Evaluating the financial performance of cooperative insurance companies in the Kingdom of Saudi Arabia using the method of differentiation analysis.

Document Type : Original Article

Authors

1 Mathematics and Insurance Department Faculty of Commerce Cairo University Cairo Egypt

2 mathematic and Insurance Department Higher Institute of Computer Abu Bakr Alexandria Egypt

Abstract

Financial analysis is considered to be the most important methods, which enabling insurance companies managements to measure their ability of fulfilling any future liabilities towards shareholders. In other words, financial analysis helps these companies,to reach the concept of financial solvency. So the researchers use these methods to assesse the KSA insurance companies, and use the discriminant analysis as a proposed model to classify and evaluate these insurance companies, according to their financial performance. The most important conclusions of the study have been represented that cooperative insurance companies in KSA have achieved an acceptable average range of nine financial indicators,while, it diverged from the acceptable range of six indicators. The researchers refer this to the harmful competition experienced by the insurance market in Saudi Arabia. The study recommended the necessity of approving the proposed model by SAMA, Moreover, set up an immediate policy including some of the insolvent insurance companies

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