Analizando la relación entre la eficiencia y la rentabilidad en el mercado de seguros no vida
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Universidad de Oviedo
info
ISSN: 1886-516X
Year of publication: 2024
Volume: 37
Pages: 1-20
Type: Article
More publications in: Revista de métodos cuantitativos para la economía y la empresa
Abstract
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.
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