Acta academica karviniensia 2022, 22(2):50-62 | DOI: 10.25142/aak.2022.015

THE DEVELOPMENT OF PERFORMANCE OF THE NON-LIFE CZECH INSURANCE MARKET

Lenka Přečková, Iveta Palečková

Slezská univerzita, Obchodně podnikatelská fakulta, Univerzitní nám. 1934/3, 733 40 Karviná

This paper aims to evaluate the profitability and expense ratio of the insurance business conducted by commercial insurance companies operating in the Czech insurance market from 2004 to 2019. The evaluation shall apply computations such as the return on assets (ROA), the ratio of underwriting profit to assets (UPA), and the expense ratio indicator (ER). Calculations shall be performed for non-life insurance. The value of the UPA indicator was stable during the whole period. By contrast, the ROA indicator fluctuated from 2004 to 2011. The ROA indicator stabilized between 2012 and 2017 and then between 2017 and 2019 ROA grew significantly. The value of both indicators (ROA, UPA) decreased from 2015 to 2017 and increased from 2017-2018. The operating expense ratio of insurance operations (ER) showed a growth tendency. When the average values of the selected indicators were compared to the Czech market, it was determined that the insurance companies Allianz, Česká pojišťovna ZDRAVÍ and PNP Paribas Cardif had achieved the best result and were the most efficient.

Keywords: financial stability, insurance activity, investment activity, non-life insurance, profitability.

JEL classification: G22

Received: September 7, 2021; Revised: December 17, 2021; Accepted: November 23, 2022; Published: November 24, 2022  Show citation