In the course of the analysis, it is necessary to establish the dependence of the reliability of the insurance company on the effectiveness of its activities. It is advisable to carry out this analysis in order to identify the main factors in the change in the size own funds.
The most common characteristic of financial performance economic activity the insurance company is profit. In this regard, the following tasks are solved during the analysis:
- - determine the adequacy of the results achieved to ensure financial stability organization, competitiveness;
- - to study the impact on profits of various factors;
- - consider the main directions for further improvement of performance.
Kit economic indicators, characterizing the performance of the organization, is determined by the depth of analysis. According to the reporting, you can analyze profit, profitability and turnover.
In the course of profit analysis (economic effect), one can consider profit from the sale of services, balance sheet profit, and net profit.
The business activity of an insurance organization is manifested in the dynamic development of efficient use economic potential. To analyze business activity, turnover indicators are used to assess financial position organizations. Turnover indicators include the turnover of funds or their sources:
Insurance premiums - net / / Average value of funds or their sources for the period.
Business analysis includes the following indicators:
Total asset turnover ratio:
Insurance premium for the period / Average assets.
The overall turnover ratio reflects the rate of turnover of the entire capital of an insurance organization or the efficiency of using all available resources, regardless of their sources. The overall turnover ratio reflects the turnover rate of the entire capital of an insurance company or the efficiency of using all available resources, regardless of their sources;
Working capital turnover:
Insurance premiums - net / / Average working capital; turnover equity:
Insurance premiums - net / / Average equity.
The equity turnover ratio characterizes the rate of equity turnover and activity Money.
The equity turnover ratio is the ratio of the insurance premium for the period to the average equity. The rate of return on equity reflects the activity of using funds, shows the number of turnovers of the company's equity, or how many rubles of revenue fall on the ruble of invested equity. The low value of this indicator indicates the inactivity of a part of own funds;
Business activity indicators characterize the return of the company's economic potential in terms of activity volumes through determining the turnover rate of the company's total capital and equity.
The average value of assets for calculating business activity ratios on the balance sheet is determined by the formula of the arithmetic mean
where An, Ak - respectively, the value of assets at the beginning and end of the analyzed period.
Profitability (unprofitability) of the activities of the insurance organization is analyzed using profitability indicators. Analysis of the profitability of various activities of the insurance company makes it possible to determine their impact on the overall financial result of the insurance and investment activities.
The profitability indicators (economic efficiency) include indicators that characterize various aspects of the organization's activities.
Based on the data of the report on financial results, the dynamics of the profitability of the assets of the organization's insurance activities, as well as the profitability of all capital and equity, are calculated and analyzed. At this stage, the company's performance indicators are analyzed, reflecting the ratio of the result of the activity (profit, loss) to the costs incurred or to the company's turnover. Profitability analysis may include the following indicators:
Net profitability = Net profit / / Insurance premium for the period.
This indicator of profitability is influenced by factors that form the net profit of the reporting period and the size of the insurance premium;
Profitability of activity:
Net profit / Insurance premiums - net.
The indicator shows how much net profit falls on each ruble of contributions collected;
Return on assets:
Net profit / Average annual value of assets.
The level of return on assets reflects the efficiency of resource allocation and management. The indicator serves as an indicator of the organization's ability to use assets;
Return on equity:
Net income / Equity.
With the help of this indicator, the income attributable to equity capital is determined;
Profitability of funds or their sources:
Profit / Average value of funds or their sources for the period;
Profitability of insurance activity:
Technical result from insurance activities / / Insurance premium for the period.
The technical result is defined as the difference between income and expenses related to the type of activity under consideration.
The profitability indicator reflects the effectiveness of insurance activities in relation to turnover. Profitability from insurance activities reflects the share of profit in each ruble of proceeds from the sale of insurance services;
Profitability of insurance activity taking into account investment income:
Technical result from insurance and investment activities / Insurance premium for the period.
This indicator reflects the effectiveness of the turnover of insurance activities, taking into account the result of the company's investment activities. With the effective activity of the insurance organization, the indicator should have a positive value;
Return on assets:
Net income / Average assets.
This indicator reflects the efficiency of using the company's total capital (own and borrowed),
The return on equity reflects the efficiency in relation to the funds invested in the company and capitalized. The return on equity ratio establishes the relationship between the amount of invested own resources and the amount of profit received from their use.
7.1 General characteristics of performance indicators of the insurance organization.
7.2 Return on equity of insurance organizations, or profitability net assets.
7.3 Existing Methods profitability assessments.
7.1 General characteristics of the performance indicators of the insurance organization
An analysis of the effectiveness of an insurance organization shows how efficiently and profitably an insurance organization conducts its activities in all areas and what is the share of balance sheet profit in income.
Profitability of all operations in terms of net profit - shows the level of net profit in income.
The profitability ratio of all operations on net profit in comparison with the profitability ratio of all operations on profit before tax shows the "pressure of the tax press" by the state and local authorities on the income of the insurance organization from all areas of activity.
The profitability of insurance to the cost of insurance - determines the effectiveness of the costs incurred by the insurance company directly for insurance activities.
The dynamics of changes in the values of this coefficient may indicate the need to revise tariff rates in the direction of their increase or decrease - subject to a reduction in the cost of conducting insurance activities.
The profitability of insurance to the costs of doing business - determines the effectiveness of the costs incurred by the insurance company directly to doing business.
The dynamics of changes in the values of the coefficient may indicate the need to revise the amounts of loads to net rates.
Profitability of insurance activity - shows the profitability of the main activity of the insurance organization, "cleared" from other income and results.
The above ratio allows you to determine the effectiveness and plan the receipt of profit (or loss) from insurance activities.
Profitability of investment activity - shows how effectively the insurance organization carries out investment activities.
Profitability of other activities - determines the effectiveness of the activities of the insurance company in areas not related to insurance and investment.
It is of undoubted interest for the purposes of analysis to compare the values of the profitability ratios of insurance, investment and other activities and determine which areas of activity are more profitable for an insurance organization.
The ratios are of great interest to the heads of insurance organizations, banks, other institutional and individual investors, policyholders, economists and financiers, because:
1. Firstly, they allow you to determine the range of information that is important for readers of external financial reporting in terms of decision making;
2. secondly, they provide an opportunity to more deeply assess the financial condition of insurance organizations at any time and track its change in dynamics not only in analytical tables, but also for clarity - in graphical form;
3. thirdly, they reduce the distorting effect on the reporting material of inflation, which is especially important when analyzing in the long term.
7.2 Return on equity of insurance organizations, or return on net assets
The indicator of return on equity of insurance organizations, or return on net assets, is not yet used financial analysts on the Russian market.
Using the indicators of Russian accounting and the mentioned Interfax data, we find that the return on equity on the balance sheet of the 135 largest insurance companies averaged 17.8% in 2001, and the return on paid-in authorized capital was 25%.
If we use the profit after tax indicator, then the figures will be 13.5% and 19.1%.
However, in the practice of foreign insurance companies, it is customary to analyze another indicator - return on capital only on the basis of the results of insurance operations, excluding the investment income received.
In accordance with the data of 2001, the total investment income amounted to 18.4 billion rubles, while the total profit of insurance organizations was 4.3 billion rubles. Accordingly, using the consolidated accounting figures for the 135 largest insurance companies, insurance companies recorded not a profit from insurance operations, but a loss in the amount of 14.1 billion rubles.
7.3 Existing cost-benefit methods
Let us name some general indicators used for profitability analysis and applied regardless of the type and direction of economic activity.
Profitability of production is defined as the ratio of balance sheet profit to the average annual total cost of fixed assets and normalized working capital.
Profitability of products (works, services) - the ratio of balance sheet profit to the cost of production (works, services).
Profitability - an indicator of profit on the capital used, i.e. the ratio of book profit to the value of the authorized capital of the company.
Product line profitability is an analysis of the amount of income (taking into account full costs) that a company receives from the sale of each service line produced, i.e. the ratio of profit from the sale of services of a particular type to the total cost of producing the service.
Return on sales (ROS) is the company's operating profit after tax, divided by revenue (sales volume).
Profitability certain types production - profit related to the cost (expenses) of production.
Profitability of turnover (sales) - profit related to sales proceeds.
Profitability of insurance operations - the ratio of the amount of profit for any type of insurance to annual amount payments for any type of insurance or insurance operations in general.
Profitability of products - the ratio of profit from the sale of products to its full cost.
The profitability of insurance operations is the ratio of the amount of profit to the total amount of insurance payments.
Profitability by type of insurance is determined by comparing the profit received from the corresponding type of insurance with the sum insured or with the amount of premiums received for this type of insurance.
Profitability of insurance revenue - insurance premiums minus insurance premiums.
So, we can state the absence of a generally accepted approach to calculating the profitability index of insurance operations, especially for certain types of insurance services. And this should be the task of business analysts, financial managers in companies, insurance science.
The general methodology for assessing the profitability of production involves attributing profit to production costs, in insurance - to the amount of contributions received. Therefore, in the general case, the profitability indicator reflects the income received on the committed costs, while for insurance it reflects the share of profit in the composition of income. This approach cannot be considered correct for the purposes of calculating the profitability of insurance operations.
Does not reflect the profitability of insurance operations and the indicator calculated as the difference between the receipts of insurance premiums and insurance payments. As an absolute indicator, and not relative, it characterizes only the actual arithmetic result. Moreover, this indicator does not take into account changes in losses and unearned premium, expenses of the insurance organization, reinsurance results and, therefore, the possibility of its use for the purposes of economic analysis in insurance are extremely limited.
Requires a methodological solution to the question of the composition of the costs of the insurance company for the purpose of determining the profitability of insurance operations. The total expenses of an insurance company in accordance with the requirements of the income statement include both the costs of doing business and management expenses, and expenses related to insurance payments, as well as changes in insurance reserves. The use of such a generalized indicator of expenses, although to a greater extent will correspond to generally accepted methodological ones, to a lesser extent reflects the effectiveness of the insurance company's costs for conducting insurance operations. If we take into account that the costs of organizing insurance operations include the costs of doing business, management and other expenses, then attributing profit to the indicator calculated in this way will allow us to more accurately assess the profitability and efficiency of expenses associated with organizing and conducting insurance operations. It is obvious that both indicators of profitability can be used for various purposes of financial analysis.
Profitability can be considered as the necessary indicators of the profitability of insurance organizations:
Capital (ROE), calculated as the ratio of profit to authorized capital or the company's own funds;
Insurance operations for the whole company, in relation to the industry division (life insurance and insurance other than life insurance; or personal insurance, property insurance and liability insurance), calculated as the ratio of profit to costs (expenses for conducting insurance operations, management and other expenses , change in the amount of insurance reserves) of the insurance company as a whole and by insurance industry;
Insurance operations for certain types of insurance, calculated as the ratio of profit to costs (expenses for conducting insurance operations, management and other expenses, changes in the amount of insurance reserves) of an insurance company for certain types of insurance.
Methodologically, to calculate the profitability indicators of each type of insurance, it is necessary to set up a detailed accounting of costs and indicators of income and profits received for the company by type of insurance and by type of business. When analyzing the composition of the costs of an insurance company, two main problems can be seen: the distribution of general administrative, management and other costs, such as the maintenance of management, the reinsurance department, IT, the personnel department and other “general” divisions, between various types insurance, and / or specific insurance services and the correct assessment of reserves and their changes.
In the absence of such accounting and analysis, it is practically impossible to make a real assessment of the profitability of the type of insurance.
Test questions:
1. Give a general description of the performance indicators of the insurance organization.
2. What are the relative rates of return on capital?
3. What is the system of indicators used to analyze the profitability of insurance activities in general and by type of insurance?
1. Orlanyuk-Malitskaya, L.A. Solvency of an insurance organization / L.A. Orlanyuk-Malitskaya. - M.: ANKIL, 1994.
2. Theory and practice of insurance: Tutorial/ ed. K.E. Turbine. - M.: ANKIL, 2003.
3. Hampton, D. Financial management in insurance companies. - M.: ANKIL, 1995.
4. Kulikov, S.V. Financial analysis of insurance companies. / S.V. Kulikov Rostov n/D.: Phoenix, 2006. 221 p.
5. Melnikov, A.V., Risk management: Stochastic risk analysis in the economics of finance and insurance./ A.V. Melnikov, M.: publishing house "Ankil", 2001 112 p.
6. Nikulina, N.N. Insurance. Theory and practice. / N.N. Nikulina, S.V. Berezina M.: UNITI, 2007 511 p.
Internet resources:
1. Magazine " Financial management» http://www.finman.ru/
2. A.M. Lithuanian "Financial Management" Lecture notes http://www.aup.ru/books/m68/
Efficiency of insurance operations P E s.o. can be defined as the ratio of the technical result to the net premium:
Where Sun - the insurer's revenue or technical result on insurance operations (line 010-line 030; line 080-line 110, f. No. 2);
SP n - net premiums (p. 010; p. 080, f. No. 2).
The value of PE s.o must be greater than 15%.
To assess the effectiveness of the insurance company's policy, the indicator of profitability of insurance operations per ruble of equity capital (PR with k) is calculated. This is, in fact, a modified Dupont formula, where net profit correlated with equity:
. (46)
When analyzing the financial and economic situation in an insurance company, the indicator of profitability of insurance operations per ruble of cost is used. Under the cost, as noted, is understood as the ratio of the insurer's expenses (the sum of insurance payments, deductions to insurance reserves and expenses for doing business) to the amount of insurance premium. The ratio of net profit to cost is an outdated indicator of insurance activity, which was applicable in the conditions planned economy. AT modern conditions often correlate net profit with the volume of insurance premiums, obtaining the value profitability of insurance operations per ruble of insurance premiums (PR s.o):
, (47)
Where ^ PE - net profit (line 300, f. No. 2);
SP - volume of insurance premiums (line 011, line 081, f. No. 2).
The obtained values of profitability show what kind of income during the year the insurer received from 1 rub. own capital or from 1 rub. insurance premium, but in any case it is clear that the formation of profitability was influenced by the result of insurance operations.
^
TOPIC 2.7. ANALYSIS OF FINANCIAL PERFORMANCE OF AN INSURANCE ORGANIZATION
2.7.1. The financial result of the activities of insurers. Its economic nature
AT market conditions the responsibility and independence of enterprises in the development and adoption of managerial decisions to ensure the efficiency of their activities, to achieve high financial results are increasing. Considering the significance and importance of this area of financial analysis for insurance companies, let us focus primarily on the economic nature of the financial result.^ Financial result of the insurance organization - economic result of the financial and economic activities of the insurer for reporting period in the form of profit or loss, reflecting the success or failure of the business, both in quantitative and qualitative terms.
The final financial result of the activities of insurers is made up of income from insurance, investment and financial operations, reduced by the amount of expenses for all these operations. The financial result (profit or loss) is a generalizing qualitative indicator of the activity of an insurance company.
Under market conditions, insurers carry out not only insurance operations, but also a number of other operations that are characteristic of any business entity. Thus, the financial result of the activities of an insurance organization is the aggregate result of insurance, investment, financial and other operations. And therefore, a full-fledged analysis of the financial result involves the study of the results of each type of activity of the insurer and the factors influencing them, which should be reflected in the system of indicators of the financial condition of the insurer.
Analysis financial results The activity of the insurer allows not only to sum up the results of its work for this reporting period, but also to determine the prospects for its development. A positive financial result contributes to an increase in the potential of an insurance organization, its financial stability, since part of the profits received can be used to increase the amount of equity capital. A negative financial result means, as a rule, a decrease in the amount of own funds, which usually cover losses. In the latter case, it is important to understand what the losses are connected with - either with a random coincidence (for example, with a higher than the average value of insurance payments), or is it a pattern, and certain measures must be taken (increasing tariff rates, changing the structure of the insurance portfolio, adjustments investment policy etc.).
The analysis of financial results makes it possible to identify a causal relationship between changes in the main indicators of financial stability and the technology of the insurance process carried out by one or another insurer. It should be noted that the impact of individual factors often occurs in a rather complex way. So, inflation, depreciating obligations, contributes to an increase in solvency, and depreciating own funds, a decrease in solvency. The overall impact on solvency will depend on the ratio of equity to liabilities. At the same time, it is important to take into account the impact of inflation on the costs of doing business, profit, growth of own funds, on the resulting change in demand for insurance services, the volume of transactions, etc. The same complexity and indirectness of the impact can be seen in the example of the financial result of the insurance company, which itself is formed under the influence of various external and internal factors and is clearly manifested in the specifics of the definition tax base for the payment of income tax by insurers.
When summing up the economic activity of an insurance organization, the financial result is determined for one year, when assessing the equivalence of the insurer and the insured - for the period that was taken as the basis for calculating the tariff. The financial result (profit or loss) of the insurance company is determined by comparing the income and expenses of the insurer.
^ Income of the insurer called the total amount cash receipts to his accounts as a result of his insurance and other activities not prohibited by law. to expenses insurance organization includes the costs associated with the implementation of its activities by type of operations. Determination of income and expenses of insurance organizations is regulated by Art. 293 and 294 ch. 25 of the Tax Code of the Russian Federation. So, in accordance with Art. 293 of the Tax Code of the Russian Federation, the income of insurance organizations includes:
^ 1. D income from insurance activities:
Insurance premiums (contributions) under insurance, co-insurance and reinsurance contracts. Wherein insurance premiums(contributions) under co-insurance contracts are included in the income of the insurer (co-insurer) only in the amount of its share of the insurance premium established in the co-insurance contract;
The amount of reduction (return) of insurance reserves formed in previous reporting periods, taking into account changes in the share of reinsurers in insurance reserves;
Rewards and bonuses (a form of remuneration for the insurer on the part of the reinsurer) under reinsurance contracts;
Remuneration from insurers under co-insurance contracts;
Amounts of reimbursement by reinsurers of the share of insurance payments on risks transferred to reinsurance;
The amount of interest on the deposit of premiums on risks accepted for reinsurance;
Income from the sale of the right of claim of the insured (beneficiary) to the persons responsible for the damage, transferred to the insurer in accordance with the current legislation;
The amounts of sanctions for non-fulfillment of the terms of insurance contracts recognized by the debtor voluntarily or by a court decision;
Remuneration for the provision of services of an insurance agent, broker;
Remuneration received by the insurer for the provision of surveyor services (inspection of property accepted for insurance and issuance of conclusions on the assessment insurance risk) and an emergency commissioner (determining the causes, nature and amount of losses in case of an insured event);
Amounts of refund of a part of insurance premiums (contributions) under reinsurance contracts in case of their early termination;
Other income received in the course of carrying out insurance activities;
^ 2. D income from investment activities:
Income from the placement of insurance reserves and own funds;
Other income;
3. D income from financial and other activities:
Amounts received to pay off receivables written off in previous periods for losses;
Written off accounts payable;
Interest receivable;
non-operating income;
Other types of income and receipts attributable in accordance with the current legislation to financial results.
It should be noted that there are different classifications of expenses of an insurance organization and different interpretations of the concept of the cost of insurance operations.
The cost of insurance operations in a broad sense means the totality of all costs of the insurer for the provision of insurance services, both direct - insurance payments and expenses for doing business, and various deductions provided for by applicable law. Under the cost in the narrow sense refers to the costs of the insurance company to do business.
The composition and structure of the insurer's expenses are determined by two economic processes: the repayment of obligations to policyholders and the financing of the activities of the insurance organization. In this regard, the insurance business adopted the following expenditure classification :
Payout costs insurance compensation and sums insured;
Deductions and reserves of contributions;
Deductions for preventive measures;
The costs of doing business, intended to finance the activities of the insurance company. The composition of the costs of doing business in Russian insurance organizations is also regulated tax code RF.
Thus, to expenses of the insurance company include expenses incurred when carrying out insurance activities :
1. Amounts of deductions to insurance reserves (taking into account the change in the share of reinsurers in insurance reserves), formed in accordance with the legislation on insurance in the manner established by the federal executive body for supervision of insurance activities.
2. Insurance payments under insurance, co-insurance and reinsurance contracts: payments of rents, annuities, pensions and other payments stipulated by the terms of the insurance contract.
3. Amounts of insurance premiums (contributions) for risks transferred to reinsurance. These provisions of this subparagraph shall apply to reinsurance contracts concluded by Russian insurance organizations with Russian and foreign reinsurers and brokers.
4. Rewards and bonuses under reinsurance contracts.
5. Amounts of interest on the deposit of premiums on risks ceded to reinsurance.
6. Compensation to the co-insurer under co-insurance contracts.
7. Refund of a part of insurance premiums (contributions), as well as redemption amounts under insurance, co-insurance and reinsurance contracts in cases, provided by law and/or the terms of the contract.
8. Remuneration for the provision of services of an insurance agent and (or) an insurance broker.
9. Expenses for paying organizations or individuals individuals services rendered by them related to insurance activities, including:
actuary services;
medical examination when concluding life and health insurance contracts, if payment for such medical examination in accordance with the contracts is carried out by the insurer;
detective services performed by organizations licensed to conduct the specified activities related to the establishment of the validity of insurance payments;
services of specialists (including experts, surveyors, emergency commissioners, lawyers) involved in assessing the insured risk, determining the insured value of property and the amount of insurance payment, assessing the consequences of insured events, settling insurance payments,
services for the production of insurance certificates (policies), forms strict accountability, receipts and other similar documents;
services of organizations for the fulfillment by them of written instructions of employees for the transfer of insurance premiums from wages by non-cash payments;
services of healthcare organizations and other organizations for issuing certificates, statistical data, conclusions and other similar documents;
collection services.
In the composition of expenses for insurance activities, a special place is occupied by business expenses, which include labor costs, household and office expenses, travel expenses, operating and other expenses. The source of financing the costs of doing business (RVD) is the load in the structure of the insurance rate.
The costs of doing business are classified according to various criteria. Depending on the cost functions in the course of business activities and in accordance with the structure of the income statement of the insurance company business expenses are divided into the following groups:
Operating expenses (expenses directly related to the conclusion and execution of insurance contracts).
Expenses related to investment activities.
Management expenses(expenses not directly related to the provision of insurance coverage).
By time of occurrence The costs of doing business are divided into:
Expenses preceding the conclusion of an insurance contract (collection of statistical information, costs for the preparation of forms).
Costs arising at the stage of concluding an insurance contract (acquisition costs).
4. Costs arising from the occurrence insured event(expenses for the investigation and settlement of the insured event).
As part of the costs, fixed costs are allocated, which relate to the entire portfolio of concluded insurance contracts, and variables that can be attributed to a separate type or insurance contract.
AT world practice The costs of doing business are divided into:
Acquisition costs are expenses that are incurred for the purpose of concluding new insurance contracts.
Collection - the cost of remuneration of employees of the insurance company for the collection of insurance payments and maintenance of policyholders.
Liquidation - are made after the occurrence of an insured event and include payment for the services of specialists (surveyors, emergency commissioners, lawyers, etc.) to assess damage and determine the amount of insurance payment; costs associated with the settlement of damages; transport and court costs, etc.
Management - costs associated with the actual management of the insurance organization, they include the remuneration of administrative and managerial personnel, contributions to state non-budgetary social funds, administrative and business expenses, payment for consulting, information and audit services, advertising and publication costs annual accounts, payment for bank services, etc.
2.7.2. Factor analysis of the financial result of the insurance company. Financial analysis of form No. 2-insurer "Profit and loss statement of an insurance organization"
As noted, the task of analyzing the financial performance of an insurance organization is to identify not only the final financial result, but also the factors that determined it, as well as to determine the reserves for increasing income from the main (insurance) and investment activities.It is expedient to start the financial analysis with consideration of the form No. 2-insurer "Profit and loss statement of the insurance organization", where the main factors of the final financial results of the insurer's activities are quantified. Conceptually, the financial result of the activities of an insurance organization can be represented as
P(U)=D-R,(48)
where P(U) - profit Loss),
D- income, R - insurer's expenses.
Wherein
D=D s.o + D acting + D f.i, (49)
where D s.o - income from insurance operations;
D acting - income from investment operations; D f.i - income from financial transactions;
P = P s.o. +P and about + P f.o. , (50)
Where R s.o. - expenses for insurance operations;
R and about - investment transaction costs;
R f.o.- expenses on financial transactions;
The methodology of financial analysis emphasizes the need to study the real result of insurance, financial, investment operations. The real result of the insurer's activity is the balance of all types of operations for the year. The balance for each type of activity can fluctuate from profit to loss, under the influence of various external and internal circumstances, and these fluctuations are not interdependent.
Sections I and II, as well as lines 070,170,180-190 of form No. 2-insurer contain, in fact, a factorial expansion of marginal income for insurance and investment operations. The primary factor decomposition comes from two channels of income generation:
Income from insurance operations (insurance premiums received minus associated costs);
Income from investment operations (placement of insurance reserves minus associated costs).
At the same time, in the report, the insurer distinguishes between income from investing insurance reserves under life insurance contracts and funds under insurance contracts other than life insurance. In turn, the net premium is defined as the difference between the gross premium and variable costs for this line of business (the volume of insurance premiums given to reinsurance; paid losses; changes in insurance reserves; expenses for conducting insurance operations). net income on investments is calculated as the difference between gross income on investments and the amount of costs associated with investment activities.
In connection with this, we note the specifics of form No. 2-insurer. If the result of life insurance operations (p. 070) from an economic point of view is marginal income for life insurance, the result from insurance operations other than life insurance (p. 170) is the net commission of the insurer for other types of insurance. To obtain the value of marginal income for types of insurance other than life insurance, it is necessary to add the value of net investment income to the value of the net commission (the difference between lines 180 and 190 of form No. 2-insurer).
Side (irregular) channels of income and expenses include:
operating income and expenses, except those associated with investments,
non-operating income and expenses,
emergency income and expenses.
The general formula for the factorial expansion of the final financial results of an insurance organization can be expressed as a total marginal income, i.e. as a set of marginal income from insurance, investment and financial operations:
P(U) = 
,
(51)
where P(U) - profit Loss);
- total marginal income from insurance, investment and financial operations:
= MD s.o. + MD and about + MD f.o. , (52)
where MD With . about - technical result (revenue of the insurer) on insurance operations (sums of lines 070, 170, f. No. 2);
MD s.o. F=SP n + DIZH - OU n + IRSZH and - RVSO and -RIZH;(53)
MD s.o. IZH=SP n +IRNP n - SU n + ^ IDR - ORPM - OFPB - RVSO n (54)
where MD With about AND - life insurance margin;
MD s.o. IZH - margin income on insurance other than life insurance;
joint venture n - insurance premiums (contributions) by type of insurance - net reinsurance;
DIZH - life insurance investment income;
OU n- paid damages ( insurance payments) - net reinsurance;
IRSZH n- change in life insurance reserves - net reinsurance;
RVSO n - expenses for conducting insurance operations by types of insurance - net reinsurance;
^ RIZH - life insurance investment costs;
IRNP n - change in the reserve of unearned premium - net reinsurance;
SU n- incurred losses - net reinsurance;
^ IDR - change in other reserves;
ORPM - deductions to the reserve of preventive measures;
OFPB - contributions to fire safety funds;
MD and about - balance on investment operations (difference line 180, f. No. 2):
MD but \u003d DI - RI,
Where CI - investment income;
^ RI- investment costs from insurance operations other than life insurance;
MD f.o. - balance on financial transactions (lines 210-220 + 230-200, f. No. 2):
MD f.o. \u003d OD - OR + WRD - WRR– ur,(55)
where OD - operating income other than those related to investments;
OR - operating expenses other than those related to investments;
^ WFD - non-operating income, except for the revaluation of financial investments;
BRR - non-operating expenses, except for the revaluation of financial investments;
ur - management expenses.
The positive financial result of the insurer's activities is primarily due to the financial stability of the insurance company, i.e. its achievement largely depends on the management of factors that ensure the stable financial condition of the insurer.
After analyzing the income statement, they proceed to consider balance sheet insurance company, applying Special attention to assess the economic potential and indicators of the financial stability of the insurer.
^ 2.7.2. Evaluation of the results of investment operations of the insurer
The analysis of financial performance indicators makes it possible to understand the causal relationship between changes in the main indicators of the financial condition of an insurance company and the technology of insurance and investment processes carried out by one or another insurer. In many ways, the optimization of the financial result depends on the investment activities of the insurance company.
Indicators characterizing efficiency of the insurer's investment activity(PE io), can be determined by dividing the investment income received in a year by the average annual volume investment assets. In order to evaluate the return on investment, the result obtained should be compared with the average annual refinancing discount rate Central Bank RF.
PEio \u003d Di / Ai x100%, (56)
where D and - annual income from investments (line 020 + line 180, f. No. 2-insurer);
A and - the average annual volume of investment assets (p. 120, f. No. 1-insurer).
Send your good work in the knowledge base is simple. Use the form below
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
Hosted at http://www.allbest.ru/
Introduction
Indicators of profitability and business activity are the main characteristics of the effectiveness of the financial and economic activities of the insurance company. They are calculated as relative indicators, based on the financial results obtained by the insurance company for the reporting period.
The economic content of profitability indicators is reduced to the profitability of the insurance company. Business activity indicators are also called asset turnover assessment indicators, or asset management ratios. The economic content of the turnover indicators is the speed of financial and economic transactions or the speed of turnover of assets and liabilities of the insurance company.
Goalsgivenstageanalysis:
Evaluation of the effectiveness of the use of the property of the insurance organization;
Analysis of profit strategy;
selection of measures to improve efficiency.
aimcoursework is the analysis of indicators of profitability and business activity of the insurance organization on the example of Sogaz OJSC.
taskscoursework are as follows:
Consider the essence, qualitative and quantitative characteristics of the business activity of the insurance company;
Consider the concept, main types and methods for calculating the profitability indicators of an insurance organization;
Consider the factors affecting business activity and profitability of the insurance organization;
Conduct an analysis of business activity and profitability of OAO SOGAZ.
The course work consists of an introduction, two sections, a conclusion and a list of references.
Chapter 1. Theoretical basis analysis of the effectiveness of the insurance organization
1.1 Essence, qualitative and quantitative characteristics of the business activity of the insurance organization
Analysis of business activity occupies an important place in the financial and economic analysis of the enterprise. The main tool for assessing the efficiency of the use of enterprise resources in an unstable economy is the assessment and analysis of the enterprise's business activity, which can be used to objectively assess the effectiveness of the financial and economic activities of the enterprise and determine the prospects for its development. The quality of important and responsible management decisions depends on the objectivity and accuracy of assessing and optimizing the business activity of an enterprise, which allow not to adapt to changes in the market, but to actively respond and influence the market situation, which is constantly changing.
The term "business activity" began to be used in the domestic analytical literature relatively recently - in connection with the introduction of well-known different countries the world of financial reporting analysis methods based on a system of analytical coefficients. Of course, the interpretation of this term can be different. Business activity reflects the level of efficiency in the use of material, labor, financial and other resources and at the same time characterizes the quality of management, as well as the potential development of the enterprise.
Business activity analysis is to study the levels and dynamics of various financial ratios- turnover indicators. Since the size of the annual turnover depends on the rate of turnover of funds, therefore, the amount of semi-fixed costs is associated with the size of the turnover and, accordingly, with the turnover: the faster the turnover, the less the amount of costs per turnover.
In the process of finding ways to increase the business activity of an enterprise, methods such as observation, comparison, abstraction, historical method and synthesis, economic and mathematical modeling.
The purpose of the analysis of the business activity of the insurance organization is:
1. Determination of the dynamism of its development.
2. Analysis of the turnover rate of the insurance company's funds.
It should be noted that this analysis uses a large number of performance indicators, turnover, etc. During the analysis, analytical tables, graphs, charts are compiled.
An analysis of the business activity of an enterprise can be represented as a system of four independent components (blocks) of analytical studies:
1. analysis of the effectiveness of the use of working capital of enterprises;
2. analysis of the use of equity and borrowed capital;
3. efficiency analysis credit relations enterprises with commercial banks;
4. analysis of accounts receivable and accounts payable.
That is, conducting analytical studies of the business activity of enterprises allows us to assess how effectively the structure of their capital is formed, how their relationships with suppliers and customers, as well as with commercial banks, develop.
As is known, the efficiency of the use financial resources, primarily associated with their turnover. Accelerating the turnover of working capital is important for the stability of the financial condition of enterprises for the following reasons:
The rate of turnover of funds determines the size of their annual turnover;
Acceleration of turnover leads to a reduction in the costs of the enterprise;
The acceleration of turnover at one stage or another of the circulation of funds leads to an acceleration of turnover at other stages.
The analysis gives an assessment of individual articles current assets taking into account the industry specifics of the enterprise, the type of activity and the characteristics of output. In addition, determine and analyze the main indicators of turnover of working capital. Based on the results of the analysis, the main reasons for the irrational formation of current assets are determined and measures are taken to eliminate these causes.
An important component of assessing the business activity of enterprises is the analysis of the state of receivables and payables. The amount of receivables is determined by the conditions of the enterprise for settlements with its customers. Relaxing these conditions has both advantages and disadvantages. The advantages are the growth in sales and profits, and the disadvantages are the lack of working capital, the slowdown in capital turnover, the possibility of increasing the amount of bad debts. In the economic literature, it is proposed to analyze accounts receivable and payable by comparing their growth rates with the growth rates of sales proceeds. Exceeding the growth rate of the latter is a positive trend.
Business activity is manifested in the dynamism of the development of the enterprise, the speed of turnover of the enterprise's funds. The business activity criteria are:
The level of efficiency in the use of enterprise resources;
Sustainability economic growth;
The degree of fulfillment of the task in terms of the main indicators of economic activity, etc.
Ensuring effective operations and successful implementation functional purpose banking institution is highly dependent on operating system monitoring of business activity, which is characterized by its ability to raise funds and the efficiency and rationality of their placement and can be determined both by analyzing individual indicators and by evaluating the corresponding ratios between individual items of assets and liabilities and quantitatively coordinating changes in assets and liabilities. Business activity indicators allow interpreting the current situation and the bank's use of its resource potential, that is, existing and potential opportunities, and the weight of the business risks assumed.
It should be noted that monitoring involves the collection and systematization of information to assess the current and retrospective values of performance indicators, identify deviations between actual and planned indicators and further forecasting.
In our opinion, the formation of a system for monitoring the business activity of an insurance organization provides for the development and organization of an integrated information and analytical system that would perform the functions of integrating arrays of diverse information and their analytical processing in order to justify, make and control management decisions. This system should be formed and provide the management of the insurance organization with prompt and reliable information about the state of the resource potential of the institution in order to make informed management decisions aimed at increasing the competitiveness of domestic banks and ensure:
1) reliable and prompt dynamic analysis of the state and development prospects banking institutions by region and specialization (macro level);
2) diagnostics of the resource potential of banking institutions (micro level);
3) forecasting the development of banks' activities based on SWOT analysis tools;
4) formation of alternative strategies for the development of banking institutions.
In conditions market relations It is advisable to put the following principles in the basis of building a monitoring system:
Voluntary participation in vertical sectoral and regional monitoring, openness of systems for monitoring participants;
Availability of use of monitoring results;
Efficiency of submission and receipt of information;
Reliability;
Integration of information arrays and unity of the instrumental base;
Plurality of tasks to be solved;
Constant updating and expansion of information and analytical resources;
Adaptability to the dynamics of economic conditions and conjuncture financial markets.
So, the system for monitoring the business activity of an insurance organization is a specially organized system for constantly monitoring the dynamics of the activity of the formation and use of the resources of an insurance organization, which provides for: collecting, systematizing, processing data, generating results in a form convenient for prompt decision-making on the use of appropriate methodological tools. All components of the system must be mutually consistent, qualitatively and quantitatively reflect the actual state of the resource potential of the insurance organization, be formed taking into account the fullest possible reflection of the results of the insurance organization's activities and disclose not only internal, but also external relationships of the insurance organization.
The methodology for monitoring the business activity of an insurance organization should be based on:
1) a systematic approach to measuring business activity;
2) taking into account economic growth as a strategic priority;
3) control of the balance and sustainability of corporate growth;
4) focus on intensive growth and emphasis on performance indicators;
5) proportionality with universal assessments of the business activity of insurance activities.
A systematic approach to measuring business activity provides for the formation of a comprehensive methodological toolkit that will allow you to evaluate the parameters of business activity in the context of such components: dynamic characteristics of the development of the control object over time, activity in the formation and deployment of the resource potential of an insurance company, the efficiency of using assets and liabilities.
Accounting for the economic growth of a strategic priority is based on the fact that business activity is a dynamic category that characterizes the development of the economic system over time. Under such conditions, the measurement and management of business activity is one of the development priorities economic systems. The importance of controlling the balance and sustainability of corporate growth is explained by the fact that unbalanced growth leads to an increase in the level of systemic risks, which, against the background of unstable dynamics, can lead to the destruction of the micro- and macroeconomic system. Therefore, regardless of the development model and corporate growth strategy, it is important to provide for balanced growth criteria in the monitoring methodology, for example, control for compliance with the “golden banking rule”.
Focusing on intensive growth and emphasis on performance indicators implies an increase in the importance of indicators, such as the parameters of resource potential development and the profitability of an insurance company, which should be given considerable attention in the methodology for monitoring the business activity of an insurance company. Taking into account the basic principles, a system for monitoring the business activity of an insurance organization is being formed.
In the context of the formation of a business activity monitoring system, it is advisable to specify the process of managing the resource potential of an insurance organization in the following sequence:
1) setting a system of tasks - involves a set of actions to specify operational plans for the formation and placement of the resource base of an insurance company. material reflection The resource position of an insurance organization is its balance, which allows for a clear measurement of the tasks set. The main task of this stage is to ensure the definition of the main tasks for the formation of objects for monitoring the business activity of the insurance company, the strategy and tactics for their implementation, the formation of a benchmark for the final results of activities and risk parameters that the bank takes on;
2) analysis of the current state of the formation and placement of the resource base of an insurance organization is a necessary prerequisite for assessing the existing resource potential. The main task is to determine the actual values of indicators for certain period time;
3) assessment of existing (current) achievements - provides for the formation of an integral system of effective values of indicators to identify development trends for individual components of the resource potential of an insurance organization;
4) determination of targets - the establishment of criterial values of indicators, which will make it possible to quantify the individual goals that the bank seeks to achieve;
5) comparison of targets with actual indicators is the basis for strategic planning of the resource potential of banks, based on the calculation of deviations in the values of indicators of strategic and current plans and assessment of the intended goals of the insurance organization and real achievements. At the 2nd, 3rd, 4th and 5th stages, the analytical function of the business activity monitoring system is implemented;
6) determination of untapped reserves and impact factors allows assessing the potential of an insurance organization to increase its resource potential and determine the positive or negative impact of individual factors, develop effective methods for managing the attraction and borrowing of resources (conciliation and preventive functions);
7) control and implementation of existing and strategic opportunities for the formation and placement of the resource potential of the insurance company is the final stage of the process of managing the resource potential of the insurance company, carried out through and under the guidance of the management of the insurance company.
So, the business activity of an insurance organization can be determined both by analyzing individual indicators and by evaluating the corresponding ratios between individual items of assets and liabilities and by quantitatively coordinating changes in assets and liabilities and is determined by analyzing the relationship between assessing the resource potential of an insurance organization (liabilities) and its use as a whole in assets, and its individual investments in investments, in loan portfolio, in logistics.
The necessary conclusions can be obtained in three ways:
1) comparison of conclusions on related articles and sections of assets and liabilities;
2) quantitative linkage of changes in assets and liabilities in value terms;
3) calculation of coefficients characterizing the achieved levels of activity in the use of liabilities and assets.
In particular, in terms of liabilities, the business activity of an insurance company is characterized by the following main indicators: achieved level: attraction of resources, interbank loans in liabilities, term deposits in liabilities, customer base development, utilization ratio of borrowed and borrowed funds.
On the asset side, these are the coefficients: the level of earning assets, credit activity, investment activity, the level of the loan and investment portfolio in total assets.
It should be noted that all financial performance indicators of the insurance organization are interconnected. An effective criterion for the effectiveness of the system for monitoring the business activity of an insurance organization is a stable and rhythmic increase in profits and equity. At the same time, profit depends on the quality of assets, the volume and structure of attracted resources and expenses on them, as well as liquidity. And the combination of maximum profitability and high liquidity is to comply with optimal ratio separate groups of articles of assets and liabilities of the balance sheet, which will ensure the financial stability of the insurance company. So, when considering the problem of optimizing the resource base and forming a system for monitoring the business activity of an insurance organization, it would be advisable to take a comprehensive account of the degrees of significance of such fundamental parameters of its activities as:
Profitability is the result of the optimality of the structure of its balance sheet, both in terms of assets and liabilities, a key parameter for realizing the interests of owners (shareholders) of an insurance organization;
Liquidity is an indicator of the provision of resources to the insurance organization for its active investments and compliance with the "golden banking rule”, the essence of which is to comply with the size and timing financial requirements in accordance with the size and terms of its obligations; the main factor that determines the ability of an insurance organization to meet its payment obligations, which is consistent with the interests of depositors and borrowers;
Risk is an indicator of influence on the processes of formation of the final result of the activity of an insurance company.
The risk-oriented approach in monitoring provides for the assessment of the quantitative characteristics of risk and the quality of risk management at the level of both an individual insurance organization and the insurance system as a whole, in order to increase its reliability and stability.
Risk-based monitoring is a relatively new concept that provides for a set of measures to introduce into supervisory practice the components of reporting analysis, early warning systems and systemic stability assessment banking system in order to highlight areas of high risk. The main goal of risk-based monitoring is to use methods and tools that allow you to more effectively achieve goals in the shortest possible time and with the least loss of resources. Risk-based monitoring should also provide for the formation of a comparable base for comparing all types of risks banking, fixing the time horizon for monitoring risks of all types.
Thus, the formation of a system for monitoring the business activity of an insurance organization has certain features, in particular:
1) the need to take into account, in an inseparable unity, a significant participation in making a profit of both assets and liabilities (management of the balance sheet structure of an insurance organization), which necessitates accounting in equally both existing and potential sources of resources, and, most importantly, directions for the allocation of resources;
2) specification of the system of measures at each of the stages of business activity of the insurance company, it is advisable to rank as follows:
1) the process of becoming,
2) fast growing business,
3) highly profitable business,
4) the growing cost of the insurance company;
3) a logical combination and a combination of both traditional and the latest research methods, which will allow you to flexibly maneuver in order to select the optimal parameters of profitability, liquidity and risk;
4) the need for constant control and monitoring of market parameters and an adequate pricing policy in order to neutralize the negative impacts of the external environment.
Comprehensive accounting of internal and external factors that significantly affect the activities of the bank, will allow mobilizing management efforts on those that are the most unfavorable and is a necessary condition for the formation of an effective development strategy. The policy of the bank should be designed in such a way as to maximize income and minimize costs. banking services both on the asset side and on the liability side. The process of monitoring the bank's business activity should be characterized by internal unity, which will allow achieving the maximum financial result, reducing risks and controlling liquidity.
Based on the above, the result of the formation of a system for monitoring the bank's business activity should be recommendations for the timely implementation of effective preventive measures in order to avoid negative consequences or obtaining the maximum result under the existing market conditions. The use of a permanent business activity monitoring system will ensure the flexibility and adaptability of the tools used and obtain adequate assessments of current and forecast changes in the economic environment in order to enhance the effectiveness of the process of making and implementing managerial decisions.
1.2 The concept, main types and methods for calculating the profitability indicators of an insurance organization
profitability insurance financial profit
The statistics of the financial results of insurance organizations studies the volume of income and expenses of insurance organizations, their composition, characterizes the formation and distribution of profits, measures and analyzes the profitability of the activities of insurers.
Profitandprofitability are the main indicators of the financial results of insurance companies.
The following indicators of profit are calculated: profit of insurance activity; balance sheet profit; net profit; taxable income.
Profit from insurance activities is defined as the difference between gross income and the sum of expenses and deductions.
Insurance income includes:
Earned insurance payments (insurance premiums, insurance premiums);
· commissions for reinsurance;
· a share from the sums insured and insurance indemnities paid to reinsurers;
· the returned sums from the centralized insurance reserve funds;
· returned amounts of technical reserves and other unearned premiums, in cases and under the conditions provided for by the acts of the current legislation.
Together, these incomes constitute the gross income of the insurance organization, the main source of which is income from insurance payments. When analyzing gross income, the task of insurance organizations is to study the dynamics of insurance premiums, to assess the influence of individual factors on their growth. Such an analysis should be carried out by types of insurance, types of risks and other features.
The costs of the insurer include:
payment of sums insured and insurance indemnities;
deductions to centralized insurance reserve funds;
deductions to technical reserves;
insurance costs;
Other expenses included in the cost of insurance services.
The main cost element is the payment of insurance compensation and redemption amounts. Statistics studies their dynamics, determines the influence of individual factors on their change. In the analysis, indicators of the dynamic series are calculated, the increase in the indicator is due to the average amount of payments per contract and the number of payments, patterns are revealed in the change in the costs of insurance organizations for the payment of insurance compensation. The analysis of the latter must be carried out in the context of insurance risks, types of insurance, insurance companies, using the indicator of the amount of payments per hryvnia of insurance payments.
The balance sheet profit of an insurance organization is equal to the sum of profit from insurance activities and income (expenses) from non-insurance activities. Income (expenses) from non-insurance activities consists of income received from participation in the activities of public enterprises, rent, dividends on shares, bonds and other securities, the amount of interest on deposits and other income related to non-insurance activities.
Net income and taxable profits are calculated according to the general method.
To assess profitability in insurance, several indicators of profitability are used: profitability of insurance organizations; profitability of insurance activity; profitability of certain types of insurance.
Profitabilityinsuranceorganizations calculated as the ratio of profit to equity.
The profitability of insurance activities is calculated by the ratio of the profit received from insurance activities to the amount of expenses and deductions of the insurance organization.
The calculation of profitability for any type of insurance (or insurance risk) can be performed by comparing the profit received from the corresponding type of insurance (insurance risk) and the sum insured or the amount of insurance payments for the same type of insurance.
The profitability of an insurance organization is the most common indicator compared to the profitability of insurance activities, because the first indicator reflects the financial results of both insurance and non-insurance activities.
For factor analysis of the dynamics of profitability indicators, statistical methods are used.
Let's consider their application on the example of one of them - the profitability of insurance payments (K2), which is calculated as the ratio of profit (P) to insurance payments (SP).
To characterize the dynamics of profitability by groups of insurers, a system of indices of average values is used:
The variable composition index is calculated by the formula:
Variable Composition Index,
where d is the share of insurance payments of individual groups of insurers in their total volume. The index shows how the average profitability of insurance payments has changed for the insurance company as a whole.
Fixed composition index, which is calculated by the formula
The fixed composition index shows how the average profitability for the company as a whole has changed due to the dynamics of the profitability of insurance payments for individual groups of insurers.
The index of structural shifts can be found by the formula
Index of structural shifts
It shows how the average profitability of the company as a whole has changed only due to a change in the distribution of insurance payments by groups of insurers.
In order for insurers to have sufficient resources to pay current and future obligations to policyholders, they must maintain a minimum limit of their solvency in the form of a reserve fund. This fund serves to protect insurers from risks associated with insurance activities, in particular, random fluctuations in claims, negative results of investment activities, shortcomings in reinsurance programs, large losses, etc. Solvency indicates the ability of a market entity (insurer) to fulfill its insurance obligations in accordance with the terms of the insurance contract. It is the presence of an appropriate sum insured in certain period and characterizes the level of solvency of the insurer.
The solvency of an insurance company is maintained both through the provision of insurance services and the accumulation of relevant insurance premiums, and through the insurer's profit from investment activities. Thus, in individual cases Insufficient volume of insurance premiums to fulfill the obligations of insurers is covered by profit from investment activities.
Analysis of the solvency of insurance organizations is carried out in the following areas:
1) analysis of the obligations of the insurer;
2) analysis of the insurer's resources;
3) ratio of obligations and resources.
In turn, the obligations of the insurer are divided into internal and external. To internal obligations include payments of dividends to shareholders, wages to employees, other types of payments due to the activities of the insurance company. External liabilities are obligations to policyholders.
The solvency of the insurer is influenced by external and internal factors. The former include: inflation; change tax legislation; market conditions; natural anomalous phenomena; social shocks, etc. Internal factors include the strategy of the insurance company and the mechanism for its implementation; scale of insurance activity and its diversification; the effectiveness of investment activity and the structure of the investment portfolio.
For rate economic efficiency insurance activities, the following system of statistical indicators can be used:
The financial stability ratio (FSC) of an insurance company is calculated by the formula
Financial stability ratio.
A detailed assessment of the financial condition, and hence the stability of the insurance company, can be carried out using the following system of indicators (coefficients):
assessment of the financial condition
volume of insurance payments
The amount of insurance indemnities
reserve fund
reserve fund
volume of insurance payments
scope of risks
To ensure the required level of solvency and profitability of equity capital, their contractual obligations, insurance companies have to accumulate and maintain their funds in an amount that ensures coverage of future obligations. To do this, insurance organizations need to invest their funds to generate the required income with minimal risk.
To assess the effectiveness of the increase in the funds of the insurance company, the following factors should be assessed:
· increasing the company's assets as a factor in changing the price of the company's shares;
The effectiveness of investing in stocks compared to bank deposits;
influence on the price of the company's shares of various investment directions;
Efficiency in terms of profitability and other indicators of profitability of the company's activities in various areas of investment.
1.3 Factors affecting the business activity and profitability of an insurance organization
Since profitability primarily reflects the profitability of the insurance company, profit is crucial in increasing the profitability of its activities.
Both the insurance company and the state are interested in increasing profits and high profitability, on the one hand, this is a direct source for the development of the insurance company, and on the other hand, part of the profit is paid in the form of taxes and mandatory payments, which ensures constant revenues to the state budget.
Therefore, when planning directions for the use of profits, it is necessary to choose best options and costs should not be low, but optimal.
The strategy of the company and profit management today is determined for each insurance company individually. At the same time, the use of certain forms of management is determined by the specifics of the activities of the insurance company and its financial strategy, respectively, the profit management model for various companies will definitely differ, which suggests the existence of different management strategies. However, the whole set of such models can be grouped and their following typology can be distinguished:
Aggressive (offensive) strategy - ensuring the maximization of the level of implementation through sales promotion in order to increase the profit of the subject;
Protective strategy - ensuring cost control in order to increase the profit of the enterprise in the form of a difference between the absolute value of income and costs, the strategy is effective in the long term;
diversified strategy - combines a balanced compromise between aggressive and defensive strategies, allows you to mutually agree on the advantages and disadvantages of both options for profit management strategies of an insurance company.
The profit management model of an insurance company is an interconnected functional organizational blocks associated with the solution of specific problems, as well as a set of financial and mathematical methods that form methodological framework coordination of individual blocks of the model. In turn, the method of managing the profit of an insurance company can be defined as follows: the method of managing the profit of an insurance company is a set of specific methods, technologies, methods and techniques for substantiating managerial financial decisions for the formation of costs and income of an enterprise, as well as forms of their implementation in order to ensure an acceptable level of profitability financially. - economic activities of such an insurance company.
Comparing the features of the profit management model of an insurance company with other functional and organizational blocks of financial management (for example, management models cash flows, capital structure management can identify a number of features, including:
(1) the object of management in the model is not a factorial, but a resulting indicator - profit as a result of the interaction of the enterprise's costs and its income;
(2) the profit management model holistically integrates the functional - organizational blocks of other models (for example, budgeting, management accounts receivable and others);
(3) the profit management model is mutually consistent with the needs of enterprise equity financing management;
(4) profit management of the enterprise is based mainly on the methods of financial controlling.
In particular, when choosing the optimal profit management model, it is necessary, at the moment, to take into account a number of factors.
The legal field of anti-crisis financial management at this stage in the activities of the insurance company is manifested in two ways. Firstly, it is a set of legal acts regulating the financial, economic, organizational and legal aspects of the implementation of the profit management model of an insurance company. Among such normative legal acts are those that directly or indirectly regulate financial relations in an insurance company related to the planning, control, formation, distribution, redistribution and consumption of the insurance company's profits.
Chapter 2. Analysis of business activity and profitability of JSC "SOGAZ"
2.1 General characteristics of Sogaz OJSC
Year of creation: 1993
Authorized capital: 15,111,482,640 rubles
License of the Federal Financial Markets Service for insurance C No. 1208 77 dated August 16, 2011.
License of the Federal Financial Markets Service for reinsurance P No. 1208 77 dated August 16, 2011.
In 2013, the SOGAZ Insurance Group celebrated its 20th anniversary. All these years, SOGAZ not only remained a reliable partner of gas industry enterprises, but also actively developed cooperation with companies from other sectors of the economy, expanding the geography of its activities.
Today SOGAZ Group is the leader insurance market Russia, the most profitable insurance company in the country, ranking first in terms of assets and insurance reserves. More than 40 thousand enterprises and more than 15 million citizens use SOGAZ services. The key to SOGAZ's success is the high quality of service, strict fulfillment of obligations to customers and partners, and competent risk management.
It is gratifying to note that in 2013 the Group achieved all planned targets, and in many areas even exceeded them. SOGAZ actively developed branch network and retail business, streamlined business processes. The Group included the insurance company TRANSNEFT, which for many years has been a leading insurer in the pipeline transportation of oil and related industries. SOGAZ continues to pay great attention to improving the level of customer service and improving the claims settlement system. Large insurance payments made by the company in reporting year, have become another confirmation of the reliability and responsibility of SOGAZ as a leading domestic insurer.
The company won a number of major competitions, expanded its client base, took part in the insurance of large-scale projects of national importance. Among them are the Universiade 2013 in Kazan, the development of the Kirinskoye gas condensate field, the Sakhalin-3 project, testing of the prototype of the Russian fifth-generation multirole fighter T-50, spacecraft launches, the construction of the Western High-Speed Diameter in St. Petersburg and many others. The high appraisal of the Minister for Emergency Situations of Russia V.A. Puchkova received the work of the company within the framework of government contract on compulsory insurance employees of the Ministry of Accidents. In 2013, SOGAZ won the competition for environmental risk insurance of OAO Gazprom and its subsidiaries for the period up to 2016. The insurance program includes 32 enterprises, the total liability of SOGAZ amounted to 30 billion rubles.
2.1 Evaluation of the business activity of OAO SOGAZ
Let us analyze the financial ratios that characterize the business activity (turnover) of an insurance company, namely:
1. asset turnover, calculated by the formula:
K 1 \u003d PSP / A, (2.1)
where PSP - received insurance premiums, commissions and bonuses;
A - assets.
K 1 \u003d 60 267 264: 109 221 995 \u003d 0.55
K 1 \u003d 84 159 853: 136 656 885 \u003d 0.61
K 1 \u003d 94 231 620: 177 354 486 \u003d 0.53
Fig. 2.1 - dynamics of asset turnover in Sogaz OJSC for 2011-2013
Based on the results obtained, it can be seen that in 2013 compared to 2012, the indicator decreased and amounted to 0.53. In general, in the period from 2011 to 2013 there was a decrease in the indicator, which indicates a decrease in the efficiency of resource use, but not significant.
Equity turnover is calculated by the formula:
K 2 \u003d PSP / SK,
K 2 \u003d 60 267 264: 34 318 019 \u003d 1.75
K 2 \u003d 84 159 853: 44 254 234 \u003d 1.9.
K 2 \u003d 94,231,620: 50,099,486 \u003d 1.88.
According to these indicators, one can trace the decrease in the turnover of equity capital and in 2013 it amounted to 1.88 turnover per year. This indicates a decrease in the business activity of the organization.
Ultimately, we can say that, despite some reduction in performance, the organization still has enough high results turnover, which indicates the normal business activity of the organization and the efficient use of resources.
2.3 Profitability analysis of OJSC Sogaz
Let us calculate and analyze the main coefficients characterizing the profitability of an insurance organization, such coefficients include:
Loss ratio
where OS - paid losses, rub.;
DOW - the share of reinsurers in paid losses, r.;
PSP - received insurance premiums, commissions and bonuses, r.
OU - DOW \u003d p. 2210 - 2230 F 2.
2013 = 40,448,345 - 4,473,860 = 35,974,485,
2012 = 31,572,653 - 627,854 = 30,944,799.
2011 = 26,313,394 - 914,884 = 25,398,510.
PSP = p. 2110 F 2
PSP (2013) = 90 410 548,
PSP (2012) = 80,443,015.
PSP (2011) = 59,165,668.
To u. 2013 = 35,974,485 / 90,410,548 = 0.39 or 39%
To u. 2012 =30,944,799/ 80,443,015 = 0.38 or 38%
Ku. 2011 = 25,398,510: 59,165,668 = 0.43 or 43%.
This ratio reflects the share of paid claims in insurance income, i.e. in our case it is 39% in 2013.
Reinsurers share ratio
where PP - premiums to be transferred to reinsurance, p.;
PP = p. 2120 F2
2013: 1213281,
2012: 700293.
2011: 9902077.
PSP = p. 2110 F2
Kd.p. (2013) =1213281: 90410548 = 0.01
Kd.p. (2012) =700293: 80,443,015 = 0.0087
Kd.p. (2011) = 9902077: 59 165 668 = 0.167.
This means that the share of reinsurance in the company's insurance operations for the reporting period is 16.7%, and for past period - 0,87%.
Investment income ratio
where CI - investment income, r.;
RI - investment costs, r.
Cd.i. = (p. 2700 - p. 2800): PSP
Cd.i.(2013) = (16 650 851 - 12 162 964) : 90 410 548 = 0.049.
Cd.i.(2012) = (16 831 916 - 13 185 219) : 80 443 015 = 0.045.
Cd.i.(2011) = (14 535 765 - 12 732 259): 59 165 668 = 0.03.
This ratio reflects the level of income of the insurance company from investments temporarily free funds received from insurance activities. An increase in this ratio indicates an increase in the profitability of the insurance company from investment and an increase in the profitability of the insurance company.
Ratio of efficiency of invested activities
where IFV - investments and financial investments, R.
IEF mean = 0.5 * (line 1140 n.g. + line 1140 kg) F1.
TFI Wednesday (2013) = (74,089,328 + 89,283,218):2 = 81,686,263.
TFI Wednesday (2012) = (57,788,957 + 74,089,328):2 = 65,939,142.
IFE Wednesday (2011) = (49 765 422 +57 788 957): 2 = 53 777 189.
C.i.d. (2013) = (16 650 851 - 12 162 964): 81 686 263 = 4487887: 81 686 263 = 0.054
C.i.d. (2012) = (16,831,916 - 13,185,219): 65,939,142 = 3,646,697: 65,939,142 = 0.055
C.i.d. (2011) = (14,535,765 - 12,732,259): 53,777,189 = 1,803,506: 53,777,189 = 0.034.
This ratio reflects the share of income received from invested funds. An increase in this coefficient indicates an increase in efficiency investment projects and return on investment.
Profitability of insurance activity
where RVD - the cost of doing business, p.
Pb \u003d str. 3400 F2.
Pb(2013) = 15 426 371
Pb(2012) = 10 915 758.
Pb(2011) = 7,456,928.
RVD = p. 2600 F2.
WFD (2013) = 9,171,045.
WFD (2012) = 9,252,708.
RVD (2011) = 7174391.
Kr.s.d. (2013) =15,426,371: 9,171,045 = 1.68.
Kr.s.d. (2012) = 10,915,758: 9,252,708 = 1.18.
Kr.s.d. (2011) = 7,456,928: 7,174,391= 1.04.
This coefficient characterizes the effectiveness of insurance activities (it should be more than 0.03).
Let's summarize all the calculated profitability indicators in a table.
Table 2.2. Calculation of profitability indicators for OAO Sogaz for 2011-2013
So, based on the analysis of profitability, we can conclude that in the insurance company such profitability indicators as the loss ratio, the ratio of the share of reinsurers increased, and the rest decreased.
Conclusion
In the course of the course work, all the goals and objectives were achieved:
The essence, qualitative and quantitative characteristics of the business activity of an insurance organization are considered;
The concept, main types and methods for calculating the profitability indicators of an insurance organization are considered;
The factors influencing the business activity and profitability of an insurance organization are considered;
The analysis of business activity and profitability of JSC "SOGAZ" was carried out.
The business activity of an insurance organization in the financial aspect is manifested primarily in the speed of turnover of its funds. The profitability of an insurance organization reflects the degree of profitability of its activities.
The analysis of business activity and profitability consists in the study of the levels and dynamics of various financial turnover and profitability ratios, which are relative indicators of the financial performance of an enterprise. Analysis of business activity allows you to identify how efficiently the company uses its funds
To indicators characterizing business activity, we include the turnover and profitability ratios. These two types of coefficients affect the business activity of the enterprise in the following way. Suppose that working capital (without short-term investments) turns over once a quarter with a profitability of core activities of 25%, then the index of business activity for this quarter will be 0.25, or the same 25%. If, with the same profitability, the turnover of working capital increases by 2 times, then, accordingly, the index of business activity also increases by 2 times, and then the enterprise for two turnovers of the same amount of working capital for the same time period will receive 50 kopecks of balance sheet profit from each ruble of working capital. Similar conclusions are drawn with an increase (decrease) in profitability. That is, if the turnover has slowed down, then it is necessary to compensate for it with greater profitability - to reduce costs, reduce costs, etc.
Based on the analysis of profitability in Sogaz OJSC, it can be concluded that in the insurance company such profitability indicators as the loss ratio, the ratio of the reinsurer's share increased, and the rest decreased.
List of sources used
2. Position according to accounting « Financial statements organizations” PBU 4/99. (as amended in 2011)
3. the federal law dated October 26, 2002 No. 127-FZ "On insolvency (bankruptcy)". Reference legal system "Garant".
4. Decree of the Government of October 28, 2001 No. 498 “On some measures to implement the legislation on the insolvency (bankruptcy) of a company” and additions to it. Reference legal system "Garant". 2007
5. Abryutina M.S. Grachev A.V. Analysis of the financial and economic activities of the company: Uchebn.-praktich. allowance. - M.: Business and service, 2010. - 256s.
6. Akulov V.B. Financial management. - M.: Moscow Psychological and Social Institute. 2010. - 264 p.
7. Anti-crisis management. Textbook. / Ed. EM. Korotkov. - M.: INFRA-M, 2010. - 432s.
8. Artemenko V.G., Bellendir M.V. The financial analysis. - M.: DIS, 2011. - 364 p.
9. Assel G. Marketing: principles and strategy: Proc. for universities: per. from English. - 2nd ed. - M.: INFRA-M, 2010. - 803s.
10. Bakaev A.S., Shneidman L.Z. Accounting policy firms. - M.: Accounting, 2011. - 368 p.
11. Bakanov M.I., Sheremet A.D. Theory of economic analysis - M.: Finance and statistics, 2011. - 434 p.
12. Barinov V.A. Anti-crisis management: Proc. allowance. - M.: ID FBK - PRESS, 2009. - 520s.
13. Blyakhman L.S. Fundamentals of functional and anti-crisis management: Proc. allowance. - St. Petersburg: Publishing House of Mikhailov V.A., 2009. - 380 p.
14. Bocharov V.V. Modern financial management. - St. Petersburg: Peter, 2006.
15. Brusov P. N. Financial management. Mathematical foundations. Short term financial policy. - M.KnoRus, 2012. - 404 p.
16. Brusov P. N., Filatova T. V. Financial management. Long-term financial policy. Investments. - M.: Knorus, 2012. - 328 p.
17. Vikhansky O.S., Naumov A.I. Management: Proc. for universities. - M.: Higher school, 2010. - 222 p.
18. Glushchenko VV Introduction to crisisology. Financial crisisology. Anti-crisis management - M .: IP Glushchenko V.V., 2008, -88s.
19. Gorelik O. M., Filippova O. A. Financial analysis using computers. - M.: KnoRus, 2011. - 272 p.
20. Gruzinov V.P., Gribov V.D. Economics of the firm: Proc. allowance for universities. - 2nd ed., add. - M.: Finance and statistics, 2008. - 207 p.
21. Dorofeev VD Anti-crisis management: textbook. Allowance / V. D. Dorofeev, D. N. Levin, D. V. Senatorov, A. V. Chernetsov. - Penza: Publishing House of the Penza Institute economic development and anti-crisis management in 2006. - 206s.
22. Kirichenko TV Financial management. - M.: Dashkov i K, 2010. - 483 p.
23. Kovalev V.V. Financial analysis: money management, investment selection, reporting analysis. - M.: Finance and statistics, 2010. - 486 p.
24. Kovan S.E. Workshop on financial recovery of insolvent enterprises. -- M.: Finance and statistics, 2008.
25. Koshkin V.I. and others. Anti-crisis management: a modular program for managers "Management of the development of the organization." Module M "Anti-crisis management". - M.: INFRA - M, 2009. - 512 p.
26. Kreinina M.N. Financial management: Proc. allowance. - M.: Business and service, 2010. - 304 p.
27. Naydenova R. I., Vinokhodova A. F., Naydenov A. I. Financial management. - M.: Knorus, 2011. - 208 p.
28. Pavlova L.N. Financial management: management money turnover firms: Proc. for universities. - M.: Banks and exchanges, UNITI, 2010. - 400 p.
29. Puoka M.V. financial planning and control. - M.: Finance and statistics, 2011. -276 p.
30. Raizberg B. A., Lozovsky L. Sh., Starodubtseva E. B. Modern Economic Dictionary. 5th ed., revised. and additional --M.: INFRA-M, 2007.
31. Rodionov N.V. Anti-crisis management: Proc. allowance for universities. - M.: UNITY - DANA, 2002. - 223 p.
32. Theory and practice of anti-crisis management / ed. S.G. Belyaeva, V.I. Koshkin. - M.: UNITI, 2009. -316 p.
33. Management financial condition organizations / Vlasova V., Ivanova I. et al. - M .: Eksmo, 2007.
34. Fatkhutdinov R.A. Production management. Textbook for high schools. - M.: Banks and stock exchanges, UNITI, 1997. - 447 p.
35. Finance of enterprises: Textbook for universities /Ed. N.V. Kolchina and others - M.: UNITI-DANA, 2006. - 447p.
Hosted on Allbest.ru
Similar Documents
Economic entity and insurance functions. The mechanism of formation of profit of the insurance company, its distribution in modern conditions. Place of JSC "SG MSK" in the market of insurance services. Directions for increasing profits and profitability of the insurance company.
thesis, added 01/20/2014
The concept of business activity of the organization and its indicators. The main technical and economic indicators of activity of JSC "Vitebskdrev". Evaluation of business activity and development of directions for its analysis. The main ways to improve the efficiency of working capital.
course work, added 03/22/2014
Analysis of the organization's business activity, which is evaluated by data on the dynamics of economic and financial indicators work of the organization for a number of years; description of future investments; ongoing economic activities; turnover of funds.
test, added 10/19/2010
The problem of ensuring the financial stability of the insurance company in the long term. The concept of financial stability and analysis of its factors. Model financial flows insurance organization. Analysis of factors of financial stability of the insurer.
control work, added 04/16/2008
term paper, added 12/08/2013
Theoretical foundations of the formation and planning of profit in the organization. Indicators of profitability of activities, organizational, economic and financial characteristics. Analysis of the formation of financial results and performance indicators of the organization.
thesis, added 02/17/2010
General characteristics and analysis of economic and financial indicators of the activity of the enterprise under study. Research and evaluation of business activity and profitability of a given organization, ways and principles of its acceleration, the procedure for determining the optimal level.
term paper, added 06/09/2014
Concept and system of indicators of financial results. Information base their analysis in the Russian Federation and international practice. The procedure for the formation and calculation of profit indicators. Factors influencing its change. Analysis of the level of overall profitability of the organization.
term paper, added 03/04/2015
The essence and system of indicators of profitability, the definition of profit. The profitability of the organization on the example of the breeding farm-collective farm "Aurora". The dynamics of the profitability of certain types of products and the organization as a whole and the influence of the main factors on its change.
term paper, added 04/26/2010
Essence and formation of financial results of the organization. Paths and main financial instruments profit management of the organization. Analysis of the composition, dynamics and structure of profits and the impact of taxation on profits and profitability.
Insurers are among the most profitable Russian companies. This conclusion was made by the experts of the Analytical Credit Rating Agency (ACRA). As noted in the agency's study, the return on equity of insurance companies (return on equity, RoE) before taxes in 2016 and 2015 was 24% and 28%, respectively. For comparison: in the banking segment in the indicated periods this indicator reached 14 and 3%, and in the economy on average - 13 and 11%.
Although the return on equity of insurance organizations turned out to be lower than it was a year ago, the return on capital remains quite high, fueling investor interest in the market, ACRA writes.
Insurance companies benefit from moderately tight monetary policy of the Central Bank. High profitability of the sector is supported by growth in new insurance segments and high real interest rates allowing you to earn income from the placement of funds. Net losses in the non-life segment (types of insurance other than life insurance) decreased from 61% (in 2014-2015) to 53% last year, the study notes.
However, from the point of view of insurance companies, the situation looks very different.
It must be admitted that from an investment point of view, insurers had two successful years, in particular, due to the fact that the unprofitability of auto insurance decreased against the background of tariff increases and income from life insurance increased, admits the managing director of the National rating agency, executive director of the AC "Insurance Institute" .
“However, this does not mean that the situation in the industry is stable, there is no queue of investors wishing to buy insurance companies, everyone understands that risks are accumulating in the sector,” he notes.
In particular, according to the expert, a significant profit from insurance business receive mainly captive insurance companies affiliated with banks. The rest of the players are now facing an increase in OSAGO unprofitability.
As the president of the Russian Union of Motor Insurers (RSA) recently stated, the activity of fraudsters who collect considerable sums through the courts causes significant damage to the OSAGO market.
“In the first half of the year, a negative trend was noted - an unequal ratio between insurance and non-insurance payments in favor of the latter, that is, payments that are not core for companies. There are almost 1 billion more of them than those that are made in relation to damaged property. This indicates an entrepreneurial interest in the money that went to pay not to consumers, but to unscrupulous intermediaries and scammers, ”Yurgens noted.
In particular, according to the PCA, the volume of insurance payments by companies in court in the first half of 2017 amounted to 7.9 billion rubles, and non-insurance - 8.7 billion rubles. At the same time, in the first half of 2016, the volume of insurance payments through the court amounted to 5.8 billion rubles, non-insurance - 5.6 billion rubles.
ACRA also notes that in the near future, insurers expect a decrease in return on equity due to an increase in unprofitability in OSAGO. At the same time, the agency believes that a positive impact on the RoE of insurers will help the development of the life insurance sector.
Thus, at the end of 2017, the return on equity will be quite high (about 20%), which will help maintain investor interest in the sector, ACRA believes.
The unprofitability of CMTPL will not have a devastating negative effect on the activities of insurers. Insurance companies “insured themselves” in time and created a large line of products for people who, for example, cannot buy a classic CASCO for 100,000+ rubles, but they can buy a franchise for themselves, which will cost several times less, but will be comfortable for a person, notes Lead Analyst at Amarkets.
According to him, significant growth is observed in the segment of life insurance, insurances that are tied to investment decisions. During the fall in deposit rates, such products become more popular, he adds.
According to CEO company FinExpertiza, monetary policy, which aims to target inflation, makes the cost of borrowed resources quite expensive.
In such a situation, a high level of profitability occurs in sectors of the economy that have large reserves of capital. ACRA data very well illustrate this trend, she believes.
Insurance companies with capital reserves of more than 2 billion show a profitability of 24%. In the banking sector, according to the results of the first quarter of 2017, the top 5 credit institutions in terms of assets, they have a profitability of 19%, and the Top 20 - 11%.
“When it comes to businesses real sector economy, the cost of borrowing is still high for them,” the expert states.
