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Determinants that Affect the Profitability of Non-Life Insurance Companies: Evidence from Pakistan

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Author Affiliations

  • 1Department of Management Sciences, COMSATS Institute of Information Technology, Lahore, Pakistan
  • 2Institute of Social and Cultural Studies, Punjab University, Lahore, Pakistan
  • 3COMSATS Institute of Information Technology, Lahore Pakistan
  • 4COMSATS Institute of Information Technology, Lahore Pakistan

Res. J. Recent Sci., Volume 5, Issue (4), Pages 6-11, April,2 (2016)

Abstract

The profitability of any organization for a specific time can be considered as the ultimate result of its investing, operating and financing activities. This research paper studies how the profitability of non-life insurance companies in Pakistan is prejudiced by working capital management, other firm’s specific variables coupled with the macroeconomic variables like Inflation and GDP. The results are generated by running balance panel data on Eviews6.The current ratio is taken as demonstrative of working capital management. The results show that current ratio, premium growth and firm size are the key factors in determining the profitability of the firms. The results also show that ROA and ROE of the firms are not influenced by the same variables. The macroeconomic variables also proved significant in determining the profitability of the firms

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