Journal of Finance and Investment Analysis

An Analysis of Factors Affecting the Performance of Insurance Companies in Zimbabwe

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  • Abstract

    The study sought to examine factors affecting the performance of insurance companies in Zimbabwe. We utilized secondary data from twenty short-term insurance companies. The data was for the period from 2010 to 2014. We used factor analysis and multiple linear regression models to determine the factors affecting performance and identifying their impact. Our findings revealed that expense ratio, claims ratio and the size of a company significantly affect insurance companiesí performance negatively. Whilst leverage and liquidity affect performance positively. We recommend that insurance companies should introduce mechanisms that reduces operational costs such as automated systems.

    JEL classification numbers: C3, G1, G22
    Keywords: Performance, Insurance, Regression Analysis, Factor Analysis