Abstract:

Basicly, insurance companies either collect portfolio before any possible risks, or substantiate the claims incurred. In this paper, effects of capital structure within the insurance companies, which have been active during the years 2005-2011 in Istanbul Stock Exchange, over profitability are discussed. As a sign of of profitability, “Return On Assets” (ROA) is being used. In empirical analyses, multiple regression and correlation methods are used. Due to the analysis, loss ratio, financial leverage ratio and increase in liquid assets effect negatively in profitability of insurance companies, however increase in assets size has a positive effect. As another important finding due to the analysis, between the age and profitability of insurance companies there are negative and statistically significant results detected.

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