An Analysis of Factors Affecting the Performance of Insurance Companies in Zimbabwe

Abstract

The study sought to examine factors affecting the performance of insurance<br> companies in Zimbabwe. We utilized secondary data from twenty short-term<br> insurance companies. The data was for the period from 2010 to 2014. We used<br> factor analysis and multiple linear regression models to determine the factors<br> affecting performance and identifying their impact. Our findings revealed that<br> expense ratio, claims ratio and the size of a company significantly affect insurance<br> companies’ performance negatively. Whilst leverage and liquidity affect<br> performance positively. We recommend that insurance companies should<br> introduce mechanisms that reduces operational costs such as automated systems.