Macroeconomic and Firm Specific Determinats of Profitability of Insurance Industry in Ethiopia

Macroeconomic and Firm Specific Determinats of Profitability of Insurance Industry in Ethiopia

Demis Hailegebreal Hailu PhD candidate, Lecturer

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Demis Hailegebreal

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Dongbei University of Finance and Economics

Macroeconomic and Firm Specific Determinats of Profitability of Insurance Industry in Ethiopia

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Abstract

This study was conducted on the determinants of profitability of Ethiopian insurance industry. The study attempts to examine the firm specific factors which are age of company, size of company, leverage ratio, liquidity ratio, premium growth, technical provision, underwriting risk, solvency, re-insurance dependency and tangibility of assets and macroeconomic factors; GDP and Inflation on profitability of Ethiopian insurance industry. Nine insurance companies from the total of 17insurance companies established before 2008 were included in the study. Secondary data that was collected from the financial statements (Balance sheet and income statements) of insurance companies; and annual reports of National bank of Ethiopia are the major sources of data for this study. This study found that under writing risk, technical provision, leverage and inflation have negative and significant effect whereas premium growth, age of the company, solvency ratio and GDP have statically positive and significant relationship with the profitability of Ethiopian insurance industry.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Demis Hailegebreal Hailu. 2016. \u201cMacroeconomic and Firm Specific Determinats of Profitability of Insurance Industry in Ethiopia\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 16 (GJMBR Volume 16 Issue C7): .

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GJMBR Volume 16 Issue C7
Pg. 37- 46

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-C Classification: JEL Code: E44

Submission ReceivedDecember 15, 2015
Peer Review Double Blind
Handling Editor
Accepted January 2, 2016
Published January 15, 2016

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v1.2

Issue date

August 17, 2016

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Article Matrices

Total Score: 101

Country: Unknown

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Demis Hailegebreal (PhD/Dr. count: 0)

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Publish Date: 2016 08, Wed

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Total Views: 3720

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