SavedAdd your journal

Journals / Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi / 2020 / Cilt: 24 - Sayı: 4

Determinants of Non-Life Insurer Profitability in Turkey

Abdurrahman ÖZEN
Erhan ÇANKAL
Pages
1779–1797
Publication Date
2020-12-31
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

According to the fixed effects panel data model results: there is statistically significant positive relationship with size, liquidity, investment yield, age, GDP growth rate, interest rate and profitability while there is negative relationship with premium growth rate, loss ratio, leverage ratio, solvency and profitability.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Öz Profitability is important for insurance companies as it is indicator of whether they are able to continue their activities and fulfill their obligations to policyholders.
📊
Key Findings & Data:The study for non-life insurance companies covers the period between 2006 and 2017 for 21 companies.
💡
Conclusion & Impact:According to the fixed effects panel data model results: there is statistically significant positive relationship with size, liquidity, investment yield, age, GDP growth rate, interest rate and profitability while there is negative relationship with premium growth rate, loss ratio, leverage ratio, solvency and profitability.
🔬Design:Modeling & Simulation
📍Scope:2006 Verileri
⚙️Variables:Anahtar Kelimeler Insurance · Panel data · Profitability

Özet

Öz Profitability is important for insurance companies as it is indicator of whether they are able to continue their activities and fulfill their obligations to policyholders. The aim of this study is to find out most important firm-specific and macroeconomic variables affecting profitability of non-life insurance companies in Turkey. The study for non-life insurance companies covers the period between 2006 and 2017 for 21 companies. ROA is used as measure of profitability. According to the fixed effects panel data model results: there is statistically significant positive relationship with size, liquidity, investment yield, age, GDP growth rate, interest rate and profitability while there is negative relationship with premium growth rate, loss ratio, leverage ratio, solvency and profitability.

🔖

Cite This Article

ÖZEN, A., ÇANKAL, E. (2020). Determinants of Non-Life Insurer Profitability in Turkey. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Cilt: 24 - Sayı: 4, 1779–1797. https://ajindex.com/articles/115345

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (9)

  1. Adams, M., & Buckle, M. (2003). "The determinants of corporate financial performance in the Bermuda insurance market" [Bermuda Sigorta Piyasasında Finansal Performans Belirieyicileri]. Applied Financial Economics, 13(2):133–143.
  2. Ahmad, G. N., & Prasetyo, R. P. (2018). Profitability analysis of non-life insurance: Case in Indonesia stock exchange. International Conference on Islamic Finance, Economics and Business Volume 2018. https://doi.org/10.18502/kss.v3i8.2518. 05.04.2019
  3. Baltagi, B.H. (2005).
  4. Econometric Analysis of Panel Data, Third edition. John Wiley & Sons, Ltd, 1. Berhe, T. A., & Kaur, J. (2017). "Determinants of insurance companies’ profitability: analysis of insurance sector in Ethiopia" [Sigorta Şirketlerinin Karlılığının Belirleyicileri: Etyopya'da Sigorta Sektörünün Analizi]. International Journal of Research in Finance and Marketing, 7(4): 124–137.
  5. Brigham, E. F., & Ehrhardt, M. C. (2011). Financial Management Theory and Practice. 13th Edition.
  6. South-Western. Burca, A.M., & Batrinca, G. (2014). "The determinants of financial performance in the Romanian insurance market" [Romanya Sigorta Piyasasında Finansal Performansın Belirleyicileri]. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1):299–308.
  7. Doğan, M. (2013). Sigorta firmalarının sermaye yapısı ile karlılık arasındaki ilişki: Türk sermaye piyasası üzerine bir inceleme. Muhasebe ve Finansman Dergisi, Ocak 2013:121–136.
  8. Dorofti, C., & Jakubik, P. (2015). Insurance sector profitability and the macroeconomic environment. EIOPA Financial Stability Report- Thematic Articles, 4: 1–11.
  9. Hailegebreal, D. (2016). Macroeconomic and firm specific determinants of profitability of insurance industry in Ethiopia. Global Journal of Management and Business Research: C Finance, 16(7). Insurance Association of Turkey. https://www.tsb.org.tr/resmi-istatistikler.aspx? pageID=909 Jadi, D. M. (2015). An empirical analysis of determinants of financial performance of insurance companies in the United Kingdom. Ph.D. thesis, University of Bradford. Kakani, R. K., Saha, B., & Reddy, N. V. (2001). Determinants of financial performance of Indian corporate sector in the post-liberalization era: An exploratory study, NSE Research Initiative Paper, 5: 12- 30. Lee, C.-Y. (2014). "The effects of firm specific factors and macroeconomics on profitability of property-liability insurance industry in Taiwan" [Tayvan'da Makroekonomik ve Firma Özelliklerinin Sigorta Karlılığı Üzerin