Literature review
Oyo Sukarya (2018) The objectives of this research was to examine the factors that affect the financial
performance of insurance companies in Indonesia, which was viewed for the profitability. Finding and
contribution in this paper showed that leverage, equity, and management competence index proved to
have a significant positive influence on size, ownership and age and they proved to have a significant
negative effect on retention ratio and underwriting risk negatively influenced insignificantly into
financial performance (ROA).
Andres Cudiamat and Jay Stephen Siy (2017) The authors highlighted that the sustainability of the life
insurance business is crucial for developing economies. The paper examined the influence of selected
firm level, industry level and macro level factors on ROA (a measure of profitability) of Life Insurance
Companies. The results show that most of the firm level factors affected ROA while industry level and
macroeconomic factors have not much effect on it.
Demis Hailegebreal (2016) The study was conducted on the determinants of profitability of Ethiopian
insurance industry. The study attempts to examine the firm specific factors which are age of company,
size of company, leverage ratio, liquidity ratio, premium growth, technical provision, underwriting risk,
solvency, reinsurance dependency and tangibility of assets and macroeconomic factors, GDP, and
inflation on profitability of insurance industry. The study found that underwriting risk, technical
provision, leverage, and inflation have negative and significant effect whereas other variables have
statistically positive and significant relationship with profitability of insurance industry.
Lucia Spotorno etal (2016) The article analyses the relationship between Italian life insurers’ profitability
and bank affiliation. The results highlight that neither distribution efficiency nor being bank affiliated
significantly affected performance. After the start of big financial crises both distribution efficiency and
bank affiliation prove to be crucial in fostering performance.
Sisra Kumara etal (2016) The paper presents results of the determinants for life insurance in the Central
region of Sri Lanka. The paper incorporated social capital as determinant of demand for life insurance.
Results confirmed that gender, income, trust and social capital has significant effect on demand for life
insurance in the study area.
Sandra Teodorescu (2016) The paper analyzes the impact of the economy on the insurance sector. The
analysis of correlation between the studied variables reveals that is a strong correlation between Gross
Written Premiums and GDP, the number of employees, average earnings and non-government domestic
credit. Economic growth, rising income, the increasing number of employees and facilitating credit
conditions could be some elements that would lead to sustainable growth of the insurance market.
Teklit Atsbeha Berhe and Pof. Jasmindeep Kaur (2015) The purpose of the study was to identify the key
factors that affect profitability of insurance companies in Ethiopia. The study suggested that managers
of insurance companies as well as the policy makers in the country should take crucial measures by
forming policies and strategies that aimed in improving the overall profit ability of insurers.
Dr. Dharmendera Mistry and Gurmeet Singh (2015) This paper examines the determinants of maturity
benefits of insurance products in India. The empirical estimates show that a long run relationship exists
between maturity benefits of insurance products and the independent variables. Further it reveals that
the allocation charge & fund management charge significantly influences the maturity benefit of ULIP
products under the study.
Prof. Nikhil Bhushan Dey etal (2015) The present analysis shows that there is significant positive
relationship of underwriting risk and size with financial performance (ROE) of life insurance companies
in India under the study. The study also finds there is significant negative relationship between volume
of capital and leverage with ROE.
Mohd. Arif (2015) This paper is an attempt to study the trends and pattern of Indian life insurance
industry. The author has explored a multifold growth in this sector in terms of insurance density,
amount of investment, total premium, number of new policies issued, number of offices opened etc.
The author believes that life insurer required to change their strategies and offered customized product
so that the untapped market can be served effectively.
Ade Ibiwoye (2010)
i n h i s p a p e r e n t i t l e d “ E v a l u a t i n g F i n a n c i a l S e r v i c e s roductivity! " comparison of
Ratios, Index numbers and Frontier methods% compares the financial performance of the select
insurance companies and to determine the direction to go by way of efficient operators. In this study
when only one output is used to find out the single productivity and multiple outputs are used to
measure multiple productivity. Four main types financial ratios are analyzed liquidity, leverage, activity
and profitability ratios are measured to make financial performance comparisons.
Ade Ibiwoye, Joseph O Ideji, Babatunde (2010) in their study entitled “The determinates of
Life Insurance Consumption in Nigeria: a co-integration approach” examine the determinates of life
insurance consumption in Nigeria during the period 1970-2005 within an error correction framework.
Co-integration technique revealed that Real Gross Domestic Product (RGDP) and SAP positively and
significantly influence Life Insurance Consumption (LIC) in Nigeria while indigenization policy and
Domestic Interest Rate (DIR) are statistically significant but inversely related to Life Insurance
Consumption (LIC). In addition, the result of this study indicate a well-defined error correction term
which is significant at 1 percent with a feedback effect of about 58 percent.
