Impacts of Insurers' Financial Insolvency on Non-Life Insurance Companies' Profitability: Evidence from Bangladesh

被引:1
|
作者
Siddik, Md Nur Alam [1 ]
Hosen, Md Emran [1 ]
Miah, Md Firoze [1 ]
Kabiraj, Sajal [2 ]
Joghee, Shanmugan [3 ]
Ramakrishnan, Swamynathan [4 ]
机构
[1] Begum Rokeya Univ, Dept Finance & Banking, Rangpur 5404, Bangladesh
[2] Hame Univ Appl Sci Ltd HAMK, Sch Entrepreneurship & Business, Valkeakosk 37630, Finland
[3] Univ City Sharjah, Skyline Univ Coll, Sch Business, Sharjah 1797, U Arab Emirates
[4] Amity Univ, Amity Business Sch, Dubai 345019, U Arab Emirates
来源
关键词
financial insolvency; non-life insurance companies; financial leverage; return on equity; return on asset; Bangladesh; TESTS; RISK;
D O I
10.3390/ijfs10030080
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
A stable and healthy insurance industry plays a vital role in sustaining an economy resistant to economic shocks by providing an efficient risk-transition mechanism. There is a relative scarcity of research inspecting the impact of insurers' financial insolvency on the profitability of insurance firms. Employing 2011-2019 panel data of 16 non-life insurance companies operating in Bangladesh, this research endeavors to examine the impacts of insurers' financial insolvency on the profitability of insurance companies measured by return ratios, return on assets (ROA), and return on equity (ROE). Fixed-effect regression outcome implies that insurers' financial insolvency has a significant adverse influence on non-life insurance companies' profitability. Further findings indicate that financial leverage, technical provision, age, and inflation have a noteworthy adverse influence on profitability. The outcomes of this research are of greater significance for policymakers in tackling insolvency and formulating policies to boost the growth of insurance profitability. In addition, this study aims to serve as a benchmark for other countries' insurance industries to emulate recovery strategies from financial insolvency.
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收藏
页数:15
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