ASSESSMENT OF FINANCIAL STABILITY AND PROFITABILITY OF THE INSURANCE COMPANY

2020 ◽  
Vol 2 (10) ◽  
pp. 80-86
Author(s):  
E. A. RUSETSKAYA ◽  
◽  
L. V. AGARKOVA ◽  
V. V. AGARKOV ◽  
◽  
...  
Keyword(s):  
High Risk ◽  
Financial Stability ◽  
Insurance Company ◽  
Large Share ◽  
Insurance Contracts ◽  
Financial Condition ◽  
Insurance Portfolio ◽  
Standard Values ◽  
The Impact ◽  
Authorized Capital

The study of the issues of financial stability and profitability of an insurance company showed that its financial condition is assessed as financially stable and highly profitable. Most of the calculated indicators correspond to the standard values. The company possesses a large share of highly liquid assets, is provided with its own funds, has a paid authorized capital, insurance reserves are sufficient to fulfill obligations under insurance contracts. The main directions of improving financial stability can be increasing the level of profitability and reducing the impact of risks by increasing the competitiveness of services, current forecasting of activities, optimization of the insurance portfolio, as well as reducing the share of high-risk investments.

scholarly journals Analysis of sensitivity of a company's financial sustainability to random factors

2020 ◽  
Vol 210 ◽  
pp. 13002
Author(s):  
Ilona Avlasenko ◽  
Lyudmila Avlasenko ◽  
Isa Peshkhoev ◽  
Yuri Podkolzin ◽  
Oksana Savelyeva
Keyword(s):  
Financial Stability ◽  
Unstable State ◽  
Financial Indicators ◽  
Financial Condition ◽  
Distribution Parameters ◽  
Normal Stability ◽  
Normal Law ◽  
The Impact ◽  
Enterprise Activity

In this article the problem of influence of accidental changes of financial indicators of enterprise activity (equity, long-term/short-term borrowed capital, reserves and costs, etc.) caused by uncertainty of market conditions on values of indicators of financial stability is considered. The study is conducted on the basis of the assumption that the studied financial indicators of the enterprise are random values with a normal law of distribution. To estimate the distribution parameters of these random values, statistical data on the values of the financial indicators of the enterprise for previous years are used. Following estimates of probabilities of financial stability levels were built: absolute stability, normal stability, unstable state and crisis financial state. With the help of statistical modeling, numerical experiments were conducted in order to determine the level of financial condition and conclusions were formulated on the impact on the financial condition of the enterprise of the parameters of the distribution of probabilities of random variables - indicators of the financial and economic activity of the enterprise.

scholarly journals Influence of financial sustainability of households on default risks of regulated banks

2020 ◽  
Vol 159 ◽  
pp. 05015
Author(s):  
Zuhra Yergasheva ◽  
Saltanat Kondybayeva ◽  
Ryszhan Kabylkairatkyzy ◽  
Gulmira Yesengeldiyeva
Keyword(s):  
Financial Stability ◽  
Financial Sector ◽  
Financial Sustainability ◽  
The Real ◽  
Household Sector ◽  
Financial Condition ◽  
Credit Risks ◽  
Default Risks ◽  
The Republic ◽  
The Impact

The purpose of the article is to assess the financial sustainability of the household sector of the Republic of Kazakhstan and its impact on the real and financial sector in the context of minimizing the credit risks of the regulated banks of the Republic of Kazakhstan. The paper analyzes various points of view on assessing the financial sustainability of the household sector, makes a successful attempt to assess at a macroeconomic level the financial sustainability of households and the drawing potential of households in Kazakhstan using the OECD and IMF methods. The work made a holistic analysis of the financial condition and solvency of households in Kazakhstan, a forecasted VAR-model for assessing the impact of household financial sustainability on the state of the real sector of the economy has been developed; a regression model for assessing the impact of financial stability of households on the financial sector of Kazakhstan has been developed.

scholarly journals OPTIMAL ASSET ALLOCATION IN LIFE INSURANCE: THE IMPACT OF REGULATION

2016 ◽  
Vol 46 (3) ◽  
pp. 605-626 ◽  
Author(s):  
An Chen ◽  
Peter Hieber
Keyword(s):  
Life Insurance ◽  
Asset Allocation ◽  
Regulatory Policy ◽  
Capital Requirements ◽  
Insurance Company ◽  
Traffic Light ◽  
Optimal Insurance ◽  
Insurance Contracts ◽  
Solvency Capital ◽  
The Impact

AbstractIn a typical equity-linked life insurance contract, the insurance company is entitled to a share of return surpluses as compensation for the return guarantee granted to the policyholders. The set of possible contract terms might, however, be restricted by a regulatory default constraint — a fact that can force the two parties to initiate sub-optimal insurance contracts. We show that this effect can be mitigated if regulatory policy is more flexible. We suggest that the regulator implement a traffic light system where companies are forced to reduce the riskiness of their asset allocation in distress. In a utility-based framework, we show that the introduction of such a system can increase the benefits of the policyholder without deteriorating the benefits of the insurance company. At the same time, default probabilities (and thus solvency capital requirements) can be reduced.

scholarly journals Business Planning and Assessment of Its Impact on the Enterprise Financial Stability

2020 ◽  
pp. 78-84
Author(s):  
Kateryna Shtepenko ◽  
Lyudmyla Svystun ◽  
Iryna Krekoten
Keyword(s):  
Financial Stability ◽  
Business Processes ◽  
Functional Relationship ◽  
Financial Analysis ◽  
Business Activity ◽  
Financial Independence ◽  
Financial Condition ◽  
Content Ratio ◽  
Asset Turnover ◽  
The Impact

At the present stage of the company development as an open social and economic system the question of how existing methods of financial analysis meet the needs of users considering the dynamism and complexity of business processes remains relevant. The purpose of the article is study relationships between static and dynamic indicators of financial condition, to reflect its characteristics such as business activity and financial stability. The article defines the functional relationship between dynamic business activity indicators and static indicators of financial stability, grounds technique of factor analysis of financial stability. The economic content ratio of the assets turnover and equity is defined. The nature of its relationships with the dynamics of assets is considered. Both theoretically and practically it is determined that if the correlation of ratio of asset turnover and equity is bigger than the ratio of financial independence at the beginning of the period under study, the positive dynamics of the property will affect the company’s final financial stability and vice versa, if the ratio is less than the rate of financial independence at the beginning of the period under study, the impact of positive dynamics of property on the final financial stability will be positive. It is proposed to consider this dependence both for factor retrospective analysis and for financial stability forecasting.

scholarly journals Insurance Programs in the Renewable Energy Sources Projects

Energies ◽  
2021 ◽  
Vol 14 (20) ◽  
pp. 6802
Author(s):  
Nadezda Kirillova ◽  
Ryszard Pukala ◽  
Marietta Janowicz-Lomott
Keyword(s):  
Renewable Energy ◽  
Financial Stability ◽  
Renewable Energy Sources ◽  
Industrial Safety ◽  
Energy Sources ◽  
Insurance Contracts ◽  
Financial Condition ◽  
Energy Projects ◽  
Development Goals ◽  
Safety Systems

The development of projects using renewable energy sources (RES) necessitates the development of insurance programs and systems. This involves identifying and assessing the risks of renewable energy projects in the transition to new types of energy, determining typical corporate and specific risks, the need and content of the main types, forms of insurance contracts, assessing the financial condition, and choosing insurance organizations and reinsurance programs. This article focuses on the formation of such insurance programs, their interaction with industrial safety systems and ensuring corporate participation in achieving sustainable development goals; as well as selection and assessment of the insurer financial stability and the insurance RES programs economic efficiency.

scholarly journals Pest-Method Development to Assess the Financial Stability of Logistic Companies

2019 ◽  
Vol 9 (1) ◽  
pp. 4597-4601
Keyword(s):  
Financial Stability ◽  
Method Development ◽  
Qualitative Assessment ◽  
Internal Environment ◽  
Economic Activities ◽  
Financial Condition ◽  
Expert Assessments ◽  
Quality Of Products ◽  
Effective Development ◽  
The Impact

Financial stability and solvency of the company is a guarantee of effective development and the basis for making effective management decisions by management. This approach to business planning makes it possible to conduct a qualitative assessment of operating and investment activities and reflects the ability to timely repay its debt obligations. In Russian and world practice, there are many approaches to assessing the financial condition, however, the peculiarity of our study is the use of methodological tools that allow us to assess the profile of the organization when assessing the external and internal environment of the company. The paper identifies the elements of the macroenvironment, types of financial stability of the organization. Based on the system of expert assessments for PEST-metod, environmental factors are determined, including the probability of an event, the impact on the organization, the direction of influence, and the degree of importance. The assessment is based on conditions of an economic, political, socio-cultural and technological nature. This technique is a systematic approach to the study of the influence of conditions that form the external and internal environment of the company, market and production factors on the quantity and quality of products, services rendered. The results of the study indicate possible prospects for the development of further economic activities of the organization in the selected functioning environment.

scholarly journals THE IMPACT OF THE INDUSTRIAL REVOLUTION 4.0 ON THE INSURANCE INDUSTRY AND WHETHER OF THE ASSETS AND INVESTMENTS PLAY A ROLE TO INVESTMENT YIELD?

2020 ◽  
Vol 8 (2) ◽  
pp. 345-351
Author(s):  
Iskandar Muda ◽  
Hafizah ◽  
Bunga Aditi ◽  
Hermansyur ◽  
Erlina
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Industrial Revolution ◽  
Insurance Industry ◽  
Least Square Method ◽  
Partial Least Square ◽  
Least Square ◽  
Insurance Companies ◽  
Insurance Company ◽  
The Impact

Purpose of the study: This research aims to know the influence of the Industrial Revolution 4.0 era on the insurance industry on the side of assets and Investment insurance companies to Investment Yield Sharia Insurance in Indonesia. Methodology: This type of research is explanatory research. This type of research data is secondary data sourced from the Financial Services Authority (OJK) Republic of Indonesia period in 2016-2107. The tool of analysis in this research is the Partial Least Square method using Smart PLS statistics. Main Findings: The results are an influence of Assets and Investment on Investment Yield on insurance companies in the Industrial Revolution 4.0 era. In the era of the industrial revolution, 4.0 potential insurance improve economic growth through several aspects, namely promote financial stability. Facilitate trade and commercial activities. mobilize domestic savings. Offering a variety of risk management on capital. Increase more efficient allocation of capital and reduce the risk of loss and can increase Investment Yield for shareholders and stakeholders. Applications of this study: This research is the observation only on Sharia Insurance Company sample while other issuers are not observed in this study and this research implies that sharia insurance issuers are growing and contributing to their shareholders and shareholder. Novelty/Originality of this study: The first time observing the Sharia Insurance industry industrial Revolution 4.0 era and previous research to observe in Sharia banking.

scholarly journals ANALYSIS OF THE MAIN INDICATORS OF THE INSURANCE COMPANY’S FINANCIAL STABILITY USING SIMULATION MODELLING

2019 ◽  
Keyword(s):  
Simulation Model ◽  
Life Insurance ◽  
Financial Stability ◽  
Simulation Modelling ◽  
Insurance Companies ◽  
Insurance Fund ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Mathematical Methods ◽  
Financial Condition

The purpose of insurance is to accumulate funds to fulfill obligations to its clients, as well as to invest further in the expansion of insurance activities and the development of the country's economy. The success of insurance companies depends to a large extent on their financial status, that is, financial stability and solvency. The financial condition of an insurance company is characterized by the indicators that describe its ability to develop and successfully operate in a competitive market environment. The stable financial condition of the insurer is a guarantee of development in the conditions of the market economy and an insurance of the stability of the development of the insurance market in the country. The purpose of this research is to assess the financial stability of a non-life insurance company and to analyze the main factors affecting it with the use of computer simulation modelling. The simulation model covers the main processes of the non-life insurance company and is based on the application of financial analysis methods, economic and mathematical methods, and modern simulation technologies. Based on the simulation model, the financial stability of the insurance company is assessed, namely the analysis of the insurance company’s profitability, income, expenses, indicators of profitability; the coefficients of financial stability of the insurance fund and the level of insurance reserves for the analysis of the adequacy of the insurance fund are calculated; the actual and normative solvency margin is calculated for controlling the fulfillment of solvency conditions; the solvency ratio (autonomy) is calculated; the equity ratio is calculated and an analysis of the adequacy of equity is carried out. The developed simulation model can be used to increase the level of planning and analytical reporting, to improve methods of conducting insurance operations, to plan and forecast the activity, and to increase the validity of managerial decisions.

scholarly journals Assessment of the impact of the Covid-19 pandemic on the economic security of Russian oil companies based on IFRS reporting

2021 ◽  
Vol 9 (2) ◽  
pp. 21-25
Author(s):  
Mariya Bulatenko ◽  
Vera Grishina ◽  
Nadezhda Grishina
Keyword(s):  
Financial Stability ◽  
Financial Statements ◽  
Economic Security ◽  
Equity Capital ◽  
Energy Prices ◽  
Oil Companies ◽  
Financial Condition ◽  
Financial Investments ◽  
Crisis Conditions ◽  
The Impact

During the quarantine measures introduced due to the spread of COVID-19, there was a decrease in demand for energy resources, which, while maintaining supply from oil companies, led to a sharp decline in energy prices. As a result, oil industry enterprises are in crisis conditions and now it is important to assess the level of their economic security. In the article, the source of information on the financial results and changes in the financial position of oil companies is their public financial statements prepared in accordance with IFRS. The authors assess the impact of the Covid-19 pandemic on the economic security of PJSC NK Rosneft, PJSC NK Lukoil, PJSC NK Bashneft, PJSC Tatneft, PJSC Gazprom Neft on the basis of a horizontal analysis of financial investments, reserves, equity capital and revenues of oil companies under IFRS for 2019 and 2020. The article provides a calculation and analysis of liquidity and financial stability indicators, as well as an assessment of the likelihood of bankruptcy of enterprises according to three models based on IFRS reporting. The most vulnerable to the consequences of quarantine measures was PJSC NK Rosneft, which is confirmed by the data of an assessment of its financial condition.

scholarly journals THE PROBLEMS OF THE DOMESTIC REINSURANCE DEVELOPMENT IN CONDITIONS OF FINANCIAL INSTABILITY

2021 ◽  
Vol 3 (38) ◽  
pp. 154-161
Author(s):  
O. Stashchuk ◽  
O. Borysyuk ◽  
M. Datsyuk-Tomchuk
Keyword(s):  
Financial Stability ◽  
Rapid Development ◽  
Jel Classification ◽  
Insurance Companies ◽  
Financial Resources ◽  
Financial Instability ◽  
Insurance Company ◽  
Insurance Portfolio ◽  
The Individual ◽  
Insured Event

Abstract. Financial instability stems from the excessive volatility in the financial markets, the weakness of financial institutions and the inability of financial sector companies to fulfill their obligations, and it is no exception to insurance companies that do not have sufficient financial resources to reinsure. In modern conditions, reinsurance provides stability to the development of the insurers and is one of the most important tools that provides effective protection against various natural, man-made and other risks. The lack of financial resources of the insurance companies objectively determines the limitations of their ability to insure large risks. Reinsurance enables the insurance companies, by attracting funds from other insurers, to ensure the honest fulfillment of their obligations to insure payment at the onset of an insured event, while maintaining the stability of their financial situation. Admission to the insurance of expensive objects is dangerous for the individual insurer’s financial stability through the coverage of losses in the insured event. Admission to the insurance of expensive objects is dangerous for the individual insurer’s financial stability through the coverage of losses in the insured event. The need for reinsurance is due, among other things, to regulatory requirements for capital and assets and provides tools for rapid development of the insurance portfolio. Simultaneously reinsurance enables to protect the insurance portfolio from the influence on it of a series of large insurance risks, including catastrophic, so that the payment of insurance compensations on them does not pose a heavy burden on the one insurance company, but is carried out collectively by all participants in reinsurance. As a result, reinsurance allows you to take insurance risks that far outweigh the insurer’s own financial resources. Thus, the reinsurance system is a guarantee of financial stability of any insurance company, providing protection of its capital, and the basis for increasing the volume and quality of insurance services. In Article, the essence and significance of reinsurance in the conditions of globalization of the world economy were considered, as well as analysis of the main tendencies of the domestic reinsurance market development and the problems of its development in Ukraine were revealed. Keywords: insurance, financial instability, volatility, financial market, reinsurance, commission remuneration. JEL Classification E44, G20, G22, O16 Formulas: 0; fig.: 2; tabl.: 4; bibl.: 15.

Sign in / Sign up

Export Citation Format

Share Document