Examining Factors Determining Performance of None-Life Insurance Business in Ethiopia

Abstract

The main objective of this study is to examine factors determining performance of general insurance companies operating in Ethiopia. The study employed random effect panel data model on secondary data collected from nine (9) general insurance companies. As the result of the study witnessed, liquidity, loss ratio, volume of capital and GDP of the country are factors which are statistically significant in affecting performance of general insurance companies operating in Ethiopia while age of the company, leverage and tangibility ratios proved to have insignificant influence. Based on findings of the study, insurers need to give prime emphasis for those factors that have significant influence on their performance and government’s role is recommended to mainly focus on enhancing insurers’ professional capacity (innovativeness) and boosting public awareness towards insurance service.