Abstract:

Reinsurance involves a company that offers risk management services to insurance companies. This investigation delves into how the performance of underwriting, returns on investments, and risk-based capital (RBC) affect the profits of reinsurance companies in Indonesia under the supervision of the Financial Services Authority (OJK). The research approach employed here relies on regression analysis using panel data, which is processed using Eviews-10. This study encompasses all reinsurance firms in Indonesia, totaling four entities: (1) PT Reasuransi Nasional Indonesia; (2) PT Reasuransi Indonesia Utama; (3) PT Maskapai Reasuransi Indonesia; (4) PT Tugu Reasuransi Indonesia. The research period spans nine years, from 2013 to 2021, providing a dataset of 36 points. Data collection involved extracting information from these companies' annual reports. The study's results suggest that underwriting performance and investment returns have a significant and positive impact on the profitability of reinsurance companies in Indonesia. However, it appears that risk-based capital (RBC) does not significantly affect the profitability of these firms. The recommendation for reinsurance companies is to prioritize improving their underwriting performance and investment returns to enhance profitability.

Keywords:

Reinsurance, investment returns, risk-based capital, underwriting performance, profitability.

How to Cite:

Markonah Markonah and Hedwigis Esti Riwayati. Factors Impacting Profits in Indonesian Reinsurance Companies. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a305/