The Effect of Financial Leverage on the Profitability of Insurance Companies in Syria.

Abstract

This research aims to show the effect of financial leverage on the profitability of insurance companies represented by the return on assets, and from it the research aims to identify financial leverage and its concept, and to identify the determinants of profitability of insurance companies and their indicators, and analyze the effect of financial leverage on the profitability of insurance companies. Analytical descriptive. Data for insurance companies listed on the Damascus Stock Exchange, with the exception of Al-Aqilah Takaful Insurance Company, was analyzed from 2008 to 2020.

Among the most important results: There is a statistically significant positive effect of the interest coverage rate and the financial leverage ratio on return on assets, and there is a statistically significant negative effect of long-term debts to total assets on return on assets.

Among the most important recommendations: Working on adjusting financial leverage indicators in a manner consistent with the vision of customers and investors in terms of confirming the state of confidence by raising the ability to pay obligations, as well as not exaggerating in hedging.