FACTORS INFLUENCING PROFITABILITY OF INSURANCE COMPANIES IN NEPAL

The main purpose of the study to examine the variables that influencing profitability of Nepalese insurance companies. The study base on 10 insurance companies panel data for 2012/13 to 2017/18 over five year period and leading to 50 observations. The study has been taken Return on Equity (ROE) as profitability measures and as dependent variables. The study also has been employees Expenses Ratio(ER), Financial Leverage (FL) and Size of Company (LnTA) factors as independent variables. The data has been processing with the help of SPSS 25 Software. The results reveals that expenses ratio other independent variables have positive relationship found. The results of study concluded that the financial leverage and size have major determinants of the profitability in Nepalese insurance companies