An Evaluation of Financial Performance with Respect to Productivity and Profitability of Public Sector General Insurance Company Operating in India Using Fem & Rem

Abstract

India ranking 5^th in terms of GDP where it contributes nearly 2.73% into the world insurance during 2024, where general insurance has gained more importance at present reason behind the study is to analyse driving factors which are determining the performance of public sector general insurance company and identifying the valid reasons for decline in its growth. The study has been conducted by considering some of the key dependent and independent factors impacting the performances. A sample of 4 public sector general insurance companies has been considered for the study. The time period of the study was from 2011-12 to 2020-21. Regression analysis static panel data model has been employed to analyse by considering some of the important variables such as Dependent variables & Independent variables, findings of the study states that there is a positive (Significant) relationship between CTOR, YOTI, GR, UER, LR, ID, SM, IR & NPM whereas the study states that there is a negative (Not Significant) relationship between ROA, IR, RI & IP. Finally the research paper shall try to conclude that the FEM model try to suggest that selected variables shall have a significant impact on the profitability of public sector general insurance company.