Impact of Internal and External Factors on the Profitability and Financial Strength of Insurance Groups

ABSTRACT: This paper studies the impact of internal and external factors on the profitability and financial strength of insurance groups across the European Union, focusing on the effect of the European sovereign debt crisis and the Solvency II Directive, which has not been addressed by the literature. The findings reveal that the efficiency of accounts receivable management and the state of the economy have a significant positive impact, whereas the underwriting risk and size have a significant negative impact on profitability and financial strength. Furthermore, long-term interest rates exert a significant positive influence, whereas the purchase of reinsurance, size of the domestic market, market structure, and inflation exert a significant negative influence on profitability. The European sovere

SUBMITTER: Siopi E 

PROVIDER: S-EPMC10230474 | biostudies-literature | 2023 May

REPOSITORIES: biostudies-literature