Discuss Of Valuation Models Of The Insurance Company

In recent years,China's economy has experienced rapid growth,which has now developed into the world's second largest economy,playing an increasingly important role in the global economy.With China's sustained and rapid economic growth,people's living level gradually improve,people intend to have a new understanding of the insurance industry,also rapid growth in demand for insurance."Ten new countries","second generation" compensation policy also greatly promote the development of the insurance industry.According to circ,2012-2014,the total premium compound annual growth rate of 20%,from 2012 to 2014 new business value compound annual growth rate of 12%,in the increasingly competitive society,the insurance industry is more and more active,its investment value evaluation has more and more attention by outside investors and internal management,therefore,assess the value of the insurance industry has been more and more attention.Due to the particularity of the insurance industry,the financial industry,which are different from other industries,because of its long-term business,the general valuation models cannot be applied to the financial industry.This paper adopts the method of combining theoretical analysis and case study,we select H insurance company as a case study,firstly we introduce the research background,research significance,the embedded value model and the theoretical basis of residual income model,olsen respectively two valuation model is applied to the company's value assessment,by analyzing the applicable conditions of two kinds of models,set assumptions,and specific application,the advantages and disadvantages of case conclusion.Then,we will apply the olsen to the A-share insurance companies,through the actual specific shares pushed the growth rate of residual income,and compared with the surplus earnings growth history,found that is achievable.Finally,according to the result of research papers,come to the conclusion,points out that the deficiencies and Suggestions are put forward.Through research and analysis,we may safely draw the olsen residual model is widely used,although the insurance industry itself has particularity,in general,this model is applicable to evaluate the value of the insurance company.Embedded value,by contrast,considers the premium of insurance company pay cycle longer features,considers the future profits,suitable for evaluating the value of the insurance company,but the actual operability is poor.Finally,this article from how to choose a suitable insurance company valuation model and Suggestions for the improvement of information disclosure in the insurance industry to provide a small.