The profitability analysis of insurance companies traded on the stock exchange

The main function of insurance companies is to compensate the financial damages that the insured may encounter in the future with the premiums they collect. Insureds are included in the insurance system in order to cover the losses arising from the realization of the risk together. Insureds demand compensation for their damages as soon as the damage occurs. The healthy functioning of the system is possible if the insurance companies fulfill their obligations under the insurance contract. n order to fulfill these obligations, they must have a strong financial structure. In order to increase the competitiveness in the Turkish insurance sector, insurance companies are obliged to keep the profit and loss ratio balanced. Calculation of product premiums and damages which can be caused from that product is very important in terms of profit and loss balance. For this, the policy holder's morality, risk assessment of the place where he lives; if the policy is a vehicle insurance policy, the balance of the intended use of the vehicle and the damage premium of the person; if the person is going to use a health care product, the evaluation of the past illnesses of the insured person is the most important issue of the companies. Another important factor for profitability is market share. The more insurance companies can develop products, the more they can reach people. Companies operating in the insurance market must be financially strong. Therefore, companies need to assess their current financial position, security or risk of their investments. Internal and external analysts make systematic evaluations by applying performance-measuring techniques. In this study, the profitability and performance of insurance companies are analyzed. In this respect, the differences between the balance sheet structure and balance sheet management of insurance companies are examined and how they manage their balance sheets within the framework of income and expense dimensions is explained. In the application part of the study, the profitability and performance analyzes of insurance companies are made through analysis and concrete criteria are determined in terms of profitability and performance based on profitability. Thanks to the findings, evidence is provided about the ways and measures that insurance companies, which are among the important elements of the financial sector, must follow in order to achieve financial success.