Management Impact on Insurance Companies

The purpose of the study to investigate the most critical factors that affect the performance of insurance companies. Data collected from the annual reports published by Lahore Stock Exchange Pakistan during 2007-2016. Overall results show that claim ratio is significantly negatively related to return on assets, market-to-book ratio, return on equity and underwriting profit. Management is the backbone of any firm. The performance of a firm will be degraded without management. Management expenses are also significantly negatively impact on assets, return on equity and underwriting profit. The market faces a high level of risk, but with better manage risk will be converted to maximize profit and reduce the chances of losses. Management is as vital as blood for the human body. Without management, no companies whether a nation or multinational, can’t progress.