Research On Equity Price Of The Insurance Company

In recent years, insurance companies have become increasingly frequent trading of shares, appeared fuse trading boom. At equity in the acquisition process of the insurance company to assess the value of the insurance company has played a crucial role, directly determines the success or failure of equity trading and equity trading transaction price. Life insurance companies as a result of business is unique, and theoretical methods used to assess the general enterprise value does not apply to determine the value of the life insurance company. Assess different methods to assess the value of life insurance companies are often quite different. Thus the insurance companies, especially high premium life insurance company equity trading phenomenon occurs frequently.Embedded value life insurance companies (Embedded Value) after including the adjusted net assets (The adjusted net assets) and effective business value (The value of business in force) two factors. Embedded value assessment of the in-force business includes the entire policy period profits, the full account of the characteristics of long-term life insurance business; EV realize they have "uniformity" on the way of profits, it can advance "release" part of the business profits and achieve profit-sharing balance throughout the policy period. So is the life of a company-specific financial reporting tool embedded value and value measurement tool. Applications embedded value life insurance company to assess the value of a unique advantage. In this paper, the embedded value of the insurance company’s valuation method to assess, analyze the phenomenon of the high premium insurance equity is reasonable and make reasonable recommendations.In this paper, the first chapter introduces the key concepts involved in the background and this article. After that, from the perspective of the history of the company valuation presented research valuation and embedded value assessment method. The first section describes the research methods finally applied, and lack of innovation.The second chapter, we propose a high premium insurance company representative equity trading case-Inner Mongolia, the king is to acquire equity in Huatai Insurance programs. After Huatai Insurance, Inner Mongolia, the king is the trading process and described in detail to make bedding for analyzing the reasonableness of the high premium equity transactions.The third chapter, this paper start from a macro point of view of the causes of the insurance company equity transactions that occur frequently in high premium phenomenon that there are policy attention, a strong rebound in the market as a whole, the life insurance company is special for three reasons. After the analysis and comparison of the modern enterprise value assessment methods used to analyze the advantages and disadvantages of the asset value method, market comparison, free cash flow discounted cash flow method and the equity method in the analysis of discounted life insurance companies. Concluded that the embedded value assessment method has a special advantage in assessing the life insurance company. Then the paper describes the theoretical basis of embedded value assessment method and application evaluation process. Carried out the application of embedded assessment valuation method on the Huatai Life Insurance valuation and got results.Finally, according to the results of the previous chapter analyzes the relevant administrative departments, insurance companies, stock market market participants suggested.