Selvam and 17 Miencha (2013) conducted a study to analyze the financial performance of Kenyan 18 Insurance companies. We use financial data reported by insurance companies to the National Association of Insurance Commissioners (NAIC) and compiled by Mark Farrah Associates to … An unexpected but interested finding shows that insurers with good rating grades are nevertheless susceptible to rating fluctuations. Evaluating financial performance of insurance companies using rating transition matrices. The risks to be studied included operational risk, market risk and credit risk. We also conclude that general insurers reflect less stable rating outlooks compared to life and general insurers. These 3, pp. The study population consisted of 5 insurance companies with private capital, during the period 2008-2013 with a total of 30 data. William H. Greene and Dam Segal (2004) argued that the performance of insurance companies in financial terms is normally expressed in net premium earned, profitability from underwriting activities, annual turnover, return on investment, return on equity. Our findings show that profitability, liquidity, size and organisational form are the significant determinants that affect financial performance of insurance companies in the UK. 286-302. https://doi.org/10.1108/JRF-11-2012-0081, Copyright © 2013, Emerald Group Publishing Limited. Abstract: Financial performance is the key question for survival and stability of insurance industry. Lecturer, Department of Accounting and Finance, Arba Minch University, Ethiopia . The researcher used the method of financial analysis to forecast the financial performance and safety position of the Libya Disclaimer: This essay has been written and submitted by students and is not an example of our work. If you think you should have access to this content, click the button to contact our support team. Oscar Akotey, J., Sackey, F.G., Amoah, L. and Frimpong Manso, R. (2013), "The financial performance of life insurance companies in Ghana", Journal of Risk Finance, Vol. Published Date: 23 Mar 2015. ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. This is an indicator of how well an insurance company is doing. The aim of this paper is to apply a BSC based PMS to insurance companies. Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here, (Faculty of Economics and Business Administration, Catholic University College of Ghana, Sunyani, Ghana), (Department of Finance, University of Ghana Business School, Legon, Ghana). analysis the determinants of financial performance in Ghana [6,7]. organizational performance in terms of four balanced perspectives: financial, customers, internal business process, and learning and growth (Kaplan et al., 1996). The financial performance of property/casualty insurance companies is determined primarily by two factors: underwriting performance and investment performance. Financial performance of insurance companies is captured by changes in rating grades. Large underwriting losses can lead to insurance insolvency during periods of cluster claims. The policy implications of this study for the stakeholders of the life insurance industry are enormous. The findings indicate that whereas gross written premiums have a positive relationship with insurers' sales profitability, its relationship with investment income is a negative one. The subject of this paper is a theoretical study of the influence of insurance companies on the financial market. We conclude that insurers with higher (better) rating grades depict rating stability over the long-run. – The aim of this research is to assess the financial performance of the life insurance industry of an emerging economy. Financial performance of insurance companies is captured by changes in rating grades. Copyright © 2021 Elsevier B.V. or its licensors or contributors. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance Companies that have high loss claims may be experiencing financial trouble. experience) and financial performance of life insurance companies in Kenya. This ratio reflects if companies are collecting premiums higher than the amount paid in claims or if it is not collecting enough premiums to cover claims. Insurance Companies. You may be able to access teaching notes by logging in via Shibboleth, Open Athens or with your Emerald account. Risk Management Techniques and Financial Performance of Insurance Companies Net income ratio, policy sales growth, percentage of sales growth, claims ratio, and quotas-to-production are all commonly used key performance indicators, or KPIs, in the insurance industry. A Study on the Performance of Insurance Companies in Ethiopia @article{Yuvaraj2013ASO, title={A Study on the Performance of Insurance Companies in Ethiopia}, author={S. Yuvaraj and Ayele Abate Gashaw}, journal={International Journal of Marketing, Financial Services and Management Research}, year={2013}, volume={2}, pages={138-150} } Corpus ID: 16802359. 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