The Analysis Of Profitability About China Non-life Insurance Companies

With the development of Chinese economy, the development of the insurance business is getting more and more rapid. National premium income in2009exceeded one trillion yuan, which is not only twice of the income in2005,but also reached the target of the11th Five-Year Plan " ahead of time. In2010. the CIRC Chairman Wu Dingfu at the Lujiazui Forum pointed that the twelfth five-year period was very important to the insurance development, which may face many important opportunities and challenges. From the current development of the insurance companies, property insurance companies developed very fast. According to the statistics in2011, the property insurance company develops faster than the life insurance company, and become the important force to promote the insurance industry. So, how to improve the profitability of the property insurance company and strengthen the competitiveness has become an important research topic.In this paper, I am trying to find out the best way by studying the whole process of the profitability analysis. And after further research of the factors that affect the profitability of the property insurance company, decision advice for the managers are put forward. The first part of the text proposed the thoughts and framework of the study, and summarized the theoretical progress after analyzing the research work at home and abroad. And all these work could ensure the level of the theoretical research of this paper. The second part describes the basic concepts and the common profitable model, and put more attention to the specificity of property insurance, which laid foundation for the later parts. The third part is the core one, which is to analysis the profitability evaluation system. After introducing the DuPont analysis and its applications, the profitability of the property company is inspected in details. The forth part is to introduce the five basic process of the profitability analysis. Based on the basic statistics, after calculating the evaluation index and influencing factors, the profitability was tested. Then, after analyzing the ability to resist risks, some sensitivity factors were found out and profitability analysis report could be submitted to the management. The fifth part is the common methods to improve the profitability. The sixth part is the empirical analysis, three property companies are picked, and the theories were put into practice. The seventh part is the end, some personal advice and opinions were put forward in the future development of the companies’profitability.The most important point of this article is not only meaningful in theory, but also plays an important role in the practice. Through this analysis, company managers can obtain much important information, fount the operational problems in order to make the policies more feasible. However, in the consideration of my limitations of the knowledge, there are many defects in the analysis process. The analysis process is too simple, the effectiveness of the method has not been measured, the influencing factors are not complete, and the conclusions need to be further verified.