This study aimed to examine the factors that affect the profitability of insurance companies in Palestine. Balanced panel data was utilized from seven insurance companies operating in Palestine from 2010 to 2017 to estimate a linear model between determinants theoretically determined to affect performance and the profitability of insurance firms. Findings revealed that age and size of the company significantly affect insurance firms’ profitability positively, claims ratio significantly affect insurance company’s profitability negatively, whilst liquidity, leverage, expense ratio and growth of premiums do not have an effect on profitability of insurance firms. This study recommended that insurance companies should increase their investments and they should manage their expenses wisely to positively affect their profitability.

Conference Title

Toward a comprehensive vision for Economic Infrastructure in palestine, Second Scientific Conference of the Faculty of Economics and Social Sciences, An-Najah National University, Nablus, Palestine

Conference Country

Palestine

Conference Date

May 10, 2019 - May 10, 2019

Conference Sponsor

An-Najah National University