Determinants of Insurance Firms’ Profitability

• 발행기관: 한국유통과학회
• 저자명: Lassad BEN DHIAB
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.6, 235~243쪽, 전체 9쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.06.30

영문 초록

The insurance industry plays a vital role for households, companies, and economies. Among others, it provides risk transfer, indemnification services, and financial intermediation. While there has been a vast literature on factors affecting the profitability of insurance companies, limited attention has been paid to Saudi ones. This article fills this gap by examining the determinants of profitability in the Saudi insurance sector. The empirical analysis is based on data relative to a sample of 20 Saudi insurance companies between 2009 and 2017. For robustness checks, the empirical investigation employs a wide range of econometric techniques, including the fixed-effects model, random-effects model, Feasible Generalized Least Squares, Ordinary Least Squares with panel-corrected standard errors, Difference GMM and finally System GMM. The empirical findings suggest that the growth rate of written premium, the tangibility ratio and the fixed-assets ratio are the main factors affecting positively the profitability of Saudi insurance companies. Moreover, while the company size and the liquidity ratio are positively associated with profitability, their impacts are not statistically significant. On the contrary, the loss ratio, liabilities ratio, insurance leverage ratio, and to a less extent, the company age have negative effects on the profitability of Saudi insurance companies.

목차

1. Introduction

2. Literature Review

3. Methodology and Data

4. Empirical Results

5. Conclusion

키워드

Insurance Industry Profitability Dynamic Panel Data Saudi Arabia