ASSIMILATION OF INVESTMENT POTENTIAL OF INSURANCE COMPANIES THROUGH GOVERNMENT SECURITIES

Angela Timus (), Cristina Ungur and Irina Rabosapca ()
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Angela Timus: INCE

ECONOMY AND SOCIOLOGY: Theoretical and Scientifical Journal, 2017, issue 1-2, 124-132

Abstract: Investments in fixed capital and human capital represent a reliable way to the economic development of the Republic of Moldova. The acceleration of investments can be achieved through an active and viable financial market. The stimulation of institutional investors and of the process of securities issuing and trading is a strategic development tool for the country. The purpose of the study is to analyze insurance companies as institutional investors and to present opportunities for investment in state securities. Markowitz and Sharpe’s theories of efficient investment portfolios selection based on profitability and risk formed the theoretical and methodological framework. The research is based on data from the National Commission for Financial Markets, on the reports of Moldova’s Ministry of Finance and on the statistics from National Bank a National Bureau of Statistics. For secondary analysis, data reports from international organization such as OECD and Insurance Europe and International Monetary Fund have been used. The study was conducted by classical methods of the economic and financial analysis. The results of research have shown that government securities are the most profitable of all securities issued on the primary financial market in the Republic of Moldova. In recent years, interest rates at the state securities are extremely attractive, more attractive than returns on investment in other areas. State securities are the safest investment because the guarantor of this investment is government. That is why state securities are a very attractive investment area for insurance companies. The stimulation of the investment activity in the state can be achieved by using the primary market of government securities as an investment tool for capitalization of the investment potential of the insurance market

Keywords: investments; insurance companies; government securities; financial market; public debt. (search for similar items in EconPapers)
JEL-codes: G18 G22 G23 H63 (search for similar items in EconPapers)
Date: 2017
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