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The Effects of Risk Management on Financial performance of Ethiopian Insurance Companies

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dc.contributor.advisor Abate, Sewale (PhD)
dc.contributor.author Woldemichael, Zinaye
dc.date.accessioned 2018-07-03T08:55:46Z
dc.date.available 2018-07-03T08:55:46Z
dc.date.issued 2017-02
dc.identifier.uri http://localhost:80/xmlui/handle/123456789/5831
dc.description.abstract The study focuses on the investigation of the risk management factors that affect the financial performance of the Ethiopian insurance industry. Managing risks is an important factor which insurers must attend to achieve their financial performance. From this perspective, risk management becomes one of the most important practices to be used in insurers in order to get higher returns. Therefore, this study is attempted to ascertain the relationship between risk management and financial performance of insurers in Ethiopia. In order to achieve this objective, the study used explanatory research design, mixed research approach. Panel data covering eleven-years (2005–2015) are analyzed for nine insurers in Ethiopia. Also in-depth interview is conducted with the NBE officers. The results of the fixed effect regression model revealed that technical reserve and liquidity risks have negative & significant impact on ROA (proxy measure for financial performance) of non-life insurers in Ethiopia, whereas company size and reinsurance risk have positive & significant effect on ROA. The study led to the conclusion that technical reserve, size of a company, reinsurance risks and liquidity risk are the pull factors for the financial performance of insurers. On the basis of these findings, the study recommends that there is greater need for Ethiopia insurers to manage the risks particularly technical reserve risk, reinsurance risk and liquidity risk more integrally. The study also recommends Ethiopian insurers to increase their size by enhancing their assets base. Keywords: risk management, financial performance, insurance companies en_US
dc.language.iso en_US en_US
dc.publisher Addis Ababa University en_US
dc.subject Risk management en_US
dc.subject Financial performance en_US
dc.subject Insurance companies en_US
dc.title The Effects of Risk Management on Financial performance of Ethiopian Insurance Companies en_US
dc.type Thesis en_US

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