The Effect Of Financial Performance On The ERM Of Insurance Companies

In the context of the global financial crisis, the insurance industry enterprises are facing increasingly complex risks, the ability of risk management is increasing. Under the New Basel Capital Accord on risk management in financial industry and China enterprise internal control implementation of the relevant supporting documents promulgated background, the China insurance companies began to establish and improve their own comprehensive risk management system. Under the above background, insurance company how to break through the traditional ideas of risk management, establishes the scientific and perfect system of risk management and industry to respond flexibly specific risk, has attracted a lot of attention in the academic and industrial circles. To help to maintain the normal operation of the insurance companies and the future better development, in addition to the general idea of risk management, it should also be conducted a thorough study on the special problems of the specific risks of the insurance industry and our country enterprise related features and so on. Although many scholars discussed the company’s risk management problems and find some valuable research results, but specifically for the insurance industry risk management research is still relatively small, the actual operation of the insurance company did not provide enough theoretical support, the contents of the incomplete also in theory defect formation.Enterprise carries on the comprehensive risk management is the ultimate goal is to improve company performance and financial performance. Financial performance is one of the most important and the implementation of risk management system can bring real financial performance improvement for the insurance companies? Therefore, based on the enterprise risk management and financial performance on the basis of theoretical research, firstly, in this paper, using of China Ping-An company as a case, to analyze the path of company’s risk management implementation effect on financial performance. China Ping-An through business model innovation and reduce the single business risk, reduce capital liquidity risk through the use of financial instruments, by strengthening the internal control to reduce the risk of group management. In the implementation of the comprehensive risk management, China Ping-An Group’s revenue growth and profitability have shown a more obvious improvement, but the overall operational efficiency of the company still needs to be improved.Furthermore, this paper calculate the comprehensive financial performance indicators by using factor analysis, and control the macroeconomics background and other firm characteristics, examines the relationship between comprehensive risk management of insurance listing firms and the overall financial performance through empirical test. The empirical test shows that there is a positive relation between the implementation of comprehensive risk management and the overall financial performance, which proves the comprehensive risk management of insurance enterprises can improve the overall financial performance to a certain extent; macroeconomic environment, industry environment, company size and company age of insurance enterprise also effects overall financial performance. Compared with the banking industry listed companies, although the overall performance at the present stage of China’s insurance industry relatively significantly lower, but comprehensive risk management of insurance enterprise to overall financial performance relative to bring a more significant positive impact, comprehensive risk management implementation of insurance enterprise brings a significance positive effect.Results of this research is to improve the economic reality of the insurance enterprise on risk control and management ability, and to ensure that the insurance company is able to achieve steady development and sustained profitability in the rapidly changing internal and external environment.