| Along with the social awareness of the risk and insurance taking root in China, and the development of the insurance industry had been paid more and more attention by The Party Central Committee and the State Council, the government had introduced a series of policies and measures to promote the reform and development of the insurance industry, as a result, the development of the insurance industry is facing a favorable market environment. At present the oligopoly phenomenon in the insurance industry of China will be broken, while plenty of small insurance companies cast covetous eyes on each other. Ping An and China Life still hold the leading position in the insurance industry. Ping An is the most successful domestic integrated financial group currently.At the same time, China life occupies a dominant position in the domestic life insurance market. Reasonable evaluation of Ping An and China life’s financial performance, financial policy and financial strategy will contribute to the rapid development of the insurance industry and provide guidance to the regulators.This paper selects the two leading listed companies in Chinese insurance industry: China Life Insurance Co., Ltd.(hereinafter referred to as China life) and China Ping An Insurance Co., Ltd.(hereinafter referred to as China Ping An). By reading the annual report of the two companies from 2009 to 2014 and comparing the financial data of the two companies, this paper analyses the financial situation of the enterprises. First of all, I evaluate the financial performance of enterprises by the profitability, solvency, operating capacity and development capability of financial indicators. Secondly, through the decomposition analysis of ROE, EVA, self sustainable growth rate and the risk, I find out the key factors affecting these financial indicators. Finally, by positioning China Life Insurance and China Ping An in the financial strategy matrix, I evaluate the financial strategy and financial policy of the two companies. Evaluating of the financial performance, financial policy and financial strategy, this paper provides guidance and advice to Ping An and China Life, and brings valuable enlightenment to the insurance industry and regulatory agencies.Overall, China Life Insurance and Ping An both have good financial situation, but Ping An has strong profitability, potential development is also better than the China life, but due to the more radical financial policies, Ping An takes more risk. |
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