Comparison of Takaful & Non-Takaful Insurance Companies of Pakistan Under Pre, During & Post Economic Crisis 2008

Abstract

The purpose of this study is to examine the determinants of profitability of Takaful Insurance and Non-Takaful Insurance companies under the tenure of pre, during, and post-financial crisis. The stimulus of this study was the absence of research on this topic. The profitability is measured using Return on Assets whereas macro-economic variables i.e. GDP and Inflation and industry-specific variables i.e. Liquidity, Leverage, and Size are used as independent variables. Panel regression results indicated that macro-economic variables had an insignificant impact on the profitability of the Insurance sector under all three phases, whereas industry-specific variables have a miscellaneous impact on profitability. Takaful insurance companies have better liquidity management than the Non-Takaful insurance companies under post-economic crisis tenure too as they get better returns in terms of profitability. It is concluded that insurance companies’ sectors i.e. Takaful-insurance companies and Non-Takaful Insurance companies should emphasize their internal or industry-specific indicators for their stability. JEL Classification:  H8, F0, L1, M2 How to Cite: AsadUllah, M., Hassan, M., & Siddiqui, Z. A. (2021). Comparison of Takaful and Non-Takaful Insurance Companies of Pakistan: Under Pre, During, and Post Economic Crisis 2008 . Etikonomi , 20 (1), 201 – 212. https://doi.org/10.15408/etk.v20i117325.