Abstract:

Multivariate statistical methods have been used for performance analysis in recent years. Performance of companies in insurance sector, which is one of the important service industry, can be evaluated using multivariate statistical methods. In the present study, the performance of 30 non-life insurance companies operating in Turkey between 2010 and 2014 are analyzed by multivariate statistical methods such as Principal Component Analysis (PCA) and Multidimensional Scaling (MDS). Using the data in “Insurance and Private Pensions Reports” which are published by Republic of Turkey Prime Ministry Undersecretariat of Treasury Insurance Auditing Board at the end of each year, PCA and MDS analyzes are conducted. First PCA is carried out for each year then using the results of PCA, score values are calculated and insurance companies are ranked by these scores. Results of ranking are supported by rank correlation matrix. Performance of non-life insurance companies is investigated on the plane using MDS. Results of PCA, rank correlation and MDS are compared and interpreted.

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