| 2012, the governments of various countries strengthened the construction investment of the infrastructure in a more cost-effective manner for stimulating economic expansion. The premium of global property insurance increased with a higher speed. Asian chief economist Shuohui Huang of Swiss Reinsurance said:"With the unlocking of market of car insurance, the insurance company has more free right of pricing, the market will make consumers benefited if the market unlocks and removes the trend be controlled, facilitate improving the overall efficiency and competitiveness of the trade." The insurance is one of the pillar trades of the financial circles of our country, since our country resuming insurance trade from1980, the insurance has gotten healthy and lasting development. Accompanied by the growth of insurance’s portfolio, the domestic and outside environment that the insurance company faces is changing violently too. Management environment risks are to aggravate. In addition, the catastrophe losses makes insurance bear heavier and heavier, catastrophe risks that insurance companies faced are aggravated, the liquidity risk of the fund is higher and higher.The insurance company is the typical manageability enterprise in debt, the quality of asset-liability management is related to insurance company’s own ability, stability and profitability to resist risk. So the asset-liability management is an important goal of business management, it is an important route of increasing enterprise’s value. At present, official procedures of the asset-liability are mostly traditional, static methods, such as the cash flow matching, cash flow test, immunization etc., they have their own advantages, but also have limitations. Managing the constant increase of the external environment condition risk accompanying by in the insurance company, the traditional, static asset-liability procedures have been difficult to reply the complicated and changeable risks, so the dynamic financial analysis is born.Dynamic Financial Analysis (DFA) mainly investigates insurance company’s insurance risk and investment risk and it sets up quantity model to measure these risks to predict company’s future financial situation and management performance, In order to achieve the goal of helping the company to evade the risk, making profits and increasing enterprise’s value. The research of management of asset-liability of our country still stays on the traditional, static analytical method at present, as to the research of DFA was at the starting stage just now, there are not the detailed discussion and the application in entities. Based on the background described above and the current situation of our country, I will make a discussion of DFA such a new analytical method, and further probe into its practical application in the property insurance companies of our country.At the foundation of general overviewing the whole article and to literature the other articles of the survey in DFA, the paper first talked about the development of asset-liability theory, explained the meaning of asset-liability management and how it has developed. Then the paper analyzed the asset-liability management that exists in property insurance companies of our country currently and found it is very necessary for property insurance companies to set up the system of dynamic financial analysis in asset-liability management. The paper has introduced the main method, frame and structure of DFA and has classified the risks that influencing the asset-liability management of property insurance companies. The paper then constructed models to model the key risk factors the insurance companies have faced and selected Peoples Insurance Company of China (PICC P&C) as a case to analyze the application of DFA in asset-liability management of property insurance companies. At last the paper summarized the groundwork I have taken and look forward to the research in the future. |
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