Financial Analysis Of Reinsurance Companies In China

With the development of economy and frequent occurrence of catastrophe, reinsurance industry move forward. At the same time, increasing number of scholars began to study issues related with reinsurance, but few of them to analyses the financial situation of reinsurance companies. This article analyses the operating conditions of four international reinsurance companies in China-Munich re, Hannover re, Lloyd’s,SCOR and China reinsurance group, mainly about solvency. growth ability and status of the operations and profitability.In terms of solvency, this paper not only compares five companies liquidity ratio and solvency ratio, also sums up the companies in dealing with the measures solving solvency risk.In terms of growth ability, this paper mainly compares the rising tendency of assets, gross premium and retained profits. It can be reflected whether the reinsurance company takes full advantage of its assets by analyzing the correlation of increasing trends between assets and gross premium. Additionally, the growth rate of gross premium can reflect the market share of the company at the same time. In our study of retained profits, we place emphasis on the investments of some typical firms.The paper then analyzes the operation and profit capability of five companies we select in a comprehensive way with the help of Dupont analysis. Unlike traditional Dupont analysis, we add the factor of cash flows in our model, in order to understand the state of these companies more comprehensively and factually.Ultimately, based on all the analyze mentioned above, the paper puts forward several suggestions of prospective improvement for these reinsurance companies.