A Comparison Research On Management Pattern And Financial Performance Of China Life Insurance Company And Anbang Life Insurance Company

Insurance is an important part of modern finance and the basic means of risk management.It's also an important tool to guarantee social stability,maintain sustainable development of enterprises and prevent personal risk.Since the reform and opening up,China's insurance industry has developed rapidly,especially in the late 90s,the premium income of China's Insurance industry grew from 460 million RMB in 1980 to 3095.9 billion RMB in 2016.The use of insurance funds makes a great contribution in promoting social and economic development and guaranteeing people's production and life.According to business scope,China's insurance companies can be classified into property insurance companies and life insurance companies.By date of establishment,life insurance companies are divided into the old generation and new generation insurance companies.The so-called "old seven"companies include:China Life Insurance Co.,Ltd.,Ping An Life Insurance Company of China,China Pacific Insurance(group)Co.,Ltd.,China Taiping Insurance Group Ltd.,China Pacific Insurance Company,Taikang Life Insurance Company,New China Life Insurance Co.,Ltd and PICC Life Insurance Company Limited.The new generation insurance companies include:Huaxia Life Insurance Co.Ltd.,Foresea Life Insurance Co.,Ltd.,Anbang Life Insurance Co.Ltd.and so on.Their operating performance differs a lot.Among those many factors that affect their performance and sustainable development,the operation model is undoubtedly one of the most important one.At present,China's life insurance market has been growing rapidly.As a result,life insurance companies have become one of the main players in the capital market.Therefore,it 's quite necessary to dig into the key factors how life insurance companies keep a sustainable and stable development by analyzing their operation models and financial statements.In this paper,we selected two representative companies,China Life Insurance Company Limited and Anbang Life Insurance Company Limited,as the research objects,trying to clear their development direction by analyzing the differences in business models and financial statements.In fact,China Life is the oldest and largest life insurance company in Chinese market.Meanwhile,Anbang Life is the fastest growing new generation life insurance company in the last three years,in terms of insurance fee scale and profit growth.Their operation models are very different.This paper aims to compare the differences of their business models by analyzing their financial statements,performance and risk.In short,this paper tries to answer the following three questions:1.What are the differences in the operation models of these two companies?2.How do these differences affect the financial statements?3.What are their future sustainable development capabilities?There are 7 chapters in this paper.First of all,it introduces the current situation and future development trend of life insurance industry;and then analyzes the differences between China Life and Anbang Life in terms of operation models,financial statements,business performance,and risk control and so on;based on which the advantages and disadvantages of these two companies are concluded.Finally,the paper puts forward the strategies to deal with the uncertainty of China Life and Anbang Life,and makes a summary of the whole paper.