The main objective of this study is to identify and then reinforce the existence of the relationship that exists between the various internal and external factors that have a direct impact on the profitability of the insurance companies in Albania

The main objective of this study is to identify and then reinforce the existence of the relationship that exists between the various internal and external factors that have a direct impact on the profitability of the insurance companies in Albania.
Primary data that will be used for this study will be obtained mainly from the audited financial statements and balance sheets of each insurance company to consider and annual reports published by the FSA (Financial Services Authority). The data will be provided by 10 Insurance Companies taken into consideration.
This study will be built on the basis of 50 observations and 5 independent variables in the data set. We are going to use the multiple regression model from which will be reflected the relationship between the dependent variable ROA, as an indicator of profitability in the regression analysis and 5 independent variables which are: Company leverage, liquidity, company size, volume of capital and underwriting risk.

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