The Study Of The Profit Pattern Of Ping An Insurance (Group)

Profit Pattern is the value creation activity which company constructs and performs to make profit with the organic integration of the capital,human resources, technology,brand and the exterior resources,making full advantage of the external favorable opportunity and internal strength,avoiding the external threats and its weakness.Profit pattern varies from company to company,but almost all of them boil down to "a core,four basic elements"."a core" is value creation activity,and "four basic elements" consist of profit growth point,the object of profit,profitability measures and profitability barrier.Under the influence of national policy,China's insurance industry maintains a high development speed.But with the full open of insurance industry,foreign insurance company continuously enter into China's market,which will certainly break the market pattern of monopolistic competition.It will be difficult for Ping An Insurance(Group) Company of China,Ltd.(hereinafter referred to as "Ping An"),China's second largest insurance group,to maintain high market share.In addition,because of Impact of the Financial Markets Turbulence in 2008,the main business income of Ping An is increasing steadily.However,due to the failed investment on the stock of Fortis group,its net profit declines sharply.These cause us to ponder the current profit pattern of Ping An.This paper is divided into four parts:Part 1 is the summary of the concepts and elements of profit pattern,and the profit pattern of Insurance;Part 2 focuses on industrial analysis and strategic analysis of China Ping An,and considers opportunities and challenges in its development;Based on "one core,four basic elements" of the profit pattern,,Part 3 analyzes the current profit pattern of China Ping An mainly through financial analysis,and points out that insurance contracts are unprofitable and many problems in its profit pattern,such as potential deficit,profit growth points mainly relying on high-risk investment,products and marketing lacking their own features,no long-lasting advantage in profitability barrier;Based on the above analysis,Section 4 provides suggestions on improving and refining the current profit pattern of Ping An.