A Study on Impact of Investment Income and Inflation to Profitability of Insurance Industry inSri LankanComposite Insurance Companies

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dc.contributor.authorSubasinghe, R.D.T.R.
dc.contributor.authorGunaratne, Y.M.C.
dc.date.accessioned2021-02-10T05:15:02Z
dc.date.available2021-02-10T05:15:02Z
dc.date.issued2012
dc.description.abstractInsurance Industry has become one of the booming industries in Sri Lanka since 2003 when the Insurance Board of Sri Lanka was established. Profitability of Insurance Companies basically contain two components namely underwriting profit and Investment Income. Generally, Insurance Companies manage their profits with Investment Income. According to World Insurance Report 2011, insurance companies around the globe are re-focusing on their core operations. Some lost investment income during the crisis; others face changing customer preferences; most must tackle a newly stringent regulatory environment. Hence, the above question is significant when the inflation materially affects the country's economic activities. Further, there is a negative relationship between Investment Income and Inflation (D'Arcy, 1981). Accordingly, inflation can be a significant factor to the Insurance companies' profitability. Methodology According to the objectives of the research it requires secondary data from Composite Insurance companies in Sri Lanka. To extract Composite Insurance companies, researcher used Stratified Sampling Technique and Company Annual Reports for Secondary Data Collection. Data was analyzed according to the research objectives and Net Combined Ratio was used to identify the Insurance Companies which face problem of making profits without Investment Income. Net Combined Ratio (Formula) = Net Claims Incurred + Other Expenses Net Earned Premium To identify the relationships of each Inflation and Investment Income and Investment and Profitability, a simple regression was used and the correlation was measured by using MINITAB Statistical software.en_US
dc.identifier.issn2235-9877
dc.identifier.urihttp://www.erepo.lib.uwu.ac.lk/bitstream/handle/123456789/5918/323-A%20Study%20on%20Impact%20of%20Investment%20Income%20and%20Inflation%20to%20Profitability%20of%20Insurance%20Industry%20in%20Sri%20Lankan%20Composite%20Insurance%20Companies.pdf?sequence=1&isAllowed=y
dc.language.isoenen_US
dc.publisherUva Wellassa University of Sri Lankaen_US
dc.relation.ispartofseries;Research Symposium
dc.subjectEntrepreneurship and Manangmenten_US
dc.subjectBusiness studiesen_US
dc.subjectManagmenten_US
dc.subjectHuman Rights Educationen_US
dc.titleA Study on Impact of Investment Income and Inflation to Profitability of Insurance Industry inSri LankanComposite Insurance Companiesen_US
dc.title.alternativeResearch Symposium 2012en_US
dc.typeOtheren_US
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