The relationship of government regulations and loss ratio with the financial performance and market share of nine selected non-life insurance companies in the Philippines from 2007-2011

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions


Ramon V. Del Rosario College of Business


Financial Management Department

Thesis Adviser

Ester Guerzon

Defense Panel Chair

Vivian Y. Eleazar

Defense Panel Member

Mark Marquez
Earl Anthony Carlos T. Malvar


Government regulations are established in order to prevent adverse effects that may happen to those under its jurisdiction. Risk-based capital ratio, margin of solvency and reserves for unearned premiums were created in order to bolster the financial standing of the non-life insurance companies should there be any crisis. Loss ratio on the other hand, represents the internal parameter of the company for the reinforcement of their standing. However, the question of whether or not these regulations become too restrictive and produce the opposite effect is what this study takes into consideration. Premiums earned and net income are used in this study to determine the financial performance of the non-life insurance companies in this study. Moreover, the market share of these companies is also observed as to how these independent variables influence it.

Using panel data regression models, this research is able to conclude that loss ratio and government regulations as represented primarily by risk-based capital ratio, margin of solvency, and reserves for unearned premiums, generally had no significant effect on the financial performance and market share of non-life insurance companies included in this study.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

ii, 134 leaves ; 28 cm.


Insurance companies--Philippines; Financial institutions--Philippines

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