o:4721 ANALYSIS OF FINANCIAL PRINCIPLES OF AN INSURANCE COMPANY’S OPERATIONS en Abstract: One of the most important conditions for an insurance company’s operation is to secure and utilize the necessary monetary and other funds in the required amount in order to settle all liabilities properly -first and foremost to policyholders, then to suppliers, employeesand the state. Insurance companies, as one of the most important links in the chain of social reproduction of financial flows, largely establish their success and development on the financial principles of operations. They rely on a multitude of factors, but are nevertheless based on the number, scope and extent of concluded insurance contracts, i.e. on the insurer's insurance portfolio.In their operations, insurance companies must comply with several indispensablefinancial and economic principles: security, liquidity, productivity, cost-effectiveness and profitability. It is important to emphasize that the implementation of the stated principles in insurance companies is characterized by both the distinctiveness arising from the peculiaritiesof the insurance business itself and the lack of general agreement on the manner of its expression.The subject of the research in this paper will be precisely the principles that characterize the financial side of insurance companies’operations, regardless whether they are engaged in life or non-life insurance operations. Keywords: Business and Financial Analysis, Insurance, Audit, Liquidity 2024-06-07T11:35:20.882Z 44 yes 46 Goran Puzić Fakultet za ekonomiju i inženjerski menadžment u Novom Sadu 0000-0002-5574-0327 2019 application/pdf 268122 https://unilib.phaidrabg.rs/o:4721 no yes 16 70 1552253 2019 Journal of Entrepreneurship and Business Resilience (JEBR) 3 1 79 89 2019