Does financial and business performance affect market share?-a case of non-life insurance industry in Taiwan

This research takes non-life insurance industry in Taiwan as an example, using factor analysis and regression analysis to discuss whether financial and business performance would affect companies' market share. The main results have two parts: First, factor analysis is used to extract four financial and business indices which are named as: whole operation, investment ability, underwriting quality and business (sales) ability, and the factor scores are calculated. The second part is based on the factor scores, using regression analysis to discover which indicators affect companies' market share. From the analysis results, we find out the different effects of indices between companies that under financial-holding system and non-financial-holding system. The whole operation and investment ability of companies under financial-holding system have significant effects on their market share. For non-financial-holding system, the effects are significant on the whole operation and underwriting quality. However, business ability has no significant effects in both systems.