Determinants of Financial Performance – A Comparative Analysis of Public Sector Non-Life Insurers in India

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Authors

  • P. Muthulakshmi
     Assistant Professor in Commerce, IFIM College, Bangalore – 560100, Karnataka ,IN
  • A. Muthumoni
     Principal, MGR College, Hosur – 635130, Tamil Nadu ,IN

DOI:

https://doi.org/10.18311/sdmimd/2023/32475

Keywords:

Financial Performance, India, Net Profit after Tax, Non-life Insurance, Return on Equity

JEL Classifications: G22, L25, N20

Abstract

A well-developed and functioning insurance sector is a pre-requisite for an inclusive economy and growth of any country. The insurance sector has been growing steadily and gradually in India. Insurance is an essential financial service because it provides financial security to individuals and business persons. The efficiency of the insurance companies is measured by the techniques such as financial performance, technical, purely technical and scale efficiencies. This research work aims at analyzing the financial performance of public sector nonlife Indian insurance companies and the determinants of such performance. Commission, claims incurred, investment income, the net premium earned, management soundness and operating expenses are considered determinants of the financial performance of non-life insurance companies. Data are collected from the financial year 2009-10 to the financial year 2021-22 to determine financial performance. Data were checked for their normality and stationarity using EViews statistical software. Research results convey that New India Insurance Company Limited performs better in financial performance followed by United India Insurance Company Limited. Common determinants of net profit after tax of public sector non-life insurance companies are claims incurred and net premium earned.

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Author Biography

A. Muthumoni, Principal, MGR College, Hosur – 635130, Tamil Nadu

Principal, MGR College, Hosur

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Published

2023-03-23

How to Cite

Muthulakshmi, P., & Muthumoni, A. (2023). Determinants of Financial Performance – A Comparative Analysis of Public Sector Non-Life Insurers in India. SDMIMD Journal of Management, 14(1), 25–33. https://doi.org/10.18311/sdmimd/2023/32475

Issue

Volume 14, Issue 1, March 2023

Section

Articles

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Copyright (c) 2023 P. Muthulakshmi, A. Muthumoni

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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