Research On The Factors Affecting The Profitability Of Life Insurance Companies In China

China's life insurance industry has grown continuously.From 46 life insurance companies in 2008 to 70 in 2017,premium income increased from 733.765 billion yuan to26,039.54 billion yuan,with an average annual growth rate of 187.20 billion yuan.The life insurance company's profitability is not as expected.In 2017,the life insurance company's net profit was 111.99 billion yuan.The average annual growth rate was 11.76 billion yuan in ten years.The asset profit rate showed great volatility.In 2009 and 2012,respectively,it reached10 years.The highest value and the minimum value are 1.61% and 0.4%.It can be seen that the extensive business model based on raising premium income does not bring relative stability and long-term profitability at the same time.The factors affecting the profitability of life insurance companies are complex and diverse.The macro factors mainly include economic situation,regulatory policies,and technological level.The micro factors are mainly concentrated in the company management,financial and product levels,and the influence direction and effect of each factor are not Clearly,it is very necessary to conduct qualitative judgments and quantitative analysis.This paper first defines the connotation,source and evaluation indicators of life insurance company's profitability,and introduces the relevant basic theories supporting this article.Secondly,analyzing the profitability of life insurance companies in China,taking 66 life insurance companies in 2015-2017 as samples,it is found that the net profit scale of life insurance companies has expanded by 1.47 times in three years,and the asset profit rate has decreased from 1.38% to 1.02%.The capacity has shown a trend of decreasing first and then returning to temperature,but large companies and foreign companies have a higher degree of warming.At the same time,according to the proportion of underwriting profits,the life insurance companies in 2017 are divided into two categories: underwriting business and investment business.The results show that there are 21 companies with underwriting business as the mainstay,and the company's investment-based companies have large differences in net profit size.Thirdly,from the qualitative point of view,the micro factorsthat affect the profitability of China's life insurance companies are sorted out,which are divided into five categories: company size and characteristics,company management level,capital utilization level,business structure and human capital level.The direction and effect of capacity;Again,from a quantitative perspective,using the data of life insurance companies in 2008-2016 as a sample,using Stata software to establish an unbalanced panel model for empirical analysis,trying to find the impact of significant influencing factors on the distribution of asset profitability Effect,and grouping regression according to scale,nature,and establishment period.It is found in group regression that the same explanatory variable may be different in different groups.Finally,combined with qualitative and quantitative analysis results,the life insurance company is given.Suggestions for profitability: Companies of different sizes and different natures should formulate appropriate business strategies in accordance with development goals,and do not blindly follow suit.A company must follow the life insurance profit cycle,and the degree of pursuit of impact indicators at different stages should be different.Don't over-purchase short-term profits,increase company value,and earn long-term profits.