Firm specific determinants variable of Insurers’ insolvency in Zimbabwe

Authors

  • Timothy Aluko University of Johannesburg

Keywords:

Firm specific, Factors, Determinants, Insurer, Solvency,

Abstract

The insurance industry is quite evident to be one of the vital elements required for proper operation of the financial system and its role towards the economies of nations can never be underrated. The resources required for the proper functioning of different other economic sectors to improve growth of the economy, and an environment with desirable investment opportunities is protected by the insurance companies. Determinants of insolvency for non-life insurers in Zimbabwe are therefore examined in this study. This is accomplished by looking at how firm-specific variables affect solvency. Seventeen non-life insurance businesses from Zimbabwe are chosen in a panel of secondary data throughout the years 2017 to 2022. Financial statements for these non-life insurance companies are sourced from IPEC reports. The research examines two explanatory factors of investment performance and return on asset (profitability). In line with the regression model using the Statistical Package for Social Science (SPSS), the link between these factors and solvency is investigated. The solvency ratio is employed as a stand-in for solvency in this study. Results showed that a firm's size and claims ratio positively impacts investment performance and profitability of insolvency of non-life insurers.

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Published

2024-07-09

How to Cite

Aluko, T. (2024). Firm specific determinants variable of Insurers’ insolvency in Zimbabwe. Acta Universitatis Danubius. Œconomica, 20(3). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2853

Issue

Section

Financial Economics