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Insurance Companies – What Determinates Their Credit Ratings

Author

Listed:
  • Patrycja Chodnicka -Jaworska

    (Faculty of Management, University of Warsaw)

  • Piotr Jaworski

    (Faculty of Management, University of Warsaw, Poland)

Abstract

The aim of the paper has been to analyse factors’ influence on insurance companies’ credit ratings. It has been made a literature review, and as a result there have been put the following hypotheses. The first one is: Insurance companies’ credit ratings are determined by capital adequacy, assets quality, management quality, efficiency and liquidity factors. The second one states: Countries’ credit ratings influence statistically significantly on insurance notes. To the analysis there have been used long-term issuer credit ratings proposed by small and big credit rating agencies. To verify the presented hypotheses there have been used ordered logit panel data models. The research has been prepared on quarterly data for all assessed insurance companies from all of the world. Data have been collected from Thomson Reuters Database from 1995 to 2016.

Suggested Citation

  • Patrycja Chodnicka -Jaworska & Piotr Jaworski, 2019. "Insurance Companies – What Determinates Their Credit Ratings," Faculty of Management Working Paper Series 52019, University of Warsaw, Faculty of Management.
    • Handle: RePEc:sgm:fmuwwp:52019
    as

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    References listed on IDEAS

    as
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    8. Guglielmo Maria Caporale & Mario Cerrato & Xuan Zhang, 2016. "Analysing the Determinants of Credit Risk for General Insurance Firms in the UK," Discussion Papers of DIW Berlin 1591, DIW Berlin, German Institute for Economic Research.
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    More about this item

    Keywords

    credit rating; insurance companies; panel data models;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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