| Summary: | 碩士 === 逢甲大學 === 保險所 === 95 === Based on panel data, this study examines profit sources of property and liability insurance companies in Taiwan by using fixed effect model. The effects of insurance lines run by the insurers and degree of market competition on profit margin are investigated. Operation costs and loss ratio are found to be the major determinants of the insurers’ profit sources. Investment revenues do not play a significant role on total profit. Without taking into account fixed effects, concentration ratio of insurance lines and industry competition exhibit positive effect on profit. However, when the heterogeneity of individual company is concerned, the effects of these two factors vanished. In addition, the variable of scale, in terms of total asset or premium, also plays no role. Alternatively, market share performs a close positive relationship with profit margin. In sum, the key factors affect profit of property and liability insurance companies in Taiwan are insured risk, operation costs and market share. The effects of competition environment, economics of scope, and company scale on profit are insignificant.
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