The Application Of Dynamic Financial Analysis Of Insurance Company To Asset-Liability Management

Asset-Liability Management (ALM) means that by carefully coordinating its management of assets and liabilities, a financial institution can operate more soundly and profitably. Many insurance companies and insurance supervisions pay attention to this problem. If an insurance company can not manage its assets and liabilities well, it will deduce its profit and solvency, even it will produce operation crisis. After 1980s', a few big insurance companies of USA or Japan could not manage its assets and liabilities well and came to bankruptcy, which shocked the whole insurance industry. After that, many develop countries dedicate to study the method of ALM, including many risks with which the insurance company is faced.To be a new method of ALM, Dynamic Financial Analysis is used in many develop countries widely. As future development trend of Asset-Liabilities-Management Technology of insurance company, Dynamic Financial Analysis (DFA) can not only be competent for comprehensive and holistic forecasting task of insurance company's operation and financial status, but also can help national insurance industry build the most preliminary and probably the most effective financial risk forewarning system.The thesis introduced the evolution of ALM at first and has explained the method of DFA. The thesis covers five parts:The first chapter is an introduction. It presents the importance and value to make a study on this topic.The second chapter introduces the development and application of Asset-Liability Management. The third chapter is the study of DFA methods and modeling. The forth chapter studies the demonstration of Dynamic Financial Analysis. The fifth chapter draws a conclusion and puts forward the issues needed to study further.