ANALYSİS OF FİNANCİAL PERFORMANCE İN THE NON-LİFE INSURANCE SECTOR WİTH INTEGRATED AHP-SV AND MAIRCA METHODS

Abstract

This study aims to analyze the financial performance of the Turkish non-life insurance sector for the years 2010-2021 using the AHP, SV, Common Weighting and MAIRCA MCDM procedures. For this purpose, firstly, eleven financial evaluation criteria (Equity/Asset Total, Equity/Technical Reserves, Capital Adequacy Ratio, Liquidity Risk, Return on Equity, Return on Assets, Conservation Ratio, Premium/Equity, Premium Receivables/ Equity, Technical Equity Ratio and Composite Ratio) are determined by the AHP procedure based on expert opinion, and the objective weights were determined by the SV procedure. Then, the two weight series are combined within the scope of the common weighting procedure, and the optimal weighting coefficients for each evaluation criterion are determined. Considering the optimal weights determined according to the common weighting approach in the first part of the application, the most important financial evaluation criterion affecting the financial performance of the non-life insurance sector is the return on equity, while the financial evaluation criterion, which has the least effect on the performance of the sector in the same periods, is conservation rate can be stated. In the second stage of the application, the performance of the sector over the years is examined by including the weight coefficients obtained in the previous stage into the MAIRCA procedure. According to the results obtained within the scope of the integrated model applied, it is determined that the year in which the sector is most successful financially is 2019, and the year that is the most unsuccessful is 2012.