Strategies for Long Term Investment by Non-Life Insurance Companies in India
Husain Ashraf S* and Nikita Kumari
Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
- *Corresponding Author:
- Husain Ashraf S
Department of Commerce
Aligarh Muslim University
Aligarh, Uttar Pradesh, India
Tel: 0571 270 0935
E-mail: [email protected]
Received Date: July 19, 2016; Accepted Date: November 02, 2016; Published Date: November 09, 2016
Citation: Husain Ashraf S, Kumari N (2016) Strategies for Long Term Investment by Non-Life Insurance Companies in India. Arabian J Bus Manag Review 6:280.
Copyright: © 2016 Husain Ashraf S, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The aim of this paper is to study major determinants of long-term investment of the non-life insurance industry of India. The annual financial statements of nineteen non-life insurance companies covering a period of 5 years (2011-2015) were sampled and analyzed through panel regression. The findings indicate that, as expected, highly liquid, highly profitable and large size insurance companies have invested more in long term than lowly liquid, lowly profitable and small size companies. The researcher also find that insurance companies with higher risk retention ratio and higher leveraged ratio have invested less in long term than insurance companies with lower risk retention ratio and lower leveraged ratio.