The impact of solvency indicators on financial performance An applied study on Libyan insurance companies

Keywords: Solvency, solvency indicators, financial performance, insurance companies


  The insurance sector is considered one of the most important sectors in any country because it contributes and supports the gross national product. Accordingly, this study aims to examine the impact of some solvency indicators on the financial performance of Libyan insurance companies during a five-year period. To achieve this purpose, the study adopted the descriptive-analytical approach, the data was gathered from the published financial statements of five Libyan insurance companies during the period from 2013 to 2017. Descriptive statistics were applied such as means and standard deviations. Also, inferential statistics were employed by applying the correlation analysis and the stepwise multiple regression to determine which variables should be included in or excluded from the model. The results showed that there is an effect of the net premiums written to the shareholders' equity ratio on the financial performance. The study results also showed there is no influence of the change in net premiums written and the technical provisions to current assets ratio on the financial performance.


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