Research On The Optimal Portfolio Strategy Of Insurance Listed Companies

The underwriting and investment activities are recognized as the two pillars of the insuranceindustry, the underwriting profit and investment profit constitute the major source of profit for theinsurance companies. Due to increased competition within the insurance industry, the underwritingprofit continued to decline, it depends on the safe and effective investing operations more and morefor long-term stable growth performance of the insurance companies. The use of insurance fundsportfolio is the backbone of the modern insurance industry and the lifeline of the operation anddevelopment of the insurance industry. The virtuous circle from low insurance rate to high investmentrate of return, become the key to the success of the insurance industry. As the financial marketimproving constantly in our country, the insurance market has gradually matured, and the incrementalbusiness space has been limited, as the maturity of insurance investment and the permeability offinancial services improving, the differentiation of investment yield will be gradually reflected,eventually it will become core competitiveness. How to choose the optimal portfolio strategy isrelated to the efficiency of the investment, it has become the key to the business of development andinvestment, especially for the development of the relative success of insurance listed companies, theinvestment business is not only related to the company’s own success or failure, but also affects theinterests of insurers and investors, it is urgent to optimize their portfolio strategy. Based on this, thispaper selected insurance categories listed companies as the research object. It is significant to studythe optimal portfolio strategy, combined with China’s current situation.The purpose of this paper is to find an optimal portfolio strategy in China’s insurance listedcompanies, to provide guidance on selecting the optimal portfolio strategy in China’s insurance listedcompanies and to provide guidance. This article consists of the following components: The first partanalyzed the literature review at home and abroad, leading to the background, purpose, meaning ofthis paper and described the main contents and research methods of this paper. The second partintroduced the relevant concepts and theoretical basis, respectively introducing the concept ofinsurance funds, insurance, investment, portfolio strategy and portfolio theory, the capital assetpricing model, the theory of asset and liability management. The third part analyzed the status quo ofportfolio strategy in insurance listed companies through the official data, summing up the problemsthat exist in the portfolio strategy of the insurance listed companies, including the match ofasset-liability unreasonable, the portfolio strategy management needs to be improved and lowefficiency of portfolio strategy. The fourth part empirically analyzed the optimal portfolio strategy ininsurance listed company, building the optimal portfolio strategy model in the insurance listedcompanies based on Markowitz model, according to the overall revenue target of receiving insurancefunds as well as the nature of the funds, this paper configured assets and selected bank deposits, bonds,stocks and securities investment funds and as the portfolio, this paper constructed the optimal portfolio strategy model to study the actual situation quantitatively, to calculate the effective portfolio,to come to a reasonable asset allocation portfolio and to achieve revenue targets at minimized risk inthe conditions of China’s policy permits and market. This paper selected2007-2011publiclyavailable data of all insurance listed companies, all-round analyzed of the proportion of the actualinvestment strategy and calculated theoretical investment strategy proportion by both horizontal andvertical, forming empirical results of optimal portfolio strategy in the insurance listed company. Thefifth part gave suggestions of optimizing portfolio strategy in insurance listed companies: to improvethe asset liability management, to build portfolio strategy professional management mechanism andincrease value-added portfolio strategy, in order to promote insurance listed companies getting theoptimal portfolio strategy. The sixth part of this paper is the conclusions of this study.