Surveying The Effects of Claim Ratio, Operating Costs, and Retention Ratio on the Profitability of Insurance Companies

In this study, the relationship between the profitability of insurance companies (based on two key profitability indicators, including the return on assets (ROA) and the return on equity (ROE)) and its influencing factors, including claim ratio, operational expenses, and retention ratio, has been studied. Nineteen insurance companies listed on the Tehran Stock Exchange (TSE) and Iran Fara Bourse (IFB) were included in the research sample. A panel regression analysis was conducted using Eviews software to test hypotheses during 2016-2021. As a result of the estimation of the research models, the variable of loss ratio significantly and negatively affects the return on assets and return on equity of insurance companies listed in the Tehran Stock Exchange and Iran Farabourse. Also, operating costs have a negative and significant effect on the rate of return on assets and return on equity as profitability criteria of the sample companies. On the other hand, the holding ratio variable has had a positive and significant effect on the rate of return on assets and return on equity as profitability measures of insurance companies listed in the Tehran Stock Exchange and Iran Farabourse