This study examines the factors affecting survival and failure of non-life insurance firms in the Philippines and classifies the survivability of the firms into strong, moderate, weak and insolvent firms. Selected insolvency indicators are represented by the variables most commonly found and validated in insurance literature. The study used a 10-year panel data of 79 non-life insurance firms in the Philippines from year 2002 to 2011 Annual Statements (AS) reported at the Philippine Insurance Commission (IC). The variables of the study were tested using Levene-Welch-Games-Howell and logit regression. The result shows that firm size, natural catastrophe due to typhoon and flood, ownership, leverage, degree of diversification, growth of equity and paid-up capital compliance are significant factors that affect the survivability of non-life insurance firms in the Philippines. The result of the study serves as a useful tool for the regulator and stakeholders involved in the industry
Article Review Status: Review Completed - Accepted (Pay Publication Fee)
If your article’s review has been completed, please ensure you check your email for feedback.
This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License