INVESTMENT ACTIVITY OF INSURANCE COMPANIES AND ITS EFFICIENCY

Insurance companies are not only risk-bearing institutions but also important institutional investors that contribute significantly to capital market development and economic growth. Through the accumulation of premiums and the formation of technical reserves, insurers generate substantial financial resources that can be invested in long-term projects. This study examines the investment activity of insurance companies and evaluates its efficiency in the context of developing economies, particularly Uzbekistan. The research analyzes investment portfolios, profitability indicators, liquidity management, and risk diversification strategies. The findings reveal that effective investment management enhances insurers’ financial stability, solvency, and competitiveness, while poor asset allocation increases exposure to market and credit risks. The study proposes practical recommendations aimed at optimizing portfolio structure, strengthening regulatory oversight, and promoting sustainable investment practices.