A study on the firm-specific variables affecting solvency of the Philippine non-life insurance industry (2006-2011)

• Main Authors: Maducdoc, Crizer Gervi R., Mercado, Juan Carlos C., Ongsiako, Ramon Juan Santino, Samar, Jordan Byron G.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Insurance companies > Philippines; Insurance companies > Philippines > Management; Insurance companies > Investment > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18312
• Institution: De La Salle University

The Philippine non-life Insurance industry is a growing industry which clients and investors can rely on. The study is about solvency which is defined as a firm's ability to meet its financial obligations. Solvency is measured by net premium per capital which is comprised of net premiums written of the company over capital. This is an appropriate solvency ratio according to the International Risk Management Institute. The model is comprised of seven independent variables, namely: firm size, investment performance, liquidity ratio, premium growth, surplus growth, combined ratio, and operating margin. Chapter 1 contains the background, statement of the problem, objectives, hypothesis and the limitations of the study. Chapter 2 contains all related literature regarding solvency factors of the Philippine non-life Insurance industry the group studied. The literature map and the research gap are also included in this chapter. Chapter 3 included all relevant frameworks supporting the study. The firm-specific variables are explained theoritically in this chapter. Chapter 4 contains the design, methods, models and a-priori expectations of the data. Chapter 5 shows the results of the regression model and lastly, Chapter 6 discusses the conclusion and recommendation of the study.