Research on the influence of loss ratio on the profitability of insurance companies has grown in importance. This study aims to investigate the influence of loss ratio on the profitability of non-life insurance companies and the moderating role of the type of companies. Fifty-two non-life insurance companies in Thailand were selected to collect the financial database for this study. Results from Ordinal Least Square (OLS) regression found significant negative relationships between loss ratio and the profitability of non-life insurance companies related to profitability, return on assets, return on equity, profit margin, and net profit margin. In addition, the type of company influenced its loss ratio and profitability. In terms of organizational implications, our findings would suggest that enhancing underwriting functions and risk management policies to reduce the chances of, and impacts from, future losses or claim payouts will improve a company’s profitability. In addition, balancing lines of insurance business will enhance and improve a company’s profitability as well.
Keywords: Loss Ratio, Profitability, Non-Life Insurance Company
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