Investment performance and marketability efficiency of life insurance companies in the Philippines for the period: 1996-2005

• Main Authors: Chuacokiong, Catherine W., Lee, Adrienne Courtney C., Ng, Hazelin C., Uy, Jamee Grace T.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Insurance, Life; Insurance, Life > Finance; Insurance companies > Philippines; Insurance companies > Investments > United States; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14317
• Institution: De La Salle University

The study entitled, Investment Performance and Marketability Efficiency of Life Insurance Companies in the Philippines for the Period: 1996-2005 focuses on determining which among the factors of investment performance efficiency and marketability efficiency significantly affect financial performance of life insurance companies for the specified period. With this, the researchers decided to measure the investment performance indicators and marketability efficiency indicators, treated separately, using Data Envelopment Analysis (DEA). This is to determine which among the companies are efficient in the aspects of investment and marketability of life insurance companies in the Philippines. After which, the indicators were regressed on financial performance to see which among the factors of investment performance efficiency and marketability efficiency significantly affected financial performance in terms of net income. In attaining the results, the group had found out that interest income, gain on securities, and total gains under the investment performance category and direct premiums written under the marketability category were the factors that significantly affected the financial performance which is net income. And as evidenced by the Window Analysis results, the proponents have discovered that changes (increase or decrease) in the variables affecting the investment performance efficiency and marketability efficiency have resulted from external factors such as the Asian Financial Crisis, the Estrada presidency, and the Philippine economy itself. The group, moreover, is recommending the current and potential life insurance plan holders to scrutinize the insurance company first before acquiring its insurance policy. In line with this, it is advisable that existing owners of insurance companies should report the fair market value instead of the acquisition costs of their assets so the insurance plan holders will be aware of the undertakings in the insurance companies that they are insured with also, they should comply with the ratios and regulations set by the Insurance Commission. Future researchers may consider studying other variables relating to investment performance efficiency, marketability efficiency, and financial performance to see whether the results may vary or not.