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Volume Volume 4 (2024)
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Ahmed, M., Khalil, M., Hassan, W. (2024). Factors Influencing Solvency Margin of the Egyptian Insurance Companies. The Academic Journal of Contemporary Commercial Research, 4(3), 48-67. doi: 10.21608/ajccr.2024.237226.1084
Mohamed Antar Ahmed; Moustafa Ahmed Khalil; Walid Hassan. "Factors Influencing Solvency Margin of the Egyptian Insurance Companies". The Academic Journal of Contemporary Commercial Research, 4, 3, 2024, 48-67. doi: 10.21608/ajccr.2024.237226.1084
Ahmed, M., Khalil, M., Hassan, W. (2024). 'Factors Influencing Solvency Margin of the Egyptian Insurance Companies', The Academic Journal of Contemporary Commercial Research, 4(3), pp. 48-67. doi: 10.21608/ajccr.2024.237226.1084
Ahmed, M., Khalil, M., Hassan, W. Factors Influencing Solvency Margin of the Egyptian Insurance Companies. The Academic Journal of Contemporary Commercial Research, 2024; 4(3): 48-67. doi: 10.21608/ajccr.2024.237226.1084

Factors Influencing Solvency Margin of the Egyptian Insurance Companies

Article 3, Volume 4, Issue 3, September 2024, Page 48-67  XML PDF (413.08 K)
Document Type: Original Article
DOI: 10.21608/ajccr.2024.237226.1084
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Authors
Mohamed Antar Ahmed; Moustafa Ahmed Khalil email ; Walid Hassan
Faculty of Commerce, Cairo University, Giza, Egypt.
Abstract
This study investigates the primary factors affecting the solvency margin of Egyptian insurance companies through analyzing various dynamics that influence this margin. The study period is from 2012 to 2021 for 30 (17 non-life and 13 life) insurance companies. The insurers’ solvency margin ratio has been utilized as a dependent variable. The analysis focused on eight independent variables: Return on Assets (ROA), asset size, premium growth, liquidity ratio, investment ratio, uncollected premium ratio, reinsurance ratio, and shareholders to policyholder equity ratio. The results revealed a significant relationship between the solvency margin ratio, as a dependent variable, and specific explanatory variables, namely: asset size, investment ratio, liquidity, and the ratio of shareholder equity to policyholder equity. The study provides recommendations for Egyptian insurance companies and regulators. It suggests that several insurance companies should increase their capitalization base. Furthermore, the regulator could improve the capitalization requirement and implement a risk-based capital approach.
Keywords
Solvency margin; Capitalization; insurance companies; Egypt; Financial Regulatory Authority (FRA)
Main Subjects
Finance
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