The Determinants of Solvency for Insurance Companies Listed on the Palestine Exchange

This study aimed to find the factors that influenced solvency of insurance companies which listed in PEX, so, we use a panel data for seven firms from 2012 to 2019, and test the impact for five independent variables: profitability, liquidity, financial leverage, investment and claims on solvency as a dependent one, and took firm size as a control variable. Accordingly, multi-regression model used and found that profitability and liquidity insignificantly affect solvency, in converse each of financial leverage, investment and claims have a significant positive impact on solvency. Accordingly, we recommend the Palestinian insurance companies to invest in surplus and liquidity, in addition to take a strict policy to accept risks.