Factors Influencing Profitability of Non-Life Insurance Companies in Thailand
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Abstract
The purpose of this study is to study factors that determine profitability measured by return on assets (ROA) and return on equity (ROE) of non-life insurance companies in Thailand. The variables used in research are the size of the non-life insurance companies, age, leverage ratio, loss ratio, capital adequacy ratio (CAR ratio), premium growth rate, market share and epidemic situation of the new corona virus 2019. The data used in this study is the financial data from 2017-2021, total of 255 firm-year observations. The study employed the multiple regression method to analyze the data. This study's results find that the factors that positively influenced return on assets (ROA) were leverage ratio and CAR ratio, while loss ratio negatively influenced ROA. The factors that positively influenced return on equity (ROE) were size and market share, while leverage ratio and loss ratio are found to influence ROE in the reverse direction.
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