Is There Relationships of Investment, Risk, Efficiency Levels of Financial Performance in Sharia Insurance in Indonesia?

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Deni Pandu Nugraha
Hepi Prayudiawan
Eris Sudariswan

Abstract

The purpose of this study is to analyze the effect of Premium Growth, Investment Return, Leverage, Loss Claim Ratio. Healthy level with the value of Risk-Based Capital, and the Level of Efficiency on the Growth of Return On Assets (ROA) in Sharia Insurance Companies in Indonesia. The sample in this study was 34 Sharia Insurance Companies in Indonesia in 2013-2017. This study uses panel data regression analysis with Eviews version 9. sample data collection technique using purposive sampling. The results of this study indicate that simultaneously the independent variable influences the effect of Premium Growth, Investment Return, Leverage, Loss Claims Ratio, Healthy Level with Risk-Based Capital, and Efficiency Level has a significant effect on Return on Assets (ROA). Partially the results show that Investment Results, Leverage, Loss Claims Ratio, and Efficiency Levels influence Return On Assets (ROA), while Premium Growth and Soundness with Risk-Based Capital values have no effect on Return On Assets (ROA) with a significance level.

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How to Cite
Nugraha, D. P., Prayudiawan, H., & Sudariswan, E. (2021). Is There Relationships of Investment, Risk, Efficiency Levels of Financial Performance in Sharia Insurance in Indonesia?. Enrichment : Journal of Management, 12(1), 166-171. Retrieved from https://enrichment.iocspublisher.org/index.php/enrichment/article/view/181

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[31] I. O. Lasisi, “Effect of Liquidity Risk, Premium Growth on the Performance of Quoted Insurance Firms in Nigeria: A Panel Data Analysis,” Am. Financ. Bank. Rev., 2018.
[32] Z. Muttaqin, A. Fitriyani, T. K. Ridho, and D. P. Nugraha, “ANALISIS GOOD CORPORATE GOVERNANCE, LEVERAGE TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL PEMODERASI,” Tirtayasa Ekon., vol. 14, no. 2, pp. 293–309, 2019.
[33] F. Fiordelisi and O. Ricci, “Corporate culture and CEO turnover,” J. Corp. Financ., 2014.

surance,” Britain Int. Humanit. Soc. Sci. J., 2020.
[2] J. F. Outreville and J. F. Outreville, “Insurance and Economic Development,” Theory Pract. Insur., pp. 15–28, 1998.
[3] D. P. Nugraha, S. Karlina, and H. Ali, “ANALISIS PENGARUH SIMPANAN, TINGKAT BAGI HASIL, DAN NON PERFORMING FINANCING (NPF) TERHADAP PEMBIAYAAN PADA PERBANKAN SYARIAH,” SEGMEN-Jurnal Manaj. dan Bisnis, vol. 15, no. 1, 2019.
[4] L. I. Olalekan, “Effect of Liquidity Risk, Premium Growth on the Performance of Quoted Insurance Firms in Nigeria: A Panel Data Analysis,” Am. Financ. Bank. Rev., vol. 2, no. 1, pp. 42–51, 2018.
[5] D. Mehari, “Firm Specific Factors That Determine Insurance Companies’ Performance in Ethiopia,” Eur. Sci. J., vol. 9, no. 10, pp. 245–255, 2013.
[6] D. R. Ulansari and D. F. Septiarini, “A comparative study of the efficiency of conventional and Sharia insurance in Indonesia,” J. Keuang. dan Perbank., 2020.
[7] L. Supriyadi and D. P. Nugraha, “Analysis of the Effect of Hashtag " Sharia " on Customer Satisfaction with Consumer Category of Sharia Banks and Conventional Banks as Moderating Variables,” Enrich. J. Manag., vol. 11, no. 2, pp. 469–475, 2021.
[8] S. L. Harun, N. A. Wahab, and R. M. Yusof, “Islamic Financial Institutions and Real Estate Cycle : A Review,” vol. 2, no. 3, pp. 16–23, 2018.
[9] A. Suzianti, S. Anjani, D. Syahrini, and A. Pramono, “Service Redesign General Sharia Insurance – Renewal Account,” Int. J. Appl. Res. Manag. Econ., 2020.
[10] M. Doumpos, E. Galariotis, G. Nocera, and C. Zopounidis, “Multiattribute Assessment of the Financial Performance of Non-life Insurance Companies: Empirical Evidence from Europe,” pp. 1–17, 2018.
[11] D. Fatihudin, Jusni, and M. Mochklas, “How measuring financial performance,” Int. J. Civ. Eng. Technol., 2018.
[12] R. Banerjee and S. Majumdar, “Impact of firm specific and macroeconomic factors on financial performance of the UAE insurance sector,” Glob. Bus. Econ. Rev., vol. 20, no. 2, pp. 248–261, 2018.
[13] A. A. Alshammari, S. M. bin Syed Jaafar Alhabshi, and B. Saiti, “The impact of competition on cost efficiency of insurance and takaful sectors: Evidence from GCC markets based on the Stochastic Frontier Analysis,” Res. Int. Bus. Financ., vol. 47, pp. 410–427, 2019.
[14] L. K. Tynkkynen, N. Alexandersen, O. Kaarbøe, A. Anell, J. Lehto, and K. Vrangbӕk, “Development of voluntary private health insurance in Nordic countries – An exploratory study on country-specific contextual factors,” Health Policy (New. York)., vol. 122, no. 5, pp. 485–492, 2018.
[15] C. Kubitza, E. Berdin, and H. Gr, “Rising interest rates and liquidity risk in the life insurance sector ∗,” no. 29, pp. 1–71, 2019.
[16] T. S. Afolabi, “Effect of Claims Payments on Profitability in the Nigerian Insurance Industry,” Adv. Soc. Sci. Res. J., vol. 5, no. 4, pp. 94–101, 2018.
[17] N. Nurlela, S. Sulastri, U. H. AJ, and A. Hanafi, “The Influence Of Investment Decisions And Financing Decisions On Firm Value With Profitability As Intervening Variables(Empirical Study On Companies Listed In Indonesian Sharia Stock Index),” Int. J. Multicult. Multireligious Underst., 2019.
[18] F. Agustin, A. Suangga, and B. Sugiharto, “Pengaruh Premium Growth Ratio, Risk Based Capital Dan Hasil Investasi Terhadap Profitabilitas Perusahaan Asuransi Umum Yang Terdaftar Di Bursa Efek Indonesia Tahun 2010-2014,” Accruals, vol. 2, no. 2, pp. 53–65, 2018.
[19] A. R. Bacinello, P. Millossovich, and A. Chen, The impact of longevity and investment risk on a portfolio of life insurance liabilities, vol. 8, no. 2. Springer Berlin Heidelberg, 2018.
[20] E. Öner Kaya, “The Effects of Firm-Specific Factors on the Profitability of Non-Life Insurance Companies in Turkey,” Int. J. Financ. Stud., vol. 3, no. 4, pp. 510–529, 2015.
[21] S. Marwansyah and A. N. Utami, “ANALISIS HASIL INVESTASI, PENDAPATAN PREMI, DAN BEBAN KLAIM TERHADAP LABA PERUSAHAAN PERASURANSIAN DI INDONESIA,” J. AKUNTANSI, Ekon. dan Manaj. BISNIS, vol. 5, no. 2, p. 213, 2017.
[22] I. Etikan, S. A. Musa, and R. S. Alkassim, “Comparison of Convenience Sampling and Purposive Sampling Comparison of Convenience Sampling and Purposive Sampling,” Am. J. Theor. Appl. Stat., vol. 5, no. January 2016, pp. 1–5, 2016.
[23] A. Bell and K. Jones, “Explaining Fixed Effects: Random Effects Modeling of Time-Series Cross-Sectional and Panel Data,” Polit. Sci. Res. Methods, vol. 3, no. 1, pp. 133–153, 2015.
[24] M. Markonah, A. Sudiro, Surachman, and M. Rahayu, “The Effect of Corporate Governance and Premium Growth on the Performance of Insurance Companies in Indonesia,” Eur. Res. Stud. J., 2019.
[25] M. Adusei, “The finance–growth nexus: Does risk premium matter?,” Int. J. Financ. Econ., 2019.
[26] L. M. Nainggolan and A. Soemitra, “THE CONTRIBUTION INCOME, INVESTMENT RESULTS, AND CLAIM EXPENSES ON SHARIA LIFE INSURANCE INCOME,” J. Ekon. dan Bisnis Islam (Journal Islam. Econ. Business), 2020.
[27] Wahyuddin and Mauliyana, “The Effect of Premium Revenue, Underwriting Results, Investment Results, and Risk Based Capital on Income in Insurance Company (Study On Corporate Insurance - The Listed on the Indonesia Stock Exchange),” Quant. Econ. Manag. Stud., 2021.
[28] A. Purnomo, “Influence of The Ratio of Profit Margin, Financial Leverage Ratio, Current Ratio, Quick Ratio Against The Conditions and Financial Distress,” Indones. J. Business, Account. Manag., 2018.
[29] Í. Pedrosa, “Firms’ leverage ratio and the Financial Instability Hypothesis: An empirical investigation for the US economy (1970–2014),” Cambridge J. Econ., 2019.
[30] M. Karim and A. Komarudin Mutaqin, “Claim Loss Ratio Rate Sebagai Indikator Pengambilan Keputusan Perubahan Harga Premi Asuransi Jiwa,” Syntax Lit. ; J. Ilm. Indones., 2020.
[31] I. O. Lasisi, “Effect of Liquidity Risk, Premium Growth on the Performance of Quoted Insurance Firms in Nigeria: A Panel Data Analysis,” Am. Financ. Bank. Rev., 2018.
[32] Z. Muttaqin, A. Fitriyani, T. K. Ridho, and D. P. Nugraha, “ANALISIS GOOD CORPORATE GOVERNANCE, LEVERAGE TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL PEMODERASI,” Tirtayasa Ekon., vol. 14, no. 2, pp. 293–309, 2019.
[33] F. Fiordelisi and O. Ricci, “Corporate culture and CEO turnover,” J. Corp. Financ., 2014.