Determinants of Financial Performance of General Insurance Underwriters in Kenya
Mirie Mwangi, Cyrus Iraya

Abstract
Good performance of financial institutions, including general insurance underwriters, is critical due to the important role that these entities play in an economy. Financial performance of general insurance underwriters is expected to be related to various factors. This study sought to establish the relationship between selected factors (growth of premiums; size of insurer; retention ratio; earning assets; investment yield; loss ratio; and expense ratio) and financial performance of general insurance underwriters in Kenya. The study employed multiple linear regression analysis with data for 22, 23 and 25 underwriters for the 2010, 2011 and 2012 years respectively. The results were that financial performance was positively related to earning assets and investment yield. Financial performance was negatively related to loss ratio and expense ratio. Growth of premiums, size of underwriter and retention ratio were not significantly related to financial performance. The results emphasize the need for general insurance firms to focus on the investment operations, underwriting results and efficiency.

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