Profitability Pattern and Value Creation: A Study of the Life Insurance Industry in India

Abstract

It is due to globalization, deregulation, natural disasters and terrorist attacks that the insurance industry is undergoing a massive change and the metamorphosis has been noteworthy in the last few decades. Value creation through management of profitability is more and more used and useful in modern affairs of insurance companies. Some of the factors which are taken into consideration play a very important role with regard to the performance of the company and affect the shareholders wealth. The study analyzed investment income, claims incurred, market share, firm size & board of directors and endeavors to find out whether they generate any shareholders wealth or not whether it adds to the value of the company or not.

Keywords

• value creation
• shareholders’ wealth
• profitability management