The Influence of Net Premium Growth, Claim Ratio and Risk-Based Capital on the Financial Performance of Life Insurance Companies

DOI

10.2991/aebmr.k.200309.015How to use a DOI?

Keywords

Net Premium Growth, risk-based claims, capital ratios on financial performance

Abstract

The objective of this research was to examine and analyse the influence of Net Premium Growth, Claim Ratio and Risk Based Capital affect the Financial Performance of Line Insurance Companies. The study population was insurance companies listed on the Indonesia Stock Exchange from 2014–2018. The sample used in this study were 17 life insurance companies. The statistical tool in this study is Eviews 11. Net Premium Growth and Claim Ratio do not significantly influence financial performance. Risk Based Capital has a negative effect on the financial performance of life insurance, namely ROA. Simultaneously the three ratios of Net Premium Growth, Claim Ratio and Risk Based Capital affect the financial performance of life insurance companies that are proxied by ROA. The implication of this research is that life insurance companies are expected to be able to maintain the stability of premium growth every year to be above the normal limit of 23%.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ono Tarsono
AU  - Preztika Ayu Ardheta
AU  - Rininda Amriyani
PY  - 2020
DA  - 2020/03/12
TI  - The Influence of Net Premium Growth, Claim Ratio and Risk-Based Capital on the Financial Performance of Life Insurance Companies
BT  - Proceedings of the Annual International Conference on Accounting Research (AICAR 2019)
PB  - Atlantis Press
SP  - 65
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200309.015
DO  - 10.2991/aebmr.k.200309.015
ID  - Tarsono2020
ER  -