Dynamic financial analysis has become an important tool for modeling operations of insurance companies. This analysis is used, among others, in revealing the main factors determining the financial performance of insurers. This paper identifies the determinants of the performance of general insurance companies in Poland using a panel dataset consisting of a firm specific factors and macroeconomic factors over the period 2006-2013. Six financial performance measures are used to capture different aspects of the insurance operations. These performance measures are related to nine cited business-specific and macroeconomic variables, chosen on the basis of relevant theory and literature. A weight least square (WLS) method and intergroup method for each of six performance models are used to estimate the parameters of these models. The empirical results prove that there is a statistically significant relationship between the following variables with profitability performance being-negatively affected by underwriting activity (represented the net claims ratio variable) and by the net operating expenses variable. It was also shown that the size of a company has positive relationship with its profitability. The study also confirmed a statistically significant and positive relationships between profitability ratio of technical activity and the macroeconomic variable (rate of GDP) as well as positive impact of the motor gross written premiums ratio variable on the profitability ratio of technical activity. (original abstract)
These paper considers a risk model for two dependant classes of insurance business. The dependence between these classes is caused by appearing of some claims at the same time in both classes and additionally the sizes of these claims are dependant. The structure of the dependence between these claims sizes is described by copulas. The main aim of the paper is to investigate the impact of the level of dependence between these claims sizes on the finite-time ruin probability in considered risk model. short numerical analysis.
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