The Influence of Net Premium Growth, Claim Ratio and Risk Based Capital on the Financial Performance of Life Insurance Companies
Ono Tarsono(a*),Preztika Ayu Ardheta(b),Rininda Amriyani(c)
Sekolah Tinggi Ilmu Ekonomi Indonesia
Jalan Kayu Jati Raya Nomor 11 A Rawamangun
Jakarta, Indonesia
Abstract
Abstract - The objective of this research was to examine and analyze the influence of Net Premium Growth, Claim Ratio and Risk Based Capital affect the Financial Performance of Life Insurance Companies. The study population was insurance companies listed on the Indonesia Stock Exchange from 2014 to 2018. The sample used in this study were 17 life insurance companies. The statistical tool in this study is Eviews 11. Net Premium Growth and claim ratio do not significantly influence financial performance. Risk Based Capital has a negative effect on the financial performance of life insurance, namely ROA. Simultaneously the three ratios of Net Premium Growth, Claim Ratio, and Risk Based Capital affect the financial performance of life insurance companies that are proxied by ROA. The implication of this research is that life insurance companies are expected to be able to maintain the stability of premium growth every year to be above the normal limit of 23%
Keywords: Net Premium Growth, Risk-Based Claims and Capital Ratios on Financial Performance
Topic: Financial Accounting