Relationship of Liquidity and Profitability with Market Value of Life Insurance Companies in Pakistan

2016 ◽  
Vol 2 (9) ◽  
pp. 52-57
Author(s):  
Aaliya Noreen
Keyword(s):  
Life Insurance ◽  
Market Value ◽  
Value Of Life ◽  
Insurance Companies ◽  
Relationship Of

Asset Insulators

2020 ◽  
Author(s):  
Gabriel Chodorow-Reich ◽  
Andra Ghent ◽  
Valentin Haddad
Keyword(s):  
Market Value ◽  
Value Of Life ◽  
Insurance Companies ◽  
Security Level ◽  
Data Set ◽  
Market Prices ◽  
Life Insurers ◽  
Pass Through

Abstract We construct a new data set tracking the daily value of life insurers’ assets at the security level. Outside of the 2008–2009 crisis, a ${\$}$ 1 drop in the market value of assets reduces an insurer’s market equity by ${\$}$ 0.10. During the ?nancial crisis, this pass-through rises to ${\$}$ 1. We explain this pattern by viewing insurance companies as asset insulators, institutions with stable, long-term liabilities that can ride out transitory dislocations in market prices. Illustrating the macroeconomic importance of insulation, insurers’ market equity declined by ${\$}$50 billion less than the duration-adjusted value of their securities during the crisis.

scholarly journals The Informational Content Of Voluntary Embedded Value (EV) Financial Disclosures By Canadian Life Insurance Companies

2011 ◽  
Vol 8 (12) ◽  
Author(s):  
Jacques Préfontaine ◽  
Jean Desrochers ◽  
Lise Godbout
Keyword(s):  
Life Insurance ◽  
Value Relevance ◽  
Balance Sheet ◽  
Market Value ◽  
Insurance Companies ◽  
Informational Content ◽  
Life Insurers ◽  
Embedded Value ◽  
External Stakeholders ◽  
Financial Disclosures

The informational content and relevance to external stakeholders of voluntary financial disclosures by commercial banks is now becoming more widely recognized. For instance, banks voluntary disclosures of liquidity, interest rate and market risk metrics have been bound to be closely associated with market value of equity and credit ratings. So far, there has been very scarce published research on investigating the informational content and relevance to external stakeholders of voluntary financial disclosures by life insurance companies. In order to improve upon this situation, this paper studies and reports the informational content of voluntary embedded value (EV) financial disclosures by Canadian life insurance companies. As opposed to traditional statutory balance sheet and earnings reporting, EV voluntary disclosure attempts to estimate the present value of future earnings generated by a life insurers current book of various insurance businesses. The preliminary results presented in this study indicate that EV voluntary financial disclosures communicate intrinsic informational content and provide value relevance to external stakeholders in the sense that they were found to be closely associated with life insurers market value of equity.

scholarly journals The Informational Content Of Voluntary Embedded Value (EV) Financial Disclosures By Canadian Life Insurance Companies During The Recent Period Of Market Turmoil

2011 ◽  
Vol 10 (4) ◽  
pp. 1
Author(s):  
Jacques Préfontaine ◽  
Jean Desrochers ◽  
Lise Godbout
Keyword(s):  
Life Insurance ◽  
Credit Ratings ◽  
Market Value ◽  
Insurance Companies ◽  
Informational Content ◽  
Recent Period ◽  
Life Insurers ◽  
Embedded Value ◽  
External Stakeholders ◽  
Financial Disclosures

The informational content and relevance to external stakeholders of voluntary financial disclosures by commercial banks is now becoming more widely recognized. For instance, banks voluntary disclosures of liquidity, interest rate and market risk metrics have been found to be closely associated with market value of equity and credit ratings. So far, there has been very scarce published research on investigating the informational content and relevance to external stakeholders of voluntary financial disclosures by life insurance companies during the recent period of market turmoil. In order to improve upon this situation, this paper updates previous findings and reports on the informational content of voluntary embedded value (EV) financial disclosures by Canadian life insurance companies during the 2000-2010 time period. As opposed to traditional statutory balance sheet and earnings reporting, EV voluntary disclosure attempts to estimate the present value of future earnings generated by a life insurers current book of various insurance businesses. The preliminary results presented in this study indicate that recent EV voluntary financial disclosures failed to communicate intrinsic informational content and to provide value relevance to external stakeholders in the sense that they were not found to be closely associated with life insurers market value of equity and credit ratings during the recent 2007-2010 period of market turmoil.

scholarly journals Impact of Corporate Citizenship Activities on the Financial Performance of the Nepalese Life Insurance Companies

2021 ◽  
Vol 9 (5) ◽  
pp. 178-182
Author(s):  
Jitendra Prasad Upadhyay ◽  
Pitri Raj Adhikari
Keyword(s):  
Financial Performance ◽  
Life Insurance ◽  
Corporate Citizenship ◽  
Legal Responsibility ◽  
Insurance Companies ◽  
Organizational Goals ◽  
Key Indicator ◽  
Major Factors ◽  
Relationship Of ◽  
The Impact

Corporate Citizen Activities (CCA) is essential for any organiztion to attract and retain customers, and to beat the competition. CCA are the indirect and intangible assets of organizations and their response is a key indicator to achieve organizational goals. This paper attempts to examine the impact of corporate citizenship activities on the financial performance of Nepalese insurance companies. Descriptive and causalcomparative research designs are used to estimate the relationship of financial performance, the ROA and the NI (dependent variables) with independent variables (economic responsibilities, legal responsibilities, ethical responsibilities, and discretionary responsibilities). Data are collected from 325 respondents of 19 life insurance companies through structured questionnaires where the questionnaire was distributed to 500 respondents (the response rate is 65 per cent). Descriptive statistics, correlation, and multiple regression models are used to analyse the data. It is found that legal responsibility and discretionary responsibility are the major factors in determining the financial performance of insurance companies in Nepal. CCA helps to bust up the return in terms of profit.

scholarly journals Factors Affecting Profitability of Nepalese Non-Life Insurance Companies

2020 ◽  
Vol 13 (1) ◽  
pp. 23-35
Author(s):  
Janga Bahadur Hamal
Keyword(s):  
Firm Size ◽  
Life Insurance ◽  
Secondary Data ◽  
Financial Statements ◽  
Insurance Companies ◽  
Leverage Ratio ◽  
Factors Affecting ◽  
Total Debt ◽  
Size Firm ◽  
Relationship Of

The study examines the impacts of liquidity ratio, leverage ratio, firm size, age of the firm and total debt on the profitability of non-life insurance companies in Nepal. The dependent variable in the study is the return on asset (ROA), which is used as a measure of profitability. The study is based on secondary data of nine non-life insurance companies studied over a period of ten years, from 2066/67 to 2075/76. The data were collected from the financial statements published annually by the selected non-life insurance companies. Descriptive statistics, correlational analysis and regression models have been employed in order to test the impacts as well as the significance of the selected independent variables on ROA. The study concludes that the profitability of Nepalese non-life insurance companies increases with the increase in liquidity but decreases with the increase in leverage. However, the study establishes the insignificant relationship of firm size, firm age and total debt with profitability for the sector. The study thus suggests that non-life insurance companies should focus on the proper management of capabilities to pay liabilities to enhance profitability and also try to maintain a smaller value of leverage ratio to handle the above-average losses.

The Effect of Investments and Risk Based Capital (RBC) of Tabarru Funds on Company (Case Study of Sharia Insurance in Indonesia for 2014-2019)

2020 ◽  
Vol 8 (1) ◽  
pp. 87-97
Author(s):  
Nana Diana ◽  
Tati Apriani
Keyword(s):  
Life Insurance ◽  
Statistical Tests ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Insurance Companies ◽  
Coefficient Of Determination ◽  
Verification Method ◽  
Investment Returns ◽  
The Government

This study aims to examine the influence of investment returns and Risk Based Capital (RBC) Tabarru Funds to the profit of sharia life insurance in Indonesia from 2014-2019. This study The type of this research is quantitative research with descriptive verification as a method. This research method uses descriptive verification method with quantitative approach. The data used in this study were sourced from the financial statements of Islamic life insurance companies in Indonesia for the 2014-2019 period. Then the data obtained were analyzed using multiple linear regression analysis and hypothesis testing consisting of t test and f test with the help of SPSS 21 software. The sampling technique uses non probability sampling with purposive sampling technique. Based on the results of the study it can be seen that the development of investment returns on Sharia Life Insurance in Indonesia has fluctuated and even suffered losses. While the development of Risk Based Capital (RBC) has increased and decreased but overall above 120% as determined by the government. Likewise, the profits earned in each year fluctuate. The results of statistical tests show that investment results partially have a positive effect on profit and Risk Based Capital (RBC) of Tabarru funds partially has a negative effect on profit. Simultaneously investment return and Risk Based Capital (RBC) affect on profit. In addition, the results of the coefficient of determination (R2) were obtained which obtained a value of 81%. This shows that the variable investment returns and Risk Based Capital (RBC) can affect earnings by 81% and the remaining 19% is influenced by other variables not used in this study.

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