The effects of internal factors on the profitability of non-life insurance companies in the Philippines

• Main Authors: Banaag, Maria Samantha Camille R., Manzano, Hans Gregory E., Monfort, Ma. Andreana Mikaela V., Ram, Marteen Christian C.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Insurance companies > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18439
• Institution: De La Salle University

This study investigates the relationship between firm specific factors and profitability of non life insurance companies in the Philippines from 2006-2015. The top 15 non-life insurance companies, based on premiums earned, were assessed using panel regression-- fied effects model, random effects model, and ordinary least squares. Multicollinearity and correlation tests were applied to the variables. Profitability is measured by 2 variables: return on assets and operating ratio. The results exemplify that age, financial leverage and firm size are significant to ROA. On the other hand, input cost, reinsurance, and underwriting risk have a significant relationship with OR. These findings indicate the effects of internal factors to the profitability of a non-life insurance firm in the Philippines. These findings are beneficial and should be of interest to future researchers, investors in the insurance companies, current and potential customers of non-life insurance firms, top management, and the Insurance Commission.