Dynamic Financial Analysis for Performance Evaluation in the Property Insurance Industry

Abstract

The main purpose of this research is to analyze property-casualty insurers' financial performance through Dynamic Financial Analysis. Assessing risks and benefits is very important for insurance companies. Dynamic Financial Analysis provides a good analysis method. The research results show that major property-casualty insurers exhibit positive performance in terms of the shareholder's surplus. The Fama-French model is similar to CAPM in explaining portfolio returns. It is recommended that the Fama-French model be used in the DFA model and to use the actual data of the property insurance company for simulation, comparing the results with the simulated result using the CAPM model.