Determinants of Non-Life Insurers Profitability in Bulgaria for the Period 2006 – 2014
Determinants of Non-Life Insurers Profitability in Bulgaria for the Period 2006 – 2014

Summary/Abstract: The paper analyses the effects of insurance companies specific factors (age of company, size ofcompany, volume of capital, leverage ratio and loss ratio) on profitability proxy by ROA. The sample in this paper includes 23 non-life insurance companies that cover the period of 2006- 2014. Secondary data are obtained from the financial statements (Balance sheet and Profit/Loss account) of insurance companies, financial publications of Bulgarian Financial Supervision. Since our aim was to investigate what are determinants of the profitability issue of the non-life insurance companies, taking into consideration the methodology used in previous studies we select to measure it by the Return on Assets (ROA) ratio. We do a test whether Company Size, Leverage Ratio, Loss Ratio, Capital Ratio Market Share, Age of Company would have a statistically significant effect on the profitability. We used panel data regression model when we looking for the relationship between profitability (ROA) and the chosen factors.

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