Factors affecting the financial performance of insurance companies in Vietnam

Abstract

This study examines the factors affecting the financial performance of insurance companies in Vietnam. Based on the panel data of 32 insurance companies from 2009 to 2022, the authors conduct a test of model selection to determine the model that fits the data sample. The results indicate that total assets, number of operation years, growth of premium revenue have a positive impact on the financial performance of insurance companies. The compensation rate, financial leverage, and inflation rate have a negative impact on the financial performance of insurance companies. Therefore, to enhance the financial performance, insurers should minimize underwriting risk, improve the loss adjustment, and maintain a suitable leverage