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The objective of this study to examine the influence of financial risk and its management on the financial outcomes of insurance corporations in Jordan. The investigation employed a descriptive and analytical methodology. The study applied multiple regression analysis to assess the influence of different investments (financial investments—FI, real-estate investments—REI, and reinsurance-RI) pertaining to insurance companies on their financial performance, using ROE as a proxy for each financial performance. Furthermore, the study calculated the return’s standard deviation of each investment category to detect the influence of irregular risks’ management tools on insurance companies’ financial performance. (21) listed Jordanian companies represented the study sample for 10 years (2011–2020). The study findings indicate that all investments categories variables (FI, OI, and RI) impact insurance companies’ financial performance statistically and significantly. Precisely, the impact of other investments—OI was β = 3.618; Sig. T. = 0.002. Contrariwise, financial investments—FI exhibited the least significant influence in terms of its impact degree, were (β = 0.209; Sig. T. = 0.006). The study’s findings indicate that financial investments exhibit a significant level of deviation in returns compared to other types of investments categories. Consequently, the elevated level of irregular risks associated with these investments resulted in higher profits in comparison with other investments of Jordanian insurance companies. Jordanian insurance organizations’ financial investments unveiled a greater level of unsystematic risk, resulting in greater earnings compared to reinsurance. Regarding other investments’ returns, it shows the lowest risk score in the form of low standard deviation. The study suggests that Jordanian insurance corporations are required to focus toward more diversification and mounting their other investment. Additionally, insurance companies to strategically prepare to confront high level of risks, by implementing a well-defined and efficient approach endorsed by specialized risk management professional.

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Performance and Risk Management—Jordanian Insurance Companies Pattern

  • 会议论文

  • 发表日期：

    2025年

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  • Qais Kilani,
  • Fakhri A. I. Bani Doumi,
  • Thair A. Kaddumi

摘要

The objective of this study to examine the influence of financial risk and its management on the financial outcomes of insurance corporations in Jordan. The investigation employed a descriptive and analytical methodology. The study applied multiple regression analysis to assess the influence of different investments (financial investments—FI, real-estate investments—REI, and reinsurance-RI) pertaining to insurance companies on their financial performance, using ROE as a proxy for each financial performance. Furthermore, the study calculated the return’s standard deviation of each investment category to detect the influence of irregular risks’ management tools on insurance companies’ financial performance. (21) listed Jordanian companies represented the study sample for 10 years (2011–2020). The study findings indicate that all investments categories variables (FI, OI, and RI) impact insurance companies’ financial performance statistically and significantly. Precisely, the impact of other investments—OI was β = 3.618; Sig. T. = 0.002. Contrariwise, financial investments—FI exhibited the least significant influence in terms of its impact degree, were (β = 0.209; Sig. T. = 0.006). The study’s findings indicate that financial investments exhibit a significant level of deviation in returns compared to other types of investments categories. Consequently, the elevated level of irregular risks associated with these investments resulted in higher profits in comparison with other investments of Jordanian insurance companies. Jordanian insurance organizations’ financial investments unveiled a greater level of unsystematic risk, resulting in greater earnings compared to reinsurance. Regarding other investments’ returns, it shows the lowest risk score in the form of low standard deviation. The study suggests that Jordanian insurance corporations are required to focus toward more diversification and mounting their other investment. Additionally, insurance companies to strategically prepare to confront high level of risks, by implementing a well-defined and efficient approach endorsed by specialized risk management professional.