Performance Determinants of General Insurers in Pakistan

Abstract

The study has investigated the determinants of performance in the general insurers of Pakistan over the period 2004 to 2009. Performance of the general insurers is measured as Return on Assets (ROA) and Return on Equity (ROE) whereas; size, investments, leverage, claims, past year performance and age are chosen as explanatory variables. The results suggest that size, investment, past performance and age are positively related whereas; leverage and claims are negatively related with the performance of the general insurers. Moreover, it was also found that the recent economic uncertainty has adversely affected the performance of the general insurers in Pakistan.

Keywords: Determinants, General Insurers, Pakistan, Performance