Determinants of growth and stability of selected non-life insurance companies in the Philippines

• Main Author: Alano, Clara Mia Josaine V.
• 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/2884
• Institution: De La Salle University

The study examines the effect of net profit margin, return on average equity, expense ratio, loss ratio, debt to equity, liquidity ratio and policy holders surplus ratio on the growth and stability of non-life insurance companies. The data used in this study is from the 17 non-life insurance companies of the Philippines from 2011-2015. A panel data analysis was used to determine which affects the growth and stability of non-life insurance companies. Hausman test was also used to know whether fixed effect or random effect model is appropriate. The results shows that net profit margin, return on average equity, and loss ratio are significant in determining the growth of the company while debt to equity and policyholders surplus ratio are significant in determining the stability of the company.