University of Split Researchers Publish Findings in Economics (What are the factors that determine risk-adjusted returns of Croatian life insurers?): Economics

2023 JUL 17 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on agriculture. According to news reporting out of Split, Croatia, by NewsRx editors, research stated, “When conducting their business, insurers face various risks that are controlled for in order to mitigate them and protect the insured, inter alia.”

The news correspondents obtained a quote from the research from University of Split: “Moreover, being aware of the factors that determine the reward-to-risk ratio for insurers is also of crucial importance. Thus, the aim of this research is to identify potential factors that influence risk-adjusted returns of life insurance companies. The analysis is conducted on a sample of life insurers that operated in Croatia in the period from 2016 to 2020. For this purpose, risk-adjusted ROA, i.e. the Sharpe ratio, is used as a risk-adjusted return measure, while independent variables encompass several insurance firm-oriented and insurance industry-specific variables, as well as variables depicting the level of macroeconomic development, stock market, bond market and institutional development. After conducting dynamic panel analysis, the obtained results suggest that the premium growth rate, asset-based size, the net premium to surplus ratio, i.e. leverage, as well as bond market development are significant factors when determining risk-adjusted returns.”

According to the news reporters, the research concluded: “Risk-adjusted returns are determined by insurance firm-oriented factors which are important not only to investors but also to insurance market regulators and insurance firm managers.”

For more information on this research see: What are the factors that determine risk-adjusted returns of Croatian life insurers?. Ekonomski Vjesnik, 2023,36(1):203-212. (Ekonomski Vjesnik - http://www.efos.unios.hr/ekonomski-vjesnik/general-outline/). The publisher for Ekonomski Vjesnik is Faculty of Economics in Osijek.

Our news editors report that more information may be obtained by contacting Tomislava Pavic Kramaric, University of Split, University Department of Forensic Sciences, Split, Croatia. Additional authors for this research include Marko Miletic.

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