A Study on the Profitability Analysis of Private Life Insurers: A Comparative Study of ICICI Prudential Life and HDFC Life

Profitability is one of the most important objectiv es of financial management, because one of the majo r g als of financial management is to maximize the owner` s we alth. Performance in business enterprises has attra c ed researcher’s attention in the literature of corporate finance ov er the past decades. However, in the context of the insurance sector, not much attention has been given. There are many facto rs to consider while looking at insurance companies . The paper focuses on the performance of private life insuranc e ompanies for the period from 2002to 2014. In ord e to accomplish the aim, the study determines the impact of liquidi ty, solvency, leverage, size, age and equity capita l on the profitability of life insurers in India. The sample for this study i ncludes top two Indian life insurers and it analyse the data of 13 years from 2001-2002 to 2013-2014. The study uses multipl e linear regression model to measure the extent to which these determinants exert impact on life insurers profitab ility.