| After reopened for more than twenty years, our national life insurance industry has got a rapid development. But because of some historic reasons, the influence of macro economic factors in recent years and the restriction of itself, our national life insurance company has got some problems with capital, which mostly act as inadequate of capital. On the other hand, due to the significance of capital in a company, the regulation of capital is an important part of solvency regulation of insurance company and the regulation of insurance industry. After entering WTO, our life insurance industry will be confronted with more and more challenges from inside and international, which bring more claim to national life insurance company and department of insurance regulatory of our country.The paper is organized in introduction and four chapters. The introduction mainly explains the objective and significance of this research, and the extension and methods of this research. Chapter One has discussed some basic theories of capital system of company, and the category of capital from the aspects of law, finance and economy, on the basic of which put forward that this paper will define and analysis the capital of life insurance company from the aspect of economy. At last, indicate the structure of the capital in life insurance company of our country and the status of the capital in a life insurance company. The word "capital" is root in Latin. The meanings of capital are abundant with the development of economy. Capital in narrow sense means the net assets of a company, it represent the real refund capability of a company; capital in broad sense means owner's capital (stock capital) and the loan or debt capital, that is to say, all the assets that can be used ina long time are the capital of a company. Form different point of view, the understanding of the capital of a company differs from each other. From the aspect of finance, the capital of a company means the owner's capital together with the long-term liability; and the aspect of economy, it means the owner's equity, namely the balance of asset and liability; from the aspect of law, it always refer to the register capital. This paper will define and analysis the capital of life insurance company from the aspect of economy. That is because the owner's equity is a support part of the solvency of a life insurance company, and its reflection on the balance sheet is relatively stable and easy to get.Chapter Two is the analysis of capital adequacy of life insurance company in our country. On the basic of the analysis of capital constitutes and capital adequacy of main national life insurance companies in our country, this chapter makes a conclusion that capital of life insurance company in our country is inadequate, which will bring disadvantageous influence on the solvency of our life insurance company, so it is urgent to expand the capital of our national life insurance company. This chapter also pays some attention to the reasons of capital expansion, the expansion costs and expansion scheme.Chapter Three gives the solution to the problems brought above, that is, expand the capital of our life insurance company. The first part of this chapter is the analysis of internal and external expansion approaches to capital that can be used by life insurance company from the theoretic point of view. The second part of this chapter analyses from the practical point of view. Through the macro analysis of recent national life insurance industry of our country, and the comparative analysis on the net profit and the total asset and owner's equity on Dec.31th 2000 of part of national life insurance companies, it can be concluded that, it's unrealistic to supply the capital with owner's equity of life insurance company in a short time, and it's necessary to consider the external expansionapproaches. The preferable approaches are issuing junior bond, absorbing foreign capital, etc. Certainly, how to choose the approach to the external financing will differ... |
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