Performance Analysis On Chinese Insurance Companies' Diversification

Since the policy of reforming and opening ,Chinese economyy has develpded rapidly. Diversification has become an international trend in the world.A large number of businesses take steps to the diversification,which has become an important strategy to the enterprises. Foreign and domestic scholars used a variety of methods to study the relationship of diversification of enterprise and organisational performance. There are three conclusions in all :positive correlation ; negative correlation and no significant relationship. Similarly, the insurance companies face the diversification question. But only few scholors studied the relationship between insurance companies'diversification and the performance. This thesis analysed the performance of Chinese insurance companies'diversified bussiness,which was mainly according to the research achievements of performance analysis of the enterprises'diversification.Firstly,this thesis reviewed and appraised the relevant documents about diversification and summeried the basic principle of diversification in enterprises.Then this paper made out the definition of diversification in the insurance companies on the two conditions of mixed operation and divided operation.After that,I studied the diversification of insurance company at present around the world,which came to a conclusion that diversification is the development trend in the insurance companies. Eight insurance companies ,which took diversified operation,were figured out to the testment as the samples,which was sorted out from the year 1999 to 2008.And I used the way of panel data to analyse the performance of diversification,which turned out a positive correlation.At the same time,I analysed the relationship of the diversification and the risk control variable ,coming to the negative related matter, which in the certain degree explained that the diversification decentralized the run risk of insurance companies.At last,this thesis made some suggestions on how to carry out diverse management and improve their performance with lower risk in the insurance companies.