engleski

Influence of Investments on Insurance Companies' Profitability

Insurance protection and claim settlement as basic and exclusive function of insurance companies’ has long been considered as the key source of their profitability. Total profitability of insurance companies’ is the function of profitability realized from insurance underwriting and claim settlement, but is also result of their investments and services. Indicators of profitability realized from insurance underwriting in world insurance markets and regression analysis in this paper show that only insurance underwriting business is not profitable. The key factor of still existing total profitability of insurance companies’ turns out to be profit from investments and profit from services with smaller share. This paper points out investments as a key source of insurance companies’ profitability and insurance companies’ as important financial institutions and institutional investors, not only traditional institutions for risk underwriting and claim settlement.

insurance companies’ profitability; investments; asset management

nije evidentirano