An update on the financial soundness of Philippine non-life insurance companies for years 2001-2010

• Main Authors: Matias, Jimuel Dave Lacambra, See, Adrian Samiro Mejia, Sison, John Lamug, Teng, Johannes Charles Beltran
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Insurance companies > Philippines; Insurance companies > Philippines > Management; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18308
• Institution: De La Salle University

The purpose of this study is to update a prior study on the determinants of financial soundness of firms in the Philippine non-life insurance industry. The key question of the update related to the external pressures that affected the industry. In the prior study, the financial trends over the sample period used was flat. Thus, the proponents used a recent dataset with more pronounced differences in the movements of the financial trends. The methodology executed is similar to that of the prior study using capital adequacy as indicators of financial health and running them against firm- specific variables in a multiple regression analysis model. The prior study had produced statistically significant results overall, defining firm size, investment performance, combined ratio and operating margin as significant explanatory variables. The paper uses purely quantitative financed-related data, so economic and quantitative data are not employed in the study. Furthermore, the study may contribute to the improvement of the non-life insurance evaluation systems of regulators and analysts.