have been examined in terms of the capital adequacy ratios, liquidity ratios, operating ratios, and profitability ratios. The results of the GRA based on 16 financial ratios indicate that Aksigorta has been ranked first and Unico Sigorta has been ranked last in terms of financial performance for the 2010 to 2014 period. The results also show that profitability ratios have the greatest impact on the financial performance of non-life insurance companies traded in BIST.</p>

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