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VOL. 6, ISSUE 1 (2024)
Evaluation of financial performance of insurance industry in Bangladesh: A comparative study of life and non-life insurance sector
Authors
Ibrahim
Abstract
The principal goal of this study is to
evaluate the financial performance of insurance industry of both life and
non-life insurance sector in Bangladesh. For evaluating the financial
performance 9 (nine) years data has been taken (2009-2017). Financial
performance will be evaluated based on ratio analysis such as proportion of
claim (CR), proportion of expenses (ER), proportion of underwriting result (UR),
proportion of investment income (IIR), and proportion of return from equity
ratio (ROE) and net earnings ratio (NER) etc. From the annual financial report
of IDRA ((Insurance Development and Regulatory Authority), Swiss Re
institution, website etc., the data has been taken. Some Statistical tools has
been used that are average, standard deviation and independent sample‘t’ test.
The financial performance analysis of life as well as non-life area indicated
that, life area is enjoying greater profitability than nonlife insurance
sector. The P-value is 0.000 which is ≤.05 that indicates that there is an
important gap in the middle of return from equity of life and nonlife area in
Bangladesh. So, Non-life insurance sector should be reduced claim and
management expenses and improved investment income and underwriting profit for
better financial performance.
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Pages:110-115
How to cite this article:
Ibrahim "Evaluation of financial performance of insurance industry in Bangladesh: A comparative study of life and non-life insurance sector". International Journal of Management and Economics, Vol 6, Issue 1, 2024, Pages 110-115
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