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A COMPARATIVE ANALYSIS OF
ECONOMIC EFFICIENCY OF
CONVENTIONALAND ISLAMIC
INSURANCE INDUSTRY IN PAKISTAN
Pervez Zamurrad Janjua1 and Muhammad Akmal2
Abstract
Introduction
Literature Review
Methodology
Data Envelopment Analysis (DEA)
and Cooper (BCC) with Variable Return to Scale (VRS) version, because
there is variation in the size of firms. Efficiency scores under VRS
make different decision making units (DMUs) of similar size. Therefore,
inefficiency lies only in management, resource allocation and
productivity features (Afza & Asghar, 2010).
Table 1:
Profitability/Efficiency Ratios
a) Return on Assets (ROA) = Net Profit (Loss) / Total Assets * 100
ROA expresses the capacity of earning profit by a firm on its
total assets employed in the business. It is calculated as percentage
of net profit after tax to total assets. It is a good measure of checking
how efficiently firm is utilizing its assets to earn profit.
Solvency/Liquidity Ratios
Data
over the period from 2006 to 2011. Two life- and 3 non-life insurance
compnaies were selected for analysis from each sector.
Not e: Mak ing data acceptable for DEA, u niform +ve values were added i n Net income &
Table 3:
Note: All ratios are in percentage except EPS, SIV in rupee and Debt,
D/E in times
Source: Annual audited financial statements and financial statement
analysis of State Bank of Pakistan
Conclusions
Acknowledgment
References