A study by the Faculty of Business Administration and Finance confirms: Takaful insurance in Syria is a strategic alternative for enhancing financial sustainability amid economic challenges.
The Syrian insurance market has recently faced significant challenges, including exchange rate fluctuations and economic sanctions, which have affected the performance of companies operating in the market and necessitated a thorough financial performance assessment to ensure the sector’s sustainability. With traditional insurance unable to meet growing needs, Takaful insurance has emerged as an ideal solution due to its ability to promote financial solidarity and provide fair and comprehensive insurance solutions that support the rebuilding of the national economy.
In light of the above, a researcher from the Faculty of Business Administration and Finance, Department of Finance and Banking
at the International University for Science and Technology presented a scientific study entitled “A Comparative Analysis of Financial Performance between Takaful and Traditional Insurance Companies in Syria Using the DuPont System during the Period 2010-2023” with the aim of providing a comparative financial analysis of the performance of the United Traditional Insurance Company and Al-Aqeelah Takaful Insurance Company, using the DuPont system and data for the period from 2010 to 2023.
The study reached the following conclusions:
* United Traditional Insurance enjoys efficient profitability management, as its average return on shareholders’ equity and assets exceeded both Al-Aqeelah’s average return and the industry average, while Al-Aqeelah enjoyed had greater cost management capabilities, performing well in terms of profit margin compared to Al-Mutahida and the industry average.
*Al-Aqeelah is more stable than Al-Mutahida due to the lower standard deviation of its financial indicators.
*Despite the importance of mutual insurance, it still constitutes a limited part of the Syrian insurance market, with traditional insurance continuing to dominate the sector.
The results of this study highlight the mutual insurance sector as a promising opportunity for investors, as it provides room for growth and expansion in the Syrian market, thereby enhancing the financial stability of the sector and supporting the process of reconstruction and economic development. These results also provide a scientific basis for evaluating the financial performance of insurance companies and can be used as a model for decision-making in selecting suitable companies for investment.
The study also emphasizes the importance of focusing on studying and planning various investments in assets and managing them effectively, based on advanced scientific principles of investment management, to ensure maximum benefit from the financing structure and maximize financial returns.
It should be noted that this study was published in the Damascus University Journal of Economic Sciences.