Internal factor affecting profitability of non-life insurance companies Cover Image

Internal factor affecting profitability of non-life insurance companies
Internal factor affecting profitability of non-life insurance companies

Author(s): Klimentina Poposka, Arbenita Kosumi
Subject(s): Economy
Published by: Економски институт - Скопје
Keywords: Insurance company profitability; internal factor; ROA; liquidity; solvency

Summary/Abstract: Insurance company plays an important role in financial system and has significant impact on country’s economic growth. The purpose of this study is to analyses the internal factors of insurance company’s profitability in Kosovo. Performance evaluation of insurance company is grounded on the internal factors, exploiting data for the period 2013 -2016 encompassing 9 non-life insurance companies. For this purpose, the return on assets (ROA) is taken as a dependent variable, whereas company size (CS), growth of gross written premium (GGWP), liquidity (L), leverage (LEV) and solvency (S) exemplify the independent variables. The regression analysis indicate that non-life insurance company profitability in Kosovo has been driven mainly by factors such as company size, liquidity and leverage.

  • Issue Year: 20/2018
  • Issue No: 3
  • Page Range: 125-139
  • Page Count: 15
  • Language: English