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Literature Review On The Determinants Of Insurers’ Financial Performance

Author

Listed:
  • IRINELA CONSTANTINA BADEA

    (BABES-BOLYAI UNIVERSITY, CLUJ-NAPOCA, ROMANIA)

Abstract

The main objective of our paper is to analyze the profitability of insurance companies and to determine the factors that influence it. In this regard, we have analyzed and compared fifteen articles from the literature on the performance of insurance companies. The first step in our research was to go througheach of the scientific articles. Then, following certain aspects, we created a database with the information of interest for each of the fifteen articles analyzed. The information gathered helped us to make a comparison between them. Most articles focus on determining the factors that influence the profitability of general insurance. Ten of the fifteen articles have as a dependent variable of multiple regression the return on assets. As far as independent variables are concerned, company size and financial leverage are the most used and the most significant from a statistical point of view. In general, the most appropriate model of multiple regression is the fixed effects model. The main sources of data used by the authors in their research are the or loss account, annual reports or databases of insurance regulatory and supervisory authorities, National Banks or company websites.

Suggested Citation

  • Irinela Constantina Badea, 2017. "Literature Review On The Determinants Of Insurers’ Financial Performance," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 206-212, December.
    • Handle: RePEc:cbu:jrnlec:y:2017:v:1special:p:206-212
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    References listed on IDEAS

    as
    1. J.A. Bikker & J. Gorter, 2008. "Performance of the Dutch non-life insurance industry: competition, efficiency and focus," Working Papers 08-01, Utrecht School of Economics.
    2. J.A. Bikker & J. Gorter, 2008. "Performance of the Dutch non-life insurance industry: competition, efficiency and focus," Working Papers 08-01, Utrecht School of Economics.
    3. Carlos Pestana Barros & Silvestre Dumbo & Peter Wanke, 2014. "Efficiency Determinants and Capacity Issues in Angolan Insurance Companies," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 455-467, September.
    4. Ana-Maria Burca & Ghiorghe Batrinca, 2014. "The Determinants of Financial Performance in the Romanian Insurance Market," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 299-308, January.
    5. Shiu, Y., 2004. "Determinants of United Kingdom General Insurance Company Performance," British Actuarial Journal, Cambridge University Press, vol. 10(5), pages 1079-1110, December.
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