An Analytical Study of Profitability and Liquidity Postions of Selected Life Insurance Companies in India

Abstract

The main objective of this study is to find out the truth which is hidden and which has not been discovered as yet.And this study used to evaluate the liquidity and profitability position of selected HDFC Standard Life insurance Co. Ltd. and SBI Life Co. Ltd. In addition to evaluate which company is performing best among the selected companies and make suggestions for improvement in financial or liquidity position of the selected companies. This study focused on knowing insurance sectors and it is performance in India through study conceptual framework of profitability and liquidity. This study deals with data analysis and interpretation of the different ratios which are useful for current assets, current liabilities, net profit, gross profit, all are use. It includes hypothesis testing by using t-test of HDFC and SBI companies. Simple random sampling was used to select the sample from top banks in India. The study relies largely on secondary data that was obtained from the annual reports and financial statements of the selected HDFC and SBI standard life insurance companies. In addition to the annual reports, different publications have also been used in this study. The study is made for a period of five years from 2014-15 to 2018-19.

Firm Specific Factors and Profitability of Indian Life Insurers

“…Several literatures have highlighted the significance of various factors in determining the performance of insurance companies. The performance of insurance companies was well measured and represented by financial ratios in several studies (Abdulkareem & Nagvadiya, 2021;Chellasamy & Jananimanjeeshwari, 2018). Suvvari et al, (2019) also used financial ratios for measuring the financial performance of life insurers and found that performance was determined mainly by their profitability.…”