• citations in SCIndeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:28
  • full-text downloads in 30 days:19


article: 3 from 22  
Back back to result list
2018, vol. 66, iss. 5-6, pp. 333-345
Profitability determinants of non-life insurance companies in Serbia
University of Novi Sad, Faculty of Economy, Subotica
Keywords: non-life insurance companies; determinants of profitability; insurance; regression
Taking into account the specifics of the Serbian insurance market, the insurance sector in Serbia is still underdeveloped and, if we take the degree of development into account, it is well below the average for European Union member states. The insurance market in Serbia is developing and has great potential opportunities. Profitability is one of the most important goals of financial management. The aim of this research is to examine the impact of internal factors of non-life insurance business operations such as: asset size (company), asset growth, premium growth, liquidity ratio, debt ratio, underwriting risk, operating costs, financial leverage, and total revenues of the profitability of non-life insurance companies in Serbia. The results of the research were obtained using the multilinear regression model, where the representativeness of the model was tested by calculating the coefficient of correlation, the determination coefficient and the corrected determination coefficient. Also, a variance analysis (ANOVA) was carried out, in order to test the significance of the observed variables in the model and examine the impact of these independent variables on ROA profitability as a dependent variable. The fundamental results are placed on giving an empirical basis for reaching the conclusion that the greatest impact on the profitability of non-life insurance companies is exerted by the increase in premiums, the debt ratio, operating costs and the share of profit in total revenues.
Adams, M., Buckle, M. (2003) The determinants of corporate financial performance in the Bermuda insurance market. Applied Financial Economics, 13(2): 133-143
Almajali, A.Y., Alamro, S.A., Al-Soub, Y.Z. (2012) Factors Affecting the Financial Performance of Jordanian Insurance Companies Listed at Amman Stock Exchange. Journal of Management Research, 4(2):
Burca, A., Batrinca, G. (2014) The Determinants of Financial Performance in the Romanian Insurance Market. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1):
Charumati, B. (2012) On the determinants of profitability of Indian life insurers: An empirical study. in: Proceedings of the World Congress on Engineering, London U.K., 1
Chaudhary, S., Kiran, P. (2011) Life insurance industry in India - current scenario. International Journal of Management & Business Studies, 1(3); 146-150
Chen, R., Wong, K.A. (2004) The Determinants of Financial Health of Asian Insurance Companies. Journal of Risk and Insurance, 71(3): 469-499
Choi, B.P. (2010) The U.S. Property and Liability Insurance Industry: Firm Growth, Size, and Age. Risk Management and Insurance Review, 13(2): 207-224
Cummins, J. D., Nini, G.P. (2002) Optimal capital utilization by financial firms: Evidence from the property-liability insurance industry. Journal of Financial Services Research, 21(1/2): 15-53
Ćurak, M., Pepur, S., Poposki, K. (2011) Firm and economic factors and performance: Croatian composite insurers. Business Review Cambridge, 19(1); 136-142
Diacon, S.R., Starkey, K., o`Brien C. (2002) Size and Efficiency in European Long-term Insurance Companies: An International Comparison. Geneva Papers on Risk and Insurance - Issues and Practice, 27(3): 444-466
Doumpos, M., Gaganis, C., Pasiouras, F. (2012) Estimating and Explaining the Financial Performance of Property and Casualty Insurers: A Two-Stage Analysis. Journal of CENTRUM Cathedra: The Business and Economics Research Journal, 5(2): 155-170
Getahun, M. (2016) Capital structure and financial performance of insurance industries in Ethiopia. Global Journal of Management and Business Research: (C) Finance, 16(7); 45-53
Haiss, P., Sümegi, K. (2008) The relationship between insurance and economic growth in Europe: a theoretical and empirical analysis. Empirica, 35(4): 405-431
Kočović, J., Paunović, B., Jovović, M. (2014) Determinants of business performance of non-life insurance companies in Serbia. Ekonomika preduzeća, vol. 62, br. 7-8, str. 367-381
Kozak, S. (2011) Determinants of profitability of non-life insurance companies in Poland during integration with the European financial system. Electronic Journal of Polish Agricultural Universities, 14(1); 02-787
Kung, C.Y., Yan, T.M., Chuang, S.C. (2006) GRA to assess the operating performance of non-life insurance companies in Taiwan. Journal of Grey System, 18(2); 55-160
Kwaning, E.A., Awuah, P.K., Michael, M.B. (2015) Factors affecting financial performance of non-life insurance companies in Ghana. Africa Development and Resources Research Institute (ADRRI) Journal, 25(3), 19-37
Leverty, J. T., Grace, M.F. (2010) The robustness of output measures in property-liability insurance efficiency studies. Journal of Banking & Finance, 34(7): 1510-1524
Malik, H. (2011) Determinants of insurance companies profitability: An analysis of insurance sector of Pakistan. Academic Research International, 1(3); 315-321
Mehari, D., Aemiro, T. (2013) Firm-specific factors that determine insurance companies' performance in Ethiopia. European Scientific Journal, 9(10); 245-255
Moro, O., Anderloni, L. (2014) Non-life insurance economic performance - an empirical investigation. Journal of Economics & Management, University of Economics in Katowice, 159-177; 18
Mwangi, M., Iraya, C. (2014) Determinants of financial performance of general insurance underwriters in Kenya. International Journal of Business and Social Science, 5(13); 210-215
Neelaveni, V. (2012) Financial performance of life insurance companies and products. Zenith International Journal of Business Economics & Management Research, 2(3), 233-258
Neveed, A., Zulfqar, A., Ishfaq, A. (2010) Determinants of capital structure: A case of life insurance sector of Pakistan. European Journal of Economic, Finance and Administrative science, 7-12; 24
Oner, K.E. (2016) Financial Performance Assessment of Non-Life Insurance Companies Traded in Borsa Istanbul via Grey Relational Analysis. International Journal of Economics and Finance, 8(4): 277
Öner, K.E. (2015) The Effects of Firm-Specific Factors on the Profitability of Non-Life Insurance Companies in Turkey. International Journal of Financial Studies, 3(4): 510-529
Ortyński, K. (2016) Determinants of profitability of general insurance companies' performance in Poland. Central European Review of Economics & Finance, 12(2); 53-66
Pervan, M., Ćurak, M., Marijanović, I. (2012) Dynamic panel analysis of Bosnia and Herzegovina insurance companies' profitability. Recent Researches in Business and Economics, 1, 158-163
Pervan, M., Pavić, K.T. (2010) Determinants of insurance companies' profitability in Croatia. Business Review, Cambridge, 16(1); 231-238
Saeed, U., Khurram, N. (2015) Factors influencing the financial performance of non-life insurance companies of Pakistan. International Journal of Empirical Finance, 4(6); 354-361
Shiu, Y. (2004) Determinants of United Kingdom General Insurance Company Performance. British Actuarial Journal, 10(05): 1079-1110
Sumninder, K.B., Samiya, C. (2013) Financial performance of life insurers in Indian insurance industry. Pacific Business Review International, 6(5), 44-52
Wali, U.G.M., Faisal, M.N., Zuhra, S.T. (2016) Factors Determining Profitability of the Insurance Industry of Bangladesh. International Finance and Banking, 3(2): 138


article language: English
document type: Original Scientific Paper
DOI: 10.5937/EKOPRE1806333P
published in SCIndeks: 29/11/2018