Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/312760 
Title (translated): 
Studying the relation between efficiency and profitability in the non-life insurance market
Year of Publication: 
2024
Citation: 
[Journal:] Revista de Métodos Cuantitativos para la Economía y la Empresa [ISSN:] 1886-516X [Volume:] 37 [Year:] 2024 [Pages:] 1-20
Publisher: 
Universidad Pablo de Olavide, Sevilla
Abstract (Translated): 
Previous literature on business performance in the insurance market tends to focus only on efficiency or profitability. However, the relationship between both has yet to be addressed in the Spanish insurance market. This paper examines the relationship between efficiency scores obtained through a two-stage DEA and the values of the classical financial ratios (ROE, ROA, Technical Ratio, Combined Ratio and Loss Ratio). We use a sample of 111 firms from the non-life Spanish insurance market from 2008-2017. We find a positive relationship between efficiency and profitability, which shows decreasing returns, with the positive effect of efficiency on profit ratios being lower for the most efficient companies.
Subjects: 
Efficiency
Profitability
Insurance
Data Envelopment Analysis
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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