A Comparative Study of Financial Performance of Selected General Insurance Companies

Abstract

Ins urance is generally conside red as a driver of growth and de velopment of any economy. Libe ralization of insurance ind ustry has paved the way for many private ins urance compa nies to start their operations in India. As a result Public sector general insurance companies are facing a tough competition from private players. The insurance sector has unde rgone several changes post liberalization leading to the development of the economy. Many private players took up the opportunity and entered the market giving severe competition to the existing insurance companies. As this industry is risky, it is important to appraise the performance of general insurance companies to de termine their financial standing of public and private sector general insurance companies. In this paper comparative net profit margin ratio and current ratio have been used to know financial soundness of general insurance companies. The data is taken from secondary sources for five years from 2014-15 to 2018-19. The results show that public insurance companies have better management soundness and profitability as compared to private insurance companies.