Research On The Performance Evaluation Of Listing Insurance Companies Of China Based On Embedded Value

The aim of insurance company lies in creating value for the shareholders and the insured for a long period. Considering the long term of life insurance products and the deferred profit structure, it's unlikely to exectely reflect an insurance company's real value by simply using the traditional finance tools such as insurance premium income.Embedded Value (EV) considers the future profit of the current operation,and weighs the management production in the long run,which is consistent with the long term of the life insurance management.Thus,EV has close connect with the process and result in the companies' creation of value, the establishment and implement of strategies.Firstly,the paper gives a brief introduction to the performance evaluation and EV theory,and demonstrate the applicability of EV in the performance evaluation of insurance enterprise by setting forth some particularities of insurance business.Secondly,drawn up from the actual demand of the listing domestic insurance companies,the paper tried to establish a performance evaluation index system based on EV in the frame of Balanced Score Card(BSC)'s financial aspect.The author selected 7 indices from 3 aspects──profit-making ability,solvency ability and developing ability──on the basis of making clear the key driving factors of performance,and then constructed a performance evaluation model by taking the opinion's of some experts as the basic data to finally determine the target weight with analytic hierarchy process(AHP).Finally,after constructing such a kind of complete index system,the paper took two listing insurance companies of China──China Life Insurance Company, Ltd. and Ping An Insurance (Group) Company of China, Ltd.──as examples to conduct the research,as well as to explain the actual function of this index system useing the actual data as the foundation.Furthermore,the author elaborated its deficiency to expound the further research direction,hoping that the discussion and opinion in this paper would accelerate the futher research of the comprehensive performance evaluation of domestic insurance company.