EVALUATION OF THE FINANCIAL PERFORMANCE OF INSURANCE COMPANIES OPERATING IN THE CAPITAL MARKET DURING 2018-2022: DATA ENVELOPE ANALYSIS APPROACH

Abstract

Regarding the high importance of the insurance industry in the growth and development of countries, it is critically necessary to evaluate the performance of insurance companies. This study analyzes the performance of companies listed in the capital market of Iran using the Data Envelope Analysis (DEA) approach from 2018 to 2022. The sample size of this research comprises 19 insurance companies listed in the capital market of Iran for 5 years in a row. This is a descriptive and applied study. In this paper, the conceptual model of study was extracted then input and output variables (financial solvency (FS), current ratio, cash ratio, return on assets (ROA), and return on equity (ROE)) were determined and investigated based on the written references, experts’ comments, review of studies background and papers of authenticate journals. The required data were analyzed by using the generalized models of the DEA method and GAMS Software. The results of the GAMS output indicate that the insurance companies of Mellat, Parsian, and Arman obtained first to third ranks, respectively, and outperformed all other insurance companies.