<![CDATA[This study aims to analyze and compare the financial performance of Islamic and conventional insurance companies in Indonesia during the period 2023-2025. The research approach used is comparative quantitative with a sample consisting of 5 Islamic life insurance companies and 5 conventional life insurance companies selected through a purposive sampling technique based on the OJK financial reports. Data were analyzed using descriptive statistics and the Mann-Whitney difference test to test the significance of differences in three key financial ratios: Return on Assets (ROA), Return on Equity (ROE), and Claims Ratio. The results showed two significant performance differences between the two insurance models and one insignificant ratio (ROE). Conventional insurance showed superiority in profitability with an average ROA of 2.7013% and ROE of 2.1473%, which was significantly higher than Islamic insurance which recorded an ROA of 1.2953% and ROE of 2.1027%. However, Sharia insurance excels in providing protection to customers, with an average claims ratio of 51.42%, significantly more efficient than conventional insurance, which is 88%. This finding is consistent with the differences in their underlying business philosophies: the Sharia model adheres to the principles of risk-sharing and fairness, while the conventional model focuses on profit maximization. Despite its lower profitability, Sharia insurance shows greater growth potential. with an average gross premium growth of 15.2% compared to only 8.5% for conventional insurance. The implications of this research suggest the need for a different regulatory approach, product innovation, and communication strategies that emphasize the superiority of Sharia values for stakeholders in the Indonesian insurance industry.]]>
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