What are the factors that determine risk-adjusted returns of Croatian life insurers?

Purpose : When conducting their business, insurers face various risks that are controlled for in order to mitigate them and protect the insured, inter alia . Moreover, being aware of factors determine reward-to-risk ratio is also crucial importance. Thus, aim this research identify potential influence risk-adjusted returns life insurance companies. Methodology The analysis conducted on a sample operated Croatia period from 2016 2020. For purpose, ROA, i.e. Sharpe ratio, used as return measure, while independent variables encompass several firm-oriented industry-specific variables, well depicting level macroeconomic development, stock market, bond market institutional development. Results After dynamic panel analysis, obtained results suggest premium growth rate, asset-based size, net surplus leverage, development significant when determining returns. Conclusion Risk-adjusted determined by which important not only investors but regulators firm managers.