لخّصلي

This study investigated the impact of hedge accounting on the relationship between financial risk management and the performance of insurance companies. Using structural equation modeling, the research found that financial risk management significantly influences performance, while hedge accounting has no noticeable effect. Furthermore, hedge accounting does not moderate the connection between financial risk management and performance. The study emphasizes the importance of effective risk management for insurance companies, as it positively contributes to their financial success. It advises insurance executives to regularly evaluate their risk management strategies, particularly regarding exposure to credit, bankruptcy, and interest rate fluctuations. Additionally, insurance companies should prioritize capital adequacy and operational efficiency commensurate with their size. The report recommends implementing international best practice risk management frameworks, such as enterprise risk management, to meet international requirements and enhance global competitiveness.

The study examined how hedge accounting moderates the relationship between financial
risk management and the performance of insurance companies. The structural equation
modelling approach was adopted using SMART PLS 3.3.3. The results revealed that financial
risk management has a significant effect on performance while hedge accounting has no
significant effect. The results further revealed that hedge accounting does not moderate the
nexus of financial risk management and performance. The study concludes that insurance
businesses should effectively manage their risk because risk management has been shown to
have a favourable impact on financial success. The study also suggests that insurance company
executives evaluate their risk management techniques on a regular basis to see if they are still
applicable in the face of a rapidly changing operating environment. The study further suggests
that insurance company executives review their risks' exposure to edit risk, bankruptcy risk, and
interest rate sensitivity on a regular basis. Insurance businesses must improve their capital
adequacy and operational efficiency in proportion to their size. Finally, the report suggests that
insurance company executive’s implement risk management frameworks such as enterprise risk
management that follow international best practices. As a result, insurance businesses will be
able to meet international requirements and so become more international rivalry.