Övgücan KARADAĞ ERDEMİR, Hüseyin TATLIDİL

The Use Of The Multivariate Statistical Methods In The Performance Analysis Of Non-Life Insurance Companies

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

Anahtar Kelimeler:

Non-Life Insurance Companies, Financial Performance, Principal Component Analysis, Rank Correlation, Multidimensional Scaling

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