Impact of firm specific and macroeconomic factors on financial performance of the UAE insurance sector

Banerjee, Rachna; Majumdar, Sudipa

doi:10.1504/gber.2018.090091

Cited by 11 publications

(16 citation statements)

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“…A good and conducive economic condition which is represented by the amount of GDP which continues to increase in a sustainable manner will encourage the increased financial performance of life insurance companies. This finding is in line with Meher & Zewudu (2020) in Ethiopia, Alomari & Azzam (2017) in Jordan, Pradhan & Pokharel (2020) in Nepal, Banerjee & Majumdar (2018) in the UEA, and Batool & Sahi (2016) in the US and the UK. However, it is different from what happened in the Philippines (Cudiamat &Siy, 2017), andin Pakistan (Shawar &Siddiqui, 2019) where the financial performance of insurance companies, both life and general, is not influenced by GDP.…”

Section: Inferential Statistical Analysis: Panel Data Regression Anal...supporting

confidence: 87%

“…The findings of Pradhan & Pokharel (2020) are in accordance with the above-mentioned studies where, in Nepal, financial performance of life insurance was positively influenced by GDP-growth. In the United Arab Emirates, Banerjee & Majumdar (2018) uncovered the same empirical evidences which indicates that GDPgrowth affects financial performance of insurance companies in a positive way. In the US and UK, Batool & Sahi (2016), identified that financial performance of insurance companies in these countries was influenced positively by GDP-growth.…”

Section: The Determining Factors Of Profitability Of Life Insurancementioning

confidence: 73%

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Micro and Macroeconomic Determinants of the Financial Performance of Life Insurance Firms in Indonesia: An Empirical Evidence

Sugiharto

2022

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Insurance sector is an integral part of financial system which offers an important contribution in the nation’s economy. It provides long terms fund for investment which leads to improving financial and non-financial infrastructural facilities. The financial performance of insurance firms, therefore, is an important aspect needing special attention. The paper’s objective is to investigate the impact of micro and macroeconomic indicators on the financial performance of life insurance firms. Based on the Indonesia Financial Service Authority (IFAS) database, a set sample of 30 life insurance firms for the periods of 2011-2018 was generated. Panel data regression analysis was performed to test the formulated hypotheses. Random effect model was identified as the appropriate model indicating that differences in the characteristics between the studied life insurance firms have an effect on the dependent variable, in this case the return on equity. Based on the resulted model, it is revealed that the financial performance i.e. return of equity is affected consecutively by economic growth, expense ratio and current ratio in different direction and magnitudes.

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Section: Inferential Statistical Analysis: Panel Data Regression Anal...supporting

confidence: 87%

Section: The Determining Factors Of Profitability Of Life Insurancementioning

confidence: 73%

Micro and Macroeconomic Determinants of the Financial Performance of Life Insurance Firms in Indonesia: An Empirical Evidence

Sugiharto

2022

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“…For Banerjee and Majumdar (2018), the economic crisis of 2007-2008 witnessed a failure for growth rates in UAE insurance sector. The research focuses on the fiscal performance of the insurance segment post-global economic crisis for the period 2009-2013.…”

Section: Literature Reviewmentioning

confidence: 99%

Micro- and Macro-Level Factors Determining Financial Performance of UAE Insurance Companies

Sasidharan¹,

Ranjith²,

Prabhuram³

2020

JAFEB

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The research aims to analyze the firm-specific and macroeconomic factors that affect insurance company's financial performance. The research explores the variables that influence the financial performance of the United Arab Emirates (UAE)' insurance companies. The analysis for determining financial performance considers the following variables: the firm's age, retention ratio, capital adequacy, underwriting risk/loss ratio, financial-leverage, reinsurance dependency, and macroeconomic factors such as GDP per capita, inflation rate considered as independent factors. The return-on-asset (ROA) is the key measuring indicator; it is regarded as the dependent variable for financial performance measures. The research focuses on secondary information obtained from insurance companies' financial statements. The researcher targeted 18 insurance companies listed on the UAE stock exchanges for study purposes. The research examines the overall factors that influence the financial performance of an insurance company. For analysis of data, software package of social sciences (SPSS version 20) is used. The studies used correlation and multiple linear regression analysis to determine financial performance and their effects. The analysis suggests that there are important and constructive relationships between the size, capital adequacy, and reinsurance dependency, while loss ratio, retention ratio, and financial leverage indicate a major negative relationship. And there's no link between GDP per capita and inflation.

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“…It is also supported on a finding by Kulustayeva, Jondelbayeva, Nurmagambetova, Dossayeva and Bikteubayeva (2020) on a negative significant relationship towards profitability. Furthermore, insurance companies must keep adequate and suitable technical reserves based on the nature of their potential liabilities (Banerjee & Majumdar, 2018). However, Mohamad Said, Abdull Rahman, Abd Mutalib, and Badri (2021) identified that leverage and size of the respected sample of Malaysian hotel industry have a statistically significant relationship with profitability.…”

Section: Literature Reviewmentioning

confidence: 99%

The Analysis of Leverage, Premium Growth, and Firm Size towards the Profitability of Selected Malaysian General-Insurance Companies

Salleh¹,

Manaf²,

Hassan³

2022

IJARAFMS

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Companies in the insurance industry are significant actors in the service economy, and their services are increasingly being integrated into the broader financial sector. In both developed and emerging countries, the insurance industry is critical to the service-based economy's success. In Malaysia, the severe competition in a non-life segment, the expanding market share of private insurance companies, and the increasing amount of risks retained by insurers have all had an impact on their performance in recent years. Consequently, this study examines internal factors, namely leverage, premium growth, and firm size, towards the profitability of the selected insurance companies in Malaysia. Yearly-basis data between 2014 to 2021 have been taken from public annual reports from 15 out of the 22 general-insurance companies in Malaysia. To estimate the factors involved, the observations were analysed using the Pooled Ordinary Least Square Regression Model. The sources of these data have been mainly obtained from DataStream. The findings have suggested that leverage has a significant and negative relationship with profitability, while premium growth and firm size have a substantial and positive association with the firm's profitability. In addition, the findings appear to indicate that the management of their overall assets is highly productive, reducing the use of leverage, expanding the size of the firms, increasing premium growth, and controlling underwriting risks are the prerequisites and attributes for achieving highprofitability performance.

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Impact of firm specific and macroeconomic factors on financial performance of the UAE insurance sector

Cited by 11 publications

References 0 publications

Micro and Macroeconomic Determinants of the Financial Performance of Life Insurance Firms in Indonesia: An Empirical Evidence

Micro and Macroeconomic Determinants of the Financial Performance of Life Insurance Firms in Indonesia: An Empirical Evidence

Micro- and Macro-Level Factors Determining Financial Performance of UAE Insurance Companies

The Analysis of Leverage, Premium Growth, and Firm Size towards the Profitability of Selected Malaysian General-Insurance Companies

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