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Do The Economic Indicators Influence Financial Performance Of Non-Life Insurance Sector In Pakistan?

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  • Ishtiaq Ahmad

    (Faculty of Economics and Business, University of Debrecen, Hungary, Department of Management Sciences, National University of Modern Languages, (NUML)-Islamabad, Pakistan)

Abstract

The role of the non-life insurance sector and links into other sectors is vital for the economy. The primary macroeconomic variables such as real GDP, unemployment, and inflation have been taken into account as explanatory variables to assess the impact on financial performance of non-life insurance (FP-NLI) sector for the period of 2009-2013. The management of non-life insurance firms should consider the macroeconomic environment, real GDP, unemployment, and inflation in addition to firm specific characteristics while managing profitability. A significant positive association has been observed between real GDP and FP-NLI sector. It is also observed that unemployment and inflation have a negative impact on financial performance but statistically significant only in case of unemployment.

Suggested Citation

  • Ishtiaq Ahmad, 2017. "Do The Economic Indicators Influence Financial Performance Of Non-Life Insurance Sector In Pakistan?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 201-209, December.
    • Handle: RePEc:ora:journl:v:1:y:2017:i:2:p:201-209
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Non-life insurance; real GDP; inflation; unemployment; financial performance.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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