The return on investment of the insurance company is calculated as a ratio. Analysis of financial stability and profitability of insurance operations

Assessment of the profitability of insurance operations of Russian insurance organizations

Insufficient capitalization of the majority of Russian insurance companies in the context of the rapid growth of the rates of received insurance premiums force insurers to make great efforts to find new investors or increase investments in the insurance business on the part of modern shareholders. In either case, the question inevitably arises about the recoupment of these investments, i.e. how much insurance, how kind entrepreneurial activity and business, meets investment expectations, to what extent insurance is attractive to the investor in comparison with other areas of potential investment. Our attempt to define investment attractiveness the insurance business is based on the economic analysis of the results of the activities of the leading insurance companies in the country. Unfortunately, it is not possible to carry out a deep, focused analysis of the effectiveness of the activities of individual insurance companies due to the inaccessibility of the necessary economic indicators activities of insurers.

As a rule, the main financial performance the performance of a branch of the economy or an individual economic entity is an indicator of profit. However, like any absolute indicator, this indicator does not allow comparing the performance of market entities operating in the same type of business, as well as different kinds entrepreneurial activity, among themselves. For comparison purposes, it is advisable to use a number of relative indicators, which include in insurance the combined loss ratio, the rate of return on insurance operations and the rate of return on capital of an insurance organization.

1. Analysis of the loss ratio of insurance operations

To assess the results of insurance operations of Russian insurers, as a rule, one relative rate- unprofitableness of insurance operations, calculated as the ratio of insurance payments in the current financial year to the received insurance premium during the financial year.

Let's consider how the loss ratio "behaves" under the influence of individual factors, using the Interfax Review "The largest Insurance companies Russia. Results of 2001 ".

According to the results of 2001, the loss ratio of insurance operations for insurance other than life insurance was 21.1% (line 2.11 / line 2.3 of the consolidated report), based on the results of operations for 2002 (according to the Ministry of Finance of the Russian Federation for 2002. ) - 27.01%, including property insurance - 16.3%, accident insurance and voluntary health insurance - 61.7%, liability insurance - 14.7%.

In foreign practice, to analyze the loss ratio of insurance operations, the combined loss ratio is often used, which, in addition to insurance payments, also takes into account the insurer's expenses for conducting insurance operations. When this indicator is included in the calculations, we find that the indicator of the combined loss ratio of insurance organizations for insurance operations other than life insurance amounted to about 30% in 2001 (distributing the total costs of conducting insurance operations in proportion to the amount of insurance premium received for insurance other than life insurance).

If we assume that the costs associated with life insurance operations can be excluded or set at 10%, since, according to various estimates, up to 90% of life insurance premiums fall on contracts concluded for tax optimization purposes, then the combined loss ratio for insurance other than life insurance, will amount to 32%.

When analyzing the indicators of unprofitableness of insurance operations, it is necessary to methodologically correctly attribute costs, i.e. insurance payments, and income to the analyzed financial year... This requires adjusting payments taking into account the reserves for losses previously formed in previous years, and also, taking into account the procedure for calculating the reserve for unearned premiums, adjust the amount of insurance premiums received taking into account the size of the reserve for unearned premiums for the analyzed year.

If, taking into account the short-term nature of insurance liabilities under most insurance contracts in the portfolio of Russian insurers, it is possible to neglect the change in the loss reserve, since its share remains relatively stable according to the report, the unearned premium reserve can make significant adjustments to the estimate of the current loss ratio. This influence can be especially great in the conditions of an actively growing Russian market. Based on the results of 2001, for example, this means that 27 billion rubles should be excluded from the indicator of insurance premiums for insurance other than life insurance. (p. 1.25 Consolidated balance sheet, hereinafter referred to as KB). Consequently, the combined loss ratio for insurance other than life insurance was 44% in 2001.

If for financial analysis the annual accounting statements this indicator is sufficient, then to assess financial results insurance activities and the correctness of the determination of insurance rates, it is necessary to apply other methodological techniques. For example, it is clear that in the current financial year the financial results obtained by insurance organizations from insurance operations are determined under the influence of several factors: the insurance premium received under contracts concluded in this year; insurance premium earned under contracts concluded in previous years; insurance payments made under contracts concluded in the current year; insurance payments made in the current year under contracts concluded in previous years.

In order to determine the real financial results from insurance operations in any reporting period, it is necessary to form an array of economic indicators, including earned premiums, insurance payments, claims settlement costs, administrative and other management costs, for the so-called year of signing or the conclusion of an insurance contract (underwriting year basic). The basis for this approach is the fact that under contracts concluded in the current reporting period, insured events, and consequently, insurance payments will also occur in the future reporting period, often in the next after the future reporting period, since for various reasons the period of claims settlement can be quite long.

Despite the conventionality of the above, it is indicative enough to illustrate the real development of unprofitableness. According to the results of the first year of insurance operations, the insurer has a very optimistic result - a loss ratio of 43.3%. However, the real result, based on the aggregate indicator of payments and expenses for all years, referred to the received insurance premium in the reporting period, exceeds 100%. This means that, all other things being equal, the conclusion of insurance contracts on the terms established in the reporting period (insurance rate, insurance coverage, exclusions from insurance coverage, etc.) is unprofitable for the insurance organization and brings an underwriter loss, and not the expected profit. It is clear that the analysis of these indicators requires painstaking actuarial analysis and the compilation of such statistical data sets requires the insurer to maintain a special analytical accounting... At the same time, the management of the insurer, making management decisions in the conditions incorrect information on the results of insurance operations, significantly worsens the projected results. Obviously, when making investment decisions, this factor must be taken into account by the investor.

The previously given indicator of the combined loss ratio of the largest Russian insurance organizations was calculated on the basis of gross movement indicators financial resources insurers for insurance other than life insurance, i.e. excluding the effect of reinsurance on the results of insurance operations.

If we take into account reinsurance operations and accordingly adjust income (by reducing them by the amount of reinsurance premiums paid to reinsurers - page 2.13. Consolidated Profit and Loss Statement, hereinafter - KO.) And expenses (by reducing payments by the amount of participation of reinsurers in insurance payments - line 2.5 KO), then the net indicator of the combined loss ratio will be 99.4%. In other words, the profit before tax from insurance operations is just over 5 kopecks. For 100 rubles. premiums.

Since we operate on average indicators for the insurance market other than life insurance, it is clear that its individual segments (presumably - motor vehicle insurance) may have significantly worse loss ratios for insurance operations.

Unfortunately, in the absence of financial statements, it is not possible to carry out similar estimates of the combined loss ratio for 2002. However, it is extremely unlikely that they will improve, since the growth of insurance payments occurs at a faster pace than the growth of insurance premiums in the branches of insurance other than life insurance. In particular, in property insurance, the growth rate of insurance payments in 2002 exceeded the growth rate of insurance premiums in this industry by 15.9 points, in liability insurance - by 56.7 points, in accident insurance and voluntary health insurance - by 38.2 points. item. Assuming that the indicator of expenses for conducting insurance operations is about 12% (according to the generalized data of Russian insurers), while maintaining the indicated rates (for property insurance - after 4 years, for liability insurance - after 1.5 years, for insurance against accidents cases and voluntary health insurance - after 2.5), even with the most "frivolous" approaches to assessment, insurers will face the problem of the actual loss-making of insurance operations on a calendar year basis.

In any case, from the practice of analyzing the results, for example, of motor reinsurance, which is carried out by the Cologne Reinsurance Company with Russian clients, we can say with a certain degree of certainty that if the loss ratio calculated by the year of the conclusion of the contract (Underwriting Year Basic), by the results of the first year is 30%, then the cumulative result of operations for the year of the conclusion of the contract will be about 90%. If this figure exceeds 50%, then the cumulative result will almost certainly exceed 110%.

Thus, depending on the methodology used in assessing such a simple indicator as unprofitableness, significant variability of the results obtained is possible.

2. The indicator of the return on capital of insurance organizations, or profitability net assets

The indicator of the return on equity of insurance organizations, or the return on net assets, is not yet used by financial analysts at Russian market.

Using indicators Russian accounting and the aforementioned Interfax data, we find that the return on equity for the balance sheet of the 135 largest insurers averaged 17.8% in 2001, and the return on paid-in authorized capital was 25%.

If we use the indicator of profit after tax, then the indicators will be 13.5% and 19.1%.

However, in the practice of foreign insurance companies, it is customary to analyze another indicator - the return on equity only on the basis of the results of insurance operations, excluding the investment income received.

According to 2001 data, the aggregate investment income amounted to 18.4 billion rubles, while the aggregate profit of insurance organizations was 4.3 billion rubles. Accordingly, using the consolidated accounting indicators for 135 largest insurance companies, insurers recorded not a profit from insurance operations, but a loss in the amount of 14.1 billion rubles.

3. Profitability of insurance operations

3.1 Existing methods cost-benefit assessments

Let's name some general indicators used for profitability analysis and applied regardless of the type and direction of economic activity.

The profitability of production is defined as the ratio of the balance sheet profit to the average annual total cost of fixed assets and normalized working capital... (Encyclopedia of the Entrepreneur, St. Petersburg, 1994, p. 237).

Profitability of products (works, services) - the ratio of the balance sheet profit to the cost of products (works, services). (Ibid., P. 237).

Profitability is an indicator of the return on capital used, i.e. the ratio of the balance sheet profit to the value of the authorized capital of the company (R. Koch, Management and Finance from A to Z. - M., Peter, p. 314).

Product line profitability - an analysis of the amount of income (taking into account full costs) that the company receives from the sale of each line of services produced, i.e. the ratio of profit from the sale of a specific type of service to the total cost of producing a service (Ibid.).

Return on Sales (ROS) is the company's operating profit after tax, divided by revenue (sales volume). (Ibid.)

Profitability certain types products - profit related to the cost price (costs) of production. (Finance, REA, M., 2001, p. 204)

Profitability of turnover (sales) - profit referred to proceeds from sales (Ibid.).

The profitability of insurance operations is 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. (Economics and insurance, dictionary, p. 375).

Product profitability - the ratio of profit from product sales to its total cost. (Big economic vocabulary... - M., Foundation "Legal Culture", 1994, p. 345).

The profitability of insurance operations is the ratio of the amount of profit to total amount insurance payments. (Ibid.). A similar definition was given by A.P. Arkhipov and V.B. Gomell (Fundamentals of insurance business, textbook for universities, p. 144, M., Market DS, 2002).

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 contributions received for this type of insurance. (Fundamentals of insurance activities, edited by Prof. Fedorova TA - M., BEK, p. 637).

Profitability of insurance proceeds - insurance premiums minus insurance payments. (UFG, I. Rubin, Insurance in Russia, assessment and forecasts, 11.10.2002).

So, we can state the lack of a generally accepted approach to calculating the profitability indicator 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 indicator of profitability of production involves referring profit to production costs, in insurance - to the amount of contributions received. Consequently, in the general case, the profitability indicator reflects the income received on the committed costs, while for insurance - the share of profit in income. This approach cannot be considered correct for the purposes of calculating the indicators of profitability of insurance operations.

It does not reflect the profitability of insurance operations and the indicator calculated as the difference between insurance premium receipts and insurance payments. As an absolute indicator, not relative, it characterizes only the actual arithmetic result. Moreover, this indicator does not take into account changes in losses and unearned premiums, insurer expenses, reinsurance results and therefore the possibility of using it for purposes economic analysis in insurance are extremely limited.

Requires a methodological solution to the question of the composition of the insurer's costs for the purpose of determining the profitability of insurance operations. The total costs of the insurer as required by the income statement include both business and administrative costs and costs associated with insurance benefits, 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 costs of an insurance organization 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 costs, then the attribution of profit to the indicator calculated in this way will make it possible to more accurately assess the profitability and efficiency of costs associated with the organization and conduct of insurance operations. Obviously, both profitability indicators can be used for various purposes of financial analysis.

The necessary indicators of the profitability of insurance organizations can be considered profitability:

Equity (ROE), calculated as the ratio of profit to share capital, or own funds companies;

Insurance transactions for the company as a whole, in relation to industry divisions (life insurance and insurance other than life insurance; or personal insurance, property insurance and liability insurance), calculated as the ratio of profit to costs (costs of conducting insurance operations, management and other costs, changes in the size of insurance reserves) of the insurance organization as a whole and by industry;

Insurance transactions 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 size of insurance reserves) of the insurer 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 profit for the company by type of insurance and by type of business. When analyzing the composition of the insurer's costs, two main problems can be seen: (1) the distribution of general administrative, management and other costs, such as the maintenance of management, the reinsurance department, IT, human resources and other "general" divisions, between different types of insurance, and / or specific insurance services and (2) correct estimation of reserves and their changes.

In the absence of such accounting and analysis, carry out real assessment the profitability of the type of insurance is practically impossible.
The profitability of insurance operations in general for the insurance market or insurance company

So, the total profit of insurers in 2001 was 4.3 billion rubles. (page 2.24 KO). Expenses, according to the consolidated income statement, excluding expenses for insurance payments and changes in the amount of insurance reserves, - 202.1 billion rubles. (p. 2.15 + 2.16 + 2.17 KO). Accordingly, the profitability indicator was 2.1%.

For insurance other than life insurance, allocating profits for insurance other than life insurance, in proportion to the share of premiums in general indicator insurance premiums received - 2.1%.

Taking into account the profit after tax, we get the profitability of nonlife insurance operations of 1.7%.

From foreign practice, the problem of insufficiency of insurance reserves is known - the main factor that reduces the operating profit of insurers. Such additional expenses can reach hundreds of millions of US dollars per year for the largest international insurers. For Russia, this problem is not yet the most urgent, since the main reason the lack of reserves is an increase in funds to cover losses by types of insurance with a long period of development of losses, the so-called long-tail business. Nevertheless, taking into account the development of unprofitable indicators, it can be assumed that the lack of reserves is 25-30%. To assess the profitability of insurance operations, a decrease in profit by the amount of "undervalued reserves" would mean a decrease in the indicator to 1.3%.

All of the above prompts us to assert the following:

1. The insurance market needs to summarize statistical information that characterizes the results of insurance operations in the required detail by type of insurance. In the absence of such data, the management of insurers is deprived of the ability to make decisions about the adequacy of insurance rates and the reality of insurance results in certain sectors. insurance market... When preparing and processing statistical information, it is necessary to use reporting data not only for the calendar financial year, but also for the year of the insurance contract (Underwriting year basic), since only such a grouping can allow analyzing and drawing a conclusion about the adequacy of the amount of reserves and tariffs.

Most foreign countries such statistics are summarized by the union of insurance organizations.

2. Insurance organizations, management, shareholders and investors are not yet able to analyze the profitability of certain types of insurance. This requires the introduction of intracorporate accounting of costs by type of insurance and a corresponding definition ("distribution") of income. In the absence of such accounting and reporting, management is deprived of the opportunity to make the necessary operational decisions on raising (lowering) prices for insurance services, saving costs, introducing additional exclusions from insurance coverage, etc.

An important element of such accounting and cost control is the establishment of a system for calculating insurance reserves in an insurance company, especially reserves for incurred but not reported losses.

3. The above concerns and the need to establish statistical and corporate intraspecific accounting may be of particular importance for conducting compulsory insurance civil liability of owners Vehicle... In particular, the lack of structured information, adjusted if necessary using actuarial methods, will not allow insurers to promptly convince the Government of the Russian Federation of the need to change insurance rates and / or insurance conditions, may threaten the bankruptcy of the largest insurance organizations Russia.

K.E. TURBINE,
Doctor of Economics, Director of the Representative Office in Moscow of the Cologne Reinsurance Company GeneralCologne Re

The next relative indicator characterizing the effectiveness of activities is the profitability indicator.

The profitability or unprofitability of an insurance company is determined using profitability indicators. In addition, the indicators of profitability of the main types of activities make it possible to determine the degree of their influence on the overall financial result of the insurance company and investment activities.

According to the profit and loss statement, it is possible to calculate and analyze the dynamics of the return on assets of the insurance activity of the organization, as well as the return on all capital and equity.

This group includes indicators of the company's performance, reflecting the ratio of the result from the activity (profit, loss) to the costs incurred or to the company's turnover. Profitability indicators can have both a positive value (profitability indicators) and a negative value (loss ratio indicators).

During the analysis, the following profitability indicators are calculated and analyzed:

net profitability -

Net profit / Insurance premium for the period

The net profitability of the organization is calculated as the ratio of the amount of the net profit of the reporting period to the collection of the insurance premium. Consequently, 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 insurance activities -

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 considered type of activity.

The profitability indicator reflects the effectiveness of insurance activities in relation to turnover. Basically, it's your ROI. Return on sales reflects specific gravity profit in each ruble of proceeds from the sale of insurance services. Note that the presence of a negative value for this indicator is natural for life insurance, since part of the life insurance obligations (at the rate of return) must be fulfilled at the expense of investment income.

A negative result for insurance other than life insurance may be associated with a significant increase in losses incurred, overstating the costs of doing business, the company's policy aimed at lowering tariffs with an increase in the efficiency of investment activities, etc .;

profitability of insurance activities, taking into account investment income -

Technical result from insurance and investment activities / Insurance premium for the period

This indicator reflects the efficiency of turnover in the field of insurance activities, taking into account the result from the investment activities of the company. With the effective operation of the company, the indicator should have a positive value.

More effective indicators in this group are indicators of return on assets and return on equity;

return on assets –

Net profit / average value assets

This indicator reflects the efficiency of using the total capital of the company (own and borrowed).

Introduce the factor

Insurance premium for the period / Insurance premium for the period

into the return on assets formula. After the transformation, the ROA formula will look like this:

(Net profit / Insurance premium for the period)
*
(Insurance premium for the period / Average assets)

Net profitability * Asset turnover.

Thus, the profitability of assets can increase with a constant profitability of sales (profitability of insurance activities) and an increase in sales, with an outstripping increase in the value of assets, i.e. acceleration of asset turnover (resource efficiency). With a constant resource efficiency, the return on assets can grow due to an increase in the return on sales;

return on equity -

Net profit / Average equity

This indicator of profitability reflects the efficiency in relation to the investment in the company and capitalized funds. The rate of return on equity capital allows you to establish the relationship between the value of the invested own resources and the amount of profit received from their use ().

Indicators of profitability of the activity of an insurance organization for 2005 - 2006

The analysis of profitability showed that during the period under study, the organization's activities were profitable, since all profitability indicators (except for the profitability of insurance activities) increased. Net profit increased by 2,402 thousand rubles. (4900 - 2498). In 2005, the technical result from insurance activities amounted to 2,290 thousand rubles. (profit), and in 2006 - 430 thousand rubles. (lesion). The decrease in the technical result amounted to 2,720 thousand rubles. (2290 + 430).

Thanks to the income received from investments in 2006, a profit was received based on the results of the insurance company in the amount of 424 thousand rubles, which is significantly lower than the result for 2005 (3750 thousand rubles).

According to the results of 2006, the profit from insurance activities increased, but the profitability indicators worsened. The profitability of insurance activities in 2006 amounted to 0.6% against 2.2% in 2005, and taking into account investments also 0.6% instead of 3.5% in 2005. capital of the company. The return on equity increased from 14.2% in 2005 to 23.5% in 2006 and remains above the return on assets (7.8%).

Due to the increase in profit compared to 2005, the company in 2006 showed a tendency to increase the return on equity.

Due to an increase in the net return on assets (by 4.9 points) and a slight increase in asset turnover (by 0.9 points (see Table 3.4), the return on assets increased and amounted to 7.8%.

The information from the analysis allows us to draw conclusions about the need to make some very necessary adjustments in the management of the insurance business.

First of all, it is necessary to make changes to the company's policy on investing insurance reserves and to establish a system of operational internal control the level and composition of administrative expenses, find out the reason for their sharp increase over the three analyzed years, find ways to reduce them in terms of the unreasonableness of administrative, representation and other expenses.

• 1. Assess the financial stability of the company's insurance companies
• - according to the degree of deficiency of all funds,
• - by coefficient financial sustainability insurance fund.
• - on the effectiveness of insurance operations.
• 2. Construct a graph of the dependence of financial stability on some factors, setting three values ​​at intervals of 3 CU.
• 3. Fill in the table of calculation results.

1. Calculation of the degree of deficiency of all funds

To determine the likelihood of a shortage of funds in the foreseeable future, we use the Konshin coefficient of variation

where g is the average insurance rate for the entire insurance portfolio;

N is the number of insured objects.

The lower the coefficient K, the less the degree of variation in the volume of the total insurance fund, the higher its financial stability, that is, the more insured objects and the higher the size insurance rate, the less K will be, that is, the degree of variation, and, accordingly, the higher the financial stability of insurance operations.

The lower the K coefficient, the higher the financial stability of the insurer. The value of the indicator is not affected by the amount of the insured amount of the insured objects. It is completely determined by the size tariff rate and size insurance portfolio... Thus, based on the obtained coefficients (K in company A is 0.04, K in company B is 0.03), Company B gains more influence in the insurance business.

2. Calculation of the coefficient of financial stability of the insurance fund

To assess the financial stability of an insurance company, a formula is used that expresses the ratio of income to expenses for the tariff period:

where? D - the amount of income for the tariff period; ? ЗФ - the amount of funds in reserve funds; ? Р - the amount of expenses for the tariff period.

The data obtained show that there is an excess of income over expenses for the tariff period. This means that the optimal tariffs have been selected and there is a necessary-sufficient deduction of funds from the insurance fund to the reserve funds. This will allow in unfavorable periods to compensate for extraordinary damage and thereby ensure the distribution of damage in time.

According to this indicator, the activities of company A are more effective.

3. Calculation of the profitability of insurance operations

An important factor characterizing the financial stability of an insurance organization is the profitability of insurance operations, which is expressed by the ratio of the balance sheet (gross) profit to the revenue side:

To obtain the value of the balance sheet profit, it is necessary to deduct expenses from the proceeds received from the sale of products and services.

Thus, the balance sheet profit of the company

balance sheet profit of company A = 70-20-10-5-8 = 27,

balance sheet profit of company B = 200 - 40 - 20 - 25 - 29 = 86.

An indicator of the level of profitability, which is defined as the ratio of the annual amount of profit to the annual amount of payments for any type of insurance or insurance operations in general. Profitability shows how much profit the insurer makes from each ruble of insurance payments and links the amount of profit as a source financial resources with the volume of work performed on the formation of the insurance fund.

The profitability of insurance operations shows what profit the insurer receives from each ruble of insurance payments and links the amount of profit as a source of financial resources with the amount of work done to form the insurance fund. Based on the data obtained, it can be seen that Company A has the highest profit than Company B.

2.4 Analysis of indicators of profitability of an insurance company

Profitability shows how much profit the insurer receives from each ruble of insurance payments and links the amount of profit as a source of financial resources with the amount of work done to form the insurance fund.

To analyze the profitability of insurance activities, it is necessary to calculate the following indicators based on the data of the profit and loss statement of the insurance organization.

1) loss ratio

K ub.n = Page (100-112) / (010 + 080) = (2448760-65865) / (5275 + 6257583) = 0.38

K ub.k = Page (100-112) / (010 + 080) = (2587789-54025) / (1312 + 5338695) = 0.47

An increase in the indicator indicates an increase in the loss ratio and a decrease in the profitability of the insurance company.

2) the ratio of the share of reinsurers

K d.p..n = Page (012 + 082) / (010 + 080) = (40 + 1512688) / (5275 + 6257583) = 0.24

K d.p..k = Page (012 + 082) / (010 + 080) = (39 + 921671) / (1312 + 5338695) = 0.17

A decrease in the indicator indicates a decrease in reinsurance operations.

3) expense ratio

K flown = Page (050 + 160) / (010 + 080) = (569 + 846237) / (5275 + 6257583) = 0.13

To flow rate = Page (050 + 160) / (010 + 080) = (96 + 476697) / (1312 + 5338695) = 0.09

The indicator suggests that the share of the insurer's expenses in insurance income has decreased.

4) the ratio of the level of income on investments

K u.di.n = Page (020 + 180- (060 + 190)) / (010 + 080) = (233 + 341033-

(69+101180))/(5275+6257583)=0,04

K u.di.k = Page (020 + 180- (060 + 190)) / (010 + 080)

=(97+449846-(71+328035)/ (1312+5338695)=0,02

A decrease in the indicator indicates a decrease in the return on investment.

5) coefficient of efficiency of investment activity

K eff.n = Page ((180 + 120) - (060 + 190)) / (120 + 130) =

=(341033+(-164705))-(69+101180))/(17044827+8292348)= 0,003

K eff.k = Page ((180 + 120) - (060 + 190)) / (120 + 130) =

=((449846+70375)-(71+328035))/(16588792+9343224)= 0,01

An increase in the ratio indicates an improvement investment projects, which indicates an increase in profitability.

6) profitability ratio

To total. = 1 + K u.di.k - (K ub.k + K eff.k + K flow.k)

at the beginning = 1 + 0.04- (0.38 + 0.003 + 0.13) = 0.53

at the end = 1 + 0.02- (0.547 + 0.01 + 0.09) = 0.45

The coefficient is greater than 0, which means the company's activity is profitable

7) return on equity ratio

To r.k. n = Mon / SC = 218361/5783010 = 0.04

To r.k. k = Mon / SK = 134333/8958757 = 0.01

The dynamics show that the return on equity for reporting period decreased.

8) the coefficient of profitability of insurance activities

To r.s.d.n = Mon / RVD = 218361 / (- 846237-569) = - 0.26

K r.s.d.k = Mon / RVD = 134333 / (- 476697-96) = - 0.28

The change in the indicator indicates that the efficiency of the company has increased over the reporting period.

2.5 Analysis of the business activity of the insurance company

The stability of the company's financial position is mainly due to business activity. Assessing the dynamics of the main indicators, it is necessary to compare the rates of their change. The most optimal is the following ratio:

T Pn> T R> T A> 100%,

0,6 >0,85>1,06

where T Pn> T P> T A - the rate of change, respectively, of profit before tax, sales volume, and the amount of assets.

In this case, we see that the ratio is not optimal, since the profit has decreased.

Let's calculate and analyze the coefficients characterizing the business activity of the insurance organization:

1) the asset turnover ratio:

K oa.n = PSP / A = Page (10 + 80) / assets = (5275 + 6257583) / 26114083 = 0.24

K oa.k = PSP / A = Page (10 + 80) / assets = (1312 + 5338695) / 27601114 = 0.19

where PSP are insurance premiums - net reinsurance.

A decrease in the indicator indicates a deterioration in the efficiency of asset turnover.

2) the equity capital turnover ratio

K sk.n = PSP / SK = Page (10 + 80) / SK == (5275 + 6257583) / 5783010 = 1.08

K sk.k = PSP / SK = Page (10 + 80) / SK = (1312 + 5338695) / 8958757 = 0.6

A decrease in the indicator indicates a decrease in the efficiency of equity capital turnover.

3). turnover of invested assets

K ia.n = CI / (I + FV) = p. (20 + 180) / p. B. (120 + 130)

=(233+341033)/ (17044827+8292348)=0,01

K and.k = CI / (I + FV) = p. (20 + 180) / p. B. (120 + 130)

= (97+449846)/ (16588792+9343224)=0,02

where CI is investment income,

And - investments,

PV- financial investments.

The turnover of invested assets is increasing over time, and business activity is increasing accordingly.

The financial condition of the enterprise cannot be expressed by any one indicator. It is characterized by a number of indicators, each of which reflects only a specific side of financial activity, and a complete judgment about this can be obtained only by evaluating the entire set of private indicators.

The analyst has many special tools based on specific financial statements or their components. The purpose of the analysis of financial statements is to determine the financial solvency of the enterprise and its financial results, as well as to identify ways to improve the efficiency of the business.

Such specific analysis tools include motion analysis Money, fluctuation reporting information gross income etc. Since it is impossible to solve all the problems at once, a comprehensive analysis is not a single act, but a complex multiphase process, a set of research steps in search of an optimal result.

Financial analysis covers various types of analysis in order to reliably assess the prevailing financial position business entity and identify the reasons that caused it, as well as indicate the existing opportunities and reserves for improving the financial condition.

Analyzing this enterprise, we can talk about many shortcomings in the company's development strategy. An increase in free cash and equity capital can be positively noted. There is also an increase in financial stability and an increase in the reserve potential of the insurance company. On the negative side, it is necessary to note a decrease in profitability and return on investment. Insufficiently effective reinsurance protection and excessive dependence on the reliability of reinsurers indicate a wrong policy regarding the activities and development of reinsurance.

In general, the company can be considered profitable, with development prospects, and for a given period of time - solvent, which is a key indicator of the company's activity. But we must not forget about the need to correct mistakes in time.

To improve financial stability, it is necessary to direct part of the profit to increase equity capital.

Acceleration of capital turnover also helps to reduce the need for borrowed capital.

When analyzing the financial condition of the investigated company, attention should be paid to the factors characterizing its financial stability and normal financial condition, ensuring the achievement of the goal of the enterprise, while especially carefully checking the presence of signs of bankruptcy, which, in particular, are the following points:

1) the inability to pay off debts on time due to the following reasons:

Recurring operating losses;

Financing through overdue accounts payable;

Long-term financing at the expense of short-term funds;

Lack of own circulating assets;

Low liquidity indicators;

Increasing the ratio of accounts payable to equity;

Deterioration of relations with banks;

2) inability to continue commercial activities;

Due to the loss of key personnel;

Due to a decrease in the level of inventories, etc.;

3) lack of funds for payment wages staff;

4) excess of the obligations of the surveyed enterprises over its property

due to an unsatisfactory balance sheet structure, i.e., due to a low degree of liquidity, etc.

To reduce the need for a short-term loan, you must:

Increase your own working capital;

Reduce your current financial needs.

In turn, to increase your own working capital, you must:

Build up equity(increasing authorized capital, retained earnings and reserves, increasing profitability through cost control and aggressive commercial policy);

Introduce long-term borrowing. Long term loan It has

its advantages: the interest is lower than on short-term loan, the refund is extended in time.

Accordingly, to reduce the current financial needs

necessary:

To reduce accounts receivable... By shortening the grace period, however, one must try not to risk losing clientele. Here, bills of exchange accounting, factoring, and spontaneous financing can be useful. You need to research your market before deciding to reduce the average grace period.

If the duration of competitors' deferrals is shorter, then you can try to shorten yours. When assessing your current deferrals, you should find out what long-term payment deferrals contribute to: an increase in turnover or an increase in losses? It is also necessary to reduce the proportion of doubtful customers, systematically reminding debtors of the coming settlement date. It is useful to find an opportunity to improve the efficiency of interaction between your own commercial and financial services in order to promptly stop sales to customers who delay payments or do not pay at all;

Increase accounts payable, lengthening the timing of the calculation.

Also, for the development of the company, it is possible that it is necessary to change the strategic line and policy of the enterprise.

Conclusion

In a competitive economic environment, the management of the enterprise, in order to determine the most objective assessment of economic information and use it for timely management decisions, requires high-quality processing financial information about the state of the enterprise. Such processing of economic information, which is formed according to accounting data and financial statements, is carried out on the basis of the use of financial analysis techniques.

The majority of specialists and entrepreneurs in Russia have not yet learned how to widely use the results of financial analysis. The accounting department considers the purpose of its main work financial statements... However, accounting itself considers the provider of information for analysis, and not an end in itself.

The results of financial analysis can be useful for a wide range of users. At the same time, the restructuring of the economy requires new approaches to the assessment of its methods. Historically, with the transition to market relations, financial analysis was quickly learned theoretically and transformed into an isolated applied discipline. However, the algorithm for its implementation in different versions forms the basis of the methods of work of many business entities and state regulatory bodies.

Bibliography

1. Bank V.R., Bank S.V., Taraskna A.V. Financial analysis: textbook. allowance. - M.: Prospect, 2009.

2.http: //www.reglament.net

3. Ermasov S.V., Ermasova N.B. Insurance: textbook, 2008

4. Richard J. Audit and Analysis economic activity enterprises. Moscow: Audit, UNITY, 2007

5. Kolass B. Management of financial activities of the enterprise. Problems, concepts and methods. Moscow: Finance, UNITY, 2007