Factor affecting the Financial Performance of Takaful Companies in Pakistan

Performance of the company is very substantive for the management. Performance depends on the strength of the organization to get something and imagination management in differ manners to develop a comparative vantage. The efficiency of takaful companies has been widely and extensively analyzed in the last few decades. The major aim of this research is to determine the factors affecting the financial performance of Takaful industry in Pakistan. Thereby render testimonials to further fortify the resiliency of takaful sector within the Pakistan's financial system. Secondary source of data is used which includes financial statements of Takaful companies from Year 2007–2014 from company web sites, Karachi stock exchange and web site of the State bank of Pakistan. Researcher considered whole population in this study because present there are only five takaful companies listed in Pakistan. This study led to the conclusion that financial performance of Takaful companies of Pakistan is significantly influenced by the underwriting risk, liquidity position and age of firms. This research may help to guide management of takaful company in order to focus on key aspects of performance measurement.