The role of development of privatization on financial growth of insurance companies in Iran

The research aimed to investigate reducing the government's role in the management and ownership of insurance companies and shows the impact of it on the profitability and financial growth of this companies in Iran. Goal: The aim is to evaluate the relationship between development of privatization and profitability of insurance companies. Research

Statistical population of this research includes insurance companies established in the years between 2009 and 2014. Ratios of insurance penetration rate, returns of invested capital and capital structure have been used to measure the independent variables. Returns of stockholders' equity and returns of assets have been used to measure profitability as the dependent variable. The hypotheses were tested by using Eviews software. research

To test the hypotesis we represnted the model that based on it we measured the existence and type of the relationship between development of privatization and profitability variables. The results of research shows that the relationship exictence between privatization and its variables with profitability variables.

Decrease the government's role in the management and ownership, implementation of privatization, diversification insurance tools and increased insurance culture in order to expand the activity and profitability of insurance companies.