Analyzing The Potential Bankruptcy of Sharia Life Insurance Companies In Indonesia

Rosalendro Eddy Nugroho, Parwito

The research purpose to analyze the potential bankruptcy of sharia life insurance companies in Indonesia using Altman Z-Score, Springate and Zmijewski methods. Moreover, it was conducted to find out the differences of those three methods and determine the accurate method among them. The sampling method used is purposive sampling. The population was 24 sharia life insurances industries and 19 that meet the criteria as sample in the period 2013-2017. This research used three approaches of bankruptcy method, called Altman Z-Score, Springate and Zmijewski and next the comparison test. The results of potential bankruptcy showed that the Altman predicted 4% of sharia life insurances went bankrupt, 7% were in a vulnerable category and 89% were in the healthy category. The Springate predicted the companies went bankrupt was 9% and 91% of companies were in the healthy category. However, Zmijewski's predicted that no companies potentially bankruptcy, in other words all companies were in healthy category. The results of comparison test showed that there were significant differences between Altman and Springate method, Altmand and Zmijewski method, and Springate and Zmijewski method. At last, the most accurate method in predicting sharia life insurance companies was Springate method with 9% accuracy.

https://doi.org/10.31871/IJNTR.4.10.36