Determining Factors of Sharia General Insurance Profitability: Study on Investment Returns, Premiums and Operating Expenses

Authors

  • Mesi Herawati Department of Economics and Business, Diponegoro University, Indonesia, Indonesia
  • Kholilatul Khusni Department of Economics and Business, Diponegoro University, Indonesia, Indonesia
  • Yeyen Novita Department of Economics and Business, Diponegoro University, Indonesia, Indonesia

DOI:

https://doi.org/10.29240/disclosure.v5i1.12524

Keywords:

Invesment Returns; Premium Income; Operating Expenses; Profitability Sharia General Insurance

Abstract

This research aims to analyze the influence of investment returns, premium income and operating expenses on the profitability of sharia general insurance companies in Indonesia. The research method used is quantitative with multiple regression analysis. The data used in this research is secondary data taken from the financial reports of sharia general insurance companies in Indonesia. Data processing was carried out using the EViews 12 application. The research results show that investment returns have a significant effect on the profitability of sharia general insurance in Indonesia. However, partially, premium income and operating expenses do not have a significant effect on profitability. However, when analyzed simultaneously, the variables of investment returns, premium income and operating expenses together have a significant influence on the profitability of sharia general insurance companies. These findings indicate that sharia insurance companies need to focus on efficient investment management to increase profitability. In addition, although premium income and operating expenses do not have a partially significant effect, good management of these two variables in combination with investment returns can have a significant impact on the company's financial performance.

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References

A.T, B., & Yuliadi I. (2014). Electronic Data Processing (SPSS 15 dan Eviews 7). Danisa Media.

Adams, M., & Buckle, M. (2003). The determinants of corporate financial performance in the Bermuda insurance market. Applied Financial Economics, 13(2), 133–143. https://doi.org/10.1080/09603100210105030

Alhassan, A. L., & Biekpe, N. (2016). Determinants of life insurance consumption in Africa. Research in International Business and Finance, 37(October 2015), 17–27. https://doi.org/10.1016/j.ribaf.2015.10.016

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Andina, W., Hanifuddin, I., & Maria, S. (2021). Jurnal Syar ’ Insurance ( Sijas ). Jurnal Syar’insurance (SIJAS), 7(1), 36–44.

Arintoko, Ahmad, A. A., & Habibah, S. N. (2021). Market Structure and Determinants of Firm Profitability on General Insurance Industry in Indonesia. Studies in Business and Economics, 16(1), 26–41. https://doi.org/10.2478/sbe-2021-0003

Desy desky, Marliah, R. daim harapah. (2022). Pengaruh Biaya Operasional dan Pendapatan Terhadap Kinerja Keuangan pada Perusahaan Jasa Subsektor Perdagangan Besar yang Terdaftar di Bursa Efek Indonesia. Jurnal Ilmiah Multi Disiplin Indonesia, 2(2), 219–231.

Hartaroe, B. P., Mardani, R. M., & Abs, M. K. (2016). Pengaruh Pendapatan Premi, Hasil Underwriting, Beban Operasional Dan Hasil Investasi Terhadap Laba Pada Perusahaan Asuransi Umum Yang Terdaftar Di BEI Periode Tahun 2017-2019. E – Jurnal Riset Manajemen, 82–94.

Kader, H. A., Adams, M., Hardwick, P., & Kwon, W. J. (2014). Cost efficiency and board composition under different takaful insurance business models. International Review of Financial Analysis, 32, 60–70. https://doi.org/10.1016/j.irfa.2013.12.008

Mansur, M., Radam, A., & Yaakub, Y. (2017). Market structure, Firm’s behavior and productivity: Empirical study on general insurance firms in Malaysia. Jurnal Ekonomi Malaysia, 51(1), 133–144. https://doi.org/10.17576/JEM-2017-5101-11

Napitupulu, R. ., T.P, S., Damanik, Harianja, & Sirait. (2021). Penelitian Bisnis, Teknik dan Analisa dengan SPSS-STATA-Eviews (01 ed.). Madenatera.

A.T, B., & Yuliadi I. (2014). Electronic Data Processing (SPSS 15 dan Eviews 7). Danisa Media.

Adams, M., & Buckle, M. (2003). The determinants of corporate financial performance in the Bermuda insurance market. Applied Financial Economics, 13(2), 133–143. https://doi.org/10.1080/09603100210105030

Alhassan, A. L., & Biekpe, N. (2016). Determinants of life insurance consumption in Africa. Research in International Business and Finance, 37(October 2015), 17–27. https://doi.org/10.1016/j.ribaf.2015.10.016

Amin, H. (2019). Pengelolaan Investasi pada Asuransi Syariah: Sebuah Kajian Teoritis. Pustaka Syariah.

Andina, W., Hanifuddin, I., & Maria, S. (2021). Jurnal Syar ’ Insurance ( Sijas ). Jurnal Syar’insurance (SIJAS), 7(1), 36–44.

Arintoko, Ahmad, A. A., & Habibah, S. N. (2021). Market Structure and Determinants of Firm Profitability on General Insurance Industry in Indonesia. Studies in Business and Economics, 16(1), 26–41. https://doi.org/10.2478/sbe-2021-0003

Desy desky, Marliah, R. daim harapah. (2022). Pengaruh Biaya Operasional dan Pendapatan Terhadap Kinerja Keuangan pada Perusahaan Jasa Subsektor Perdagangan Besar yang Terdaftar di Bursa Efek Indonesia. Jurnal Ilmiah Multi Disiplin Indonesia, 2(2), 219–231.

Hartaroe, B. P., Mardani, R. M., & Abs, M. K. (2016). Pengaruh Pendapatan Premi, Hasil Underwriting, Beban Operasional Dan Hasil Investasi Terhadap Laba Pada Perusahaan Asuransi Umum Yang Terdaftar Di BEI Periode Tahun 2017-2019. E – Jurnal Riset Manajemen, 82–94.

Kader, H. A., Adams, M., Hardwick, P., & Kwon, W. J. (2014). Cost efficiency and board composition under different takaful insurance business models. International Review of Financial Analysis, 32, 60–70. https://doi.org/10.1016/j.irfa.2013.12.008

Mansur, M., Radam, A., & Yaakub, Y. (2017). Market structure, Firm’s behavior and productivity: Empirical study on general insurance firms in Malaysia. Jurnal Ekonomi Malaysia, 51(1), 133–144. https://doi.org/10.17576/JEM-2017-5101-11

Napitupulu, R. ., T.P, S., Damanik, Harianja, & Sirait. (2021). Penelitian Bisnis, Teknik dan Analisa dengan SPSS-STATA-Eviews (01 ed.). Madenatera.

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Published

2025-05-06

How to Cite

Herawati, M., Khusni, K., & Novita, Y. (2025). Determining Factors of Sharia General Insurance Profitability: Study on Investment Returns, Premiums and Operating Expenses. Disclosure: Journal of Accounting and Finance, 5(1), 63–78. https://doi.org/10.29240/disclosure.v5i1.12524

Issue

Vol. 5 No. 1 (2025): Mei

Section

Articles

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