The Determinants of Profitability of Insurance Companies in Palestine
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Date
2019-04-10
Authors
Abdeljawad, Islam
Dwaikat, Layth
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Abstract
This study aimed to examine the factors that affect the profitability of insurance companies in Palestine. Balanced panel data was utilized from seven insurance companies operating in Palestine from 2010 to 2017 to estimate a linear model between determinants theoretically determined to affect performance and the profitability of insurance firms. Findings revealed that age and size of the company significantly affect insurance firms’ profitability positively, claims ratio significantly affect insurance company’s profitability negatively, whilst liquidity, leverage, expense ratio and growth of premiums do not have an effect on profitability of insurance firms. This study recommended that insurance companies should increase their investments and they should manage their expenses wisely to positively affect their profitability.
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Keywords
Insurance companies profitability , claims ratio , Palestine