The Impact of Financial Risk Management on Financial Performance in Algerian Insurance Companies A Case Study of the National Insurance Company (SAA) During the Period 2016-2022

Abstract

This study investigates the relationship between financial risk management indicators and financial performance at the Société Nationale d'Assurance (SAA) over the period 2016–2022. Focusing on liquidity, underwriting, and capital risks as determinants of return on assets and return on equity, the study employs Pearson correlation analysis on annual financial statement data. The findings confirm statistically significant relationships between all three risk categories and financial performance, with liquidity and underwriting risks exerting adverse effects, while capital adequacy demonstrates a positive influence. The results underscore the strategic importance of balanced risk management in sustaining insurer profitability and solvency within the Algerian insurance market.