This study fulfills an urgent need to investigate the things that are crucial for the survival, growth and profitability of life insurers in an emerging economy. A Study on the Performance of Insurance Companies in Ethiopia @article{Yuvaraj2013ASO, title={A Study on the Performance of Insurance Companies in Ethiopia}, author={S. Yuvaraj and Ayele Abate Gashaw}, journal={International Journal of Marketing, Financial Services and Management Research}, year={2013}, volume={2}, pages={138-150} } You can join in the discussion by joining the community or logging in here.You can also find out more about Emerald Engage. Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here, (Faculty of Economics and Business Administration, Catholic University College of Ghana, Sunyani, Ghana), (Department of Finance, University of Ghana Business School, Legon, Ghana). We conclude that insurers with higher (better) rating grades depict rating stability over the long-run. Within this context, credit quality can either improve, remain stable or deteriorate as reflected by a rating upgrade or downgrade. We use cookies to help provide and enhance our service and tailor content and ads. 14 No. What Are the Key Performance Indicators for Insurance Companies?. © 2018 Elsevier B.V. All rights reserved. We employ Rating Transition Matrices (RTM) to analyse these transitions. Berteji and Hammami studied determinants of the performance of the life insurance companies in Tunisia, similarly Boadi et al. Please click this link to view samples of our professional work witten by our professional essay writers. Evaluating financial performance of insurance companies using rating transition matrices. Net income ratio, policy sales growth, percentage of sales growth, claims ratio, and quotas-to-production are all commonly used key performance indicators, or KPIs, in the insurance industry. Malik also investigate the … The financial performance of property/casualty insurance companies is determined primarily by two factors: underwriting performance and investment performance. The six listed insurance companies comprised of the target population for the period 2012-2015. You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account. We use financial data reported by insurance companies to the National Association of Insurance Commissioners (NAIC) and compiled by Mark Farrah Associates to … Insurance Companies Taye Tadesse Tesfaye . Oscar Akotey, J., Sackey, F.G., Amoah, L. and Frimpong Manso, R. (2013), "The financial performance of life insurance companies in Ghana", Journal of Risk Finance, Vol. Methodology. This is an indicator of how well an insurance company is doing. First, the ACA almost doubled insurers’ premium revenue in the individual market, which increased by 97 percent, reflecting the considerable increase in enrollment brought about by the law’s subsidies and market reforms. Analysts learn about financial performance from data published by the company in Form 10K, also known as the annual report. Financial performance of insurance companies is captured by changes in rating grades. The annual financial statements of ten life insurance companies covering a period of 11 years (2000‐2010) were sampled and analyzed through panel regression. An insurer is susceptible to a rating transition which is a signal depicting current financial conditions. Monthly Bind Rate. The study was descriptive in nature. We employ Rating Transition Matrices (RTM) to analyse these transitions. Our findings show that profitability, liquidity, size and organisational form are the significant determinants that affect financial performance of insurance companies in the UK. The financial performance of insurance companies is analyzed at microeconomic level and by specific characteristics of the company. 1.1.1 Financial Performance of General Insurance Companies In general, financial performance is a measure of an organization’s earnings, profits, appreciations in value as evidenced by the rise in the entity’s share price (Asimakopoulos, Samitas, … In particular the study delves into the major determinants of the profitability of the life insurance industry of Ghana. Disclaimer: This essay has been written and submitted by students and is not an example of our work. The aim of this paper is to apply a BSC based PMS to insurance companies. Adequate liquidity enables Insurance companies to manage it liquidity risk and hereby helping to sustain its public confidence in the operation of the insurance institution which in turn leads to more patronage consequently, more profit. Public companies must publish the SEC required 10K form. 10 Core "Must Track" Insurance KPI's Core KPIs To Watch. 3, pp. ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. The study population consisted of 5 insurance companies with private capital, during the period 2008-2013 with a total of 30 data. Also, the results showed that life insurers have been incurring large underwriting losses due to overtrading and price undercutting. Panel data techniques are employed to measure the impact on performance of companies... Uk face decline during last decade by the company as well as industry. Rated and they demonstrate higher levels of rating changes, as reflected by rating! 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