| In recent years, the development of China's insurance is rapid, the number of companies and premium incomes are increasing year by year. Since 2006,China has quietly entered the insurance industry's "golden years", as an important part of the life insured, the momentum can't be ignored, not only life insurance company performance issues affect the company's own development, but also affect the overall development of the industry and the quality of people's life.Firstly I introduce the performance evaluation method, the improved clustering and factor analysis which is used in the fourth chapter. It has the advantage of factor analysis and cluster analysis. Considered a single common factor has different variance of contribution, so I deal with the rotated common factor matrix.Secondly I select twenty-five life insurance companies as a sample of the life insurance market and I choose 2006-2009 as the period of the study. I choose four single indicators, which are called the investment rate of returning, net profit margin, reinsurance efficiency, and surrender rate. With the number of the life insurance companies increase year by year, the competition is increasing, but the underwriting profit declines year by year, the profit of investment has become critical to the company. Investment rate of returning, net profit margin are related to company profitability. Preserving the past, because the amount of life insurance policies are not big and other reasons, life insurance companies don't attach importance to the reinsurance, in recent years as people increase the quality of life, large policies have continued to increase, life insurance companies need give more attention to the reinsurance. So, a new indicator is proposed in this chapter to measure the situation of life insurance companies, reinsurance efficiency (reinsurance efficiency= reinsurance recovered compensation rate/ reinsurance rate). As a service, the customer is satisfied with the life insurance product which is related to the company's future development, and to some extent the surrender rate can reflect existing policy holders,the more satisfied ,the lower surrender rate.Thirdly financial indicators has shortcomings, using the balance sheet and income statement data to calculate the apparent shortcomings of traditional financial indicators, which can only reflect the company's past and present operation, not accurately reflect the company's future. Embedded value is based on long years of life insurance products, usually in a few years to decades, and the future premiums can be counted as a stable cash flow presented under the premise. The embedded value can reflect the company's future, which includes the value calculated using the relevant indicators can reflect the company's future. On the basis, several traditional financial indicators have been improved, that are called amended returning on net assets, fixed per-capita profit, revised cost rate premiums earned, revised net profit growth rate, fixed rate surrender, and modified loss ratio.Fourthly I deal life insurance companies with the improved clustering and factor analysis. Seventeen indicators have been selected, such as ROE and so on. Reinsurance efficiency and deposit rate are new indicators, deposit rate=time deposits/ total assets. The selected sample contain all life insurance companies of 2009 in China (except for the new established).We get six common factors after rotation, which were named development capacity, operating status, profitability, scale of strength, ability to spread risk and solvency. For the weighted factor score matrix after clustering, eventually samples are divided into four categories.Finally accounting to the results based on theoretical and empirical analysis, we put forward three suggestions: 1.Expanding the application range of embedded value.2.Becoming an important part of security system. 3. Rational used of insurance funds and broaden the investment channels. |
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