scholarly journals Firm Specific Factors and Macroeconomic Determinant of Life Insurance Companies

2017 ◽  
Vol 6 (1) ◽  
pp. 639-644 ◽  
Keyword(s):  
Life Insurance ◽  
Insurance Companies ◽  
Specific Factors

scholarly journals Impact of Firm Specific Factors on Financial Performance: A Comparative Study of Life and Non-Life Insurance Companies in Nepal

2021 ◽  
Vol 4 ◽  
pp. 39-55
Author(s):  
Bhupal Jaishi ◽  
Resam Lal Poudel
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Life Insurance ◽  
Stock Exchange ◽  
Insurance Companies ◽  
Debt Ratio ◽  
Return On Assets ◽  
Data Set ◽  
Tangible Assets ◽  
Specific Factors

The empirical research has been carried out to examine the firm specific factors composition and its impact on financial performance of life and non-life insurance companies in Nepal. This paper employs the descriptive as well as causal-comparative research design. The study comprises of a panel data set of 14 insurance companies listed in Nepal Stock Exchange (NEPSE) with 140 observations covering a period of 10 years from 2009/10 to 2018/19. The result exhibits that the insurance companies having a high debt ratio have better financial performance. It also reveals that a higher proportion of debt ratio and tangible assets increases return in assets. On the other side, a lesser proportion of equity, firm size and liquidity decreases the return on assets of the insurance companies in Nepal. The study raises understanding of impacts of firm specific factors on financial performance and provides an empirical evidence that the total debt ratio, equity to the total assets ratio, leverage, firm size, liquidity and tangibility are the significant factors in determining the financial performance of Nepal’s insurance companies. The non-life insurance companies tend to perform better in term of financial performance measured by earning per share and return on assets. The study leads to practical implications for insurance companies and regulatory bodies. The insurance companies of Nepal interested to improve their financial performance should focus on increasing their leverage and long-term investment and decreasing the proportion of equity, firm size and liquidity.

Impact of Firm Specific Factors on Financial Performance of Life Insurance Companies in Nepal

2020 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Janga Bahadur Hamal
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Life Insurance ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Secondary Data ◽  
Insurance Companies ◽  
Careful Examination ◽  
Specific Factors

The financial performance of life insurance companies determines the company’s ability to generate revenues and manage assets, liabilities and the financial interests of its stakeholders. However, there are limited studies discoursing major determinants of companies’ financial performance. To fulfill the gap, this study aimed to determine the effects of various firm-specific factors - firm size, liquidity ratio, short-term debt, long-term investment and firm age - on financial performance of life insurance companies in Nepal. The dependent variables influencing financial performance considered were return on assets (ROA) and return on equity (ROE). The study was based on secondary data of seven life insurance companies studied over a period of ten years, from 2009/10 to 2018/19. The data were collected from the financial statements published annually by the selected life insurance companies, Insurance Board of Nepal and Nepal Stock Exchange. In order to derive the impacts of firm-specific variables on ROA and ROE, descriptive statistics, correlation analysis and regression models were used. The study identified size and long-term investment to have negative and statistically significant relationship with financial performance. It also showed that higher the age of the company, the more difficult it will be to accumulate profit. The most influencing factors for the financial performance in Nepalese life insurance companies were firm size and long-term investment. Whereas, the explanatory power of liquidity seemed feeble. The findings elucidated that over-investment in long-term investments should be critically considered as it can have adverse effect on future profitability of the companies. Similarly, life insurance companies should increase their size only after careful examination over financial performance as it can result in diseconomies of scale and reduce the firm’s profitability.

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.

Effective Customer Support System of Life Insurance Companies

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Rajesh Srivastava ◽  
Dr. Preeti Sharma
Keyword(s):  
Life Insurance ◽  
Economies Of Scale ◽  
New Technologies ◽  
Insurance Industry ◽  
Integrated Approach ◽  
Customer Experience ◽  
Disruptive Innovation ◽  
Insurance Companies ◽  
Insurance Business ◽  
Strategic Imperative

Increased competition, new technologies and the shift in power from the provider to the customer have produced unrelenting pressure on life insurance business. The market forces point to one overwhelming strategic imperative: customer-focused strategy. Customers are willing to build long-term relationships based on trust and mutual respect with firms that provide a differentiated and personalized service offering. Over the past few years, life insurance industry responded to intensified competition and high customer attrition by entering each other’s markets to capture greater “wallet share” and ostensibly lower their economies of scale. The service delivery process is influenced by quality of personnel, information technology, internal processes, human resource practices, and even an institution’s own change orientation. Now a day’s customers are demanding seamless, multi-channel sales and service experiences. Simultaneously, other players are looking for opportunities to invade this space or to redefine it through disruptive innovation. The result is forcing life insurance companies to examine a more balanced, integrated approach to the customer experience and growth. This research, we analyze the need, preference and satisfaction of customers in life insurance business and provide perspective on how to improve the customer experience.

Sign in / Sign up

Export Citation Format

Share Document