JIMFE (Jurnal Ilmiah Manajemen Fakultas Ekonomi) Vol. 6 No. 2, Des 2020, Hal. 135-144 https://journal.unpak.ac.id/index.php/jimfe P-ISSN: 2502-1400, E-ISSN: 2502-5678 135 DETERMINANTS OF PROFITABILITY OF GENERAL INSURANCE COMPANIES IN INDONESIA Faisal Azmi 1 , Tony Irawan 2 , Hendro Sasongko 3 1,2 School of Business, IPB University, Bogor, Indonesia 3 Faculty of Economics, Pakuan University, Bogor, Indonesia Email: azmifaisal94@gmail.com ABSTRACT This paper investigates the determinants of profitability of General Insurance in Indonesia, focusing on firm-specific factors and macroeconomics factors. General Insurance in Indonesia play important role in the economy by providing protection of risk of loss either to organizations and individuals. Based on this background, the aim of this paper is to study and improve the profitability of general insurance through a random effect analysis of 40 general insurance companies since 2013 until 2017. The data obtained is time series data and cross section data so that the data analysis in this study uses Panel Data Regression Analysis. The empirical study shows that firm size, liquidity ratio, equity growth, underwriting result, return on investment, input cost, claim ratio, technical ratio, economic growth rates and Bank Indonesia interest rate are significant factors that affect profitability of general insurance companies. Companies can improve their profitability by planning, monitoring and defining financial strategy based on the relation whether – positive or negative, between significant factors and profitability. Keywords: firm specific, general insurance, insurance, macroeconomics, profitability ARTICLE INFORMATIONS Article histiry: submitted: August 7, 2020; revised: November 17, 2020; accepted: November 28, 2020 JEL Classifiction: E02, M00 How to cited: Azmi, F., et al. (2020). Determinants of Profitability of General Insurance Companies in Indonesia. JIMFE (Jurnal Ilmiah Manajemen Fakultas Ekonomi) , 6(2), 135-144. https://doi.org/10.34203/jimfe.v6i2.2263 Copyright©2020. JIMFE (Jurnal Ilmiah Manajemen Fakultas Ekonomi) Universitas Pakuan INTRODUCTION Insurance industry has an important role for the economy of a country, namely by distributing premiums received from the insured into investment instruments that exist in a country so as to encourage economic development activities. Public savings through the collection and management of insurance premiums is one tool that can be used to increase investment in Indonesia. Haiss and Sümegi (2008), state that the insurance sector has an important role in the financial services industry in almost all developed and developing countries. Without the presence of insurance, individuals and organizations must bear its own risks, maintain reserves that are available in large quantities, or avoid risk at all. The continuity and success of a company, including general insurance companies is important considering the crucial role of general insurance in economic development in Indonesia. One measure that can be used in measuring the continuity and success of a company is through the profitability of the company. Profitability, as stated by Burca and Batrinca (2014), is one of the main financial objectives of insurance company’s management. Decision making and appropriate actions by the company in maintaining profitability, are expected to be