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Research Publications (Accounting and Informatics)

Permanent URI for this collectionhttp://ir-dev.dut.ac.za/handle/10321/212

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Subject: search.filters.subject.Macroeconomic

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    Factors affecting the profitability of reinsurance companies in sub-Saharan Africa : evidence from dynamic panel analysis
    (Informa UK Limited, 2022-12-31) Olarewaju, Odunayo Magret; Msomi, Thabiso Sthembiso
    This study, which analysed the profitability of 42 reinsurers in Sub-Saharan Africa from 1991 to 2020, revealed that various factors such as gross domestic product, competition (HHI), premium growth, investment performance, underwriting risk, and operational efficiency affect the profitability in these companies. This study is quantitative and dynamic using system-generalised method of moments to analyse the data. The study discovered that reinsurers should broaden their services to remain highly competitive and boost their premium growth such that their profitability is sustained. Also, there should be a separate department of qualified professionals overseeing the adequate management of risk before sealing ceding agreement with insurers.
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    The relationship between macroeconomic factors and profitability of reinsurance companies in Africa : an application of system GMM-Model
    (PT Keberlanjutan Strategis Indonesia, 2023) Nzuza, Zwelihle Wiseman; Msomi, Thabiso Sthembiso
    Despite the known strengths of the reinsurance companies to generate immense profits, evidence from existing literature indicates that the future of the reinsurance companies needs to be more robust to economic deficiencies leading to underperformance. There are many possible factors behind this. However, this study aimed to determine the relationship between macroeconomic factors and the profitability of African reinsurance companies with a Generalized Method of Moments (GMM) model. The study used 121 listed reinsurance companies from 48 African countries using secondary data from year 2008 to 2019. A 1452 observation panel data set was analyzed using conventional least squares and two-step System GMM estimators. The study revealed that GDP, interest rate, and the exchange rate positively impact profitability. In contrast, the inflation rate and money supply revealed a negative and negligible impact on profitability. The input of this research resides in providing new evidence on the macroeconomic factors influencing the profitability of listed reinsurance companies in Africa.
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    Macroeconomic and firm-specific determinants of financial performance : evidence from non-life insurance companies in Africa
    (Informa UK Limited, 2023-12-31) Msomi, Thabiso Sthembiso
    This study aimed to examine the macroeconomic and firm-specific determinants of financial performance using 121 listed non-life insurance companies from 48 African countries for the period 2008–2019. Panel data of 1452 observations were examined using both ordinary least squares and two-step System Generalised Method of Moments estimators. The findings of this study show that lagged return on assets, equity capital, operational efficiency and leverage, investment capability and gross domestic product are the statistically significant determinants of financial performance in African non-life insurance companies even though equity capital, operational efficiency and leverage are inversely significant. It is concluded that insurance industries, policymakers, government and investors should take into consideration these significant factors in taking decision and improving their performance. Also, it is recommended that the capital structures of the sector should be restructured to maintain a favourable balance in the equity and debt of the companies. Also, mechanisms such as automated systems that can reduce operational cost should be adopted such that financial performance can be enhanced.