Title: Impact of firm specific and macroeconomic factors on financial performance of the UAE insurance sector

Authors: Rachna Banerjee; Sudipa Majumdar

Addresses: Department of Business, Higher Colleges of Technology, Baghdad Street, Al Ghusais, P.O. Box 16062, Dubai, UAE ' Department of Business, Middlesex University, Dubai Knowledge Park, P.O. Box 500697, Dubai, UAE

Abstract: This study analyses the impact of firm specific and macroeconomic factors on the profitability of the insurance sector in UAE during the period of 2009-2013. In the recent past, the global insurance sector was impacted by the ripple effect of the financial crisis of 2007-2008. Along the lines of the global trend, although profitability of the UAE, insurance sector witnessed a decline from 2008-2010, the spur in its growth rates (10%) in 2012 and 2013 is impressive compared to the negative growth rate in developed markets. Our research contributes to the existing body of knowledge on financial performance of the insurance sector post the global financial crisis. Our results indicate that within the firm specific factors; company size, growth in gross written premium (GWP), leverage, investment ratio and market share are statistically significant in explaining profitability of the insurance companies. Further, GDP growth has a significant positive influence on profitability.

Keywords: insurance sector; gross domestic product; profitability; financial crisis; United Arab Emirates.

DOI: 10.1504/GBER.2018.090091

Global Business and Economics Review, 2018 Vol.20 No.2, pp.248 - 261

Received: 30 Mar 2016
Accepted: 02 Mar 2017

Published online: 28 Feb 2018 *

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