Term Paper
World Journal of Social Sciences Vol. 2. No. 7. November 2012 Issue. Pp. 37 - 47
Investment Portfolio of Insurance Companies in Bangladesh: A Study on Selected Insurance Companies of Bangladesh
Quazi Sagota Samina 1
Insurance companies are such financial institutions which stand by us at our disaster moments and try to uphold us by providing a lump sum amount of claim. To accelerate this important role in the economy, insurance companies involve in different investments so that they can earn a good profit. And here comes the importance of the construction of an efficient investment portfolio. Researchers like Oyatoye & Arileserre (2012) have focused to the importance of investment by insurance companies. On the other hand some have identified factors influencing the structure of investment portfolio. The insurance companies in Bangladesh from their inception are investing in different financial assets. This paper analyzes the structure of investment portfolio of different general insurance companies of Bangladesh and tries to focus to the cause effect relationship between the structure of investment portfolio and profitability of insurance companies in Bangladesh. To fulfill the objectives this paper considers cases of 13 general insurance companies operating in Bangladesh. Data has been collected from the annual report of the sample companies and from the Yearbook published by the Bangladesh Insurance Association. The findings show that the general insurance companies mainly concentrate toward Share investment where usually they do the investment through private placement and also they invest in government securities which they usually do as a part of statutory requirement and safety purpose.
1
Keywords: Insurance companies, investment.
1. Introduction
Insurance industry consists of such financial institutions which help us to be protected from a variety of perils. Not only in Bangladesh rather throughout the world, insurance industry has evolved as
Investment Portfolio of Insurance Companies in Bangladesh: A Study on Selected Insurance Companies of Bangladesh
Quazi Sagota Samina 1
Insurance companies are such financial institutions which stand by us at our disaster moments and try to uphold us by providing a lump sum amount of claim. To accelerate this important role in the economy, insurance companies involve in different investments so that they can earn a good profit. And here comes the importance of the construction of an efficient investment portfolio. Researchers like Oyatoye & Arileserre (2012) have focused to the importance of investment by insurance companies. On the other hand some have identified factors influencing the structure of investment portfolio. The insurance companies in Bangladesh from their inception are investing in different financial assets. This paper analyzes the structure of investment portfolio of different general insurance companies of Bangladesh and tries to focus to the cause effect relationship between the structure of investment portfolio and profitability of insurance companies in Bangladesh. To fulfill the objectives this paper considers cases of 13 general insurance companies operating in Bangladesh. Data has been collected from the annual report of the sample companies and from the Yearbook published by the Bangladesh Insurance Association. The findings show that the general insurance companies mainly concentrate toward Share investment where usually they do the investment through private placement and also they invest in government securities which they usually do as a part of statutory requirement and safety purpose.
1
Keywords: Insurance companies, investment.
1. Introduction
Insurance industry consists of such financial institutions which help us to be protected from a variety of perils. Not only in Bangladesh rather throughout the world, insurance industry has evolved as
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