The Profitability Of Annuity Insurance Companies

Nowadays we are confronting with aging of population during this Chinese economic development stage. This report discusses the profitability of two different types of operation model of annuity insurance companies under the background of economic globalization and aging of population. There are five annuity insurance companies in China, which can be divided into two categories, one focus on enterprise annuity business, the other combine supplementary pension with personal and group insurance.This report is mainly comprised of five parts. The first chapter is introduction. The second chapter gives an overview of development of annuity insurance companies in China. The third chapter elaborates two different kinds of operation model of annuity insurance companies. The fourth chapter is empirical analysis, comparing the profitability betwwen the two patterns in terms of DuPont Analysis Method and Factor Analysis Method. The results show that annuity insurance companies which operate both supplementary pension with personal and group insurance performed better than those who focus on enterprise annuity business. The last part is the conclusion, suggesting that annuity insurance companies should reduce their costs and find their own feature to cope with the challenges in the future.