scholarly journals Are General Insurance Companies Efficient in their Performance? – A Comparison

2018 ◽  
Vol 17 (3) ◽  
pp. 1-7
Author(s):  
P Muthulakshmi
Keyword(s):  
Public Sector ◽  
Secondary Data ◽  
Insurance Companies ◽  
Return On Equity ◽  
The Public ◽  
Insurance Sector ◽  
Geographic Boundaries ◽  
General Insurance ◽  
Income Ratio ◽  
Equity Ratio

The insurance sector has witnessed significant changes in the last few years, specifically due to the effects of liberalisation, globalisation, and privatisation. It is imperative to compare and study the earnings and profitability of public sector non-life general insurance companies in India. The public sector non-life general insurance companies are competing with each other, and also with the private players in the same industry and thereby reducing the processing costs and facilitating the innovation of different types of policies across the geographic boundaries. In this paper, secondary data is used to analyse the earnings and profitability of non-life general insurance companies in India by using certain ratios which are available exclusively to evaluate the performance of insurance companies such as Claim Ratio, Expenses Ratio, Combined Ratio, Investment Income Ratio and Return on Equity Ratio.   , , , Ratio Analysis

Investment Portfolio Performances of Public Sector General Insurance Firms in India: An Empirical Approach

2017 ◽  
Vol 6 (1) ◽  
pp. 61-75
Author(s):  
Joy Chakraborty ◽  
Sankarshan Basu
Keyword(s):  
Public Sector ◽  
Multiple Linear Regression Model ◽  
Insurance Companies ◽  
The Public ◽  
Insurance Sector ◽  
General Insurance ◽  
Long Run ◽  
Insurance Firms ◽  
Investment Portfolios ◽  
The Impact

Deregulation of the Indian insurance sector has witnessed the rise of private players in the Indian general insurance sector post-1999. Though the four major public sector general insurers still continue to dominate the Indian general insurance market, an abrupt rise in the number of private players has raised concerns upon the solvency position of the public sector general insurance companies in safeguarding their policyholders’ interests. The major reason for this concern could be attributed to the existing investment portfolios of the general insurance firms, the impact of which has been felt upon their solvency position. The present study investigated the investment portfolios of the four major public sector general insurance firms in India involved in multiline businesses, and its subsequent impact upon their solvency position. The application of the multiple linear regression model has been employed to investigate the solvency determinants of the public sector general insurance firms in view of their short-term and long-term investment portfolios, covering the study period from 2005–2006 to 2014–2015. The findings of the study have pointed out the necessity for the four public sector general insurers to focus on certain key investment variables in their investment portfolios in ensuring a sound solvency position in the long run.

scholarly journals Effects of Underwriting and Claims Management on Performance of Property and Casualty Insurance Companies in East Africa

2017 ◽  
Vol 13 (13) ◽  
pp. 358
Author(s):  
Caren B. Angima ◽  
Mirie Mwangi
Keyword(s):  
Financial Performance ◽  
East Africa ◽  
Management Practices ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Insurance Companies ◽  
Insurance Sector ◽  
General Insurance ◽  
Claims Management

The insurance sector plays an important role in service economy of any country by underwriting of risks inherent in most sectors thus providing a sense of peace to most economic entities. Performance of general insurance companies is expected to be related to various factors, including optimal underwriting and prompt and efficient claims management functions. This study investigated the effect of underwriting and claims management practices on the performance of general insurance firms in East Africa. The study employed multiple linear regression analysis using primary and secondary data collected from 82 general insurers in Kenya, Uganda and Tanzania. The findings show that there is a significant positive relationship between underwriting and claims management practices employed by the firms and non-financial performance, but the relationship with financial performance was insignificant. The implication is that a profit oriented insurance firm should embrace a claims function that is closely related with the underwriting and pricing of the firm’s portfolio for meaningful results. It is recommended that general insurance companies focus on other important factors besides underwriting and claims management order to improve overall financial performance.

scholarly journals Analisis Variabel Yang Mempengaruhi Harga Saham Syariah di Jakarta Islamic Index

2020 ◽  
Vol 24 (3) ◽  
pp. 421
Author(s):  
Lisa Febriani
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Return On Equity ◽  
Financial Report ◽  
The Public ◽  
Analysis Technique ◽  
Equity Ratio

One of the methods used by companies to obtain company capital is by selling shares to the public through the capital market. Stock prices can change and this is changed by various factors. This study aims to determine the effect of Debt to Equity Ratio (DER), Earning per Share (EPS), and Return on Equity (ROE) on sharia stock prices listed in the Jakarta Islamic Index (JII) in 2014-2017, both partially and simultaneously. The data used in this study is secondary data taken from the Indonesia Stock Exchange website (www.idx.co.id), which is in the form of a company's annual financial report. The analysis technique used in this study uses Linear Regression Analysis. Based on the research results, it is known that partially DER has no significant effect on stock prices, while EPS and ROE have a significant effect on stock prices. Simultaneously, DER, EPS, and ROE significantly influence stock prices.

A DEA-investigation of efficiency of the Indian general insurance during recession

2014 ◽  
Vol 11 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Santanu Mandal ◽  
Surajit Ghosh Dastidar
Keyword(s):  
Malmquist Index ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Operating Characteristics ◽  
Content Type ◽  
Insurance Sector ◽  
General Insurance ◽  
Using Data ◽  
The Impact

Purpose – The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector. Design/methodology/approach – The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006-2007 and 2009-2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports. Findings – Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels. Research limitations/implications – The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two-stage procedure have not been used. Originality/value – The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study.

scholarly journals An Analysis of the Performance of General Insurance Companies in India

2019 ◽  
Vol 8 (1) ◽  
pp. 20-27
Author(s):  
Soheli Ghose ◽  
Raman Kumar
Keyword(s):  
Insurance Industry ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Insurance Sector ◽  
General Insurance ◽  
Growth Prospects ◽  
Rapid Pace ◽  
The Stability ◽  
Pro Forma

The General Insurance Industry in India is growing at a very rapid pace. This is an empirical research based on secondary data collected from Annual Reports and Pro-forma Schedules of IRDA. An Excel data Model was created to taken in the core figures of GWP, NEP, NP and others of 4 General Insurance Majors to calculate other relevant ratios as need for the analysis. The objectives of this study are to analyze a few General Insurance companies in India and core Ratios related to the Insurance Sector only and to comparatively analyse Retention ratio, Total Claims Incurred, Earned Incurred Loss Ratio, and Combined Ratio. The conclusion report has been framed on the basis of which company seems to be the best with respect to its Future Growth prospects, Risk prospects and the stability of its growing business. Out of the companies analyzed, TATA-AIG GENERAL INSURANCE has a good future prospect.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMENGARUHI ABNORMAL RETURN SAHAM PADA PERUSAHAAN PERBANKAN DAN ASURANSI YANG TERDAFTAR DI BURSA EFEK INDONESIA

BISMA ◽  
2017 ◽  
Vol 11 (1) ◽  
pp. 12
Author(s):  
Sidiq Jati Permana
Keyword(s):  
Abnormal Return ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Secondary Data ◽  
Insurance Companies ◽  
Return On Equity ◽  
Net Profit ◽  
Negative Effect ◽  
Equity Ratio ◽  
Research Show

Abstract: This research aims to analyzes the effect of profitability (NPM and ROE) and leverage (DER and DR) partially to stock abnormal returns at the Banking and Insurance Companies Listed Indonesia Stock Exchange, also to analyze the different effect of profitability (NPM and ROE) and leverage (DER and DR) on stock abnormal returns at the Banking and Insurance Companies Listed Indonesia Stock Exchange. Data used in this research are secondary data collected from ICMD and Annual Report of Companies in Indonesia Stock Exchange at 2010 – 2014, and www.yahoofinance.com. The populations in this research are the Banking and Insurance Companies Listed in Indonesia Stock Exchange. Sampling method is purposive sampling. The model of analysis used in this research is multiple linier regressions. Results of this research show that NPM have positively and significant effet on stock abnormal return at the Banking and Insurance Companies Listed Indonesia Stock Exchange. ROE have positively and significant effect on stock abnormal returns. DER has negatively but not significant effect on stock abnormal returns at the Banking and Insurance Companies Listed Indonesia Stock Exchange. DR has positively but not significant effect on stock abnormal returns at the Banking Companies Listed Indonesia Stock Exchange. While for the insurance companies, DR has negative effect but not significant on stock abnormal returns. There are differences in the effect of profitability (NPM and ROE) and leverage (DER and DR) to the stock abnormal returns on the Banking Companies Listed Indonesia Stock Exchange .Keywords: profitability, leverage, Net Profit Margin/NPM, Return on Equity/ROE, Debt to Equity Ratio/DER, Debt Ratio/DR, and abnormal return

scholarly journals The Dynamics of General Insurance Sector in India - Growth and Performance Perspective

2019 ◽  
Vol 9 (2) ◽  
pp. 536-540
Keyword(s):  
Public Sector ◽  
Life Insurance ◽  
Private Insurance ◽  
Insurance Premium ◽  
The Other ◽  
Third Party ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Insurance Policies ◽  
General Insurance

Life is full of risks and uncertainties. In fact risk is everywhere. Even when you ride a bike to the nearest shop in the street, there is a risk. One must protect himself or herself from this risk. The solution is insurance. Broadly it is two types i.e. life insurance and non-life insurance (general insurance). In this paper we discuss about only general insurance. General insurance helps in securing ourselves and things we value like homes, cars, bikes or any other property from any kind of mishap whether it is big or small. General insurance protect insured property from fire accidents, floods, earthquakes, storms, thefts, travel accidents/mishaps or any other kind of calamity, even from the cost incurred against us from legal action depending upon the type of policy selected by the insurer. From the post liberalization scenario, general insurance in India is growing rapidly. The reasons behind its spectacular growth are allowing private companies to enter into Indian market, low insurance premium, TPAs (Third Party Administrators), Fast and immediate settlement of insurance claims, Innovative general insurance policies, discounts in insurance products, increasing awareness among people, more distribution channels etc. The other side of the coin is, public sector insurance companies are facing cut throat completion from private insurance companies as they offer wide variety of policies at a low premium. Due to this few general insurance companies are closed and few are forced to come out with same polices and services. Ultimately the performance of public sector general insurance companies also enhanced with the competitive moves by private players. On the other hand, customers are also exposed to new trends in the insurance market. Insurance Regulatory and Development Authority (IRDA) is the apex body in India to monitor the activities of insurance companies. It has laid down standard terms and conditions to general insurance companies and also given scope for personal accidental life insurance policies. IRDA has taken all the measures to improve the performance of general insurance companies as it is one of the fast growing areas in Indian economy. General insurance companies under public sector are facing lot of challenges from private players and to with stand in the completion, even they have improved a lot in their quality of service in multiple facets like decreasing the premium, quick settlement in claims etc. In a nut shell, general insurance business is contributing significantly to Gross Domestic Product (GDP).

scholarly journals An Analysis of Efficiency of General Insurance Industry in India

2020 ◽  
Author(s):  
Abhijit Sinha ◽  
Kalpataru Bandopadhyay
Keyword(s):  
Public Sector ◽  
Insurance Industry ◽  
Secondary Data ◽  
Annual Reports ◽  
Data Envelopment ◽  
The Public ◽  
Insurance Sector ◽  
Life Insurers ◽  
Significant Difference ◽  
Using Data

It is well known that the overall insurance sector in India has been undergoing a series of reforms from time to time. The drastic change that re-designed the contours of the industry is the implementation of the Malhotra Committee Recommendations which opened up the landscape to the private non-life insurers in 2000. The present study has been taken up to determine the efficiency of the non-life sector and the insurers using Data Envelopment Analysis (DEA). The empirical research also aims to statistically test whether there is any year-wise significant difference between the two sectors in respect of the overall efficiency. For the purpose, appropriate statistical test is applied. The study is based on secondary data collected from the Insurance Regulatory Authority of India (IRDA) Annual Reports. The sample size for this study is twelve including all the four insurers from the public sector and the remaining from the private sector. The results of the analysis showed that in terms of technical and pure technical efficiency, the overall result of the public sector surpasses that of the private. However, the findings of the Mann-Whitney U Test revealed that the result with respect to the statistical difference is mixed.  

Pengaruh Faktor Fundamental, Risiko Sistematis Dan Ekonomi Makro Terhadap Return Saham Syariah Yang Tergabung Di Jakarta Islamic Index (JII) Pada Periode 2010 – 2014

2017 ◽  
Vol 24 (1) ◽  
pp. 54-70
Author(s):  
Hasanah Setyowati ◽  
Riyanti Ningsih
Keyword(s):  
Exchange Rate ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Secondary Data ◽  
Analysis Model ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Equity Ratio ◽  
Regression Techniques ◽  
The Exchange Rate

This study aimed to obtain empirical evidence on the influence of fundamental factors, systematic risk and macroeconomics on the returns Islamic stock of companies incorporated in the Jakarta Islamic Index in 2010-2014. The variables used were the fundamental factors that are proxied by Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER); Systematic risk is proxied by Beta Shares; macroeconomic factors is proxied by the inflation rate and the exchange rate. The samples of this study are the enterprises incorporated in Jakarta Islamic Index (JII) at the Indonesian Stock Exchange. The sampling method was using purposive sampling. There were 12 samples of Islamic stocks that meet the criteria to be used as samples. The analysis model used is multiple linear regression techniques and the type of data used is secondary data. The study found that all variables, which are Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER), Beta stock, inflation and the exchange rate do not significantly affect the return of sharia stock either simultaneously or partially.

IMPLIKASI RETURN ON EQUITY, RETURN ON ASSET, NET INCOME& DEBT TO EQUITY RATIO TERHADAP RETURN SAHAM PADA PERUSAHAAN PROPERTI

2018 ◽  
Vol 3 (1) ◽  
pp. 59-66
Author(s):  
Muhammad Richo Rianto
Keyword(s):  
Data Analysis ◽  
Capital Market ◽  
Stock Return ◽  
Stock Exchange ◽  
Secondary Data ◽  
Net Income ◽  
Return On Equity ◽  
Property Companies ◽  
Equity Ratio

The research aims to analyze the effect of  Return On Equity (ROE ), Return On Asset (ROA), Net Income (NI) and Debt to Equity  (DER) on partially and simultaneously to Return Investment (RI) in property companies. Data were collected from secondary data in the financial documentation of Indonesian Capital Market  Directory ( ICMD ) and also can download in the official website of the Indonesian Stock Exchange www. IDX.co.id. Data analysis was using Eviews version  7.1. The results show that: ROE, ROA, NI, and DER simultaneously significant effect on the property company’s stock return, but partially only ROE and DER variable that significantly effects on stock return. Keywords: Return on Equity, Return on Asset, Net Income, Debt to Equity, Return Investment

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