Assessment of the Efficiency of Investment Activity of Insurance Companies in the Republic of Armenia.
DOI:
https://doi.org/10.46991/BYSU.G.2025.16.2.080Keywords:
insurance market, insurance company, insurance activities, insurance premium, investment activities, investment performance indicatorsAbstract
The article analyzes the structure and efficiency of investment activities of non-life insurance companies operating in the insurance market of the Republic of Armenia, based on which it is recorded that investment policy plays a key role in ensuring the financial stability, liquidity and profitability of companies. From the investment indicators of the six insurance companies studied for 2020–2024, including the investment activity ratio, profit sensitivity ratio, ROE and ROA, it becomes obvious that the efficiency of investments varies significantly between different companies and periods, due to management approaches and the market situation. The recorded trends and asymmetries indicate the need to revise asset management strategies. This study is important from the point of view of the development of the insurance sector, since the investment policy of insurance companies significantly affects their financial stability and competitiveness.
Assessment of the Efficiency of Investment Activity of Insurance Companies in the Republic of Armenia
References
1. Arena, M. (2008). Does insurance market activity promote economic growth? A cross-country study for industrialized and developing countries. Journal of Risk and Insurance, 75(4), 921–946.
2. Babbel, D. (2001). Asset/liability management for insurers in the new era: Focus on value. Journal of Risk Finance, 3, 9–17.
3. Chen, X., Yao, T., & Yu, T. (2007). Prudent man or agency problem? On the performance of insurance mutual funds. Journal of Financial Intermediation, 16, 175–203.
4. Eling, M., & Schmeiser, H. (2010). Insurance and the credit crisis: Impact and ten consequences for risk management and supervision. The Geneva Papers on Risk and Insurance - Issues and Practice, 35, 9–34.
5. Heyman, W. H., & Rowland, D. D. (2006). An investment management methodology for publicly held property/casualty insurers. Journal of Applied Corporate Finance, 18(1), 36–53.
6. Kozmenko, O., & Roienko, V. (2013). Evaluation and use of indicators of insurance companies’ investment activities. Investment Management and Financial Innovations, 10(3), 98–105.
7. Kraus, A., & Litzenberger, R. H. (1973). A state‐preference model of optimal financial leverage. Journal of Finance, 28(4), 911–922.
8. Liebenberg, A. P., Carson, J. M., & Hoyt, R. E. (2010). The demand for life insurance policy loans. Journal of Risk and Insurance, 77(3), 651–666.
9. Pottier, S. W. (2007). The determinants of private debt holdings: Evidence from the life insurance industry. Journal of Risk and Insurance, 74(3), 591–612.
10. Thomas, S. (2005). Asset/liability management and enterprise risk management of an insurer [Electronic resource]. Journal of Investment Management, 3(1). Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=680844
11. Zéghal, D., & Maaloul, A. (2010). Analysing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual Capital, 11(1), 39–60.
12. Ingo Armenia. (n.d.). Retrieved July 2025, from https://ingoarmenia.am
13. Liga. (n.d.). Retrieved July 2025, from https://www.liga.am
14. Rego Insurance. (n.d.). Retrieved July 2025, from https://regoinsurance.am
15. Armenia Insurance. (n.d.). Retrieved July 2025, from https://armeniainsurance.am
16. NAIRI. (n.d.). Retrieved July 2025, from https://imnairi.am
17. SIL Insurance. (n.d.). Retrieved July 2025, from https://silinsurance.am
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Norayr Safaryan, Lusine Ghazaryan
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
