| As a basic means of risk management under the condition of market economy, and also as a pivotal part of the financial system and the social security system, the insurance industry plays a significant role in the construction of our socialist market economy.By the end of 2015, there were totally 174 insurance institutions in the domestic insurance market, with an increase of 3 compared with that of the previous year. In 2015, the premium income of the national insurance was 2.02 trillion Yuan, with a year-on-year growth of 17.49%.; While the total assets saw a 21.66% annual increase to 12.36 trillion Yuan, and the net assets saw a 56.41% annual increase to 1.33 trillion Yuan. The return on investment of insurance funds was 6.30%, which reached the highest level in the past five years.Firstly,on the basis of the existing enterprise valuation theory, this paper analyzes the basic methods of the appraisal of enterprise value, and provides a simple literature review of the research status both in domestic and abroad. Secondly, this paper gives a basic introduction of the present situation of the domestic insurance industry development, and also analyzes the value drivers of listed insurance companies based on the specific condition of our country’s insurance industry. Then, this paper explains the theoretical framework of enterprise value assessment and reviews some traditional theories and methods, such as asset-based approach, comparable company method and the discount of cash flow method. And also analyzes the applicability of various theories and valuation models, especially for residual income model, this paper emphatically illustrates the rationality of using this model to value those listed companies in insurance industry. Finally, this paper verifies the applicability of using the residual income model to estimate the insurance company in insurance industry, based on the analysis of their financial data, historical performance and operating status. |
PDF Full Text Request