Research On Valuation Methods Of Chinese Insurance Company

As the development of financial globalization and comprehensive management has be gradually liberalized in Chinese financial field, the international and local financial group has shown absolute superiority in business. Local insurance companies are facing severe challenges. In order to enhance competitiveness and the ability of withstanding risks, diversifying business and becoming listed companies is their best choice. In this situation, how to value the insurance company become a hot topic both in theory field and practice field. In this paper, the author synthetically uses standardization analytical method and comparatively analytical method to research the evaluation system of corporation value. The purpose of this paper is to find out the best valuation system for Chinese insurance company considered with the development features and characteristics of Chinese insurance industry.In Chapter one, the paper gives the definition and purpose of valuation clearly based on the research of corporation value evaluation history, then it defines the valuation standards and analyzes several valuation methods.In Chapter two and three, the paper sums up some key points about insurance company value evaluation by analyzing the characteristics of Chinese insurance business and the source of its value. Given the reference from domestic and foreign research, the paper constructs an evaluation system which is not only can be used for valuing Life Insurance Company and Property Insurance Company, but also can be used to value the insurance financial group. It contains three points: the assessor can evaluate the guarantees value by modifying the Embedded Value Method to value the life insurance company and use Relative Valuation Method and Discounted Cash Flow Method to value the property insurance company; he should consider Organizational Structure Value when valuing the insurance group.Finally, this paper gets the conclusions: Due to the special characteristics of Chinese insurance industry, the assessor should pay more attention on the choice of valuation methods; the valuation results may be affected by many factors, so there will be a gap between the appraisal value and market value; and the appraisal value is just a reference value.