Investment practices of insurance companies in Cavite / by Lorabell Anne O. Mojica and John Peter C. Pido.

Thesis (Bachelor of Science in Business Management Major in Financial Management) Cavite State University.

Includes bibliographical references.

College of Economics, Management and Development Studies (CEMDS), Department of Management

MOJICA, LORABELL ANNE O. and PIDO, JOHN PETER C. Investment Practices of Insurance Companies in Cavite Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, Indang, Cavite. May 2017. Adviser: Prof. Cecilia T. Cayao.
The study was conducted to determine and analyze the investment practices of the insurance companies in Cavite. Specifically, the study aimed to: describe the business characteristics of the insurance company; determine the reasons of the company for having or not having investments; determine and analyze the most common investment practice the company currently engaged in; determine and evaluate the sources of funds; evaluate the factors to consider in investing; analyze any significant difference on the factors to consider when investing according to the number of investment practiced; analyze any significant difference on the factors to consider when investing according to the type of insurance company; and analyze any significant difference on the number of investments practiced according to the type of insurance company. The study was conducted in the province of Cavite. Total enumeration was used in the study. Frequency and percentage were used to describe the business characteristics of the insurance companies in Cavite. With regard to location, 38 percent of the participants were located in Imus. Fifty-seven percent of the insurance companies are corporations,. Life and non-life categories covered 50 percent of the participants each. Sixty-five percent of the insurance companies had less than 6 employees in their offices. Ninety percent of the insurance companies were serving the private sector. Majority or 47 percent of the insurance companies operated in less than 11 years with an average of 17 years. The researchers found that 55 percent of the participants invested mainly for operational use. Buying equipment was practiced by 62 percent of the participants, making the most common investment practice. Thirty-three percent of the insurance companies used their profits or earnings for investing. The eight factors considered when investing are risk, knowledge in investment, trends of the investment, diversification of investment, third party influence, firm's position, economic condition, and firm's feeling.
Kruskal-Wallis Test results revealed that there was a significant difference on the factors considered when investing according to the number of investment, having a p-value of 0.012. Moreover, the insurance companies with only one investment were significantly affected by the factors. However, Mann-Whitney U test results showed no significant difference on the factors to consider when investing according to the type of insurance companies. The mean rank of life insurance companies was 31.03, while the mean rank of non-life insurance companies was 29.97. The analysis of the close mean ranks of the groups' factors considered when investing indicated that groups had somewhat equal contributions and no variations. The t-test results demonstrated no significant difference between the two types of insurance company on the number of investment practiced. This means that the number of investment did not vary according to the type of insurance company.

Submitted to the University Library September 04, 2017 T-6996