Research On Performance Evaluation Of Chinese Property Insurance Company Based On Dupont Analysis System

With the domestic insurance market increasingly open and competition graduallyincreased, the insurance company pay more and more attention to performanceevaluation. There are many methods to evaluate enterprise performance, and DuPontanalysis system is a kind of method which is widely used.But due to the particularityof Chinese insurance company’s business operation and financial management, DuPontanalysis system can’t be completely applied to insurance companies. So how to carryout DuPont analysis system on the basis of tentative improvement and perfection, andbuild a reasonable performance evaluation index system to evaluate performance of theinsurance company is becoming a hot spot of research in recent years.The paper mainly researches performance evaluation of the property insurancecompany from the perspective of finance. Based on DuPon analysis system,this paperbuilds a set of performance evaluation index system and uses it analyze theperformance of39property insurance companies in China.Firstly, this thesis expounds the basic theory of operating performance evaluationand DuPont analysis system,then chooses the widely used DuPont system as theresearch method.It gives an introduction to the core theory of DuPont analysis system,and then discusses some improvements from the domestic and foreign experts andscholars.Secondly,this thesis introduces the limitations of traditional performanceevaluation index system,builds a performance evaluation system for the propertyinsurance company combining with the characteristics of the insurance industry andthe new accounting standards.This system uses return on equity as the core indicator,utilizes return on underwriting,investment return on assets,investment resturnsmultiplier, return on other margin, the rate of earned premium,total asset turnover andfinancial leverage multiplier as driving factors.Finally, by using the improved DuPont system,this thesis makes the empiricalanalysis based on the performance evaluation index system of performanceevaluation.This analysis mainly includes descriptive statistical analysis, regressionanalysis and the method of concatenated substitution. By analyzing the maximum,minimum and the discrete degree of the factors,descriptive statistical analysisdetermines the stability of datas; Multiple regression analysis is mainly about panel data analysis, which is used to verify the quantitative relationship between the coreindicator and the decomposition indicators; Serial alternative analysis is used todemonstrate how each indicator influences the core index. The conclusion partsummarizes the results of empirical analysis,and then points out the innovations andshortcomings of this thesis.