The Effect of Risk Based Capital, Assets, Inflation Rate and Reference Interest Rate on Sustainability Growth Rate Mediated by Financial Performance in General Insurance Companies in Indonesia

The purpose of this study was to examine the effect of risk base capital, assets, inflation rate and interest rate on sustainability growth rate mediated by financial performance in general insurance companies in Indonesia. This study uses the panel data regression method with E-Views 12. The sample used consisted of 318 research samples, which were general insurance companies registered with the OJK during the 2018–2023 period. The findings of this study reveal that Risk-Based Capital (RBC) has a negative effect on sustainability growth rate but has a positive effect on financial performance. Assets, on the other hand, have no direct effect on sustainable growth rate, but have a positive contribution to financial performance. In addition, the inflation rate was found to have a positive influence on sustainable growth rate, but a negative impact on corporate financial performance. Furthermore, the interest rate has a negative influence on sustainable growth rate, although it can improve the financial performance of insurance companies. The results of this study confirm that financial performance is able to mediate and strengthen the relationship between RBC, assets, inflation rate, and interest rate on the sustainability growth rate of insurance companies. This study supports the RBV theory by highlighting the role of RBC, assets, and financial performance in shaping the competitiveness and sustainability of insurance companies. The findings confirm the importance of optimizing internal resources in the face of inflation and interest rates. The limitations of this study in its temporal scope which is confined to the 2018– 2023 period, and its focus solely on general insurance firms, without including life insurance or other business models.