PERFORMANCE EVALUATION OF UNDERWRITING IN SHIP FINANCING

Authors : Erhan ASLANOĞLU, Tansel ERKMEN

Pages : 43-74

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Publication Date : 2018-03-01

Article Type : Research Paper

Abstract :The subject of this paper is the performance evaluation of the shipping finance underwriting. Insurance  included in shipping finance is crucial for the financier to obtain as little credit as possible and we  examine how the financing ship is sufficiently protected by the ship finance insurance. The complexity  of ratios reports provides a perception of profitability in terms of percentages. This will be suitable  for comparing companies and default ratios over time within the shipping business. The result of  the model is formulated based on shipping companies in the world. We have analyzed the financial  information based on the end result at companies’ fiscal year of all shipping firms since 2011 till at the  end of 2016, according to their financial statements. Our approach provides confidence intervals for  the default probability of each rating. The probability of default interval can be adjusted by choosing an  appropriate level of confidence.
Keywords : Finance insurance, Risk adjusted value of underwriting, Reserve effects, Underwriting effects, Credit rating, Default