Classification of the Financial Reality of the National Insurance Company for the Period (2008-2015) Using Cluster Analysis

Abstract

This study aimed to use the cluster analysis to find the difference in the level of financial indicators of the National Insurance Company for the period (2008-2015) and to determine which financial indicators contributed significantly to this difference in the financial position of the company during the period under study. A cluster analysis method was used, represented by the hierarchical method (single link) and the method of averages (k-means). Where was concluded that the year (2008) had a low financial position for the company, while the year (2015) had an increase in the financial position of the company. And that the most important indicators that were the reason for the decline in the financial situation in the years (2008 and 2009) is the percentage of the company's contribution in other companies, while the rate of expenses and the rate of growth of the life insurance portfolio and the percentage of the company's contribution in other companies' were the most important factors that led to improvement The financial position of the company in the period (2010-2012) compared to previous years.