A Study on the Profitability Analysis of Private Life Insurers: A Comparative Study of ICICI Prudential Life and HDFC Life

Profitability is one of the most important objectives of financial management, because one of the major goals of financial management is to maximize the owner` s wealth. Performance in business enterprises has attracted researcher's attention in the literature of corporate finance over the past decades. However, in the context of the insurance sector, not much attention has been given. There are many factors to consider while looking at insurance companies. The paper focuses on the performance of private life insurance companies for the period from 2002to 2014. In order to accomplish the aim, the study determines the impact of liquidity, solvency, leverage, size, age and equity capital on the profitability of life insurers in India. The sample for this study includes top two Indian life insurers and it analyses the data of 13 years from 2001-2002 to 2013-2014. The study uses multiple linear regression model to measure the extent to which these determinants exert impact on life insurers profitability