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THE EFFECT OF CAPITAL ADEQUACY, UNDERWRITING, RETENTION, PREMIUM INCOME, AND RISK-BASED APPROACH ON THE FINANCIAL PERFORMANCE OF GENERAL INSURANCE COMPANIES REGISTERED WITH THE FINANCIAL SERVICES AUTHORITY (OJK) DURING 2020–2024 PERIOD

Abstract

This study aims to examine the effect of capital adequacy, underwriting, retention, premium This research evaluates the impact of capital adequacy, underwriting results, retention ratios, premium income, and risk-based capital on the financial performance of OJK-registered general insurance providers between 2020 and 2024. Utilizing a purposive sampling method, 32 out of 72 eligible companies were analyzed via multiple linear regression. The findings demonstrate that while retention ratios exert a positive influence on performance, premium income correlates negatively. Conversely, Capital Adequacy Ratio (CAR), underwriting results, and Risk-Based Capital (RBC) were found to have no significant individual effect. However, when tested collectively, all five variables significantly influence overall financial performance.