PERFORMANCE OF THE CROATIAN INSURANCE COMPANIES - MULTICRITERIAL APPROACH

Abstract

This paper will perform a multi-criteria analysis of the insurance sector in the Republic of Croatia. The analysis is performed based on five indicators for the eight largest insurance companies in Croatia. The multicriteria business performance is calculated with use of a score, the weighted sum of relative values of indicators. The score is obtained by calculating weights as a solution of a goal programming problem. The goal of a specific insurance company is to increase the value of an indicator in comparison to it’s value a year before. Hence, some insurance companies have more goals that they wish to obtain. The results reveal that the Croatian insurance sector has given the highest priority to return on investment and return on equity for 2011.

Keywords

• Insurance Companies
• Goal Programming
• Multicriteria performance
• Ranking
• Profitability