International Journal of Global Operations Research
Vol. 5 No. 4 (2024): International Journal of Global Operations Research (IJGOR), November 2024

Bankruptcy Prediction Analysis of Life Insurance Companies Using Altman Z-Score dan Ohlson O-Score Methods

Bayyinah, Ayyinah Nur (Unknown)
Helena, Putri Zahra (Unknown)



Article Info

Publish Date
16 Dec 2024

Abstract

Life insurance is one of the non-bank industries that offers guarantees to overcome risks. In its implementation, life insurance companies need to maintain the survival of the company in the midst of increasing economic competition so that they don't face the threat of bankruptcy. Bankruptcy itself is a legal status of a certain entity or company that cannot pay its debts to creditors and the company's operations cannot be continued due to lack of funds. This study aims to compare the accuracy of the Altman Z-Score and Ohlson O-Score methods in predicting the bankruptcy of life insurance companies in Indonesia, such as PT Axa Financial Indonesia, PT Taspen Life, Asuransi Jiwa Bersama (AJB) Bumiputera 1912, PT Avrist Assurance, and PT Reliance Life Insurance Indonesia. The data used in this study is secondary data in the form of financial statements of life insurance companies taken from the official website of the relevant company. The results showed that the comparison between the two models revealed that the Altman method is better in predicting company bankruptcy. This is because the Altman method has a more detailed classification of conditions compared to the Ohlson method.

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Journal Info

Abbrev

ijgor

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Mathematics

Description

International Journal of Global Operations Research (IJGOR) is published 4 times a year and is the flagship journal of the Indonesian Operational Research Association (IORA). It is the aim of IJGOR to present papers which cover the theory, practice, history or methodology of OR. However, since OR is ...