Evaluation of Profitability Performance of Private Life Insurance Companies

Volume 13 Issue 3 December - February 2019

Research Paper

Evaluation of Profitability Performance of Private Life Insurance Companies

Pragati Tomar*, Swati Oza**

*-**Shri Vaishnav Vidyapeeth Vishwavidyalaya, Indore, Madhya Pradesh, India.

Tomar, P., & Oza, S. (2019). Evaluation of Profitability Performance of Private Life Insurance Companies. i-manager's Journal on Management, 13(3), 35-42. https://doi.org/10.26634/jmgt.13.3.15846

Abstract

In this fundamental development of service in India, insurance service sector is additionally contributing altogether with an extremely normal development rate. Insurance is financial intermediation function through which one can expose to specified contingencies. A business organization is always established with the aim of earning profit from its operations. It is the profit, which act as a backbone for survival of every organization. Without earning profit, growth and stability of a business firm is not possible. As per IMF- Background paper (2003), indicators for measuring financial soundness of insurance Industry is CARAMEL framework. These indicators involve those quantitative factors which significantly affect the financial position of Life Insurance Companies. To analyze the 'earning and profitability', five leading private life Insurance Companies were taken up for the study. These companies were selected on the basis of their gross direct premium of 2017-18. The study is basically based on secondary data. The period of the study was 2013-2014 to 2017- 2018.