Economics and Business Review

ISSN 2392-1641
e-ISSN 2450-0097

Poznań University of Economics - Poland

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Volume 1 (15) Number 3 pp. 38-57

Tanja Drvoshanova-Eliskovska

Senior Credit Analyst at Stopanska Banka AD Skopje, Republic of Macedonia

Microeconomic and macroeconomic determinants of the profitability of the insurance sector in Macedonia

Abstract:

The aim of this paper is to investigate the impact of the most representative microeconomic and macroeconomic determinants on the profitability of the insurance sector in Macedonia. The Johansen cointegration technique has been applied to the regression model
with quarterly data for the period of time from 2006 to 2011. The results confirm the theoretical suggestions that the assets have a statistically significant positive impact on ROE, from the micro perspective. The interest rate on denar deposits without a currency clause for enterprises has a statistically significant positive impact on ROE and ROA, whilst the rate on deposits of non-financial entities in terms of GDP has a statistically
significant negative impact on ROE and ROA, from the macro perspective. Recommendations for increasing the profitability of insurance companies: more productive use of their resources, launching innovative products, enlarging their portfolio, promotions to investors for recapitalization. Recommendations from the macro aspect: structural reforms, extension of savings investments in banks, implementation of new
financial instruments, mutual projects amongst the insurance and banking sectors in order that they become complementary.

pub/2015_3_38.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume15/issue3/2015_3_38.pdf
Keywords: microeconomic and macroeconomic determinants, cointegration, profitability, insurance

DOI: 10.18559/ebr.2015.3.4

For citation:

MLA Drvoshanova-Eliskovska, Tanja. "Microeconomic and macroeconomic determinants of the profitability of the insurance sector in Macedonia." Economics and Business Review EBR 15.3 (2015): 38-57. DOI: 10.18559/ebr.2015.3.4
APA T., D. (2015). Microeconomic and macroeconomic determinants of the profitability of the insurance sector in Macedonia. Economics and Business Review EBR 15(3), 38-57 DOI: 10.18559/ebr.2015.3.4
ISO 690 DRVOSHANOVA-ELISKOVSKA, Tanja. Microeconomic and macroeconomic determinants of the profitability of the insurance sector in Macedonia. Economics and Business Review EBR, 2015, 15.3: 38-57. DOI: 10.18559/ebr.2015.3.4