Insurance companies are characterized by the presence of a large number of clients requiring prompt, personalized service at different stages of their interaction. Characteristics of insurance organizations Economic characteristics of the activities of the insurance company
Introduction ................................................ ................................................. ..2
1. Sources of information ............................................... ................................ four
1.1 The concept of the financial condition of the organization ....................................... 4
1.2 Peculiarities of the analysis of the insurance company .............................................. 8
2. Methods of analysis ............................................... ......................................... 29
2.1 Formalized and non-formalized .......................................................... 29
2.2 Ratio methods.................................................................... ...................... 42
Share of reinsurance .............................................................. ............................... 48
Share of claims covered by reinsurance .............................................. 49
3. Practical application of the coefficient method on the example of JSC "RESSO-GANTIA".................................................................... ................................................. ................ 60
3.1 a brief description of insurance company................................... 60
3.2 Main indicators and blocks of analysis.................................................... .... 64
3.3 Bankruptcy analysis .............................................................................. ......... 74
Conclusion................................................. ............................................. 76
List of references .............................................................................. ...... 77
Applications ................................................. ............................................... 80
Introduction
Due to the development of market relations, the analysis of the financial condition of the enterprise's activities is of the greatest relevance. In some cases, its relevance surpasses the analysis economic activity enterprises.
In the general case, the analysis of the financial condition of the enterprise's activities consists in assessing liquidity indicators, financial stability of business activity and profitability. Depending on the specifics of the enterprise's activities, the calculation procedure and the system for evaluating the obtained indicators change.
The object of study of this work is the financial condition of the insurance company. Due to the fact that the insurance market is a relatively new area of activity for the domestic economy, this topic is poorly studied in the economic literature, which is primarily due to the fact that the insurance activity is quite complex in nature, i.e. its implementation requires not only significant financial resources, but also a deep theoretical base, trained personnel and extensive statistical material. At the same time, the development of the insurance services market requires a stable economic system, relatively low inflation rates, sufficiently high incomes of market participants, as well as a legislative framework. As a result, insurance activities have developed at a relatively slow pace compared, for example, with banking or trading activities.
activity.
Based on the behavioral analysis of the literature on this topic, we can conclude that the analysis of the financial condition is considered poorly, while the system of coefficients for assessing the financial condition of an insurance company is based on Western methods of analysis and is poorly applicable to the domestic market, and the domestic system for evaluating indicators has not yet been formed in the strength of a weak statistical base.
The specifics of the analysis of the financial condition of the insurance company follows from the very nature of its activities, because. the activity of the insurance company relates to the functioning of the financial system. At the same time, the very nature of the services provided by insurance companies is associated with risk, i.e. the company initially does not exactly know the terms and final amounts of insurance compensation. Based on what, the main object of the analysis of the financial condition of the insurance company is the analysis of financial stability, solvency and liquidity.
The purpose of this work is to consider the theoretical foundations for assessing the financial condition of an insurance company and applying the theoretical knowledge gained in the analysis of the financial condition of RESSO-Garantia OJSC.
Achieving this goal is implemented in the following tasks:
To consider the specific features of the analysis of the financial condition of an insurance company; - to consider methods for analyzing the main indicators of the financial condition and methods for their assessment; - to apply the obtained theoretical knowledge to the analysis of the financial condition of an insurance company.
The tasks set determine the structure of this work.
1. Sources of information
1.1 The concept of the financial condition of the organization
The financial condition of any enterprise is characterized, first of all, by the composition and placement of the enterprise's funds, the structure of their sources, the rate of capital turnover, the ability of the enterprise to repay its obligations on time and in full, as well as other factors.
So Savitskaya G.V. he interprets the financial condition of an enterprise as follows: “The financial condition of an enterprise is an economic category that reflects the state of capital in the process of circulation and the ability of a business entity to self-develop at a fixed point in time”
The financial condition of the enterprise is the object of financial analysis. Kovalev V.V. interprets financial analysis as part of economic analysis on a par with accounting and analysis of economic activity, the basis for which is economic theory and statistical data (Fig. 1)
Rice. 1Financial analysis and its place in the system of economic analysis
From the point of view of Kovalev V.V. “Financial analysis is a way of accumulating, transforming and using information of a financial nature, with the aim of: assessing the current and prospective financial condition of an enterprise; assess the possible and appropriate pace of development of the enterprise from the standpoint of their financial support; identify available sources of funds and assess the possibility and expediency of their mobilization; predict the position of the enterprise in the capital market.
The main purpose of financial analysis is to obtain a small number of the most informative parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities in settlements with debtors and creditors both at the current time and in the future.
To characterize the financial condition of an enterprise, four levels of indicators are mainly used: profitability, market stability, business activity, solvency.
Depending on the specifics of the enterprise, the composition, structure and evaluation of indicators differ. Since insurance is a special type of economic relations, at its core, an insurance company is a public form of functioning of the insurance fund. As an enterprise, an insurance company is a separate structure that carries out the conclusion of insurance contracts and their maintenance, as well as the formation and distribution of resources.
To characterize the financial condition of an insurance company, the most important indicator is financial stability.
In the economic literature, there is a certain variation in the formulation of the concept of financial stability.
In the most general case, the financial stability of an insurance company is understood as its ability to fulfill its obligations with all its property. [Denisova, 180]
From positions this definition the financial stability of the insurance company is ensured by sufficient and paid authorized capital, insurance reserves adequate to the assumed obligations, as well as by the adopted reinsurance system. The use of the reinsurance system assumes that only those risks remain on the insurer's responsibility, for which he can fulfill obligations, based on his financial capabilities. The criterion of financial stability of the insurer is usually considered to be the sufficiency of insurance reserves and own free funds to fulfill the obligations of the insurer. The most important indicator of the financial stability of the insurer, its reliability, is solvency.
Within the framework of another definition, the financial stability of an insurance company is understood as a constant balancing or excess of income over expenses for the insurance money fund, formed from insurance premiums paid by the insured.
Thus, the concept of the financial stability of an insurance company is not limited to the analysis of the compliance of the funds available to the company with its obligations. An analysis of the financial stability of an insurance company involves a comprehensive study of its activities, which, along with an analysis of solvency, includes an analysis of capital turnover and an analysis of the profitability of its activities.
The financial stability of an insurance company is subject to legislative regulation. In the Law “On the Organization of Insurance Business”, control over the financial condition of insurers is entrusted to the Insurance Supervision Department, which in the current conditions is quite reasonable and justified for many reasons, namely:
The special role of insurance organizations as a market stabilizer and the social nature of insurance services for the population, which gives the task of ensuring the financial stability of an insurance organization a macroeconomic aspect;
There are also legal reasons. The most common are limited liability partnerships and closed joint-stock companies, which are characterized by the limited liability of their participants for their obligations. This leads to the fact that if the insurance organization is unstable, the creditor will receive his funds only if the enterprise has a certain reserve in the form of a paid-in part of the share capital. In this regard, the guarantee of the availability of such a reserve from a joint-stock company (organization) is of fundamental importance and is regulated by law in countries with a developed market. These requirements also apply to insurance companies.
1.2 Features of the analysis of the insurance company
A feature of the analysis of the financial condition of an insurance company is that the insurance company is essentially a financial institution, i.e. the basis of its activity is the distribution of the alleged damage among the participants in insurance relations, by means of creating and distributing the funds of the insurance fund.
At the same time, the concept of insurance service is based on the category of insurance risk, which determines the specifics of the analysis of the financial stability of an insurance company. Insurance risk determines the probabilistic nature of the insurer's obligations, which requires additional specific financial guarantees for their fulfillment.
The obligations associated with the insurance risk should theoretically be fulfilled at the expense of the insurance fund, since the calculation of insurance rates is based on the principle of equality of obligations (the return of funds intended for payments). However, taking into account insurance factors when calculating the tariff, the insurer cannot foresee the influence of market factors with the same accuracy. As a result, in real insurance activities, situations are possible when, even with an impeccable tariff calculation from a technical standpoint, the insurer will need additional funds to fulfill its obligations.
Determining the content of the financial stability of an insurance organization involves and requires a special kind of financial relations, which are expressed in the features of the formation of income, their constant inflow and excess over expenses, as well as their structure and financial result.
The main sources of formation of the financial potential of the insurance company are:
Own capital; - insurance premiums (premiums) of clients; - income from investment activities; - effective use reinsurance systems; - tariff policy
Composition of elements equity(own funds) of the insurer is similar to the equity structure of any enterprise and includes authorized capital, additional capital, reserve capital, retained earnings, earmarked revenues and financing. The main sources of formation of the insurer's own capital are the contributions of the founders, replenishment from the profit from insurance activities and income from investment activities, as well as from the additional issue of shares.
In view of the great social significance of insurance as an institution of financial protection, the requirements for authorized capital as the main structural element of own funds, especially at the initial stage of the work of an insurance company, are quite high. Currently, for insurance companies engaged in other types of insurance than life insurance, the authorized capital must be at least 25,000 minimum wages (minimum wages), for insurance companies engaged in all types of insurance (risk and life insurance), the authorized capital must be at least 35,000 minimum wages, and for companies engaged exclusively in reinsurance activities - at least 50,000 minimum wages.
The solvency of an insurance company is determined by the amount of unobligated reserves. "Free reserves", or "reserve of solvency", it is customary to call the insurer's own funds, which are free from any external obligations. Own funds include authorized capital, a reserve fund formed from profits, and retained earnings, as well as consumption and accumulation funds.
Own funds are formed from two sources: contributions from the founders and profits received as a result of the activities of the insurer. To ensure solvency, the amount of free reserves should be the greater, the greater the volume of operations of the insurance company.
Depending on the nature and dynamics of operations, either the volume of insurance premiums received, or the average amount of insurance payments over a number of years, or the amount of technical reserves (as a rule, in life insurance) is taken as their volume. Free reserves can also be defined as the difference between the insurer's assets and the amount of its liabilities, the bulk of which are insurance reserves.
The current opinion that own funds in general and the authorized capital in particular for an insurance company do not have much significance is incorrect. Indeed, at the initial stage, the insurance company has no other means to fulfill obligations under insurance contracts, except for the authorized capital, since the receipt of insurance premiums at first is extremely insignificant. And the larger the initial capital, the more chances the insurer has to carry out large operations and be able to stand out in the competition. Even if the insurer has been operating on the market for a long time, the role of its authorized capital does not decrease. At any time due to the failure tariff policy or undesirable changes in the structure of contracts, depreciation of assets, the need to expand the range of operations carried out, the insurer may need additional reserves. In this case, he can use free reserves (including authorized capital).
Insurance reserves can be defined as a set of cash funds with a targeted nature, with the help of which the distribution of damage among insurance participants is ensured.
Insurance reserves are intended to ensure that the insurer is able to meet its obligations, which it bears in accordance with the insurance contracts concluded with the insurers. According to the scheme of formation of insurance reserves adopted abroad, each type of obligations that the insurer has is covered by the corresponding type of insurance reserve. In particular, in life insurance, depending on the terms of existing contracts, mathematical reserves, annual annuity reserves, fund reserves and participation reserves are formed; for other types of insurance - premium reserves (reserve of unexpired risks, reserve of increasing risks) and reserves of losses (established but not paid losses, presented but not established losses; unreported losses). The classification of insurance reserves is shown in fig. 2.
Rice. 2Classification of insurance reserves
Given the purpose of insurance reserves, deductions for their replenishment are excluded from the taxable base. The purpose and, accordingly, the procedure for the formation of insurance reserves are different, but the common thing for them is that in the economic sense they are the funds of policyholders, not insurers and are intended for insurance payments in accordance with obligations under insurance contracts that have not been completed as of the reporting date.
In this regard, factors influencing the formation of insurance reserves are of no small importance. As the main factors under the influence of which the system of insurance reserves is formed, the following can be noted: cycle inversion of the insurance company; sustainability of the insurance portfolio; risk structure of the insurance portfolio; organizational structure of the insurance organization; involvement of the insurance company in investment activities; level of development of reinsurance in the market; inflation.
It should be noted that, by their nature, insurance reserves are credit capital. In most cases, they represent payment obligations that exist on the day on which the balance sheet of the insurer is drawn up, while the amount and date of these payments and, often, the legal entities and individuals entitled to receive these payments, may not be known.
Since insurance reserves are accounts payable, their large size, provided that the reserves are adequate to obligations under insurance contracts, will speak of the financial stability of the insurer if there are at least two more conditions: compliance with the volume of own funds; their optimal placement (rational investment policy).
Investment activities for an insurance company, they are not only an additional source of income, but also one of the factors for increasing financial stability.
The possibility of carrying out investment activities of insurance companies follows from the peculiarities of the implementation of insurance services, namely, the concentration of funds temporarily free from obligations by the insurer for a certain period of time, which can be invested in order to generate additional income. At the same time, given the risky nature of insurance services, namely the uncertainty of the occurrence of insured events in time and in terms of insurance payments, the investment activities of insurance companies are regulated by the state.
The purpose of state regulation of the procedure for placing insurance reserves is to minimize the risk of investment policy, bearing in mind the main feature of an insurance organization as an investor - the secondary nature of the investment portfolio in relation to the insurance portfolio.
The investment activity of the insurer, like any other investor, is regulated by the Law "On Investment Activity". Due to the specifics of insurance activities, in addition to the norms of the Law "On Investment Activities", the placement of temporarily free funds by insurers is also regulated by the provisions of the Law of the Russian Federation "On Reinsurance". According to this Law, the placement of insurance reserves should be carried out on the terms of diversification, repayment, profitability and liquidity.
An insurance company independently determines its investment strategy for placing its own funds and insurance reserves. When choosing an investment object, it is necessary to take into account the interdependence of risk and income, that is, to observe the principle of investment diversification. So, you can invest part of the funds in low-yield and low-risk assets, and the other part in high-yield, but with a high degree of risk. As a result, the investment risk will be distributed among various types of investments, which will ensure the financial stability of the insurer's investment portfolio.
It should be noted that the correct placement of investment resources is, first of all, an opportunity for an insurance organization to maintain the real value of the attracted funds of insurers. In addition, the presence of effective investment activity allows you to use significant amounts of reserves to your advantage, bringing a significant income to the company. And as a result, the insurer gets the opportunity to provide insurance services to customers at a lower price, which results in an improvement in the relationship of the insurance company with its customers, an increase in the portfolio of contracts voluntary insurance and growth of insurers' confidence in the insurance company with which compulsory insurance contracts are concluded. Hence, a successful investment policy not only ensures the stability of the insurer's activities, but also helps to increase its financial stability in the market.
Reinsurance It is also a necessary condition for ensuring the financial stability of insurance operations and the normal operation of any insurance company.
Reinsurance is a secondary distribution of risk, a system of economic relations, in accordance with which the insurer, taking risks for insurance, transfers part of the responsibility for them, based on their financial capabilities, on agreed terms to other insurers.
The purpose of reinsurance is, first of all, to establish a homogeneous insurance portfolio by dividing and leveling risks. Of course, this goal can be achieved by a simpler method - by rejecting unwanted risks, but such a policy is unprofitable from the position of the company's competitiveness in the market.
Reinsurance has a decisive influence on ensuring the financial stability of the insurer.
Firstly, in each individual type of insurance there are a large number of major risks that the insurer cannot take on entirely. The insurance company will better protect itself in the event of particularly large risks, reduce the level of liability in comparison with the obligations assumed.
Secondly, the financial stability of the insurer is threatened not only by large risks, but also by the mass offensive of small claims. The conclusion of a reinsurance contract in the event of a catastrophic insured event allows the insurer to avoid extraordinary losses. Through reinsurance, catastrophic risks are reduced to a level that is safe for the company.
Thirdly, with the help of reinsurance it is possible to equalize fluctuations in the results of the insurer's activities over a number of years. The performance of an insurance company in one year may be adversely affected either by significant losses from a large number of insurance payments caused by the occurrence of one insured event, or by very poor results for the entire insurance portfolio during the year. Reinsurance evens out such fluctuations. Thus, stability of the company's performance over a number of years is achieved, and this is extremely important for ensuring the financial stability of the insurer.
Thanks to reinsurance, the insurer is able to take on insurance more risks, while the more contracts the insurance company concludes, the more balanced its portfolio becomes and the less fluctuations in claims for insurance payments made to it. Reinsurance allows the insurer to expand the list of risks accepted for insurance, to cover a larger number of types of insurance, and makes it possible to protect their assets. Reinsurance allows the insurer to insure risks that, by their value or degree of risk, significantly exceed its financial resources.
When considering reinsurance, an insurance company should proceed from the assumption that reinsurance should be cost-effective in terms of achieving the goal, taking into account the cost of reinsurance. Moreover, the cost of reinsurance means not only the insurance premium due to the reinsurer, but also the costs of doing business in connection with the execution of the reinsurance contract.
In reinsurance, the most important and complex issue is the amount of the maximum own deduction, that is, the maximum liability that the insurer can retain. Transferring too much of the risk to reinsurance may be unprofitable, since the insurer pays too much of the insurance premiums collected by him. On the other hand, excessive liability left on one's own deduction may undermine the financial stability of the insurer. Actuaries are responsible for determining the amount of the insurer's own retention, using mathematical and statistical methods analysis. Based on the results of their work, tables of the company's maximum own retention for various types of insurance are compiled, which reduces the costs of the insurer with a huge number of insured risks. Large and single risks are subject to a more thorough analysis than medium and small risks that are of a massive nature.
A deep analysis of risks using actuarial calculations, as well as the timely transfer of an excessive share of responsibility by a reliable reinsurer, make it possible to achieve stable positive results of the company's activities, which determines the successful policy of the insurer in the field of reinsurance.
Insurance rate- the price of insurance protection provided by the insurer to the insured.
When determining the value of insurance rates, the insurance company focuses on the following pricing methods:
The attitude of the insured to the insurance service;
Competition;
The cost of insurance services.
In the first approach, the price of an insurance service is set depending on its value and purchasing needs. The second approach is characterized by the methodology of setting the price of insurance services based on competitors' prices without taking into account their own costs of doing insurance business.
The cost-based approach provides for several options in determining the price of an insurance service:
The price of an insurance service is set as the sum of the net rate and load, which includes the costs of doing insurance business and a guaranteed level of profit; - the price of an insurance service is set with a given guarantee of the probability of covering the insurer's expenses for the provision and promotion of insurance services.
The burden includes profit, business expenses, deductions for preventive measures. The load is necessary to finance the insurer's expenses associated with the formation and use of the insurance fund. Under the costs of doing business are understood the administrative and management costs of the insurer, the costs associated with the conclusion and maintenance of the insurance contract. Deductions for preventive measures are used to manage risks: for example, by transferring the appropriate part of the insurance tariff to specialized organizations, expenses for the prevention of fires and traffic accidents can be financed, thereby reducing or eliminating risks.
Net rate - often the main insurance rate, serves to form an insurance fund intended for insurance payments by the insured. It is of the utmost importance when calculating the tariff rate. It is its correct definition that guarantees the financial stability of the insurer. At the same time, the calculation of the net rate is the most difficult moment in determining the tariff. The amount of the load is determined as a percentage of the gross rate and, as a rule, is set at the same level for all types of insurance.
The size of the net rate is determined based on the required amount of the insurance fund. The calculation procedure of which can be presented in the following order:
1) The insurance company forms an insurance portfolio consisting of a large number of insurance contracts. At the same time, insurance premiums under the concluded contracts in accordance with the rules of insurance may be paid at the beginning or during the validity of the insurance contract.
2) The amount of payment under each insurance contract is a random variable, since an insured event occurs with a certain degree of probability. At the same time, it is assumed that under one contract one or more payments of insurance compensation are possible. If an insured event occurs, then the amount of loss can take on any value (from the minimum to the maximum).
3) The amount of payments for the entire portfolio of contracts is equal to the amount of payments for contracts under which an insured event occurred. It is assumed that compensation for damages on claims is made during the validity of the insurance contract, i.e. analyzed for a relatively short period of time.
4) The insurer sets himself a guaranteed level of insurance operations security, which is the probability with which he wants to be sure that the collected net premiums will be enough for all payments.
5) In accordance with the accepted degree of security according to the law of distribution of the amount of losses, the insurer can find the amount of payments, which with a given probability will not exceed the given amount of insurance premiums. In this amount, it is necessary to form an insurance fund.
6) Based on the required size of the insurance fund, the value of the net rate that ensures its creation is determined.
Actuarial calculations are used to calculate tariffs for any type of insurance. Actuarial calculations are a process in which the costs of providing insurance protection are determined, that is, the cost and cost of the service provided by the insurer to the insured are determined. In a more generalized form, actuarial calculations can be represented as a system of mathematical and statistical laws governing the relationship between the insurer and the insured.
Issues of building insurance tariffs occupy a central place in the activities of any insurer. Their significance is determined by the fact that the insurer, as a rule, cites a number of types of insurance that are different in content and nature, requiring an adequate mathematical measurement of the obligations assumed under the contracts.
The accuracy and sufficiency of the initial information is designed to ensure the fair formation of the insurance premium.
An incorrect calculation of the tariff rate leads to a decrease in the financial stability of the insurer, since, on the one hand, an overestimation of the insurance tariff leads to a decrease in the company's competitiveness, a narrowing of the insurance field, and, as a result, to a fall in the collected insurance premium, on the other hand, the use by the insurer of less than the tariff rate derived by the actuaries leads to an unreasonable underestimation of risk, the formation of insufficient insurance reserves, and, as a result, to the possible insolvency of the insurer.
Considering the tariff policy, I would like to note the problems that Russian insurers face in modern conditions.
When introducing a new type of insurance, any insurance company faces the problem of determining the net rate. This is due either to the complete absence of statistical data, or to their unreliability. For the correct calculation of the tariff, you can use the data of various kinds of statistical observations not related to the conduct of insurance activities, as well as expert assessments.
Insurance companies face a similar problem when accepting for insurance rare, unique objects (spacecraft, air and sea vessels, etc.), and also, due to the peculiarities of the industrial development of Russia, any large industrial enterprise. Here, moreover, when calculating tariffs, it is impossible to use existing methods, since they are based on the law of large numbers.
In the traditional sense, the smaller the number of objects accepted for insurance, the higher the tariff rate should be. But in market conditions, this approach is unacceptable. For any policyholder, the amount of payment for an insurance service should depend only on the real value of the market, and not on the number of similar insurance contracts in the portfolio of a company.
In modern conditions, when insurance is carried out by various insurance organizations, the size of the tariff rate becomes one of the elements of competition, which constantly encourages insurers to reduce tariffs, which is justified from the point of view of attracting customers, but unreasonable from the position of the company's financial stability. True, if the insurer carries out single transactions for any type of insurance, the size of the insurance tariff is not so important in terms of influencing the competitiveness of the insurance company. However, here, in order to ensure financial stability, the tariff must take into account the current level of unprofitability in the market, so that the easily accepted risk can be transferred to reinsurance.
Thus, the optimization of the insurer's tariff policy is very important in terms of ensuring its financial stability. The prosperity of the insurance business is largely determined by the quality of actuarial calculations that regulate financial relationships between insurance entities. Incorrect calculation of tariff rates causes a decrease in the financial stability of the insurance company. In order to optimize the tariff policy, the insurer needs to use mathematical and statistical tools to develop algorithms for the formation and movement of the portfolio that provide sufficient protection for the insurance company from the risk of bankruptcy.
Thus, one of the most important conditions for organizing the insurance business is to control the financial stability of insurers. The financial stability of an insurance company is ensured by: the size of the paid authorized capital of the insurance company; the size of insurance reserves; optimal portfolio of placement of insurance reserves; reinsurance system; reasonableness of insurance rates and other factors. The amount of insurance reserves should fully cover the amount of forthcoming payments under existing contracts. The amount of forthcoming payments is determined on the basis of a thorough analysis of the insurer's operations and labor-intensive mathematical calculations. The more accurately these calculations are carried out, the more correctly the amount of insurance reserves will correspond to future payments for insured events.
The overall performance of the insurance company is characterized by indicators of financial results. The financial performance of an insurance company is evaluated based on an analysis of its financial results. The financial result from the activities of an insurance company consists of three elements: the financial result from insurance operations, the financial result from investment activities and the financial result from other activities.
The final financial result of the company's activities is the balance sheet profit or loss. Profit is one of the most important indicators of the financial result of the insurance company. It serves as the main source of increasing the company's own capital, fulfilling obligations to the budget, creditors, and paying dividends to investors.
The financial result of the insurance organization is the result of the financial and economic activities of the insurer, calculated as the difference between the income and expenses of the insurance organization for a certain period of time; the algorithm for calculating taxable income is shown in fig. 3
Insurer's revenue | Other income from insurance activities | Income from other activities |
|||||
Insurer's income |
|||||||
Costs included in the cost of insurance services |
|||||||
Reimbursement of payments under reinsurance contracts | Expenses for lease of fixed assets | ||||||
The financial result of the insurer |
|||||||
Contributions to reserve funds | Equity income | Income from securities | Income Tax Benefits |
||||
Tax base for paying income tax |
|||||||
Rice. 3Income structure of an insurance organization
In insurance, profit is considered not only as a real financial result. The so-called normative profit is also distinguished, it is it that is included in the price of the insurance service when calculating the tariff. The normative profit of an insurance operation is the profit received from an insurance operation and incorporated into the structure of the gross premium.
The discrepancy between the values of standard profit is explained by the influence of many factors, and above all, the probabilistic nature of the occurrence of insured events.
The income of an insurance organization is the total amount of cash receipts to its accounts as a result of carrying out insurance and other activities not prohibited by law. On the basis of "source of income" all the income of the insurer "are divided into three groups: income from insurance operations; income from investment activities; other income not directly related to insurance operations.
Income from insurance operations | ||||||||||||
Compensation for the share of losses on risks ceded to reinsurance | Insurance premiums | Commissions and Brokerage Fees |
||||||||||
Direct insurance premiums | Coinsurance insurance premiums | Reinsurance premiums |
||||||||||
Rice. 4Income structure of an insurance organization
Income from insurance operations is generated from incoming insurance premiums (they provide the largest share of income from insurance operations), compensation for the share of losses on risks transferred to reinsurance, as well as from commissions and brokerage fees when the insurer acts as an intermediary of insurance services (Fig. four).
Income from the investment activities of the insurer is formed by investing insurance reserves and own free funds. At the same time, it should be noted that the investment activity of the insurer is subordinate in relation to insurance operations. Investments must be made in the amount, in terms and in space, which are consistent with the accepted insurance obligations. They should provide the insurer with income, the main areas of use of which include:
Fulfillment of obligations to provide investment income to beneficiaries under long-term life insurance contracts, including for the payment of bonuses on profit-sharing policies; - covering the missing insurance reserves; - using part of the investment income at the sole discretion of the insurer, for example, for development.
Other income of the insurer is associated with both insurance and non-insurance activities. Other income related to insurance activities include:
Amounts of interest accrued to premium deposit accounts; in the event that the insurer, acting as the reinsurer, deposits part or all of the reinsurance premium, this deposited part of the reinsurance premium is considered as a source of income; they compensate for the costs of insurance payments, therefore they are considered as a source of other income; - income from the sale of fixed assets, material assets and other assets; - income from the lease of the insurer's property; - the amount of the return of insurance reserves, reducing the amount of insurance reserves as a result of their recalculation - payment by consumers for consulting services, training provided by the insurer.
Expenses of an insurance company are the costs incurred by an insurance company in carrying out its statutory activities. All expenses of the insurer can be classified according to different criteria:
relation to the main activity, i.e. attitude to insurance operations - on this basis, all expenses can be divided into two large groups - those associated with the implementation of insurance operations and not directly related to insurance activities;
special purpose - on this basis, they distinguish between expenses caused, for example, by preparing and concluding a contract (costs for developing new conditions, attracting new customers, assessing risks, etc.), maintaining a contract (costs for forming, maintaining insurance reserves, making insurance payments , reinsurance and investment), administrative and economic activities (for example, administrative expenses, rent), etc.
implementation time - On this basis, all costs associated with the conduct of insurance operations are divided into three groups:
1) carried out before the conclusion of the insurance contract;
2) taking place in the process of maintaining the contract, including when concluding it;
3) arising from the occurrence of an insured event or either at the end of the contract or after the expiration of the insurance period.
By sign "implementation time" expenses can also be divided into one-time and current.
In table. 1 shows the classification of the insurer's expenses according to the listed features.
Table 1
Classification of expenses of an insurance company
Type of business expenses | Types of expenses |
||
in relation to the main activity | by target appointment | by time implementation |
|
The insurer's expenses form the cost of insurance services, which is taken into account when determining the financial result and the tax base. Attribution of costs to the prime cost of insurance services is regulated by general and sectoral regulations.
The specifics of the insurance business necessitates consideration of the planned and actual cost.
Under the planned (estimated) understand the cost of insurance services, laid down in the insurance rate and presented in the form of its structural elements - net premiums and load.
The actual cost is understood to mean the cost that actually develops as a result of the passage of insurance contracts, depending on the actual unprofitability of the insurance amount, savings or overspending for administrative and economic purposes, including the remuneration of employees, etc. The composition of costs attributable to the cost price is also specifically specified to determine the taxable base
In world practice, there is a whole system of indicators and published ratings of insurance companies to assess the financial stability of an insurance company. There have long been specialized rating agencies abroad that regularly publish ratings of insurance companies and analytical reviews of their activities. The world-famous rating agencies in the USA are Standard & Poor's, Moody's Investors, Fitch Investors, Duff & Phelps, which many insurers and investors turn to to obtain qualified information about the activities of an insurer or reinsurer.
For example, Standard & Poor's (S&P) assigns the following financial strength ratings:
AAA - the highest (the highest degree of reliability);
AA+, AA, AA - high (excellent degree of reliability);
A+, A, A - good (good degree of reliability);
ВВВ+, ВВВ, ВВВ-sufficient (sufficient degree of reliability, but financial opportunities are more vulnerable);
BB+, BB, BB-less sufficient (financial capacity may not be sufficient to fulfill obligations under long-term policies);
B+, B, B-insufficient (the financial position of the insurer is very unstable);
CCC+, CCC, CCC-vulnerable (the financial position of the insurer is very vulnerable);
D - liquidation (insurers that received this rating are in the process of liquidation).
To assign a rating to a company, a large number of financial indicators are analyzed. The management experience of the management, marketing strategy, the company's policy for the sale of policies, the company's risk-taking and reinsurance policy, the organizational and management structure, including the analysis of parent and subsidiaries, the company's investment policy, and much more are also studied. To assign the appropriate rating, more than 20 different indicators are calculated.
2. Methods of analysis
2.1Formalized and non-formalized
As practice shows, the financial stability of an insurance organization is a matter of its survival, since in today's unstable market conditions, bankruptcy can act as a likely result of the economic and financial activities of the insurer. Under these conditions, the role and importance of the analysis of the financial condition of insurance organizations and, above all, that part of it, which is based on the data of the balance sheet and income statement, increases significantly.
Such an analysis is of great interest to policyholders, to commercial partners of an insurance organization, to banks whose clients are insurance organizations, as well as to self-assessment of insurance organizations themselves and analysis of their subsidiaries and branches.
In the course of the analysis, to characterize various aspects of the financial condition, both absolute indicators and financial ratios are used, which are relative indicators of the financial condition, as well as their basic and chain growth and growth rates. Financial ratios are calculated by means of ratios of absolute indicators of financial condition or their linear combinations. Relative indicators of financial condition are divided into distribution coefficients and coordination coefficients.
Distribution coefficients are used in cases where it is required to determine what part of one or another absolute indicator of financial condition is from the total of the group of absolute indicators that includes it. Distribution coefficients and their changes play an important role in the analysis of the financial condition in the sections: "Structure of assets", "Structure of liabilities", "Sources of working capital". With the help of distribution coefficients, a structural (or vertical) analysis is carried out.
The coefficients of coordination are used to express the ratios of essentially different absolute indicators of the financial condition or their linear combinations that have different economic meanings. With the help of the coordination coefficients, an analysis of their changes in dynamics (or a horizontal analysis) is carried out, and the basic and chain growth rates and growth of the analyzed indicators are calculated.
The analysis of financial ratios consists in comparing their values with basic values (trend analysis), as well as in studying their dynamics for a number of years, quarters or months in a given year, for a period from date to date, both on an accrual basis and for a specific period in separately.
Financial ratios are formalized indicators of financial stability, which form the basis of the coefficient analysis method.
The system of financial indicators in terms of the effectiveness of assessing the financial condition of the enterprise must meet the following requirements:
1. financial indicators should be as informative as possible and give a complete picture of the stability of the financial condition of the enterprise;
2. in the economic sense, financial indicators should have the same direction (positive correlation, i.e. an increase in the coefficient means an improvement in the financial condition);
3. for all indicators, numerical standards for the minimum satisfactory level or ranges of changes must be indicated;
4. financial indicators should be calculated only according to public information financial statements enterprises;
5. Financial indicators should make it possible to assess the enterprise both in space (ie in comparison with other enterprises) and in time (for a number of periods).
Formalized indicators include indicators of solvency, turnover, liquidity, profitability. The calculation procedure and the system for evaluating these indicators will be discussed in paragraph 2 of this chapter.
Non-formalized methods of analysis include the following indicators:
The number of developed types of insurance. This indicator characterizes the degree of coverage of various industries and types of insurance.
Number of concluded insurance contracts. It characterizes the insurance portfolio and the degree of coverage of the insurance field. The higher this figure, the more reason to believe that the insurance company occupies a worthy place in the insurance market.
The total sum insured. It is calculated as the total amount for all contracts or as an average value. Characterizes the liability assumed by the insurer for risks.
Volume of insurance premiums. It reflects the size of the current financial resources of the insurer, as well as the level of obligations assumed. It is analyzed in dynamics, for individual types of insurance and in general, on average for one contract.
Total payments. They reflect the volume of fulfilled obligations, are analyzed in dynamics, by individual types of insurance and in general, by individual divisions.
Volumes of income and expenses. They characterize the financial results of the insurer, are analyzed in dynamics and by factors.
Volume of insurance reserves. It is analyzed in dynamics, according to the composition and structure of responsibility.
Payout Level by type of insurance. Calculated by comparing actual payments to collected insurance premiums.
The sources of information for analysis are the balance sheet of the insurance organization and the report on its financial results.
The starting point for the analysis of the financial condition is the construction of a comparative analytical balance, where asset items are grouped on the basis of liquidity, and liability items - on the maturity of obligations.
The need for such a transformation is caused by the presence in the balance sheet of some regulatory items that distort the actual balance sheet currency, working capital, liabilities, sources of equity capital, and, consequently, the real value of assets and liabilities owned and managed by the insurance company.
Analyzing the data of the items of the analytical net balance, you can, first of all, establish what changes have occurred in the composition of funds and their sources, the main groups of these funds, as well as get answers to a number of questions that are of particular importance for the purposes of operational management of the insurance company:
In what direction and how much have individual net balance sheet items changed and what assessment do these changes deserve; - is it necessary to conduct a more in-depth analysis and in what period based on primary accounting data (internal analysis); - note the bottlenecks in providing the insurance organization with financial resources and their use.
Having established the final result of changes in the analytical net balance, it is determined for which groups and articles the greatest changes occurred. In this case, you can be guided by the following approximate table of balance changes (see table 2).
table 2
Table of balance changes
Increase in analytical balance - net |
|
Decrease in analytical net balance |
|
Structural (vertical) analysis of the capital of an insurance organization allows to analyze absolute and relative changes, including basic and chain growth and growth rates, for the period under study or in dynamics for a number of periods, both of the entire capital as a whole and its constituent parts.
Analytical net balance allows you to proceed to the analysis of the "Structure of assets" of the insurance company. The distribution indicators and coefficients give a general assessment of the assets at the disposal of the insurance organization, and also allow distinguishing two main groups of funds as part of the assets: working (mobile) and non-working (immobilized) capital.
Considering the dynamics of the indicators of this section, it can be noted, due to which the non-current and working capital increased or decreased, what is their share in the assets of the insurance company, as well as the share of each of the subgroups that make up these groups of funds, in percent.
To build a net balance, all assets of an insurance organization are grouped into two main groups: non-working capital; working capital.
Non-current capital includes two subgroups: intangible assets, fixed capital and construction in progress; long-term financial investments.
Working capital is divided into four subgroups: materials and costs; accounts receivable; short-term financial investments; cash.
Table 3
Net assets
Table 3 continued
The analysis of the sources of formation of the funds of the insurance organization is carried out according to the liabilities of the net balance, the articles of which are grouped in the corresponding analytical table - "The structure of liabilities". In this table, as part of liabilities, three main groups of sources of the insurer's funds are distinguished: equity; insurance reserves; obligations.
Equity is divided into two sub-groups: paid-in share capital, funds and retained earnings; organization's reserves and deferred income.
Insurance reserves are grouped into one subgroup: insurance reserves.
Liabilities of an insurance company are divided into three subgroups: long-term liabilities; short-term credits and loans; others Short-term liabilities.
Table 4
Balance sheet liability-net
Table 4 continued
Such a grouping allows us to conclude through which sources (own, borrowed or borrowed) the inflow of financial resources was mainly. Data on the share of a particular source of funds in the composition of all liabilities are also calculated in the analytical table.
Based on the values of these indicators, one can judge the structural changes in both the entire volume of liabilities and its constituent parts: own, borrowed and borrowed capital, the ratio of which reveals the essence of the financial position of insurance organizations.
Profit and loss statement is formed on the basis of the data of the "Report on the financial results of the insurance organization" (form No. 2 - insurer). Analysis of the income statement data is carried out in dynamics according to the results for each time period separately.
The profit and loss statement is structured in such a way that it is possible to compare: income received from insurance activities with expenses incurred by the insurance organization for insurance activities; result from insurance activities with results from investment and other activities; all income and all expenses. as well as an increase or decrease in insurance reserves, etc.
The most common indicator that makes it possible to judge the financial position of an insurer is the solvency margin, calculated according to the methodology of the European Economic Community. Since 2002, it has also been used in the Russian Federation.
The solvency margin can be attributed to synthetic indicators that summarize a number of aspects of the insurer's activities (volume of own funds, the amount of insurance premiums and insurance payments, the degree of participation of reinsurers in the insurance portfolio, the amount of life insurance reserves). However, this indicator is not comprehensive, since it does not take into account many aspects of the insurer's activity (the level of payments for insurance operations for the current period, the amount of risk per insured, the adequacy of insurance reserves, the liquidity of assets, etc.). Therefore, this indicator is used along with other indicators.
The actual solvency margin of the insurer is calculated as
amount: authorized (share) capital; additional capital; reserve capital; retained earnings of the reporting year and previous years;
minus amounts: uncovered losses of the reporting year and previous years; debts of shareholders (participants) on contributions to the authorized (share) capital; own shares repurchased from shareholders; intangible assets; receivables that have expired.
The normative solvency margin of a life insurer is equal to the product of 5 percent of the life insurance reserve and the adjustment factor.
The adjustment factor is defined as the ratio of the life insurance reserve minus the share of reinsurers in the life insurance reserve to the value of the specified reserve.
If the correction factor is less than 0.85, it is assumed to be 0.85 for calculation purposes.
The standard size of the solvency margin of an insurer for insurance other than life insurance is calculated on the basis of data on insurance premiums (contributions) and insurance payments under insurance contracts (main contracts), co-insurance and contracts accepted for reinsurance, related to insurance other than life insurance (hereinafter referred to as contracts of insurance, co-insurance and contracts accepted for reinsurance).
The normative size of the insurer's solvency margin for insurance other than life insurance is equal to the largest of the following two indicators, multiplied by the adjustment factor.
The first indicator is an indicator calculated on the basis of insurance premiums (contributions). The calculation period for calculating this indicator is the year (12 months) preceding the reporting date.
The first indicator is equal to 16 percent of the amount of insurance premiums (contributions) accrued under insurance contracts, co-insurance contracts and contracts accepted for reinsurance for the billing period, reduced by the amount:
insurance premiums (contributions) returned to policyholders (reinsurers) in connection with the termination (change of conditions) of insurance contracts, coinsurance and contracts accepted for reinsurance for the billing period;
deductions from insurance premiums (contributions) under insurance contracts, co-insurance to the reserve of preventive measures for the billing period;
other deductions from insurance premiums (contributions) under insurance contracts, co-insurance in cases provided for by the current legislation, for the billing period.
An insurer who, from the moment of receipt for the first time in in due course licenses for insurance other than life insurance, less than a year (12 months) has passed before the reporting date, the period from the date of obtaining a license to the reporting date is used as the calculation period when calculating the first indicator.
The second indicator is an indicator calculated on the basis of insurance payments. The calculation period for calculating this indicator is 3 years (36 months) preceding the reporting date.
The second indicator is equal to 23 percent of one third of the amount: insurance payments actually made under insurance contracts, co-insurance and accrued under contracts accepted for reinsurance, minus the amounts of income related to the realization of the right of claim transferred to the insurer, which the insured (insured, beneficiary) has to the person responsible for the losses compensated as a result of insurance for the billing period; changes in the reserve for reported but not settled losses and the reserve for incurred but not reported losses under insurance, co-insurance contracts and contracts accepted for reinsurance for the billing period.
An insurer that has less than 3 years (36 months) passed from the date of receipt in accordance with the established procedure of a license for insurance other than life insurance until the reporting date does not calculate the second indicator.
The calculation period for calculating the adjustment factor is the year (12 months) preceding the reporting date.
The correction factor is defined as the ratio of the sum:
insurance payments actually made under contracts of insurance, co-insurance and accrued under contracts accepted for reinsurance, minus the accrued share of reinsurers in insurance payments for the billing period;
changes in the reserve for reported but not settled losses and the reserve for incurred but not reported losses under insurance, co-insurance contracts and contracts accepted for reinsurance, minus changes in the share of reinsurers in these reserves for the billing period;
to the amount (not excluding the share of reinsurers):
insurance payments actually made under insurance, co-insurance contracts and accrued under contracts accepted for reinsurance for the billing period;
changes in the reserve for reported but not settled losses and the reserve for incurred but not reported losses under insurance, co-insurance contracts and contracts accepted for reinsurance for the billing period.
In the absence of insurance payments under insurance contracts, co-insurance contracts and contracts accepted for reinsurance in the billing period, the adjustment coefficient is taken equal to 1.
If the correction factor is less than 0.5, then for calculation purposes it is taken equal to 0.5, if more than 1 - equal to 1.
An insurer that has less than a year (12 months) elapsed from the date of receipt in accordance with the established procedure of a license for insurance other than life insurance until the reporting date, uses the period from the date of receipt of the license to the reporting date as the calculation period when calculating the adjustment factor.
The normative solvency margin of an insurer providing life insurance and insurance other than life insurance is determined by adding the normative solvency margin for life insurance and the normative solvency margin for insurance other than life insurance.
If the standard size of the solvency margin of the insurer is less than the minimum amount of the authorized (reserve) capital established by Article 25 of the Law of the Russian Federation "On the organization of the insurance business in the Russian Federation", then the legally established minimum amount of the authorized (reserve) capital is taken as the standard size of the solvency margin of the insurer.
But even an acceptable value of the actual solvency margin does not guarantee the solvency of the insurance company, since when calculating this indicator, only the insurance obligations of the insurer are taken into account, while other obligations reach a significant amount for individual insurers.
2.2Ratio methods
Ratio methods for analyzing the financial condition of an insurance company are mainly used in the analysis of financial stability.
As noted, the financial stability of the insurer is the ability to fulfill the obligations assumed under insurance contracts in case of any change in the economic situation.
The basis of the financial stability of insurers is the presence of their paid authorized capital and insurance reserves, as well as the reinsurance system.
To assess the financial situation, use a number of methods of financial analysis. Usually, four criteria for assessing financial stability are used for this: liquidity (solvency), profitability (profitability), business activity, turnover of financial resources.
Liquidity ratios.
GENERAL BALANCE LIQUIDITY is the most general indicator of solvency, reflecting the sufficiency of working capital of an insurance organization, which can be used by it to pay off its short-term obligations, including in the event of insured events.
The recommended value of this coefficient should be more than 1.0. This lower limit is due to the fact that working capital should be at least sufficient to pay off short-term liabilities and to ensure the payment of insurance indemnities and insurance amounts in the amount of insurance reserves, otherwise the insurance organization may be insolvent in the analyzed period of time with the consequences arising from this situation.
CURRENT LIQUIDITY is the most important indicator of the solvency of an insurance company. But, unlike the indicator of the overall liquidity of the balance sheet, it is "cleared" in the numerator from long-term receivables and shows the current liquidity of the insurer's balance sheet.
The recommended criterion values of the coefficient should be in the range of 1.0–1.3. These values show that the value of the working capital of an insurance organization should be sufficient to cover its short-term liabilities and pay out insurance indemnities and sums insured in the amount of insurance reserves.
The specified values of the coefficient may vary depending on the characteristics of the insurance company: the amount of capital, the volume of services provided, the types of services provided.
It is only necessary to note one regularity - the larger the amount of insurance reserves an insurance organization has and the more funds it invests in long-term financial investments, the closer the numerical value of the current liquidity ratio of the balance sheet will be to one. Therefore, insurance companies with a risky insurance portfolio should be subject to more stringent requirements in terms of liquidity.
"CRITICAL" LIQUIDITY RATIO is one of the most used ratios in the practice of analyzing the liquidity of an insurer's balance sheet.
As part of working capital, not all assets have the same liquidity. Many analysts prefer this ratio to other balance sheet liquidity indicators because the numerator grouped the most liquid items, in contrast to the less liquid items of the analytical net balance, which are part of the working capital of the insurance company. This preference is explained by the fact that the conversion into cash equivalent of such working capital as materials and costs, other current assets, as well as early collection of long-term debt from debtors, is uncharacteristic for an insurance organization and can only mean far from the best times for it.
LIQUIDITY OF CASH RESERVES (in world practice - the "rule of cash reserves") is one of the most important indicators of the solvency of an insurance company.
The most liquid assets include cash and negotiable securities. Therefore, specialists who analyze the financial condition of insurance organizations calculate the "cash reserve ratio" through the ratio, where the numerator is the amount of cash and short-term financial investments, and the denominator is the sum of short-term liabilities and insurance reserves.
This coefficient in comparison with the "critical" liquidity ratio allows to identify the impact of short-term receivables on the liquidity of the balance sheet of an insurance company.
TERM LIQUIDITY is a particular version of the "liquidity of cash reserves" ratio. But, unlike the liquidity of cash reserves, it is "cleared" from the amount of insurance reserves in the denominator and reflects the "internal" fixed-term liquidity of the insurer's balance sheet.
This ratio shows the ability of the insurance company to repay its short-term debt in the near future. The numerator indicates the amount of cash and short-term financial investments (the latter in the sense that they can be quickly and easily converted into money), and the denominator indicates the amount of short-term liabilities.
The recommended coefficient value is more than 1.0. However, in today's realities of the Russian economy, the values of the coefficient exceed the recommended one by 10 or more times due to the fact that insurers are forced to refuse long term investment and engage mainly in short-term financial investments.
ABSOLUTE LIQUIDITY - a ratio that reveals the ratio of the most liquid part of working capital - cash to current (short-term) liabilities.
Among all the funds that make up the working capital of an insurance organization, cash has the greatest liquidity, that is, the possibility of converting into cash. But since money does not need to turn into itself, it is said to have absolute liquidity.
Using this ratio, you can determine what share of short-term liabilities is able to cover (repay) the most liquid part of working capital in the shortest possible time.
The values of the coefficient are recognized as sufficient at the level of 0.5-1.0.
In all liquidity indicators, more important are lower limits recommended indicators. The upper recommended values of the indicators are necessary for the current regulation of the values, based on the current practice of market economic conditions, inflationary processes, as well as the volumes, conditions and types of insurance conducted by the insurance company.
Coefficients of financial stability.
The amount of own funds
The amount of own funds should be at the level of the actual size of the solvency margin.
LEVEL OF OWN CAPITAL - reflects the financial structure of the funds of the insurance organization and shows how the assets of the insurer are secured with equity. Analysts and creditors prefer the stability of this ratio and maintaining its values at a sufficiently high level.
Calculated through the ratio of equity capital to the net balance sheet total. The normal value of this coefficient, which ensures a fairly stable position of the insurance organization in the eyes of policyholders, banks, commercial partners, is considered to be 20% (0.2) or more.
LEVEL OF INSURANCE RESERVES - is one of the most important coefficients of financial stability, shows the share of insurance reserves in the capital of an insurance organization.
It is fundamentally important to have a numerical value of this coefficient greater than 1.0. The higher the value of the coefficient, the higher the degree of solvency of the insurer in terms of repayment of its obligations that are not related to the insurance protection of customers.
RATIO OF THE AMOUNT OF INSURANCE PREMIUMS AND INSURANCE RESERVES - shows the dependence of the growth or decrease in the size of the insurance fund (insurance reserves) directly on insurance activities (the amount of insurance premiums)
An increase in the numerical value of the coefficient with an increase in the volume of insurance reserves reflects a trend towards an increase in the confidence of policyholders in the insurer. It is of undoubted interest for analysis to compare changes in the values of growth rates and the increase in the coefficient as a whole with changes in the values of the numerator and denominator.
RATIO OF CURRENT AND NON-CURRENT CAPITAL - shows the change in the capital structure of the insurer in the context of its two main groups. The values of this indicator differ significantly depending on the period of activity of insurance organizations in the insurance services market and on the economic situation in the economy of the country and in the region. In general, with the improvement of the economic situation in steadily developing insurance companies, the numerical value of the coefficient should decrease.
Significant fluctuations in the value of the coefficient require a more detailed study of the financial situation that caused these changes. LEVEL OF INVESTED CAPITAL - shows the share of the assets of the insurance organization directed to long-term and short-term investments. Fluctuations in the dynamics of the numerical values of the coefficient can be used to judge the changes and investment policy of the analyzed insurance company.
Depending on the long-term economic strategy of the insurer, aimed at improving financial stability and increasing the liquidity of assets, the coefficient values may increase or decrease, but it must be taken into account that with the expansion of insurance activities, the coefficient values always increase.
LEVEL OF PERMANENT CAPITAL - reflects the share of all long-term capital in the assets of the insurance company.
The given ratio shows the financial capabilities and reliability of the insurance organization in the long term. The values of the coefficient are considered sufficient at the level of 90% (0.9) and more.
Share of reinsurance
It is calculated as the ratio of the volume of insurance premiums transferred to reinsurance to the total amount of collected insurance premium:
The high value of this indicator, as a rule, indicates the low financial capacity of the insurance company, and therefore it is forced to attract assets of other reinsurers to fulfill obligations to customers. But even a low value does not characterize the company so positively: it may indicate some riskiness (ill-conceivedness) of the insurance policy.
Thus, both too high, close to one, and too low, close to zero, the value of this indicator is undesirable. So, in the first case, we are talking about excessive dependence on the reinsurer, and in the second - about the lack of diversification of the risks taken by the company. The optimal value is considered to be between 0.15 and 0.5 (in foreign practice - from 5% to 50%).
Share of claims covered by reinsurance
It is calculated as the ratio of the amount of insurance payments covered at the expense of reinsurers to the total amount of insurance payments:
is a large value of the indicator with the previous one, it is possible to evaluate the effectiveness of reinsurance protection. So, in the presence of a large diversified insurance portfolio, a greater degree of participation should correspond to a greater effectiveness of protection.
If the share of reinsurers is high enough, it is necessary to analyze their financial condition.
Reinsurance commission level:
The value of this indicator should be compared with the level of insurance costs (the ratio of the amount of costs of doing business to the amount of insurance premiums received), in order to understand what part of the costs of doing business (attributable to the share of the premium transferred to reinsurance - that is, for example, the corresponding part agency commission, etc.) is compensated at the expense of the received reinsurance commission. It is possible to draw the right conclusions from this if there is additional information about the mechanisms of the applied reinsurance protection, since in excess reinsurance contracts the reinsurance commission may be absent, being implicitly taken into account from the deposit premium.
Business activity ratios.
Analysis of business activity allows you to identify how effectively the insurance organization uses the funds at its disposal. The indicators characterizing business activity include turnover and profitability ratios.
TURNOVER COEFFICIENTS. Turnover ratios are of great importance for assessing the financial condition of an insurance organization, since with an increase in the rate of capital turnover, the amount of profit from insurance, investment and other activities increases, which has a direct impact on the solvency of an insurance organization.
TOTAL TURNOVERAGE OF ASSETS - shows how many times during the period a full cycle of circulation of all assets of an insurance organization is completed, bringing the corresponding income
The values of this coefficient are very individual for different insurance organizations, since the tactics and strategy of the insurer's activities largely depend on changes in legislation, the economic situation in the country and in the region, as well as on the growing competition in the insurance services market.
This coefficient is of the greatest interest for a comparative analysis of several insurance organizations or branches of one insurance organization.
TOTAL WORKING CAPITAL TURNOVER - shows the turnover rate of the working capital of the insurance company for the analyzed period.
This value indicates the optimal value of working capital turnover for a particular company.
If the insurance organization, with the actual values of the coefficient, constantly resorts to the use of borrowed funds, then this working capital turnover rate generates an insufficient amount of cash to cover costs and expand activities.
And vice versa, if at the found level of the coefficient the insurance company receives sufficient income, then it is considered that the effective rate of turnover of working capital has been achieved.
TOTAL EQUITY TURNOVER - shows the turnover rate of the insurance company's own capital for the analyzed period and the efficiency of its use.
By changing the values of the coefficient in dynamics, the owners of an insurance company who have invested capital in it can judge the activity of using this capital and the capital earned by the organization.
The growth of the numerical values of the coefficient is inherent, as a rule, to steadily developing insurance organizations.
On the contrary, a decrease in the values of the coefficient means a deterioration in the turnover of equity capital. In this case, the coefficient indicates to the owners the need for a deeper analysis of the situation or for investing their own funds in another source of income that is more effective under the existing conditions.
TOTAL INSURANCE RESERVE TURNOVER - shows the rate of insurance reserves turnover and, at the same time, the ratio of the total income to the average value of insurance reserves for the analyzed period. According to the values of this ratio, one can judge the dependence of the growth of the insurer's income on the increase in the volume of insurance reserves, since insurance reserves are, in addition to their main purpose - insurance protection, the main source of growth in resources for investment activities, a potential source of profit.
A useful technique in the analysis can be taken by examining changes in the growth rate and increase in income, in comparison with changes in the values of growth and increase in insurance reserves, as well as in comparison with the growth rates and increase in the coefficient as a whole,
INVESTED CAPITAL TURNOVER - shows the rate of invested capital turnover for the analyzed period and characterizes the effectiveness of the use of funds directed by the insurance organization in short-term and long-term investments.
This ratio is of undoubted interest in the day of comparative analysis of several insurance companies.
TOTAL PERMANENT CAPITAL TURNOVER - shows how quickly the capital that is in long-term use of the insurance company is turned over
The essence of the significance of this coefficient is similar to the equity turnover indicator, with the only difference being that when analyzing the values, it is necessary to take into account the influence of the insurance fund (insurance reserves) and long-term liabilities of the insurance company.
PROFITABILITY RATIO.
The activity of an insurance organization in the market conditions involves not only the reimbursement of its costs, but also making a profit. The profitable operation of an insurance organization is determined by the profit it receives. For the analysis of profitability, two groups of profitability ratios are calculated: return on capital and profitability of operations
PROFITABILITY OF ALL ASSETS ON PROFIT BEFORE TAXATION - reflects in the most general view efficient use of the entire capital of the insurance company
This coefficient shows how much profit before tax an insurance organization receives per one ruble of assets that it owns and manages, regardless of their source of financing.
RETURN ON ALL ASSETS ON NET PROFIT - shows how much net profit an insurance organization receives per one ruble of its capital
Comparing the given coefficient with the above one, it is possible to identify the impact on the profitability of tax deductions and other payments from profit, that is, to determine the degree of influence of the tax policy of the state and local authorities
RETURN ON WORKING CAPITAL - reflects the effectiveness of managing the working capital of an insurance company in terms of obtaining maximum profitability.
This ratio reflects the efficiency of using the largest and most mobile part of the insurer's capital and shows the amount of profit before tax earned by each ruble of the insurance organization's working capital
RETURN ON EQUITY - reflects the efficiency of the use of the owners' funds invested in the insurance company
The above coefficient allows the owners of an insurance organization to compare the income from investments in this organization with the possible income from investing the same amount of funds in other enterprises or securities.
PROFITABILITY OF INSURANCE RESERVES - shows the effectiveness of the use of the insurance fund (insurance reserves) by the insurer.
For the purposes of analysis, this coefficient is of interest in comparing the efficiency of using the insurance fund (insurance reserves) of the analyzed insurance company with the values of other insurance companies.
RETURN ON INVESTED CAPITAL - shows how effectively the insurance organization manages the invested capital to obtain maximum profit.
A useful technique in the course of the analysis can be used by examining changes in the growth rate and increase in the result obtained from investment activity in comparison with changes in the values of growth rates and the increase in the amount of invested capital, as well as in comparison with the growth rates and increase in the coefficient as a whole.
RETURN ON PERMANENT CAPITAL - shows the effectiveness of managing capital that is in long-term use by an insurance company.
The given coefficient shows how much profit before tax falls on one ruble of permanent capital of an insurance organization, which is of undoubted interest for comparison with other insurers.
PROFITABILITY RATIO.
The coefficients of the activity profitability group make it possible to assess the profitability of the main activities of the insurance organization.
PROFITABILITY OF ALL OPERATIONS ON PROFIT BEFORE TAXATION - shows the effectiveness of promoting the insurance company to the market in all areas of its activity.
The given coefficient shows how efficiently and profitably the insurance organization conducts its activities in all areas and what is the share of balance sheet profit in income.
PROFITABILITY OF ALL OPERATIONS ON 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 company from all areas of activity.
PROFITABILITY OF INSURANCE TO INSURANCE EXPENSES - determines the effectiveness of the costs incurred by the insurance organization 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.
PROFITABILITY OF INSURANCE TO THE COSTS OF DOING THE BUSINESS - determines the effectiveness of the costs incurred by the insurance organization directly for 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 ACTIVITIES - 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 ACTIVITIES - shows how effectively the insurance organization carries out investment activities.
PROFITABILITY OF OTHER ACTIVITIES - determines the effectiveness of the insurance company's activities in areas not related to insurance and investments.
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: firstly, they allow to determine the range of information that is important for readers of external financial statements in terms of decision-making; secondly, they provide an opportunity to more deeply assess the financial condition of insurance companies at any time and track its change in dynamics not only in analytical tables, but also for clarity - in graphical form; thirdly, they reduce the distorting effect on the reporting material of inflation, which is especially important when analyzing in the long term.
However, it should be taken into account that indicators and coefficients do not have a universal meaning in themselves and can be considered in conjunction with other coefficients and indicators that characterize the financial condition of insurance organizations.
Western economists believe that such ratios or ratios - financial and operational indicators - are indicators of the most painful places in the activities of insurance organizations that need more detailed analysis. This analysis, in turn, may not confirm the preliminary negative assessment due to the calculation of one or another coefficient. So, in a number of cases, one or another value of the coefficient does not correspond to the generally accepted standard norm due to the specificity of specific conditions and features of the business practice of an individual insurance company; comparison with average coefficients is not always justified due to, for example, the specialization of the activities of many insurance companies; the level actually achieved in previous years might not be optimal for the needs of the insurance company that existed in those years, or it could be optimal for previous years, but not at all meet the requirements of the current period, etc.
On the other hand, it is obvious that none of the methods of analysis can take into account the diversity of activities of insurance organizations, each of them performs its own functions, and from this point of view, the significance of the coefficients for the overall assessment of the financial condition of insurance organizations is beyond doubt. The analytical value of indicators and coefficients is confirmed, in particular, by the fact that in Western countries there are special publications that publish statistical reports on these indicators, as well as ratings of insurance companies. Such publications help potential consumers of insurance services to navigate in a huge number of insurance companies and firms, allow you to evaluate the activities of a particular insurance company and determine its place (rating) among similar companies in your country and the world market.
3. Practical application of the coefficient method on the example of OJSC "RESSO-GANTIA"
3.1 Brief description of the insurance company
Open Joint Stock Insurance Company "RESO-Garantia" was founded on November 18, 1991. This is a universal insurance company with a license for 80 types of insurance services (licenses of the Ministry of Finance of the Russian Federation No. 1526D).
Authorized capital - 3.1 billion rubles. In 2001, 2002, the Expert RA rating agency assigned the company the highest reliability rating of A++. And in 2003, it confirmed the reliability rating of the RESO-Garantiya insurance company - A ++ ("High level of reliability with positive prospects"). The Agency's comprehensive assessment of the company's solvency and financial stability did not reveal factors that could lead to a deterioration in the financial condition and solvency of RESO-Garantia in the short or medium term.
Since 2002, the auditor of RESO-Garantia is Grant Thornton Trade, which is a member of one of the leading professional audit firms in the world, Grant Thornton International (GTI).
RESO-Garantia has an extensive branch network. The company has more than 370 branches in Moscow, Moscow region and other regions of Russia.
RESO-Garantia insurance products are sold by over 15,000 professional insurance agents and a number of brokerage companies.
RESO-Garantia is a recognized leader in insurance of vehicles, property of individuals, property legal entities, voluntary health insurance, accident insurance and travel insurance.
The total collection of insurance premiums in 2004 amounted to 16 billion 278 million rubles (in 2003 - 14 billion 752 million rubles, in 2002 - 6 billion 387 million rubles, in 2001 - 4 billion 752 million rubles). . rubles). Insurance payments for 2004 amounted to 7 billion 198 million rubles. (in 2003 - 4 billion 37 million rubles, in 2002 - 1 billion 977 million rubles, in 2001 - 2 billion 336 million rubles).
RESO-Garantia provides insurance services to hundreds of thousands of individuals and legal entities. It has a balanced insurance portfolio with a large proportion of individual clients.
100,000 people became clients of RESO-Garantia under voluntary medical insurance. 340 thousand people insured their property in RESO-Garantia. 2,176,000 policies were sold under compulsory civil liability insurance of vehicle owners (OSAGO).
In 2004, about 605,000 tourists (more than 540,000 in 2003, 440,000 in 2002) purchased insurance policies from an insurance company.
The quality of RESO-Garantia insurance coverage is provided not only by significant equity capital and many years of insurance experience, but also by reinsurance coverage.
RESO-Garantia uses the services of world-famous reinsurance companies: SCOR, AXA, Hannover Re, Lloyd's, Mitsui Sumitomo Reinsurance Limited, Cologne & General Re, Munich Re, Swiss Re.
RESO-Garantia is a member of the All-Russian Union of Insurers and the Moscow Association of Insurers.
RESO-Garantia is a member of the Russian Union of Motor Insurers (RSA).
The company is a member of the Russian Association of Motor Vehicle Owners Liability Insurers (RASOVT) and is a member of the Green Card National Bureau.
RESO-Garantia is a member of the Russian Pool for the Insurance of Hydraulic Structures, the Interregional Association of Insurers for the Protection of Territories and Population of the RF Subjects from Natural and Technogenic Emergencies.
The company participates in pools: for insurance of civil liability of enterprises - sources of increased danger; shipowners' civil liability insurance (P&I insurance); in the Russian pool for insurance of risks associated with terrorist attacks.
RESO-Garantia is a member of the Moscow Chamber of Commerce and Industry, accredited by the Moscow Licensing Chamber for Insurance of Realtors, is an associate member of the Association of Russian Automobile Dealers (ROAD) and a member of the Moscow Association of Motor Vehicle Maintenance and Repair Enterprises (MAPTO).
RESO-Garantia is a member of the Russian Union of Travel Industry (PCT) and the Moscow Association of Travel Agencies (MATA).
The company is a member of the Russian Corporate Club of the World Wildlife Fund (WWF).
The RESO Group includes a number of subsidiaries and insurance companies:
"RESO-MED 03" is a medical service company. It has a 24-hour medical dispatcher and "personal doctors" service. Founder of the medical center "MedSwis" (Moscow) and the medical center "Medilux".
Insurance medical company "RESO-Med" (Tver) is a specialized company for compulsory medical insurance (CMI).
Insurance medical company "RESO-Med" (St. Petersburg) - a specialized company for CHI
RESO-Autoservice - car services and body repair stations
"Insurance medical company "RESO-Med" (Moscow region) is a specialized company for CHI.
"KORIS assistance" (St. Petersburg) is a service company. It has a 24-hour dispatch center and the largest private ambulance service in St. Petersburg.
"Scandinavia Clinic" (St. Petersburg) - medical center.
"Insurance medical company "MEGA" (Chelyabinsk) is a specialized company for CHI.
"RESO-Invest" is an investment company.
"Insurance company "RESO-Re" - incoming reinsurance.
RESO-Leasing - leases highly liquid types of machinery and equipment for transactions of any complexity, using financing schemes alternative to bank loans.
"KORIS-RUS" is a service company. It has a round-the-clock dispatch center and provides services for the organization of medical, technical and legal assistance to the insured both abroad and in Russia. Included in the worldwide network of CORIS International.
"RESO-Inter" - a subsidiary - investment in the insurance business in Ukraine.
Insurance company "Brolli" (Republic of Belarus)
"RESO-Europe" - Lithuanian insurance company
"PROSTO Insurance" is a Ukrainian insurance company.
RESO-Garantia participates in the authorized capitals of insurance companies: Ingosstrakh OSAO, SOGAZ OJSC, Korona Insurance Group LLC.
3.2Key indicators and blocks of analysis
The initial step in the analysis of the financial condition of an insurance company is the preparation of an analytical net balance sheet (Appendix 1)
The analytical net balance showed that in 2002-2003 the company's assets increased by 112.9%, equity capital increased by more than 300% over the period under study, which indicates a significant increase in the financial stability of the insurance company. Insurance reserves make up about 70% of the total liabilities of the balance sheet.
At the same time, based on the assessment of the rationality of balance changes (see Table 1), the changes that have occurred over the period can be considered rational
The dynamics of some items of the balance sheet asset is shown in fig. 5
Rice. 5Dynamics of assets in the balance sheet of Resso-Garantiya OJSC
It can be seen from the figure that during the period under study there was an increase in all items of the balance sheet asset, the growth was especially significant in the items of working capital, receivables and cash. The total amount of assets also increased significantly.
The dynamics of liability items is shown in Figure 6.
Rice. 6Dynamics of liabilities balance sheet items
The figure shows that during the period under study there was a significant increase in insurance reserves, which indicates an increase in the volume of the insurance company's activities and an increase in its financial stability, because. insurance reserves are equal to the own funds of the insurance company.
The structure of liabilities is shown in Figure 7
Rice. 7Liability structure
The figure shows that the bulk of the company's liabilities are reserves and equity, which indicates the high financial stability of the company.
Liquidity analysis is presented in the table
Table 5
Liquidity analysis
Table 5 continued
However, the liquidity analysis showed that the total liquidity of the balance sheet, despite its growth during the study period, does not reach its standard value, which indicates that the enterprise has an insufficient amount of assets.
Almost the same level of total and current liquidity ratios indicates that the structure of receivables is represented mainly by short-term accounts payable (see Fig. 8)
Rice. 8Structure of receivables
Moreover, the figure shows that the share of long-term accounts payable for the study period was reduced. Which indicates possible problems with liquidity in the short term.
At the same time, it should be noted that the indicators of urgent and absolute liquidity are quite high, which is explained by the fact that when calculating these indicators, the denominator takes into account only the amount of short-term liabilities, the share of which in the balance sheet structure is insignificant. Thus, the liquidity of the insurance company can be considered quite high, because in the short term, the company is able to cover all of its short-term liabilities. The decrease in liquidity ratios due to the inclusion of insurance reserves in the denominator does not create special liquidity problems for the enterprise, if the company manages them effectively, i.e. they will not lose their value as a result of inflationary processes.
Table 6
Financial stability analysis
Analysis of financial stability showed that the company has a high level of financial stability. The solvency margin is equal to the value of equity, which indicates that the company did not have overdue receivables and losses in its activities during the study period and significantly exceeds the standard (5% of the value of life insurance reserves).
Own capital in assets exceeds the normative 20% level. Despite the decrease in the level of insurance reserves in assets in 2003, it practically corresponds to the normative level.
Equity capital significantly exceeds the company's liabilities; as of 2003, this indicator was 2.6, while the norm is 1.0.
The insurance premium exceeds the insurance reserves by 1.24 times, while in 2003 this figure tended to increase, which indicates the growth of customer confidence in the company's activities. At the same time, the growth rate of the insurance premium exceeds the growth rate of insurance reserves, which indicates the growth of the company's financial stability.
The ratio of working and non-working capital for the study period has not changed significantly.
At the same time, it should be noted. that the company is an active investor, up to 80% of the company's assets are invested, which indicates the expansion of the company's activities.
The level of permanent capital is in line with the norms and indicates the high financial capacity and reliability of the insurance company in the future.
Thus, the insurance company has a high level of financial stability both at the moment and in the long term.
Table 7
Business activity analysis
Table 7 continued
Analysis of business activity showed that the company has significant indicators of business activity. So for the period under study, income increased by 118.3%, working capital - by 151.7%, assets - by 136.6%, equity capital by 167.4%, insurance reserves by 120.1 This growth is due to the expansion of the company's activities, growth of the branch and agency network.
Rice. 9Dynamics of turnover indicators
At the same time, it should be noted that the turnover indicators for the analyzed period decreased slightly, while the turnover indicators are quite high, given that the company practically does not use borrowed funds to finance its assets.
Table 8
Profitability analysis
Profitability analysis showed that during the study period, profitability indicators did not change significantly. Return on assets in terms of profit before tax for the study period was at the level of 1%, which corresponds to the level of profitability of enterprises in this industry. At the same time, during the study period, this indicator slightly increased. The decrease in this indicator calculated on the basis of net profit has decreased, which indicates an increase in the tax burden on the enterprise.
During the period under study, the indicators of profitability of working capital and insurance reserves, as well as the profitability of core activities, increased.
Rice. 10Dynamics of profitability indicators
The figure shows that the largest change in profitability for the study period was observed in terms of return on equity. At the same time, this indicator decreased over the period under study, which is most likely the result of a more significant increase in equity relative to profit growth. This conclusion is confirmed by the dynamics of the profitability of permanent capital, which slightly increased over the period under study.
Table 9
Reinsurance analysis
An analysis of the use of reinsurance showed that, as a result of fairly high own indicators of financial stability and liquidity, the company resorts to the services of reinsurers to a very limited extent, mainly for insuring large risks. At the same time, the amounts transferred to reinsurance for the period under study tended to decrease.
Rice. 11Changes in the share of reinsurance operations
3.3 Bankruptcy analysis
When analyzing bankruptcy, such factors as the reputation of the insurer in the insurance services market, staff qualifications, income growth dynamics, profitability, quality and degree of diversification of the insurance portfolio play a significant role.
The key factor in the analysis is the adequacy of liquid assets and the availability of reliable reinsurance programs, as well as the level of capital adequacy (own assets, including liquid ones). The analysis carried out from the standpoint of the level of investment attractiveness of an insurance company is aimed at assessing the level of profitability of investment projects.
The presence of reinsurance programs must be assessed in terms of the sufficiency of the use of reinsurance. Due to the lack of objective (non-balance sheet) information, it is extremely difficult to assess the reliability of insurance companies in which risks were reinsured. At the same time, the degree of acceptability of sums insured must be assessed based on the own funds of the insurance company, as well as the formed reserves. The larger the insurance amount of own deduction, the greater the risk assumed by the insurance company and the greater should be the amount of funds that cover this risk. The funds covering the risk of an insurance company consist of technical reserves and own funds. Ideally, the risk should be covered by the amount of reserves.
The analysis of the activities of the insurance company indicates that in the short term the probability of bankruptcy for the enterprise is unlikely, because. the enterprise has high indicators of financial stability, liquidity and profitability, which is confirmed by the high rating of the company.
At the same time, the company has a significantly diversified insurance portfolio, an extensive branch and agency network.
He is a member of associations of insurance companies. Highly stable Western insurance companies act as reinsurance partners of the company.
Conclusion
As a result of the work carried out, the following conclusions can be drawn. Analysis of the financial condition of an insurance company consists in assessing its financial stability, solvency, business activity and profitability.
At the same time, the financial condition of an insurance company is determined primarily by the state of equity, insurance reserves, investment activities, and the procedure for calculating insurance rates.
At the same time, informal methods, which include the company's reputation in the market, the types of insurance services provided, the availability of qualified personnel, etc., play an important role in assessing the financial condition of insurance companies.
The object of study of this work was the activities of the insurance company OJSC "Resso-guarantee", which is an active and fairly large participant in the insurance services market.
Analysis of the financial condition of this company showed high financial stability and solvency of the company, which corresponds to the high rating of the company.
In conclusion, conclusions were drawn about the insignificant probability of the company's bankruptcy in the near future.
List of used literature
1. Federal Law of November 27, 1992 No. 4015-1 “On the organization of insurance business” (as amended)2. Federal Law of January 8, 1998 No. 6-FZ “On Insolvency (Bankruptcy)”3. Order of Rosstrakhnadzor dated 14.03.95 - No. 02-02practice report
Characteristics of the insurance company
Rosgosstrakh is the oldest and largest Russian network insurance company operating according to uniform standards and rules throughout the country from Kaliningrad to Kamchatka.
The goal of Rosgosstrakh is to be the absolute leader of the Russian insurance market, to consolidate the reputation of a reliable, solid and dynamically developing Company.
The mission is to protect the well-being of Russian citizens by providing affordable insurance products that meet their needs.
The mission of Rosgosstrakh determines the main principles of work:
l modern methods of management;
ь raising the level of culture of insurance in the country and its popularization;
ü comprehensive and high-quality customer service;
l provision of a wide range of insurance services;
formation of new sales channels;
ь ensuring reliability, high efficiency of ongoing insurance transactions;
ь focus on long-term and mutually beneficial relationships with customers;
increasing attractiveness in the labor market.
The Rosgosstrakh insurance company includes several companies, incl. OOO INSURANCE COMPANY ROSGOSSTRAKH-LIFE
The product distribution system of ROSGOSSTRAKH-LIFE LLC is an integral part of its organizational structure. It is the most important from the point of view of the efficiency of the company, which is associated with certain difficulties in the sale of insurance products in the face of competition from other companies. The basis for the sale of insurance products is communication with customers when they purchase insurance policies.
OOO INSURANCE COMPANY ROSGOSSTRAKH-LIFE is a specialized company. It was created in accordance with the law "On the organization of insurance business in the Russian Federation".
The main activities of the company are: life insurance, voluntary pension insurance, accident and illness insurance. The company operates on the basis of license C No. 398477 dated November 11, 2005.
The starting point for creating the structure of ROSGOSSTRAKH-LIFE INSURANCE COMPANY LLC is the creation of a sales system for its products. Figure 2.1 shows the place of sale of insurance products in the structure of the company.
Sales management system Departments serving
Operational staff
Policyholders
Figure 2.1 - Place of sale of insurance products in the structure of the company "Rosgosstrakh - life"
Rosgosstrakh-Life is the winner of the Financial Olympus national award in 2008 in the Insurer (Life Insurance) nomination, in the Dynamics and Efficiency category.
The company is a laureate of the Annual combined final award in the field of finance "Financial Elite of Russia" in 2009 in the nomination "Company of the Year in the field of life insurance". In 2009, the rating agency "Expert RA" assigned the insurance company "Rosgosstrakh-Life" a reliability rating of A + "Very high level of reliability".
In the structure of life insurance payments for residents of the Primorsky Territory, Rosgosstrakh-Life insurance company ranks second. Thus, in 2014, under the programs of the Rosgosstrakh-Life company, 976 insured events were considered and paid for for a total
Exploring literary sources and Internet resources, we drew attention to the statement of the General Director of IC RGS-Life LLC Alexander Bondarenko, who notes that the main principle of effective work of Rosgosstrakh-Life LLC is the maximum focus on customer satisfaction with the proposed price and quality of insurance service.
“It's not a secret that now the life insurance market is dominated by bank credit insurance, where the lion's share of premiums is paid to the bank in the form of a commission. To understand the true size of the life insurance market, how much is actually spent on insurance, it is necessary to estimate net fees or fees less commissions. The existing official reporting of companies allows this to be done.
The given data clearly reflect the leading position of Rosgosstrakh-Life LLC in the general system of insurance companies of the Russian Federation.
1.1. Analysis of the insurance market of Primorsky Krai for 9 months of 2014
General market situation.
According to the results of 9 months of 2014, the volume of fees in the Primorsky insurance market amounted to 5,222,027 thousand rubles. Receipts increased by 744,570 thousand rubles.
The volume of fees for voluntary types of insurance amounted to 3,701,056 thousand rubles. (70.87% of the total market), the growth rate is 118.20%. The increase in the volume of insurance premiums for internal combustion engines was mainly due to the growth in life insurance premiums (378,630 thousand rubles) and personal non-life insurance (235,047 thousand rubles). The growth rates of these types of insurance amounted to 196.42% and 127.59%, respectively.
The regional OSAGO market shows an increase in revenues by 15.68% (which is equal to 200,856.00 thousand rubles).
Tab. 1 Receipts and payments on the Primorsky insurance market for 2013-2014
|
Market segment |
Receipts, thousand rubles |
Payments, thousand rubles |
Payout level, % |
||||||
|
9 months 2014 |
9 months 2013 |
Growth rate, % |
9 months 2014 |
9 months 2013 |
Growth rate, % |
||||
|
All types of insurance |
|||||||||
|
ICE, including: |
|||||||||
|
Life insurance |
|||||||||
|
Personal insurance |
|||||||||
|
property insurance |
|||||||||
|
Liability (except GRO) |
|||||||||
The volume of payments for all types of insurance in the regional market for 9 months of 2014 amounted to 1,816,669 thousand rubles. Compared to the same period of the previous year, the amount of payments increased by 391,812 thousand rubles, the growth rate was 127.50%. The level of payments for the analyzed period increased by 2.97% and amounted to 34.79%.
Market concentration.
For 9 months of 2014, the following companies out of the top 15 insurance companies in terms of fees in the Primorsky Territory market were: MSK Insurance Group (8th place); PPF Life Insurance (13th place); "Consent" (14th place), "SOJEKAP life insurance" (15th place). Their place was successfully taken by the following companies: "Reserve" - 4th place (376,974 thousand rubles), the growth rate is 1258.25%, the market share is 7.22% (+6.55%); Sberbank Life Insurance 6th place (299,100 thousand rubles), growth rate is 426.38%, market share - 5.73% (+4.16%); Societe Generale Life Insurance - 12th place (139,290 thousand rubles), growth rate 197.47%, market share 2.67% (+1.09%); Helios - 15th place (89,375 thousand rubles), growth rate is 198.72%, market share - 1.71% (+0.71%).
The Primorsky branch of the RGS retained its leading position in the regional insurance market, the volume of payments increased by 206,791 thousand rubles compared to the same period in 2013. At the same time, the share of the Branch increased by 1.33% and amounted to 19.78% of the total collections for all types of insurance. The growth rate of collections of the CSG Branch amounted to 125.03%.
The company "VSK" retains the 2nd position in terms of total collection of payments. The market share in fees decreased by 0.32%, the growth rate is 113.52%;
Sogaz also maintains its position in 3rd place, having increased fees by 49,887 thousand rubles. The growth rate is 114.78%. The market share decreased by 0.12%.
IC "Rosgosstrakh-Life" - 5th place, "Alfastrakhovanie" - 7th place, "Dalakfes" - 9th place, "Energogarant" - 10th place and "RESO-guarantee" - 11th place have kept their positions.
Other companies have lost their positions:
Ingosstrakh dropped from 4th to 8th place, losing payments in the amount of 101,302 thousand rubles. and a market share of 2.94%.
MAKS dropped from 6th to 13th place with a loss of 79,694 thousand rubles in sales. and a decrease in market share by 2.18%.
RSTK dropped from 12th place to 14th, losing 0.73% of its market share.
In terms of growth rate, for the analyzed period, 12 out of fifteen companies showed the best results, with the exception of 3 companies whose rate is below 100%: Ingosstrakh (67.60%), MAKS (61.22%), " RSTK" (83.32%).
|
9 months 2014 |
9 months 2013 |
|||||||||
|
Total fees, thousand rubles |
Market share, % |
Total payments, thousand rubles |
Payout level, % |
Total fees, thousand rubles |
Market share, % |
Total payments, thousand rubles |
Payout level, % |
|||
|
Market total |
||||||||||
|
ROSGOSSTRAKH |
||||||||||
|
ROSGOSSTRAKH LIFE |
||||||||||
|
SBERBANK LIFE INSURANCE |
Diagram 1
Diagram 2
Tab. 3 Insurance companies with negative growth rates
|
9 months 2014 |
9 months 2013 |
Rates of growth, % |
Change in market share, % |
|||||
|
Total fees, thousand rubles |
Market share, % |
Total fees, thousand rubles |
Market share, % |
|||||
|
Market total |
||||||||
|
INGOSSTRAKH |
||||||||
insurance company management staff
The level of payments in the insurance market of Primorsky Krai for 9 months of 2014 amounted to 34.79%, which is generally 2.97% higher compared to the same period last year.
The Rosgosstrakh company is 2.33% higher than the market in terms of the level of payments, the level of payments in relation to 9 months of 2013 is higher by 0.30% and amounts to 37.12%.
Diagram 3
Tab. 5 Insurance companies with negative OSAGO growth rates
|
9 months 2014 |
9 months 2013 |
Rates of growth, % |
9 months 2014 |
Change in market share, % |
Change in the level of payments, % |
|||||
|
Total fees, thousand rubles |
Market share, % |
Total fees, tr. |
Total payments, thousand rubles |
Payout level, % |
||||||
|
Market total |
||||||||||
|
INSURANCE GROUP MSK |
||||||||||
|
INGOSSTRAKH |
||||||||||
|
PARITET-SK |
In the MTPL market in Primorsky Krai, the growth rate is 115.68%, fees increased by 200,856 thousand rubles. At the same time, the Rosgosstrakh company ranks first in this list of insurance companies, the volume of payments increased by 147,779 thousand rubles. and a growth rate of 127.46%. On the 2nd place - the company "VSK" with an increase in collections of 173,642 thousand rubles, a growth rate of 216.40% and an increase in market share by 10.14%. IC Alfastrakhovanie moved up to 3rd place from 4th with a growth rate of 126.21% and an increase in fees by 24,660 thousand rubles.
In the list of 15 best new companies "Dallesstrakh" appeared - 8th place, growth rate of 271.82%, increase in fees of 11,007 thousand rubles; "Helios" -14th place, with a growth rate of 349.52% and a collection of 4,694 thousand rubles.
We changed our position for the better: the company "Dalakfes" takes the 4th place (was the 6th), with a growth rate of 147.66%; "RSTK" - 5th place from 7th: increase in fees by 3,562 thousand rubles; SOGAZ increased fees by 20,857 thousand rubles. and a market share of 1.21% and ranked 7th (9 months of 2013 - 10); Reso-Garantia moved up from 8th to 6th place, the growth in volumes was 16,752 thousand rubles, the increase in the market share was 0.70%; "Consent" has risen from 14th to 11th place, having increased fees by 3,222 thousand rubles, the growth rate was 141.57%; Paritet-SK took 13th place from 15th, despite the decrease in fees by 1,317 thousand rubles. and a decrease in market share by 0.16%. "Max" retained its position in 9th place, with a decrease in volumes of 11,129 thousand rubles. and a decrease in market share - by 1.03%.
The following UK changed their positions for the worse:
"Insurance Group MSK" falls from 3rd to 10th place, with a significant decrease in fees by 111,068 thousand rubles; Ingosstrakh falls from rank 5 to 12, with a decrease in volumes by 75,975 thousand rubles; "Uralsib" falls to 15th place, with a decrease in fees by 7,445 thousand rubles.
SCs like Zurich; "Guta-Insurance" generally left the list of 15 best companies.
In general, with an average growth rate of the OSAGO market, 10 companies out of the top 15 showed a growth rate of more than 100%.
It is also worth noting that the company "Rosgosstrakh" occupies 46.29% of the market and at the moment it is inaccessible to competitors (2nd place - "VSK" with 21.78% of the market).
Tab. 6 Performance indicators of the main insurers in the market of Primorsky Krai (personal insurance)
|
9 months 2014 |
9 months 2013 |
Rates of growth, % |
9 months 2014 |
Change in market share, % |
Change payment level, % |
|||||
|
Total fees, thousand rubles |
Market share, % |
Total fees, thousand rubles |
Total payments, thousand rubles |
Payout level, % |
||||||
|
Market total |
||||||||||
|
ROSGOSSTRAKH |
||||||||||
|
ROSGOSSTRAKH LIFE |
The Primorsky OSAGO market is characterized by a high level of payments - about 43.63%, increased by 3.78% compared to the same period last year. For 8 insurers, the level of payments exceeded this value.
The market leader in personal insurance for the first 9 months of 2013, VSK lost its position to IC Reserve with a volume of payments of 341,486 thousand rubles, a growth rate of 1,140.07% and a market share of 31.41%.
"VSK" went down to 2nd place, showing a decrease in volumes by 42,608 thousand rubles. and a market share of 8.97% over the same period last year.
The company "Rosgosstrakh" still remains in 3rd place with a growth rate of 163.07%, an increase in volumes by 47,074 thousand rubles. and a market share of 2.44%.
Sogaz took 4th place, up from 5th place, with a growth rate of 96.87% and a decrease in market share by 1.71%.
RGS-Life moved up from rank 6 to rank 5, providing an increase in volumes by 4,279 thousand rubles, but reducing the market share by 0.81%.
A new company TOS appeared in the list of the top 15 - 15th place, the amount of fees is 11,683 thousand rubles, the market share is 1.07%.
The top companies in terms of growth were:
"Reserve" (1140.07%), "Rosgosstrakh" (163.07%); "RGS-life" (109.01%); Alfastrakhovanie (145.28%), Societe Generale Life Insurance (203.36%), Helios (178.85%), VTB Insurance (159.30%), Energogarant (119 .07%), "Paritet-SK" (102,
Diagram 4
Tab. 7 Indicators of the main insurers in the market of Primorsky Krai in terms of accident insurance
|
9 months 2014 |
||||||
|
Total fees, thousand rubles |
Market share, % |
Total payments, thousand rubles |
Payout level, % |
|||
|
Market total |
||||||
|
ROSGOSSTRAKH |
The current state of personal insurance on the example of OJSC "Moscow Insurance Company" Open Joint Stock Company Insurance Group MSK (JSC SG MSK) was founded in 1992. Today OJSC "SG MSK" is a high-tech universal insurance company, which is part of one of the largest insurance holdings... Liability Insurance Insurance company RESO-Garantia was founded in 1991... Liability Insurance Insurance premium - an amount of money in the currency of the Russian Federation, which the insured is obliged to pay to the insurer in accordance with the contract of compulsory insurance ... Insurance activity LLC "SK RGS-Life" Rosgosstrakh is the oldest and largest Russian network insurance company operating according to uniform standards and rules throughout the country from Kaliningrad to Kamchatka. The goal of Rosgosstrakh is to be the absolute leader of the Russian insurance market... Insurance business The list of expenses of insurance organizations is given in the "Regulation on the specifics of determining the tax base for the payment of income tax by insurers", approved by the Decree of the Government of the Russian Federation of May 16, 1994 and in the "Regulation ... Financial management of an insurance company Finances of an insurance organization - a system of monetary relations arising in the process of formation of funds of funds, their distribution and use, ensuring its activities for the provision of insurance protection, other types of activities ... Financial stability of an insurance company on the example of JSC "Russian Insurance Transport Company" Open Joint Stock Company "Russian Insurance Transport Company" (JSC RSTK) was founded on July 12, 1990 with the participation of the Ministry of Motor Transport of the Russian Federation. Registration number 478.879. Date of state registration 05.07.1994... |
Analysis of the organization of personal insurance in JSC "Moscow Insurance Company"
Technical and economic characteristics of the insurance company
Open Joint Stock Company Insurance Group MSK (JSC SG MSK) was founded in 1992. Today OJSC SG MSK is a high-tech universal insurance company, which is part of one of the largest insurance holdings established in 2007 with the direct participation of the Government of Moscow and the Bank of Moscow (the management company is OJSC Capital Insurance Group).
In February 2010, the companies included in the group of leaders of the domestic insurance market, JSC "Moscow Insurance Company" and Insurance CJSC "MSK-Standard" (formerly SZAO "Standard-Reserve") were integrated into JSC "Insurance Group MSK". The united company OJSC SG MSK took over the extension of contracts, settlement of losses and payment of insurance indemnities to clients and partners of Moscow Insurance Company and MSK-Standard.
Thus, as a result of the merger, SG MSK has absorbed more than 15 years of experience of three insurance companies, each of which actually stood at the origins of the formation of insurance in Russia. The combined company ranks 8th in the rating of insurance companies in terms of premiums collected in 2009, and the number of full-time employees exceeds 3,300 people.
Consolidation of OJSC SG MSK further strengthened the financial stability and reliability of the company as an insurance partner. At present, the authorized capital of the united company is one of the largest in the Russian insurance market and amounts to 6.5 billion rubles, net assets exceed 8 billion rubles. Due to the presence of 88 branches, SG MSK is represented in almost all regions of Russia.
The financial stability of JSC SG MSK was also confirmed by the international rating agency Fitch, which assigned the combined company a financial strength rating on the international scale 'BB' and on the national scale 'AA-(rus)'. Prior to the reorganization, the rating from Fitch of JSC "MSK" was at the level of "BB-" on the international scale and "A + (rus)" on the national scale. The Expert RA rating agency assigned JSC SG MSK a reliability rating of A+ (“Very high level of reliability”). Prior to the merger, the reliability ratings of MSK and MSK-Standard from Expert RA were A+ and A, respectively.
SG MSK offers a full range of services focused on the interests of clients, including auto insurance, property and liability insurance, voluntary medical insurance, insurance traveling abroad, accident insurance and comprehensive services for corporate clients. In the coming years, the company plans to significantly increase its share in the retail and corporate insurance market.
Many of the largest metropolitan and regional enterprises and organizations, such as Moscow United Energy Company, Moscow Fuel Company, Mosvodokanal, Segezha Pulp and Paper Mill, Novosibirsk Metallurgical Plant, etc., have already appreciated the advantages of working with SG MSK OJSC.
OJSC SG MSK still remains one of the main partners of the Moscow Government in insurance of state-owned property, insurance of state and municipal employees, insurance of residential premises. The company is an official partner of the Bank of Moscow in collateral insurance, car loans and mortgage lending programs, and also has a positive history of cooperation on various insurance programs with major Russian banks, including Sberbank, Vneshtorgbank, Gazprombank, Alfa Bank, Rosselkhozbank and others.
OJSC SG MSK is a member of professional associations of insurers, including the All-Russian Union of Insurers, the Russian Union of Automobile Insurers, the Russian Association of Aviation and Space Insurers.
OJSC SG MSK is part of a holding managed by OJSC Stolichnaya Insurance Group, which also includes the following insurance companies: CJSC Insurance Group Spassky Gates, CJSC MSK-Life, OJSC Moscow Reinsurance Company (OJSC Moscow Re), CJSC Medical Insurance Company Solidarity for Life (SOVITA).
The state, in order to regulate the activities of insurance organizations, in the law of the Russian Federation "On the organization of insurance business in the Russian Federation" defines the main guarantees of the financial stability of insurers. Law of the Russian Federation of November 27, 1992 No. 4015-1 .:
1 Economically sound insurance rates.
2 Insurance reserves sufficient to fulfill obligations under insurance, co-insurance, reinsurance, mutual insurance contracts.
3 Equity.
4 Organization of reinsurance.
In addition, the new version of the law formulates more stringent requirements for these guarantees:
1 Insurance reserves and the insurer's own funds must be backed by assets that meet diversification, liquidity, recoverability and profitability requirements.
2 Own funds of insurers (with the exception of mutual insurance companies) include authorized capital, reserve capital, additional capital, retained earnings.
3 Insurers must have a fully paid authorized capital, the amount of which must not be lower than the minimum amount of authorized capital established by this Law.
4 Contribution to the capital of borrowed funds and pledged property is not allowed.
But these guarantees are not enough for banks, so they have to develop their own methods.
The methods of banks for analyzing insurance companies are all different, but they have common indicators that determine the financial stability of insurers, which we will consider below.
Banks evaluate the financial condition of an insurance company according to the following criteria:
1 The company has been operating in the insurance services market for at least 3 (three) years.
2 The company has a license to carry out insurance activities.
3 The authorized capital of the company complies with the standard established by the Law of the Russian Federation "On the organization of insurance business in the Russian Federation".
4 The Company has no regulations from Rosstrakhnadzor restricting its activities.
5 The Company does not conduct litigation that is material to its business.
7 The Company places its insurance reserves in accordance with the Order of the Ministry of Finance of the Russian Federation dated 08.08.2005 No. No. 100n “On Approval of the Rules for Placement of Insurance Reserves by Insurers”.
9 If the company's insurance portfolio is balanced, that is, the share of insurance premiums attributable to car insurance and civil liability insurance of motor vehicle owners does not exceed 60% of the total insurance premiums received by the company in the previous year.
10 If the company maintains a correct reinsurance policy.
12 If there is no overdue debt to employees on wages.
13 With positive dynamics of the company's basic performance indicators (net assets, equity, net profit, balance sheet, insurance reserves) for the last 2 financial years.
14 With a deviation from the "norm" of no more than two coefficients.
The analysis should include the following indicators:
1 Growth dynamics of the company's insurance portfolio by types of insurance (see Table 2.1).
2 Size of net assets.
3 Indicators of financial stability (K1):
§ share of own capital in the balance sheet currency (К1.1);
§ level of coverage of net insurance reserves by own capital (К1.2).
4 Profitability indicators (K2):
§ profitability of insurance and financial and economic activities (except for life insurance) (К2.1);
§ return on equity (К2.2).
5 Indicators of unprofitability of insurance operations (K3):
§ the level of insurance payments, except for life insurance (К3.1);
§ loss ratio, except for life insurance (К3.2);
§ level of expenses, except for life insurance (К3.3).
6 Indicator of investment sufficiency and quality of the investment portfolio (K4):
§ the quality of the investment portfolio (К4.1);
§ the level of coverage of net insurance reserves by investment assets (К4.2).
7 Indicator of assessment of reinsurance operations (K5) - the share of reinsurers in insurance reserves, except for life insurance.
8 Indicators for assessing the solvency of an insurance company and assessing its liquidity as a whole (K6):
§ current solvency of the insurance company (К6.1);
§ current liquidity (К6.2).
The degree of risk of property insurance of Banks and its clients in this insurance company is assessed on the basis of a comparison of the coefficients obtained by calculation and the indicators given in Table 3.
Table 2.1 Growth dynamics of the Company's insurance portfolio (by types of insurance)
|
Types of insurance, million rubles |
Growth, % |
Growth, % |
|||
|
VHI (voluntary medical insurance) |
|||||
|
HC (accident) insurance |
|||||
|
Property insurance |
|||||
|
Liability Insurance |
|||||
|
Auto insurance (CASCO) |
|||||
|
Grand total |
In 2008, there was a positive growth in profitability for insurance other than life insurance by 147% compared to 2007. Significant profit was brought, mainly, by insurance against accidents, increasing by 332%, property insurance - by 244% and CASCO - by 210%. Accident insurance and property insurance grew due to the company's active policy aimed at these segments. CASCO has grown due to an active company for the development of a regional network, work with intermediaries and banks. The VHI portfolio increased by 155% due to the attraction of large corporate clients. The OSAGO portfolio grew by only 120%, because the company purposefully decided not to increase it, preferring to concentrate on more profitable market segments, because. OSAGO is a loss-making type of insurance. Liability insurance also grew by 120% due to high competition in this segment.
In 2009, the result was negative, that is, insurance premiums were received less than in 2008 by 4%. This was primarily due to a 51% decrease in the liability insurance portfolio. This result was due to the start financial crisis. All other types of insurance grew, but not as much as in 2008.
Net assets
Financial stability is, first of all, a characteristic of the stability of the financial position of an insurance organization, provided by a high share of equity in the total amount of financial resources used. An important indicator of the financial stability of insurance organizations established in the form of joint-stock companies is net assets.
The methodology for estimating the value of net assets was approved by the Order of the Ministry of Finance of Russia and the Federal Commission for the Securities Market of Russia. (6).
The value of net assets is understood as the value determined by subtracting from the amount of assets accepted for calculation, the amount of its liabilities accepted for calculation.
Net assets must be greater than the minimum statutory authorized capital, as well as the authorized capital specified in the founding documents.
The minimum amount of the insurer's authorized capital is determined on the basis of the basic size of its authorized capital, equal to 30 million rubles, and the coefficient. In the case of this company, the coefficient is equal to 2 - for the insurance of objects provided for by subparagraphs 1 and 2 of paragraph 1 of Article 4 of the Law "On the organization of insurance business in the Russian Federation" Law of the Russian Federation of November 27, 1992 No. 4015-1. (3).
The authorized capital of JSC "Moscow Insurance Company" for 2007-2009. amounted to 1 billion rubles, which is much higher than the minimum legally established authorized capital.
NA 2007 = 8169427 - 6754629 = 1414798 thousand rubles.
NA 2008 = 11708158 - 10228573 = 1479585 thousand rubles
NA 2009 = 13605356 - 11429678 = 2175678 thousand rubles
During the analyzed period in the insurance company, there is an excess of net assets over the value of the authorized capital, and there is also a positive trend of increasing the indicator by 104% in 2008 and by 147% in 2009, which indicates an improvement in the financial stability of the organization.
Table 2.2 Comparison of coefficient values
|
Indicators |
||||
Indicators of financial stability
1 Equity share in the balance sheet currency.
This indicator determines the overall level of financial stability of the insurance company and is calculated as the ratio of equity to balance sheet liabilities.
K1.1 2007 = 1464217/8218883 = 18%
K1.1 2008 = 1478970/11708158 = 12.6%
K1.1 2009 = 2175179/13605356 = 16%
Compared to 2007, the indicator decreased by 5.4%. This indicates a deterioration in financial stability and is due to the fact that the liabilities of the insurance company increased by 142%, and equity by 101%. But in 2009, the company managed to increase this figure by 3.4% due to an increase in equity capital by 147%, and liabilities by 116%, i.е. there were fewer units of liabilities per unit of equity.
2 Level of coverage of insurance reserves-net by own capital.
This indicator determines the capital adequacy in relation to the volume of risks assumed by the insurance company under insurance operations, excluding reinsurance, expressed in the form of net insurance technical reserves.
Calculated as the ratio of equity to technical insurance reserves - net insurance other than life insurance.
Technical insurance reserves - net insurance other than life insurance include:
§ unearned premium reserve minus the share of reinsurers in the reserve;
§ loss reserves less the share of reinsurers in the reserve.
K1.2 2007 = 1464217/(1909707 + 548317) = 1464217/2458024 = 60%
K1.2 2008 = 1478970/(4079753 + 1157972) = 1478970/5237725 = 28%
K1.2 2009 = 2175179/(3942307 + 1525836) = 2175179/5468143 = 40%
The fall in 2008 was caused by an increase in the risks assumed by the insurance company by 213%, and equity capital by 101%. In 2009, risks increased by 104%, and equity by 147%, which made it possible to increase the share of equity in the volume of risks assumed by the insurance company.
Profitability indicators
1 Profitability of insurance and financial and economic activities (except for life insurance).
The indicator reflects the level of profitability from the specified types of activities of the insurance company through the ratio of profit from ordinary activities by types of insurance other than life insurance to the total income from insurance, investment and other activities (except life insurance).
It is calculated as the ratio of profit (loss) before tax, excluding life insurance, to the income of an insurance company, excluding life insurance.
Income of the insurance company, excluding life insurance, includes:
§ total insurance premiums (contributions) for types of insurance other than life insurance;
§ return on investment;
§ operating income, except income related to investments;
§ remuneration and bonuses under reinsurance contracts.
K2.1 2007 = (18959 - 44247) / (6467459 + 42227 + 154550 + 16719) = (-25288) / 6680955 = -0.4%
K2.1 2008 \u003d (82975 - 389) / (9450319 + 83929 + 462923 + 17142) \u003d \u003d 82586 / 10014313 \u003d 0.8%
K2.1 2009 \u003d (490137 - 9782) / (7068362 + 54184 + 782176 + 24223) \u003d \u003d 480355 / 7928945 \u003d 6%
The negative result in 2007 was caused by a loss on insurance other than life insurance. In 2008, the company began a policy of increasing non-life insurance contracts, which led to an increase in profitability by 1.2%, and in 2009 by 5.2%.
2 Return on equity.
This indicator determines the level of profitability of the equity capital of the insurance company involved in the business.
It is calculated as the ratio of profit (loss) before tax to the average equity for the period:
K2.2 2007 = 18959/0.5*(1464217 + 717817) = 18959/1091017 = 1.7%
K2.2 2008 = 82975/0.5*(1478970 + 1464217) = 82975/1471593.5 = 5.6%
K2.2 2009 = 490137/0.5*(2175179 + 1478970) = 490137/1827074.5 = 26.8%
A high increase in the return on equity indicates that the company is profitable in investing its own capital.
Loss ratios of insurance operations
1 Non-life insurance benefit indicator.
This indicator determines the overall level of expenses of the insurance organization on insurance operations in the amount of premium earned, taking into account reinsurance operations.
It is calculated as the ratio of payments under insurance contracts other than life insurance to insurance premiums for insurance other than life insurance:
K3.1 2007 = 1503654/6467459 = 23%
K3.1 2008 = 2449415/9450319 = 26%
K3.1 2009 = 2719168/7068362 = 38%
In 2008, payments increased and the loss ratio increased by 3%. In 2009, the loss ratio increased by 12% due to the rather low inflow of insurance premiums. The growth of the unprofitability of insurance operations is associated with a constant increase in the unprofitability of such types of insurance as auto insurance and OSAGO.
2 Net loss ratio, except for life insurance.
This indicator determines the level of unprofitability of the insurance company's own insurance operations without taking into account the participation of reinsurers in the premiums received and payments made. As a rule, this indicator is always higher than the indicator of the level of payments, which takes into account the participation of reinsurers, due to the presence of reinsurance conditions such as "excess of loss", when losses below the amounts stipulated in the reinsurance contract are paid by the insurance company itself.
It is calculated as the ratio of payments under insurance contracts - net reinsurance to the premium earned - net reinsurance.
Earned net reinsurance premium includes:
§ insurance premiums - net reinsurance for the reporting period;
§ the difference between the reserve of unearned premium-net reinsurance at the beginning of the reporting period and at the end of the reporting period.
K3.2 2007 \u003d 1484763 / (3838037 + 705374) \u003d 1484763 / 4543411 \u003d 33%
K3.2 2008 = 2299959/(8029864+2170046) = 2299959/10199910 = 22%
K3.2 2009 = 2638113/(6458409+(-137446) = 2638113/6320963 = 42%
The 11% decrease in the indicator in 2008 was caused by a high growth of insurance premiums by 209%. In 2009, the growth was caused by a 20% lower insurance premium inflow than in 2008 and the continuing growth of unprofitability.
3 Expenditure rate indicator other than life insurance.
This indicator determines the level of expenses of the insurance company on insurance operations in relation to the amount of premium earned - net reinsurance. The lower the level of expenses, the higher the margin of safety of the insurance company. It should be noted that the expenses of the insurance company do not include investment expenses, because they do not relate to insurance, but to investment activities, while operating activities are additionally included, since they indirectly take their basis from the insurance business.
The expenses of the insurance company include:
§ insurance operations expenses - net reinsurance;
§ management expenses;
§ operating expenses, except those related to investments.
K3.3 2007 = (648760+656149+418821)/4543411=1723730/4543411=38%
K3.3 2008 \u003d (1258955 + 890872 + 1145750) / 10199910 \u003d 3295577 / 10199910 \u003d 32%
K3.3 2009 = (962165+1304853+1642079)/6320963=3909097/6320963=62%
In 2008, net reinsurance premium growth increased by 224% and expenses by only 191%, which contributed to a 6% decrease in expenses. In 2009, such a high level of expenses was due to the fact that expenses increased by 118% and net reinsurance premiums were received by 20% less than in 2008. This increase in expenses indicates a decrease in the safety margins of the insurance company.
Investment portfolio quality and investment adequacy indicators
1 The quality of the investment portfolio.
The quality of an investment portfolio is assessed on the basis of repayment, liquidity, diversification and profitability.
§ The principle of repayment implies the placement of assets that ensures their return in full, which forces companies to place free cash only in reliable organizations.
§ The principle of liquidity means that the investment structure should ensure that the insurer has funds that can quickly and without additional costs turn into cash.
§ The principle of diversification requires the distribution of investment risks for various types of investments, which results in a reduction in the overall riskiness, and, consequently, an increase in the stability of the insurer's investment portfolio. The principle implies the presence of a large number of heterogeneous investment objects.
§ The principle of profitability of investments means that investment activity should ensure not only the safety of investments, but also bring a certain income.
When conducting investment activities, Rossiya insurance company strictly adheres to the requirements of the market regulator for insurers when they place insurance reserves and own funds, in accordance with the order of the Ministry of Finance of the Russian Federation "On approval of the Rules for the placement of insurance reserves by insurers" Order of the Ministry of Finance of the Russian Federation dated 8 August 2005 No. 100n.(4) and the Order of the Ministry of Finance of the Russian Federation "On approval of the requirements for the composition and structure of assets accepted to cover the insurer's own funds" Order of the Ministry of Finance of the Russian Federation of December 16, 2005 No. 149n.(5).
Over the past three years, the company has placed free cash in the most reliable Russian banks, in 2009 it cooperated with such banks as Alfa-Bank OJSC, Rosselkhozbank OJSC, ROSBANK JSCB, UNIASTRUM BANK, Sberbank of the Russian Federation, Bank VTB-24, JSCB Baltiyskiy Bank, JSCB BALTINVESTBANK, JSCB Sea Bank.
In 2007-2009 investment activity was focused on placing funds in such key financial instruments as bank deposits (44.3% in 2007, 28.2% in 2008, 13.7% in 2009 of total investment), shares and stakes in Russian companies (27.5% in 2007, 11.1% in 2008, 9.4% in 2009 of the total investment), bank debt securities and debt obligations of subjects of the federation (5 .3% in 2007, 60% in 2008, 76.8% in 2009 of the total investment). Investments in real estate became a separate area of investment, which at the end of 2007 amounted to 469 million rubles, at the end of 2008 - 479, at the end of 2009 - 568 million rubles.
The degree of diversification was achieved through the distribution of investment risks for different types of investments in different organizations.
The total amount of investments as of the end of 2008 amounted to 4.119 billion rubles. The increase in the total amount of investments in comparison with 2007 occurred by 1.576 billion rubles (an increase of 38%) and was due to an increase in the volume of collected insurance premiums. In 2009, the total investment amounted to 5.169 billion rubles. The increase compared to 2008 was by 1.050 billion rubles (an increase of 25%) and was due to a smaller increase in the volume of collected insurance premiums.
The total investment income in 2007 amounted to 42.2 million rubles, in 2008 - 84 million rubles. In 2009, income decreased slightly and amounted to 54.2 million rubles. This is due both to the lower amount of collected insurance premiums and to investing in the most reliable, but less profitable organizations, which was caused by the impending financial crisis.
Given the above, the company's investment portfolio meets the requirements of repayment, liquidity, diversification and profitability.
2 The level of coverage by investment assets of insurance reserves-net.
The indicator determines the degree of placement of funds at the expense of which the obligations of the insurance company are covered: in investment assets and in the form of cash in bank accounts and on hand.
Calculated as the sum of investments and cash to insurance reserves - net reinsurance.
Insurance reserves-net reinsurance include:
§ reserve of unearned premium minus the share of reinsurers in the reserve;
§ loss reserves minus the share of reinsurers in the reserve;
§ other insurance reserves.
K4.2 2007 \u003d 2735511 / (1909707 + 548317 + 270095) \u003d 2735511 / 2728119 \u003d \u003d 100%
K4.2 2008 \u003d 4313299 / (4079753 + 1157972 + 360912) \u003d 4313299 / 5598637 \u003d \u003d 77%
K4.2 2009 \u003d 5410819 / (3942307 + 1525836 + 372161) \u003d 5410819 / 5840304 \u003d \u003d 93%
Investments in 2008 grew by 162%. The decrease by 23% was due to a 2-fold increase in insurance reserves, mainly the unearned premium reserve by 214% and the loss reserve by 211% due to the insufficient amount of insurance premium received. In 2009, investments increased by 126%, while liabilities decreased by 7%, due to this the indicator increased by 6%.
Indicators for evaluating reinsurance operations
1 Share of reinsurers in insurance reserves (other than life insurance).
The share of reinsurers in insurance reserves determines the degree of dependence of the insurance company on reinsurers as of the reporting date.
It is calculated as the ratio of the share of reinsurers in insurance reserves to insurance reserves.
The share of reinsurers in insurance reserves (except for life) includes:
§ the share of reinsurers in the unearned premium reserve;
§ share of reinsurers in loss reserves.
Insurance reserves include unearned premium reserves and loss reserves, respectively.
K5 2007 = (841721+568869)/(2751428+1117186) = 1410590/3868614 = 36%
K5 2008 = (223337+904310)/(4303090+2062282) = 1127647/6365372 = 18%
K5 2009 = (233634+160394)/(4175941+1686230) = 394028/5862171 = 7%
In 2008, the dependence on reinsurers was reduced due to the low loss ratio of own insurance operations. In 2009, the situation changed - the loss ratio increased sharply, and the insurance company did not change its reinsurance policy. A low percentage of the share of reinsurers in insurance reserves can lead to a significant level of unprofitability of the insurance company and, as a result, to the inability to meet its obligations in the future.
Indicators for assessing the solvency of an insurance company and assessing current liquidity
1 Current solvency.
The indicator characterizes the sufficiency of the inflow of funds in the form of insurance premium receipts to cover current expenses for insurance payments (completed losses), current expenses for doing business, management and operating expenses, with the exception of expenses related to the investment activities of the insurance company.
K6.1 2007 = 3838037/(1484763+648760+656149+418821) = =3838037/3208493 = 119%
K6.1 2008 = 8029864/(2299959+1258955+890872+1145750) = 8029864/5595536 = 143%
K6.1 2009 = 6458409/(2638113+962165+1304853+1642079) = =6458409/6547210 = 98%
In 2007-2008 there was an increase in the volume of the company's activities. In 2009, solvency decreased by 45%, which was caused by low insurance premiums received, constant growth in payments, as well as a high increase in management expenses by 146% and operating expenses by 143%.
2 Current liquidity.
The current liquidity ratio allows you to determine the company's ability to meet current obligations. It shows the degree of repayment of the company's short-term liabilities at the expense of assets with the same maturities, i.e. is an indicator of working capital adequacy.
Comparison of current ratios over different time periods can be useful in identifying adverse trends in liquidity or matching maturities of assets and liabilities, and especially those trends that lead to over-commitment.
It is calculated as the ratio of current assets to short-term liabilities.
The current assets of an insurance company include cash, accounts receivable, securities, deferred income and expenses.
K6.2 2007 = 7354019/6748648 = 1.1
K6.2 2008 = 10860355/10129130 = 1.1
K6.2 2009 = 12522311/10317031 = 1.2
A coefficient at the level of one indicates that the company can fully pay off its short-term liabilities at the expense of current assets.
The results of the assessment of the financial condition of the insurance company
1 The insurance company has been operating in the insurance services market since 2005.
2 The Company has licenses from the Federal Insurance Supervision Service for the right to carry out insurance activities, for reinsurance and for carrying out work with information constituting a state secret.
3 The authorized capital of the company over the past three years has been more than the standard established by the Law of the Russian Federation.
4 The Company conducts its activities in full compliance with the legislation of the Russian Federation and has no instructions from Rosstrakhnadzor restricting its activities.
5 The Company has not been involved in any significant litigation in the past three years.
6 The company is not subject to bankruptcy proceedings.
7 The Company places its insurance reserves in accordance with the Order of the Ministry of Finance of the Russian Federation.
8 OJSC Moscow Insurance Company has an A+ rating (very high level of reliability) from the Russian rating agency Expert Ra, financial strength rating on the international scale B+ (outlook stable) and on the national scale A- (outlook stable).
9 The company's insurance portfolio is balanced, that is, the share of insurance premiums attributable to motor hull and OSAGO over the past 3 years did not exceed 60% of the total insurance premiums.
10 Rossiya pursues a correct reinsurance policy and cooperates with the world's leading reinsurance companies with a high international credit rating.
11 The Company has no overdue liabilities to the budget and off-budget funds, as well as to creditors.
12 The company has no overdue obligations to employees for wages.
13 OJSC “Moscow Insurance Company” shows positive dynamics:
§ Net assets increased by 104% in 2008 compared to 2007, in 2009 - by 147%;
§ Own funds increased by 101% in 2008 compared to 2007, in 2009 - by 147%;
§ Net profit increased by 742% in 2008 compared to 2007, in 2009 - by 3189%;
§ Balance currency increased by 142% in 2008 compared to 2007, in 2009 - by 116%;
§ Insurance reserves increased by 161% in 2008 compared to 2007. But in 2009, insurance reserves decreased by 8%, which was caused by insufficient receipt of insurance premiums and growing payments.
When calculating the coefficients, the following results were obtained:
1 Financial stability indicators worsened in 2008. A strong increase in the volume of risks assumed by the insurance company, without a proper increase in equity capital, affected. In 2009, the company took steps to improve its financial stability by increasing its share capital.
2 The profitability ratio of insurance and financial and economic activities (except for life insurance) over the past 3 years has been low, while the return on equity is high. This suggests that the company receives the main income from capital investment.
3 Loss ratio of insurance operations in 2008 decreased. This is mainly due to the fact that the company has focused on more profitable market segments, as well as due to a decrease in the share of reinsurers in insurance operations. In 2009, a sharp increase in loss ratio indicates that it is time for the company to revise its tariff and reinsurance policies.
4 The indicator of the quality of the investment portfolio indicates that the company places its funds in liquid assets. The investment adequacy ratio, which covers the obligations of the insurance company over the past two years, is low.
5 The insurance company's dependence on reinsurers has been declining over the past three years and in 2009 became less than the permissible norm, which indicates the need to revise the reinsurance policy.
6 Current solvency ratio for 2007-2008 characterizes the sufficiency of the insurance premium inflow to cover current expenses associated with the growth of activity volumes. The decrease in the coefficient in 2009 makes us think about changing the tariff policy. And the current liquidity ratio shows the compliance of the maturities of assets and liabilities, as well as the absence of excessive liabilities.
Among all the coefficients, only four of them do not fit into the standard established by banks, these are:
1 Share of equity in balance sheet deviated by -0.4% in 2008;
2 Profitability of insurance and financial and economic activities deviated by -0.4% in 2007;
3 In 2008, the indicator of the level of coverage of net insurance reserves by investment assets deviated from the norm by -8%;
4 The share of reinsurers in insurance reserves deviated from the norm by -3% in 2009.
So, all criteria for assessing the financial condition of an insurance company are positive, except for the decrease in reserves in 2009 and the deviation of four coefficients.
Given the fact that the dynamics of the company's basic performance indicators, which include insurance reserves, banks usually consider for the last two years, and financial stability indicators - for the last year, the deviations of the coefficients for 2007-2008. may not be taken into account. Consequently, the financial condition of the insurance company JSC "Moscow Insurance Company" at the end of 2009 can be considered good.
In order to improve the company's financial stability in 2010, it is necessary to revise insurance rates, as well as the reinsurance policy.
Non-state educational institution
higher professional education
"SAMARA HUMANITARIAN ACADEMY"
Department of Taxation, Accounting and Audit
Specialty 080109 "Accounting, analysis and audit"
REPORT
about industrial practice
Made based on the materials of LLC "Insurance Company"
Samara 2009
Content
1. Brief organizational and economic characteristics of the enterprise LLC "Insurance Company"
2. Accounting at the enterprise LLC "Insurance Company"
2.1. Accounting for fixed assets
2.2. Accounting for intangible assets
2.3. Accounting for insurance transactions
2.4. Capital Accounting
2.5. Accounting for insurance reserves
2.6. Accounting for credits and loans
2.7 Accounting management accounting in Insurance Company LLC
3. Analysis of tax accounting LLC "Insurance Company"
4. Analysis of the financial condition of the enterprise LLC "Insurance Company"
List of used literature
1. Brief organizational and economic characteristics of the enterpriseOOO "Insurance Company"
Samara Insurance Company has been operating in the insurance market since 1993. The main activities are voluntary property insurance: insurance of land and water transport, cargo insurance, liability insurance, etc. In addition to the active promotion of standard insurance programs, contracts are also concluded with unique conditions focused on the wishes of customers.
In addition to Samara, there are representative offices of Insurance Company LLC in several cities of Russia.
The authorized capital of Insurance Company LLC is 75 million rubles.
The Insurance Company carries out its activities on the basis of a license issued by the Federal Insurance Supervision Service.
The supreme governing body for the activities of an insurance company is the meeting of participants of Insurance Company LLC (Scheme 1). The competence of the general meeting of participants is determined by the Charter of the insurance company and the Federal Law of 08.02.98. N 14-FZ "On limited liability companies".
The competence of the meeting of participants of Insurance Company LLC includes:
1) change of the charter, including change of the size of the authorized capital of the insurance company;
2) amendments to the memorandum of association;
3) approval of annual reports and annual balance sheets;
4) making a decision on the distribution of net profit between the participants of the company;
5) approval (adoption) of documents regulating the internal activities of the company (internal documents of the company);
6) appointment of an audit, approval of the auditor and determination of the amount of payment for his services;
7) election of the sole executive body of the company (director) and early termination of his powers, as well as the decision to transfer the powers of the sole executive body of the company to a commercial organization or individual entrepreneur, approval of such a manager and the terms of the contract with him, etc.
The director of Insurance Company LLC approves the insurance rules, insurance rates, standard insurance contracts and establishes the procedure for their preparation, approves other documents necessary to ensure the company's activities. The director also approves documents that regulate the activities of representative offices, establishes their area of responsibility, appoints and dismisses directors of representative offices, etc. The director is responsible for the organization, condition and reliability of accounting, timely provision of financial statements.
Accounting in LLC "Insurance Company" is carried out by the accounting department, which is a structural unit. An accounting department is being developed, consisting of 3 specialists: an accountant, a deputy chief accountant and a chief accountant. Accountant provides full accounting of incoming funds, goods and materials, maintains and records primary documents, performs the duties of a cashier, participates in the preparation of data for the preparation of accounting, tax and statistical reporting. Chief accountant's assistant deals with accounting of fixed assets and intangible assets, keeps records of settlements with suppliers and accountable persons, compiles a register of receivables and payables, ensures timely and correct accrual and transfer of taxes and fees to budgets of all levels, ensures the development and implementation of measures aimed at strengthening financial discipline .
Chief AccountantOOO "Insurance Company" is responsible for the rational organization of accounting at the enterprise and in its divisions, the preparation of financial statements, takes measures to accumulate financial resources to ensure financial stability, and works to ensure strict observance of staff, financial and cash discipline.
The chief accountant is also responsible for the formation of accounting policies. The basis for the formation (selection and justification) and disclosure (publicity) of accounting policies are established by Accounting Regulation 1/2008 "Accounting Policy of the Organization". The director of OOO Insurance Company approves the accounting policy. As part of the accounting policy, the following must be approved:
· a working chart of accounts containing synthetic and analytical accounts necessary for accounting in accordance with the requirements of timeliness and completeness of accounting and reporting. The chart of accounts of Insurance Company LLC was developed in accordance with the Order of the Ministry of Finance of the Russian Federation dated 04.09.2001 No. No. 69n "On the peculiarities of the application by insurance organizations of the chart of accounts for accounting of the financial and economic activities of the organization and instructions for its application" (Appendix No. 3);
forms of primary documents used to process business transactions, for which standard forms of primary accounting documents are not provided, as well as forms of documents for internal financial statements;
the procedure for conducting an inventory and methods for assessing types of property and liabilities;
· rules of document circulation and technologies of processing accounting information;
· the order of control over business operations, as well as the decisions necessary for the organization of accounting.
Insurance Company LLC, along with the accounting policy for accounting, must develop a tax accounting policy.
Accounting is kept in accordance with the Federal Laws "On Accounting" dated 21.11.96. No. 129-FZ, "On Limited Liability Companies" dated 08.02.98. N 14-FZ, the Law "On the organization of insurance business in the Russian Federation" dated 11.27.92. No. 4015-1, Order of the Ministry of Finance of the Russian Federation dated 04.09.2001 No. No. 69n "On the peculiarities of the application by insurance organizations of the chart of accounts for accounting of the financial and economic activities of the organization and instructions for its application", Regulations on accounting, etc.
2.
Accounting at the enterpriseOOO "Insurance Company"
2.1 Accounting for fixed assets
Accounting for fixed assets in Insurance Company LLC is regulated by the Accounting Regulation “Accounting for fixed assets” (PBU 6/01).
Fixed assets - a part of property used as means of labor in the production of products, performance of work or provision of services, or for the management of the organization for a period exceeding 12 months, or a normal operating cycle, if it exceeds 12 months.
In accordance with PBU 6/01, when accepting assets as fixed assets for accounting, the following conditions must be met at a time:
a) use in the manufacture of products, in the performance of work or the provision of services, or for the management needs of the organization;
b) use for a long time, more than 12 months, or more than one normal operating cycle if it exceeds 12 months;
c) the organization does not expect the subsequent resale of these assets;
d) the ability to bring economic benefits (income) to the organization in the future.
In the event that the acquired values at the time of acquisition do not meet the named conditions, they are subject to accounting as part of inventories.
Fixed assets are accepted for accounting at their original cost.
Initialprice is a value depending on the source of fixed assets.
For objects contributed by the founders (participants) on account of their contributions to the authorized capital, the initial cost is determined in monetary value agreed by the founders (participants), but not higher than the expert's estimate.
For objects received under a donation agreement and other cases of gratuitous receipt, their market value as of the date of posting is recognized as the initial cost.
For objects purchased for a fee, the initial cost is equal to the sum of the actual costs of acquiring, constructing and manufacturing these objects.
General business and other similar expenses are not included in the actual costs of acquiring fixed assets, unless they are directly related to the acquisition of fixed assets.
funds.
A change in the initial cost of fixed assets in which they are accepted for accounting is allowed in cases of completion, additional equipment, reconstruction, partial liquidation of fixed assets.
A feature of the formation of the initial cost of acquired fixed assets for insurance activities is that VAT paid to sellers of fixed assets is not accepted for reimbursement from the budget, but is included in their cost. This procedure is based on Art. 170 of the Tax Code of the Russian Federation, according to which the amounts of tax presented to the buyer upon acquisition of fixed assets or actually paid upon importation of fixed assets into the territory of the Russian Federation are taken into account in the cost of fixed assets used for production and (or) sale (as well as transfer, execution, provision of own needs) goods (works, services) not subject to taxation (exempted from taxation). Provision of insurance, co-insurance and reinsurance services by insurance organizations, in accordance with paragraphs. 7 p. 3 art. 149 of the Tax Code of the Russian Federation, is exempt from VAT.
In tax accounting The initial cost of a depreciable fixed asset acquired after the entry into force of Chapter 25 of the Tax Code of the Russian Federation (after January 1, 2002) is determined as the sum of the costs of its acquisition, construction, manufacture, delivery and bringing it to a state in which it is suitable for use, for except for the amounts of taxes that are deductible or taken into account as expenses when calculating income tax.
In tax accounting, when determining the initial cost of fixed assets, payments for registration of rights to real estate and land, sum differences and interest accrued on borrowed funds received for the acquisition of property, plant and equipment. These expenses are included in tax accounting as part of either other or non-operating expenses.
If the initial cost of fixed assets in accounting turned out to be higher than in tax accounting, for example, due to interest on a loan included in it or payments for registering rights to real estate, then in accounting, in accordance with PBU 18/02 , deferred tax liabilities (D 68 K 77) are reflected, which are then repaid as depreciation is accrued (D 77 K 68).
The initial cost of the fixed asset received as a contribution to the authorized capital is taken equal to the residual value according to the tax records of the transferring party.
The initial cost of fixed assets received free of charge is equal to their market value, but not lower than the residual value according to the tax records of the transferring party.
The initial cost of depreciable property changes in cases of completion, additional equipment, reconstruction, modernization, technical re-equipment, partial liquidation of the relevant facilities and on other similar grounds.
Revaluations of fixed assets in tax accounting do not change the initial cost of fixed assets.
Accounting for fixed assets in Insurance Company LLC is carried out on the basis of the primary documentation of the following standard forms, approved by the Decree of the State Statistics Committee of Russia dated 21.01.2003. No. 7:
- an act on the acceptance and transfer of an object of fixed assets (except for buildings, structures) (OS-1 form);
- an act on the write-off of an object of fixed assets (except for motor vehicles) (OS-4 form);
- an act on the write-off of vehicles (form OS-4a);
- inventory card of fixed assets (form OS-6).
Accounting for fixed assets in the accounting department is carried out by classification groups in the context of inventory items. An inventory object is an object with all fixtures and fittings, or a separate constructive separate item designed to perform certain independent functions.
Each inventory object is assigned an inventory number according to the serial-order coding system, which is indicated in the primary documents and is stored throughout the entire life cycle of the object. An inventory card is opened for each inventory item.
Synthetic accounting of fixed assets is kept on the following accounts.
Account 01 "Fixed assets", active, fixed assets are shown on it at their original cost.
Account 02 "Depreciation of fixed assets", passive:
Account 08 "Investments in non-current assets", active:
Receipt of fixed assets
can be done in the form:
contribution to the authorized capital;
free receipt;
acquisitions.
When investing fixed assets in the authorized capital the founder of the insurance organization determines their value according to the agreed assessment of the founders, but not higher than the assessment of an independent appraiser. When posting fixed assets (except for real estate objects), the following operations are reflected in the accounting accounts:
D 08 K 75.1 - fixed assets are capitalized at the cost agreed by the founders, but not higher than the estimate given by an independent appraiser;
D 08 K 76 - reflects the costs associated with the delivery, installation, bringing the item of fixed assets into working condition. Services of third parties are reflected on account 08 together with VAT, since fixed assets are acquired for insurance activities, which are not subject to VAT. In this case, the input VAT is not reimbursed from the budget, but is included in the cost of the acquired property or works, services from outside;
D 76 K 51 - payment for the services of third-party organizations is reflected;
D 08 K 51 - payment for registration of ownership of an object of fixed assets is reflected (registration is carried out for vehicles);
D 01 K 08 - an object of fixed assets was put into operation at an inventory value equal to the sum of the agreed assessment of the founders and the costs of the organization for this fixed asset.
When investing in the authorized capital of real estate objects, the following block of operations is reflected in the accounting:
D 08 K 75.1 - real estate objects are credited at the cost agreed by the founders, but not higher than the estimate given by an independent appraiser;
D 08 K 76 - reflects the costs associated with bringing the property into working condition. Services of third-party organizations are reflected in account 08 together; VAT;
D 76 K 51 - payment for services to third parties is reflected;
D 08 K 51 - documents for state registration of real estate objects have been submitted and payment for registration of ownership of these objects has been reflected;
D 01 sub-account “Real estate objects, documents for which were submitted for state registration” K 08 - a real estate object was put into operation at an inventory cost equal to the sum of the agreed assessment of the founders and the organization’s costs (this operation is reflected in the accounting on the date of submission of documents for registration). On the object put into operation from the next month, depreciation begins to be charged, the costs of its operation are reflected;
D 01 K 01 sub-account “Real estate objects, documents for which were submitted for state registration” - after state registration and obtaining ownership rights, the real estate object is transferred from a special sub-account to account 01 “Fixed assets”.
Upon receipt of fixed assets free of charge(under a donation agreement) they are valued at market value.
In accordance with paragraphs. 4 p. 1 art. 575 of the Civil Code of the Russian Federation, donations are not allowed in relations between commercial organizations, with the exception of ordinary gifts, the value of which does not exceed three thousand rubles.
When posting fixed assets in the case of gratuitous receipt (except for real estate objects), the following operations are reflected in the accounting accounts:
D 08 K 98 - the fixed asset was capitalized at market value. The market value of a fixed asset is most often determined by an independent appraiser;
D 08 K 76 - reflects the costs associated with the delivery, installation, bringing the OS object into working condition. Services of third parties are reflected on account 08 together with VAT;
D 76 K 51 - paid for the services of third-party organizations;
D 08 K 51 - paid for registration of ownership of fixed assets (registration is carried out for vehicles);
D 01 K 08 - an object of fixed assets was put into operation at an inventory value equal to the market value of the fixed asset and the organization's costs for this fixed asset;
D 98 K 91.1 - a part of the market value of fixed assets is written off from deferred income to current income, equal to the amount of accrued depreciation from the market value of the fixed asset for a given period.
For real estate objects, the procedure for recording transactions is the same, but only these objects are put into operation on the date of submission of documents for state registration and are reflected in a special sub-account to account 01 (sub-account to account 01 “Real estate objects, documents for which were submitted for state registration”) . Then, after the state registration, they are transferred to account 01 (D 01 K 01 sub-account "Real estate objects, documents for which were submitted for state registration").
Acquisition (purchase) of individual objectsfixed assets(buildings, structures) is reflected on account 08 at actual costs, including VAT (D 08 K 60). The commissioning of individual facilities is carried out at the inventory cost calculated on account 08.
Example.
An insurance organization purchases an office space at a price of 5,000,000 rubles; VAT at a rate of 18% - 900,000 rubles. According to the act of acceptance and transfer, the office space was transferred by the seller to the insurance organization, in whose accounting an entry is made: D 08 K 60 - 5,900,000 rubles (office price and VAT). Then the insurance organization submits documents for registration of ownership of the purchased office space and, accordingly, pays the state fee in the amount of 7,500 rubles). The state duty is included in the cost of office premises: D 08 K 51 - 7,500 rubles. After the transfer of documents for registration, the insurance organization puts the fixed asset into operation, which is reflected in the posting: D 01 subaccount “Real estate, documents for which were submitted for state registration”, K 08 - at an inventory value equal to the sum of the actual costs of its acquisition (5 907 500 rubles). After obtaining the right of ownership, the office space is transferred to a regular account 01 "Fixed assets": D 01 K 01 "Real estate, documents for which were submitted for state registration" - 5,907,500 rubles.
The cost of fixed assets is repaid by accrual depreciation
. Depreciation is charged over the useful life. The useful life is the period during which the use of an item of property, plant and equipment generates income for the organization.
Depreciable property is divided into depreciation groups in accordance with its useful life. The useful life is determined by the taxpayer independently on the date of commissioning of this depreciable property based on the tax classification of fixed assets determined by the Government of the Russian Federation (Decree of the Government of the Russian Federation dated 01.01.2002 No. 1).
Depreciation deductions for an object of fixed assets are accrued from the first day of the month following the month of acceptance of this object for accounting, and are accrued until the cost of this object is fully paid off or this object is written off from accounting.
Depreciation deductions for an item of fixed assets are terminated from the first day of the month following the month of full repayment of the cost of this item or write-off of this item from accounting records.
Objects of fixed assets worth no more than 10,000 rubles. per unit, as well as purchased books, brochures, etc. publications are allowed to be written off as expenses as they are put into operation.
The application of one of the depreciation methods for a group of homogeneous items of fixed assets is carried out during the entire useful life of the items included in this group.
Depreciation for accounting purposes is calculated on a straight-line basis:
Ak \u003d First * On / 100,
Where Ak- depreciation for the k-th year;
First- the initial cost of the fixed asset;
On the- depreciation rate calculated on the basis of the useful life, %.
On \u003d 100 / Tpol,
Where Tpol- the useful life of the fixed asset.
During the reporting year, depreciation deductions for fixed assets are calculated monthly, regardless of the method of accrual used, in the amount of 1/12 of the annual amount.
In accounting, depreciation charges are reflected in the reporting period to which they relate, and are charged regardless of the performance of the insurance company in the reporting period. The depreciation amounts of fixed assets are included in the general business expenses of the insurance organization (D 26 K 02).
Revaluations
fixed assets until 01.01.98 were carried out according to the decisions of the Government. Fixed assets were revalued as of July 1, 1992, January 1, 1994, January 1, 1995, January 1, 1996, January 1, 1997, January 1, 1998.
In accordance with PBU 6/01, from 01.01.2001, commercial organizations may not more than once a year (at the beginning of the reporting year) revalue groups of fixed assets at their current (replacement) cost by indexing or direct recalculation at documented market prices.
When deciding on the revaluation of such fixed assets in the future, they must be revalued regularly so that their valuation in accounting corresponds to the current (replacement) value.
Revaluation can be done in two ways:
- indexation of the book value of fixed assets;
- direct recalculation of the book value into prices in force for the respective types of fixed assets at the time of revaluation.
Currently, there are no indexes for revaluation of fixed assets using the index method. If necessary, these indices for individual regions could be developed by the Research Institute of Statistics of the Goskomstat of Russia on a commercial basis.
Organizations may also evaluate fixed assets at the market value in force at the time of the revaluation. This is how it is done in Insurance Company LLC.
Example
.
The book value of fixed assets in the group "buildings and structures" is 6,180,000 rubles, depreciation - 50,000 rubles. Market price (according to the valuation report) - 8,980,000 rubles.
The difference between book value and market value is:
8,980,000 - 6,180,000 = 2,800,000 rubles
The amount of recovery depreciation is obtained as follows:
(8 980 000 / 6 180 000) * 100 = 145%; 145% - 100% = 45%
50,000 * 45% = 22,500 rubles
The resulting differences (revaluation) are reflected in the accounts of additional capital:
D 01 K 83 - 2,800,000 rubles.
D83 K 02 - 22,500 rubles.
The results of the revaluation of fixed assets carried out as of the first day of the reporting year are reflected in accounting separately. The results of the revaluation are not included in the financial statements of the previous reporting year and are accepted when forming the balance sheet data at the beginning of the reporting year. They are taken into account when calculating depreciation and when calculating property tax, if the revaluation was carried out both by decision of the Government and on a voluntary basis.
In tax accounting revaluation of fixed assets does not change their initial cost. In this case, in accounting and tax accounting, fixed assets are accounted for at different values, which leads to the appearance of differences and their reflection in accounting in accordance with PBU 18/02.
Disposal of property, plant and equipment
can be done as a result of:
- gratuitous transfer;
- sales;
- liquidation due to physical or moral deterioration.
When a fixed asset is transferred free of charge, operations on its disposal are reflected in the accounting: D 02 K 01 - the amount of accrued depreciation on the fixed asset is written off; D 91.2 K 01 - its residual value is written off. Free transfer of property is subject to VAT, therefore, when transferring a fixed asset in this case, VAT must be charged on the difference between its market and residual value at a rate of 18/118: D 91.2 K 68 VAT.
When selling fixed assets, the residual value of the fixed asset being sold is written off to account 91 in the usual manner: D 02, K 01; D 91.1 K 01. This account also takes into account the costs associated with the sale of fixed assets (dismantling, packaging, transportation, etc.): D 91.1 K 10, 70, 69, 60. Services for the sale of fixed assets from outside are included in expenses together with VAT. Proceeds from the sale of fixed assets are shown in the credit of account 91.1: D 76 K 91.1.
VAT payable to the budget on the sale of acquired fixed assets ( VATbudget
VATbud = (Sprod
-
comp)
*
Rnds,
Where FROMprod, comp- accordingly, the proceeds from the sale, including the price and VAT, and the residual value of the fixed asset being sold, rubles; Rnds- Estimated VAT rate (18/118).
For purposes of calculating income tax in tax accounting, the financial result from the sale of fixed assets ( Fros)
Fros = Sprod
-VAT
-
Composition
-
Rprod,
Where Sprod- the selling price of the fixed asset; VAT- VAT charged to the buyer of the fixed asset; Composition- the residual value of the sold fixed asset, calculated according to the rules of tax accounting; Prod- expenses associated with the sale of fixed assets.
If there is a loss from the sale of a fixed asset, it will be recognized for tax purposes as follows: the loss will be included in other expenses in equal installments over a period determined as the difference between the useful life of the fixed asset, determined according to the tax accounting rules, and the actual period of its operation until the date of sale.
Since the loss from the sale of a fixed asset in accounting is fully included in the financial result at the time of sale, and in tax accounting it is included evenly over the remaining period of use, a deferred tax asset (D 09 K 68) is formed in accounting for the amount of the loss, which is gradually repaid over the remaining period of use of the fixed asset (D 68 K 09).
Upon liquidation of fixed assets, their residual value is written off to account 91.1. Material values, remaining from the written-off fixed assets, are accounted for at market value on the date of writing off with crediting to other income (D 10 K 91.1). Expenses for the liquidation of fixed assets are included in other expenses of the insurance company (D 91.2 K 10, 70, 69, 60, etc.).
LLC "Insurance Company" rents office space for the work of representative offices and, accordingly, conducts accounting for leased fixed assets
. Lease agreements are concluded for a period not exceeding 1 year. The rent is paid in a timely manner in the manner, on the conditions and within the time limits specified in the agreement.
Upon termination of the lease agreement, the lessee is obliged to return the property to the lessor in the condition in which he received it, taking into account normal wear and tear.
Table 1.
Reflection of transactions on the lease of fixed assets on the accounts of the lessee
2.2
Accounting for intangible assets
In accounting, the rules for generating information on intangible assets of commercial organizations (except for credit ones) that they own, economic management, operational management are established by the Accounting Regulation "Accounting for Intangible Assets" PBU 14/2007, entered into force on 27.12. 2007
In accordance with PBU 14/2007, when accepting assets for accounting as intangible, the following conditions must be met at a time:
a) the absence of a material (physical) structure;
b) the possibility of identifying (separating, separating) an object from other property;
c) use in the production of products (works, services), in the performance or provision of services or for management needs;
d) use for a long time, i.e. useful life, lasting more than 12 months or normal operating cycle, if it exceeds 12 months;
e) the Company does not intend to sell this property;
f) the ability to bring economic benefits (income) to the Company in the future;
g) the availability of properly executed documents confirming the existence of the asset itself and the Company's exclusive right to the results of intellectual activity (patents, certificates, other titles of protection, an agreement on the assignment (acquisition) of a patent, trademark, etc.).
Intangible assets may include exclusive rights to the results of intellectual activity (patents, trademark certificates, computer programs, databases), as well as the business reputation of the organization and organizational expenses (expenses associated with the formation of a legal entity, recognized in accordance with the constituent documents as part contribution of participants (founders) to the authorized (share) capital of the organization.
Insurance Company LLC records intangible assets on the basis of documents similar to those for fixed assets (acceptance certificate for intangible assets, transfer certificate, etc.). The basis for drawing up an acceptance certificate are documents confirming the rights to intangible assets (patents, certificates, other titles of protection).
Analytical accounting of intangible assets is carried out in the form of "Intangible Asset Accounting Card" (IA-1).
For synthetic accounting of intangible assets, accounts 04 "Intangible assets", 05 "Amortization of intangible assets", 08.5 "Acquisition of intangible assets" are used.
|
D |
Account 04 "Intangible assets" |
To |
|
| Balance - the cost of intangible assets at the beginning of the period Admission of intangible assets Balance - the cost of intangible assets at the end of the period |
Write-off of residual value upon disposal of intangible assets Repayment of the cost of intangible assets (for goodwill and organizational expenses) |
||
|
D |
Account 05 "Amortization of intangible assets" |
To |
|
|
Write-off of depreciation on retiring intangible assets |
Balance - the amount of depreciation of intangible assets at the beginning of the period Calculation of monthly depreciation Depreciation balance of intangible assets at the end of the period |
||
|
D |
Account 08.5 "Acquisition of intangible assets" |
To |
|
| Balance - the cost of intangible assets not put into operation at the beginning of the period Costs for the acquisition and creation of intangible assets Balance - the cost of intangible assets not put into operation at the end of the period |
Write-off of the initial cost of intangible assets put into operation |
The initial cost of intangible assets is not subject to change.
A feature of the formation of the initial cost of acquired intangible assets for insurance activities is that VAT paid to sellers of intangible assets is not accepted for reimbursement from the budget, but is included in their cost. This procedure is based on Art. 170 of the Tax Code of the Russian Federation, according to which the tax amounts presented to the buyer upon acquisition of intangible assets acquired for production and (or) sales operations that are not subject to taxation (exempted from taxation) are taken into account in the cost of intangible assets. According to paragraphs. 7 p. 3 art. 149 of the Tax Code of the Russian Federation, the provision of insurance, co-insurance and reinsurance services by insurance organizations is exempt from VAT.
Thus, the value added tax paid upon the purchase of intangible assets is also credited to account 08.5 (D 08.5, K 60).
the initial cost of depreciable intangible assets is determined as the sum of expenses for their acquisition and bringing them to the state in which they are suitable for use, with the exception of the amounts of taxes taken into account as expenses when calculating income tax.
The initial cost of intangible assets in tax accounting, in contrast to financial accounting, does not include sum differences and interest on borrowed funds received for the acquisition of these intangible assets. Amount differences and interest on borrowed funds in tax accounting are included in non-operating expenses.
The cost of intangible assets is included in the cost of production by depreciation .
Amortization of intangible assets is charged in the reporting period, regardless of the results of the organization's economic activity.
Depreciation of intangible assets in Insurance Company LLC is charged on a straight-line basis based on the norms calculated by the organization on the basis of their useful life;
In a linear way, depreciation is charged at depreciation rates to the initial cost of intangible assets:
Anma = Snma * Nnma /100,
Where Anma - depreciation of intangible assets, rub.;
Snma - the initial cost of intangible assets, rubles;
Nnma - depreciation rate to the initial cost,%.
Depreciation rates for intangible assets are determined based on their useful lives:
Nnma
=
100/ Tisp,
Where Tisp is the useful life of intangible assets, years.
The useful life of intangible assets is determined based on:
- the validity period of a patent, certificate and other restrictions on the terms of use of intellectual property objects in accordance with the legislation of the Russian Federation;
- the expected period of use of the object, during which the organization can receive economic benefits (income).
If the useful life is not determined by the manufacturer, it is determined by the order of the director of OOO Insurance Company or based on an expert assessment.
For intangible assets, for which it is impossible to determine the useful life, depreciation rates are set for 20 years (but not more than the life of the organization).
Depreciation on intangible assets begins on the first day of the month following the month of acceptance of the object for accounting, and is carried out until the full repayment of the cost of the object or the disposal of this object in connection with the assignment (loss) by the organization of exclusive rights to the results of intellectual activity.
The accrual of depreciation on intangible assets is terminated from the first day of the month following the month of the full repayment of the value of the object or the write-off of this object from the accounting records.
In Insurance Company LLC, depreciation is reflected by accumulating amounts on a separate account 05 “Amortization of intangible assets”: D 26, K 05.
For the purposes of calculating income tax, we accrue depreciation of intangible assets using the straight-line method. The amount of accrued depreciation is determined as the product of the initial (replacement) cost of intangible assets and the depreciation rate for an intangible asset:
Hnma = 100/M,
Where Nnma is the depreciation rate as a percentage of the original (replacement) cost of intangible assets;
M is the useful life of intangible assets, in months.
Upon disposal of intangible assets
their value recorded on account 04 is reduced by the amount of depreciation accrued during the time of use of the objects: D 05, K 04. The residual value of retired objects is debited from account 04 to account 91.2 “Other expenses”: D 91.2, K 04.
Income and expenses associated with the disposal of an intangible asset are reflected in account 91 “Other income and expenses”:
· the debit of sub-account 91.2 shows: the residual value of retiring intangible assets (D 91.2, K 04); expenses associated with their sale (D 91.2, K 10, 70, 60, 69, etc.); VAT accrued on sold and donated assets (D 91.2, K 68 VAT);
· the credit of account 91.1 shows: proceeds from the sale of intangible assets (D 62, K 91.1).
VAT payable to the budget on sold or donated intangible assets ( VAT), is defined as follows:
VAT = (Sprod
-comp)
*
Rnds,
Where Sprod - selling value of an intangible asset with VAT, rub.;
Comp - residual value of an intangible asset with VAT, rub.;
Rnds - estimated VAT rate, (18/118).
For income tax purposes financial result from the sale of an intangible asset (FRna) is defined as follows:
FRna \u003d Sprod - VAT
-Composition
-Rprod,
Sprod- selling value of an intangible asset;
VAT - VAT charged to the buyer of an intangible asset;
Comp - the residual value of the sold intangible assets, calculated according to the rules of tax accounting;
Prod- expenses related to the sale of intangible assets.
If there is a loss from the sale of an intangible asset, it will be recognized for tax purposes as follows: the loss will be included in other expenses in equal shares over the period determined as the difference between the useful life of the intangible asset and the actual life of its operation up to moment of sale.
2.3
Accounting for insurance transactions
Voluntary insurance is carried out on the basis of an agreement. In insurance, there are the following types of insurance contracts: the main contract (Article 927 of the Civil Code of the Russian Federation); reinsurance contract (Article 967 of the Civil Code of the Russian Federation).
Omain contracts property insurance are concluded by a citizen or a legal entity (the insured) with Insurance Company LLC (the insurer).
under a reinsurance contract the risk of payment of insurance indemnity, assumed by the insurer under the main insurance contract, may be insured by him in full or in part with another insurer (insurers). In case of reinsurance, the insurer under this contract remains liable to the insured under the main insurance contract for the payment of insurance compensation or the sum insured. Consistent conclusion of two or more reinsurance contracts is allowed.
Between the policyholder and the insurer in writing insurance contract
, by virtue of which the insurer undertakes, in the event of an insured event, to make an insurance payment to the insured or another person in whose favor the insurance contract is concluded, and the insured undertakes to pay insurance premiums within the established time limits.
The insurance payment is made by the insurer in accordance with the insurance contract on the basis of the application of the insured and the insurance act. The insurance act is drawn up by the insurer.
The insurer that has paid the insurance indemnity for property insurance shall, within the amount paid by him, transfer the right of claim that the insured or other person who has received the insurance indemnity has against the person responsible for the damage caused.
The insurance contract may be terminated early at the request of the insured or insurer, if it is provided for by the terms of the insurance contract, as well as by agreement of the parties. The parties are obliged to notify each other of the intention to terminate the insurance contract early at least 30 days before the expected date of termination of the insurance contract, unless the contract provides otherwise.
In case of early termination of the insurance contract at the request of the insured, the insurance premium is not refundable, unless otherwise provided by the contract.
In case of early termination of the insurance contract at the request of the insurer, he returns to the insured part of the insurance premium, in proportion to the time during which the insurance was valid.
Basic insurance operations include: receipt of insurance premiums (premiums); payment of insurance compensation.
The following are used to account for basic insurance transactions:
account 22 “Payments under insurance, co-insurance, reinsurance contracts”, sub-accounts 22.1 “Insurance payments under insurance contracts (main)”, 22.5 “Refund of insurance premiums (contributions) and redemption amounts”;
Account 92 “Insurance contributions (premiums)”, sub-account 92.1 “Insurance premiums (contributions) under insurance contracts (main)”;
· account 77. "Settlements for insurance, co-insurance and reinsurance", sub-account 77.1 "Settlement of insurance premiums (contributions) with policyholders".
Sub-account 22.1 “Insurance payments under insurance contracts” reflects insurance payments accrued to policyholders (beneficiaries) in the reporting period in connection with the occurrence of an insured event, as well as payment of the insured’s expenses incurred in order to reduce losses in cases where they were necessary or were made by him to comply with the instructions of the insurer.
Analytical accounting on account 22.1 is carried out by type of insurance. Account 22 has the following structure:
Analytical accounting on account 92.1 is carried out by type of insurance. Account structure 92.1 looks like:
Account structure 77.1 looks like:
Account 77.1 can also be used when accounting for insurance payments, although there is no such account in the chart of accounts. The structure of account 77.1 in this case looks like:
Analytical accounting on account 77.1 is carried out by types of insurance and contracts.
Basic insurance transactions are accounted for on an accrual basis. Upon the insurer's liability under the insurance contract, the amounts of accrued insurance premiums are reflected in the accounting accounts - D 77.1 K 92.1.
An accounting entry is made at the moment when the right of the insurer to receive from the insured an insurance premium (contribution) arising from a specific insurance contract or otherwise confirmed (for example, issuing an invoice for payment of an insurance premium by the insured) arises. Under insurance contracts relating to insurance other than life insurance, the entire amount of the insurance premium due to be received under the insurance contract is accrued.
If the policyholder fails to fulfill the obligation to pay the insurance premium (contribution) within the period established by the insurance contract, and if it is impossible to collect them in cases established by law or the insurance contract, as well as if the insurance contract is recognized as invalid for the amount of the insurance premium (contribution), a reversal entry is made using the method " red side."
The amounts of accrued insurance premiums can be deducted from the amounts of insurance compensation in the event that by the time it is paid in accordance with the contract, the next insurance premium is due (D 77.1 K 92.1; D 22.1 K 77.1 pay; D 77.1 pay K 77.1).
The receipt of insurance premiums from policyholders is reflected in the accounting entry - D 50, 51, 52 K 77.1.
At the end of the reporting period, account 92.1 is closed. All amounts of insurance premiums collected on the credit of account 92.1 are written off to the financial result - D 92.1 K 99.
When accounting for expenses on an accrual basis in accordance with Article 330 of the Tax Code of the Russian Federation, insurance payments under an agreement payable in accordance with the terms of the said agreement are included in expenses as of the date the taxpayer-insurance company has an obligation to pay insurance compensation in favor of the insured or insured persons ( when insuring liability - the beneficiary) for the actual insured event, expressed in absolute monetary amount, which must be calculated in accordance with the legislation of the Russian Federation and the rules of insurance of Insurance Company LLC.
When using the accrual method, two entries are made: accrual of insurance compensation and the amount of reimbursable expenses of the insured made in order to reduce losses in cases where they were necessary or were made by him to fulfill the instructions of the insurer (D 22.1 K 77.1 payout) and its payment (D 77.1 issue K 51).
The amounts of accrued insurance indemnities can be offset against the next insurance premium (D 71.1 payment K92.1).
At the end of the reporting period, account 22 is closed. All amounts of insurance indemnities collected in the debit of the account are written off to the financial result (D 99 K 22.1).
Table 2.
Accounting for basic insurance transactions
|
Contents of operation |
Document |
Corresponding accounts |
||
|
|
D |
To |
||
| Accrued insurance premium for basic insurance |
Agreement (calculation) |
77.1 |
92.1 |
|
| Basic insurance premium received |
Payment documents |
50, 51, 52 |
77.1 |
|
| Insurance premium deducted from insurance indemnity |
Reference |
22.1 |
92.1 |
|
| Insurance compensation paid |
Payment documents |
77.1 |
50, 51, 52 |
|
| The excess amount received by the insured was returned to the insured |
Payment documents |
77.1 |
50, 51, 52 |
|
| Written off insurance premiums for financial result |
Reference |
92.1 |
99 |
|
| Written off insurance payments to financial result |
Reference |
99 |
22.1 |
Reinsurance is carried out on the basis of a reinsurance agreement concluded between the reinsurer and the reinsurer in accordance with the requirements of the Civil Code of the Russian Federation. In this case, the insurer under the insurance contract (main contract) that has entered into a reinsurance contract is considered the insured in this last contract.
In case of reinsurance, the insurer under this contract remains liable to the insured under the main insurance contract for the payment of insurance compensation or the sum insured.
Consistent conclusion of two or more reinsurance contracts is allowed.
Reinsurance transactions are accounted for on an accrual basis.
LLC "Insurance Company" transfers its risks to reinsurance, being in this case the reinsurer or cedant.
The main operations of the reinsurer on the risks transferred to reinsurance are:
· accrual and payment of the insurance premium to the reinsurer;
· accrual and receipt of commissions, bonuses from the reinsurer;
· accrual and redemption of depot premiums on risks ceded to reinsurance;
· accrual and receipt of compensation for losses from the reinsurer.
The amount of the reinsurance premium transferred by the reinsurer to the reinsurer and the amount of compensation for the reinsurer's losses by the reinsurer is calculated in the ratio established by the reinsurance contract. The amount of the commission and the amount of the premium deposit withheld by the reinsurer from the insurance premium transferred to the reinsurer is also established by the reinsurance agreement. The premium deposit is created with the reinsurer in order to increase the reliability and financial stability of the insurance company. After the expiration of the reinsurance contract, the depot of premiums retained by the reinsurer is returned to the reinsurer.
To account for the reinsurer's operations on risks ceded to reinsurance, the following are used:
· account 92 "Insurance premiums (contributions)", sub-account 92.4 "Insurance premiums (contributions) under contracts transferred to reinsurance";
· account 22 “Payments under insurance, co-insurance, reinsurance contracts”, sub-account 22.4 “Share of reinsurers in insurance payments”;
· account 77 “Settlements for insurance, co-insurance and reinsurance”, sub-account 77.4 “Settlements under contracts transferred to reinsurance”, 77.6 “Settlements for premium depot”;
Account 91 “Other income and expenses”.
The structure of account 92-4 is as follows:
Account structure 22.4 is as follows:
The structure of account 77.4 is as follows:
|
D |
Account 77-4 “Settlements under contracts transferred to reinsurance” |
To |
|
| Balance - the debt of reinsurers to the assignor at the beginning of the period - transfer by the assignor to the reinsurer of the amount of the insurance premium for risks transferred to reinsurance; - accrual of commission due to the cedant from the reinsurer, bonuses for the risks transferred to reinsurance; - accrual by the assignor of premiums for risks transferred to reinsurance; - transfer by the assignor to the reinsurer of interest on the deposit of premiums on risks transferred to reinsurance; - accrual by the assignor of the amount of compensation by the reinsurer for losses on risks transferred to reinsurance Balance - the debt of reinsurers at the end of the period. |
Balance - debt of the assignor to reinsurers at the beginning of the period - accrual by the assignor of the amount of insurance premium to be transferred to the reinsurer for risks transferred to reinsurance; - receipt by the assignor of the amount of commission, bonuses on risks transferred to reinsurance; - repayment by the assignor of deposited premiums for risks ceded to reinsurance; - accrual by the assignor of interest on the deposit of premiums on risks ceded to reinsurance; - receipt by the assignor from the reinsurer of the amount of compensation for losses on risks transferred to reinsurance; Balance - the assignor's debt to reinsurers at the end of the period. |
Account 91 has the following form:
Consider an example of reinsurance operations at the assignor.
1. Under the main insurance contract, an insurance premium in the amount of 100,000 rubles was accrued and received:
D 77.1 K 92.1 - 100,000 rubles;
D 51 K 77.1 - 100,000 rubles.
2. Under this agreement, a reinsurance agreement was concluded, in accordance with which the insurance premium to be transferred to the reinsurer was accrued in the amount of 50,000 rubles:
D 92.4 K 77.4 - 50,000 rubles.
3. In accordance with the reinsurance agreement, the assignor accrued a depot of premiums in the amount of 20% of the amount of the insurance premium (50,000 x 20/100 = 10,000 rubles):
D 77.4 K 77.6 - 10,000 rubles.
4. In accordance with the reinsurance contract, the assignor accrued a commission to be received from the reinsurer in the amount of 5% of the insurance premium (50,000 x 5/100 = 2,500 rubles):
D 77.4 K91 - 2,500 rubles.
5. The amount of the insurance premium was transferred to the reinsurer from the current account, taking into account the retained depot of premiums and the commission to the reinsurer (50,000 - 10,000 - 2,500 = 37,500 rubles):
D 77.4 K 51 - 37,500 rubles.
6. Every month, interest is accrued and transferred to the reinsurer on the retained depot of premiums at a rate of 15% per annum
D 91.2 K 77.4 - 125 rubles;
D 77.4 K 51 - 125 rubles.
7. Under the main insurance contract, an application was received about the occurrence of an insured event. In this case, it was decided to pay insurance compensation in the amount of 500,000 rubles. Insurance compensation was paid in the amount of 500,000 rubles.
D 22.1 K 77.1 - 500,000 rubles;
D 77.1 K 51 - 500,000 rubles.
8. In accordance with the reinsurance contract, the assignor accrued compensation for losses by the reinsurer in the amount of 50% of the amount of insurance compensation (500,000 x 50/100 = 250,000 rubles):
D 77.4 K 22.4 - 250,000 rubles.
9. The return of the depot was accrued and the depot of premiums was returned to the reinsurer in the amount of 10,000 rubles:
D 77.6 K 77.4 - 10,000 rubles;
D 77.4 K 51 - 10,000 rubles.
10. Compensation for losses under the reinsurance agreement received from the reinsurer minus the amount of the premium deposit to be returned (250,000 - 10,000 = 240,000 rubles):
D 51 K 77.4 - 240,000 rubles.
11. Written off to the financial result of the respective reporting periods in which transactions were made:
The amount of insurance premiums under the main contract:
D 92.1 K 99 - 100,000 rubles;
The amount of insurance compensation under the main contract:
D. 99 K 22.1 - 500,000 rubles;
sums of insurance premiums for risks ceded to reinsurance:
D 99 K 92.4 - 50,000 rubles;
the amount of accrued compensation for losses by the reinsurer for risks transferred to reinsurance:
D 22.4 K 99 - 250,000 rubles;
the amount of accrued commission on risks ceded to reinsurance:
D 91.1 K 99 - 2,500 rubles;
the amount of accrued interest on the deposit of premiums:
D 99 K 91.2 - 125 rubles.
Table 3
Accounting for reinsurance transactions
|
Contents of operation |
Document |
Corresponding accounts |
||
|
|
D |
To |
||
|
1 |
2 |
3 |
4 |
|
| Accrued insurance premiums by the insurer under the main contracts |
Basic insurance contract |
77.1 |
92.1 |
|
| Insurance premiums accrued for risks ceded to reinsurance |
Reinsurance agreement |
92.4 |
77.4 |
|
| Insurance premiums transferred to the reinsurer |
Payment documents |
77.4 |
51 |
|
| Insurance premiums accrued for the reporting period on risks ceded to reinsurance were written off to the financial result |
Reference |
99 |
92.4 |
|
| Commission accrued on risks ceded to reinsurance |
Calculation |
77.4 |
91.1 |
|
| Commission received from reinsurers |
Payment documents |
51 |
77.4 |
|
| The commission accrued for the reporting period on risks ceded to reinsurance was written off to the financial result |
Reference |
91.1 |
99 |
|
| Accrued depot of premiums on risks ceded to reinsurance |
Calculation |
77.4 |
77.6 |
|
| The amount of insurance payment under the main contract is accrued upon the occurrence of an insured event |
Calculation |
22.1 |
77.1 |
|
| The insurance payment was made under the main contract |
Payment documents |
77.1 |
51 |
|
| Amounts of compensation for losses on risks transferred to reinsurance have been accrued |
Calculation |
77.4 |
22.4 |
|
| Reimbursement amounts received from reinsurers |
Payment documents |
51 |
77.4 |
|
| The amounts of compensation for losses accrued for the reporting period on risks ceded to reinsurance were written off to the financial result |
Reference |
22.4 |
99 |
|
| Repaid depot of premiums on risks ceded to reinsurance |
Reference |
77.6 |
77.4 |
|
| The withheld amount on the depot of premiums was transferred to the reinsurer |
Payment documents |
77.4 |
51 |
Authorized (share) capital
- the totality of the shares of the participants of Insurance Company LLC, registered in the constituent documents. The size of the share of a member of the company is determined as a percentage or as a fraction and must correspond to the ratio of the nominal value of the share of the participant and the authorized capital of the company.
The contribution to the charter capital of the company can be money, property, property rights. Monetary valuation of property contributed as payment for shares in the establishment of a company is made by agreement between the participants in the company. If the nominal value of the participant's share, paid in non-monetary funds, exceeds 200 basic amounts, then the assessment of the contributed property is carried out by an independent appraiser.
An increase or decrease in the authorized capital is carried out after making changes to the constituent documents of the organization and re-registration in the prescribed manner.
In accordance with the Law "On the Organization of Insurance Business in the Russian Federation", insurers must have a fully paid authorized capital, the amount of which must not be lower than the minimum amount of authorized capital established by the Law.
Changes in the minimum amount of the authorized capital of an insurer are allowed only by federal law no more than once every two years, subject to the obligatory establishment of a transitional period.
Contribution to the authorized capital of borrowed funds and pledged property is not allowed.
Accounting for the authorized capital is kept on the passive account 80 "Authorized capital". Analytical accounting on account 80 is conducted by the founders of the organization.
Accounting procedure for the authorized capital of Insurance Company LLC:
- registered capital - D 75 K 80;
- made contributions to the authorized capital by the participants of LLC:
a) in cash - D 51 K 75;
b) property - D 08, 10 K 75.
An increase in the authorized capital in an LLC is allowed only after its full payment in the following ways:
- at the expense of the company's property - D 75 K 80; D 84 K 75;
- at the expense of additional contributions of the company's participants - D 75 K 80; D 08 K 10, 51;
- at the expense of contributions from third parties accepted by the company - D 75 K 80; D 08 K 10, 51.
The reduction of the authorized capital in an LLC is carried out in cases established by law and on an initiative basis. The reduction of the authorized capital in an LLC is carried out:
· by reducing the nominal value of the shares of all participants in the company - D 80 K 75; D 75 K 84 (if the LLC is unprofitable and the amount of its net assets is less than the authorized capital); D 75 K 50, 51 (if funds are returned to participants);
· by redemption of shares owned by the company - D 81 K 50, 51 (repurchase of a share from a participant); D 80 K 81 (repayment of the redeemed share).
Reserve capital of the organization
form, if it is provided by law or their charter. Reserve capital is formed from the profit of the organization.
The company's reserve capital is intended to cover losses, as well as to redeem the company's bonds. It cannot be used for other purposes.
To account for the reserve capital, a passive account 82 "Reserve capital" is used.
The main accounting entries for accounting for reserve capital are shown in Table 4.
Table 4
Reserve capital accounting
Extra capital
represents the increase in the capital of the organization resulting from the revaluation of non-current assets. Accounting for additional capital is kept on passive account 83 "Additional capital".
The amounts credited to account 83 "Additional capital" are not written off as a rule. The reduction of additional capital is made in the following cases:
- allocation of additional capital funds to increase the authorized capital;
- repayment of depreciation amounts of non-current assets revealed as a result of revaluation, within the limits of previous revaluations;
- distribution of additional capital among the participants of the company.
The main accounting entries for accounting for additional capital are shown in Table 5.
Table 5
Accounting for additional capital
|
Contents of operation |
Document |
Corresponding accounts |
||
|
|
D |
To |
||
|
1 |
2 |
3 |
4 |
|
| As a result of the revaluation: |
Calculation |
|||
| - increased book value of the OS |
01 |
83 |
||
| Overestimated OS depreciation |
83 |
02 |
||
| The cost of fixed assets, identified as a result of the markdown, was reduced if in previous reporting periods they were revalued (within the revaluation): |
Calculation |
|||
| - initial cost |
83 |
01 |
||
| - depreciation |
02 |
83 |
||
| Funds of additional capital were directed to increase the authorized capital |
The decision of the participants of the company |
83 |
80 |
|
| The amount of additional capital was distributed among the participants of the company |
The decision of the participants of the company |
83 |
75 |
In accordance with the Law of the Russian Federation "On the organization of insurance business in the Russian Federation", the financial stability of insurers is guaranteed by the presence of insurance reserves sufficient to fulfill obligations under insurance, co-insurance, and reinsurance contracts.
In order to ensure the accepted insurance obligations, Insurance Company LLC, in the manner and on the terms established by the regulatory legal documents of the Federal Insurance Supervision Service, forms from the received insurance premiums the insurance reserves for property insurance and liability insurance necessary for future insurance payments.
Insurance reserves formed by insurers are not subject to withdrawal to the federal or other budgets.
The composition of the purpose and procedure for the formation of insurance reserves, which are a monetary assessment of the insurer's obligations to ensure future insurance payments under insurance contracts related to insurance other than life insurance, is determined by Order of the Ministry of Finance of the Russian Federation dated June 11, 2002 No. 51n "Rules for the formation of insurance reserves for insurance other than life insurance. These rules have been in effect since 2003.
Based on the Rules approved by the Ministry of Finance of the Russian Federation, Insurance Company LLC developed and approved its own Regulation on the formation of insurance reserves for insurance other than life insurance (Appendix 4).
Insurance reserves are calculated as of the reporting date (the end of the reporting period) when compiling financial statements based on accounting and reporting data. To calculate insurance reserves, it is recommended to use the tables given in the Rules of the RF Ministry of Finance.
Insurance reserves are calculated in rubles.
Insurers also calculate the share of reinsurers in insurance reserves for insurance other than life insurance, simultaneously with the calculation of insurance. Reserves. The share of reinsurers in insurance reserves for insurance other than life insurance is determined for each contract (group of contracts) in accordance with the terms of the reinsurance contract.
Insurance reserves are calculated separately by accounting groups (Appendix 4).
Unearned premium reserve (URP)
Reserve characteristic. Part of the accrued insurance premium (contributions) under the contract relating to the period of validity of the contract that goes beyond the reporting period (unearned premium), intended to fulfill obligations to ensure future payments that may arise in the following reporting periods.
RNP is formed for all insurance contracts in force as of the reporting date. The pro rata temporis method is used to calculate the amount of unearned premium (unearned premium reserve).
Unearned premium reserve for i th agreement j- accounting group (RNPij)
calculated as follows:
RNP
ij
= BSP
ij
* (D
ij
- FROM
ij
) / D
ij
,
where BSPij
- basic insurance premium for each i th agreement included in j- accounting group; Dij- validity i-th contract in days; FROMij
- number of days since entry i-th agreement in force until the reporting date.
Total RNP under insurance contracts j- accounting group (RNPj)
at the reporting date:
Reserve for reported but unsettled losses (RZU)
The reserve for reported but unsettled losses (RZU) is formed by the insurer to ensure the fulfillment of obligations, including expenses for the settlement of losses, under insurance contracts not performed or not fully performed as of the reporting date, arising in connection with insured events that occurred in the reporting or previous to him periods and the fact of the occurrence of which is declared to the insurer in accordance with the procedure established by law or the insurance contract.
The calculation of the reserve for reported but unsettled losses is made separately for each accounting group of contracts.
The amount of the reserve for reported but unsettled losses is determined by summing the reserves for reported but unsettled losses calculated for all accounting groups of contracts.
The RZU value corresponds to the amount of declared and unsettled losses for the reporting period and for the periods preceding the reporting period, registered in the loss register, increased by the amount of expenses for the settlement of the loss in the amount of 3% of the amount of unsettled claims. In this way:
RZU
=
ZUNU + 0.03
*
zunu,
Where ZUNU-
the amount of reported but unsettled losses as of the reporting period; 0.03 -- loss adjustment cost ratio.
A reserve of occurred but undeclared
losses (IBNR)
The reserve for occurred but unreported losses (IBNR) is intended to ensure the fulfillment by the insurer of its obligations, including the costs of settling losses, under insurance contracts that arose in connection with the occurrence of insured events during the reporting period, the fact of the occurrence of which was not declared to the insurer in accordance with the law. or an insurance contract as of the reporting date.
To calculate the reserve for occurred but unreported losses, information is used on the losses that have occurred and on their payment for a certain period of time.
For contracts related to accounting groups 1-11, data are considered for at least 12 periods of loss (payment (development) periods) preceding the reporting date, for contracts related to accounting groups 12-19 - for at least 20 periods prior to the reporting date.
When calculating IBNR, the data of accounting of insurance premiums and losses starting from January 01, 2003 are used.
The reserve for incurred but unreported losses (IBNR) is equal to:
IBNR =
1,03
*
PNU,
Where PNU- the amount of incurred but undeclared losses; 1,03
*
PNU- the amount of incurred but undeclared losses, increased by the amount of expenses for their settlement in the amount of 3%.
The amount of incurred but unreported losses (PNU) for the accounting group is determined as the sum of the values of incurred but unreported losses for each of the periods of loss under consideration:
where PNUi. - the amount of incurred but unreported losses for i-th loss period, i
= 1, ..., N.
For each of the loss periods, the total amount of incurred but unreported losses PNUi defined:
where Ri
- the amount of losses incurred but not paid for on the reporting date; ZNU- the amount of claimed, but unsettled as of the reporting date, losses, for insured events that occurred in i-th loss period (taken from the loss register).
Stabilization reserve (SR)
The stabilization reserve is an assessment of the insurer's obligations related to the implementation of future insurance payments in the event of a negative financial result from insurance operations as a result of factors beyond the control of the insurer, or in the event that the incurred loss ratio exceeds its average value.
The completed loss ratio is calculated as the ratio of the amount of insurance payments made in the reporting period for insured events that occurred in this period, the reserve for reported but unsettled losses, and the reserve for incurred but undeclared losses calculated for losses that occurred in this period, to the amount of insurance earned awards for the same period.
The stabilization reserve is formed for the following types of insurance:
· insurance of means of water transport (group 7);
insurance of business (financial) risks (group 12);
· civil liability insurance of the carrier (group 14).
The amount of expenses for doing business related to each of the named types of insurance is determined in proportion to the accrued gross insurance premium for each type to the accrued gross insurance premium for all licensed types of insurance.
Stabilization reserve for accounting groups of insurance contracts 7, 12 and 14 j-th accounting group ( SRj) is calculated:
SR
j
=
max
{
min
[AKP
j
; SRn
j
+ D
SR
j
] ;
0},
Where AKPj- the maximum size of the stabilization reserve for j th accounting group; SRnj
- stabilization reserve for j th accounting group at the beginning of the period; DSRj -
change in the stabilization reserve for j-th accounting group. The maximum size of the stabilization reserve for j-th accounting group ( AKPj) is defined as follows:
- for accounting groups 7 and 14:
AKP
j
= 2,5 *
max
( SBP
jk
- PP
jk
};
For accounting group 12:
AKP
j
= 1,5 *
max
( SBP
jk
- PP
jk
},
Where SBPjk -
gross insurance premium for j-th accounting group in k-th year; PPjk- the amount of reinsurance premium transferred under reinsurance contracts under j-th accounting group k-th year; k
- the number of periods (years) for which data are considered when calculating the reserve (the last 10 years or the available number of years).
To account for insurance reserves, account 95 is used, to which sub-accounts 95.1 "Insurance reserve", 95.2 "Share of the reinsurer in the reserve", 95.3 "Change in reserve" are opened. Accounting is conducted by types of reserves.
Account 95.1 "Insurance reserve" is opened separately by types of reserves: RNP, RZU, IBNR and SR. Account structure 95.1 (RNP, RZU, RPNU, SR):
Account 95.2 “Reinsurer's share in the reserve” is maintained by types of reserves: RNP, RZU, IBNR and SR. Account structure 95.2 (RNP, RZU, RPNU, SR):
Account 95.3 “Change in reserve” is maintained by types of reserves: RNP, RZU, IBNR and SR. Account structure 95.3 (RNP, RZU, RPNU, SR):
RNP change ( Irnp) on account 95.3 is calculated as follows:
Irnp
=
RNPotch
-
DRNPotch
-
RNPpred + DRNPpred,
where RNPotch, RNPpred- RNP, respectively, of the reporting and previous periods; DRNPotch, DRNPpred- the reinsurer's share in RNP, respectively, of the reporting and previous periods.
The change in RZU is determined in a similar way ( Irzu), RPNU ( Irpnu), SR ( Isr).
Let's consider the procedure for reflecting in the accounting records operations on the formation of insurance reserves in the IV quarter of 2008 (as of December 31, 2008). The amount of the accrued reserve for the previous reporting period as of 31.12.2008. exceeds
the amount of the reserve accrued as of September 30, 2008). Accounting data is given in Table 6.
unearned premium reserve:
· accrued unearned premium reserve as of December 31, 2008 - 2,500,000 rubles:
D 95.3 RNP K 95.1 RNP - 2,500,000 rubles;
· accrued the share of reinsurers in the reserve of unearned premium as of December 31, 2008 (in accordance with the Law “On the Organization of Insurance Business in the Russian Federation”, the share of reinsurers in insurance reserves under a reinsurance agreement must correspond to the transferred insurance obligations) in the amount of 900,000 rubles. :
D 95.2 RNP K 95.3 RNP - 900,000 rubles;
Table 6
Initial data for accounting for reserves
| Index |
RNP |
RZU |
IBNR |
SR |
|
| Reserve amount as of 30.09.2008 (account balance 95.1) |
2 000000 |
1 500000 |
1 800000 |
1 200000 |
|
| Reinsurer's share in the reserve as of 30.09.2008 (account balance 95.2) |
800 000 |
500 000 |
900 000 |
600 000 |
|
| The amount of the reserve accrued as of December 31, 2008. |
2 500000 |
2 000000 |
2 300000 |
1 500000 |
|
| Reinsurer's share in the reserve as of 31.12.2008 |
900 000 |
800 000 |
1100000 |
800 000 |
|
| Reserve change |
+400000 |
+200000 |
+300000 |
+100000 |
|
| Reserve amount as of 31.12.2008 (account balance 95.1) |
2 500000 |
2 000000 |
2 300000 |
1 500000 |
|
| Reinsurer's share in the reserve as of 31.12.2008 (account balance 95.2) |
900 000 |
800 000 |
1 100000 |
800 000 |
D 95.1 RNP K 95.3 RNP - 2,000,000 rubles;
· the reinsurer's share in RNP was written off as of September 30, 2008 in the amount of 800,000 rubles:
D 95.3 RNP K 95.2 RNP - 800,000 rubles;
The change in the reserve of unearned premium is written off to the financial result (2,500,000 - 900,000 - 2,000,000 + 800,000 = +400,000 rubles):
D 99 K 95RNP - 400,000 rubles.
We reflect in accounting accounting entries for accounting reserve for reported but unsettled claims:
· a reserve for reported but unsettled losses was accrued as of December 31, 2008 - 2,000,000 rubles:
D 95.3 RZU K 95.1 RZU - 2,000,000 rubles;
· accrued the share of reinsurers in the reserve of reported but unsettled losses as of 31.12.2008. in the amount of 800,000 rubles:
D 95.2 RZU K 95.3 RZU - 800,000 rubles;
· the amount of the reserve for reported but unsettled losses as of September 30, 2008 was written off in the amount of 1,500,000 rubles:
D 95.1 RZU K 95.3 RZU - 1,500,000 rubles;
· the reinsurer's share in RZU was written off as of 30.09.2008. in the amount of 500,000 rubles:
D 95.3 RZU K 95.2 RZU - 500,000 rubles;
The change in the reserve for declared but unsettled losses is written off to the financial result (2,000,000 - 800,000 - 1,500,000 + 500,000 = +200,000 rubles): D 99 K 95.3 RZU - 200,000 rubles.
We reflect in accounting accounting entries for accounting reserve for incurred but unreported losses:
· accrued reserve for incurred but undeclared losses as of December 31, 2008 - 2,300,000 rubles:
D 95.3 RPNU K 95.1 RPNU - 2,300,000 rubles;
· accrued the share of reinsurers in the reserve of occurred but undeclared losses as of 31.12.2008. in the amount of 1,100,000 rubles:
D 95.2 RPNU K 95.3 RPNU - 1,100,000 rubles;
· the amount of the reserve for incurred but undeclared losses as of 30.09.2008 was written off. in the amount of 1,800,000 rubles:
D 95.1 RPNU K 95.3 RPNU - 1,800,000 rubles;
· the reinsurer's share in the reserve of occurred but undeclared losses as of 30.09.2008 was written off. in the amount of 900,000 rubles:
D 95.3 RPNU K 95.2 RPNU - 900,000 rubles;
The change in the reserve for incurred but undeclared losses is written off to the financial result (2,300,000 - 1,100,000 - 1,800,000 + 900,000 = + 300,000 rubles):
D 99 K 95.3 RPNU - 300,000 rubles.
We reflect in accounting accounting entries for accounting stabilization reserve:
· the stabilization reserve was accrued as of December 31, 2008. - 1,500,000 rubles:
D 95.3 SR K 95.1 SR - 1,500,000 rubles;
· the reinsurer's share in the stabilization reserve was accrued as of 31.12.2008. in the amount of 800,000 rubles:
D 95.2 SR K 95.3 SR - 800,000 rubles;
· the amount of the stabilization reserve was written off as of 30.09.2008. in the amount of 1,200,000 rubles:
D 95.1 SR K 95.3 SR - 1,200,000 rubles;
· the reinsurer's share in the stabilization reserve was written off as of 30.09.2008. in the amount of 600,000 rubles:
D 95.3 SR K 95.2 SR - 600,000 rubles;
The change in the stabilization reserve is written off to the financial result (1,500,000 - 800,000 - 1,200,000 + 600,000 = + 100,000 rubles):
D 99 K 95.3 SR - 100,000 rubles.
Placement of insurance reserves is made in accordance with the Rules for the placement of insurance reserves by insurers, approved by order of the Ministry of Finance of the Russian Federation dated 08.08.2005 No. 100n.
Placement of insurance reserves refers to assets accepted to cover (secure) insurance reserves. Assets accepted to cover insurance reserves must meet the conditions of diversification, repayment, profitability and liquidity.
Assets accepted to cover insurance reserves cannot serve as a subject of pledge or a source of payment to the creditor of funds for the obligations of the guarantor (guarantor).
The following types of assets are accepted to cover insurance reserves:
1) federal government securities and securities, obligations under which are guaranteed by the Russian Federation;
2) government securities of constituent entities of the Russian Federation;
3) municipal securities;
4) shares;
5) bills of organizations, including bills of banks;
6) housing certificates;
7) investment shares of mutual investment funds;
8) deposits (deposits) in banks, including those certified by certificates of deposit;
9) certificates of equity participation in general funds of banking management;
10) real estate;
11) the share of reinsurers in insurance reserves;
12) accounts receivable of policyholders, reinsurers and insurance agents;
13) cash;
14) funds in the currency of the Russian Federation on bank accounts;
15) funds in foreign currency on bank accounts;
16) ingots of gold, silver, platinum and palladium, as well as commemorative coins of the Russian Federation made of precious metals;
17) mortgage-backed securities;
18) loans to policyholders under life insurance contracts.
2.6 Accounting for credits and loans
Accounting for loans and borrowings and the costs of servicing them is carried out in accordance with the Accounting Regulation "Accounting for expenses on loans and borrowings" RAS 15/2008.
The procedure for lending, processing loans and their repayment is regulated by the rules of banks and loan agreements. Under a loan agreement, a bank or other credit institution (creditor) undertakes to deliver funds (credit) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the amount of money received and pay interest on it (clause 1, article 819 of the Civil Code of the Russian Federation) .
Bank loans, depending on the loan term, are divided into short-term (up to one year) and long-term (over one year).
In accordance with the accounting policy established by Insurance Company LLC, the borrower can transfer long-term debt into short-term debt if the maturity of long-term debt has become equal to 365 days.
The costs associated with obtaining loans include:
interest on loans;
additional costs for loans (legal and consulting services; copying and duplicating work; payment of taxes and fees, in accordance with the law; examinations; communication services; other costs);
· exchange rate and sum differences on interest accrued on loans denominated in foreign currency or conventional monetary units.
The loan fee is charged at the rates prevailing in the money market for short-term loans and in the capital market for long-term loans.
When accruing and collecting interest for using a loan, the actual number of calendar days in a month and a year is taken into account. Interest is accrued in the amount and within the terms stipulated by the agreement. Accrual and collection of interest in advance at the time of issuing a loan is not allowed.
Bank loan servicing costs are included in operating expenses and reflected in the debit of account 91 “Other income and expenses” and the credit of account 66 “Settlements on short-term loans and borrowings” and account 67 “Settlements on long-term loans and borrowings”, depending on the types and terms of credits and loans.
When using the received loans for advance payment, issuance of advances and deposits related to the acquisition of inventories (performance of work, provision of services), the interest accrued by the Company for the borrowed funds used in this way is attributed to an increase in accounts receivable (debit of accounts 60 “Settlements with suppliers and contractors” and 76 “Settlements with various debtors and creditors” and credit of accounts 66 “Settlements on short-term credits and loans” and 67 “Settlements on long-term credits and loans”). Upon receipt by the Company of MPZ (performance of work, provision of services), the cost of the latter increases by the amount of accrued receivables. Further accrual of interest for received loans and borrowings is carried out in a general manner, i.e. included in operating expenses.
In the case of using part of the funds received, loans not under n, etc.
Year of creation - 1993.
The authorized capital is 8 billion 42 million 1 thousand 900 rubles.
Shareholders: OJSC Gazprom, LLC Gazprom Export, Gazprombank (Open Joint Stock Company), LLC Kordeks, LLC Accept, LLC IC ABROS.
The reliability of SOGAZ has been confirmed by independent analysts and market experts. SOGAZ has the highest reliability rating of A ++ assigned by the Expert RA rating agency, international financial strength ratings assigned by Standard & Poor's (“BBB-”, “Stable” outlook) and Fitch Ratings (“BB +”, “ Stable").
The Group pursues a policy of maximum openness and financial transparency in relation to its customers, shareholders and partners. SOGAZ became one of the first Russian insurers to switch to international financial reporting standards. SOGAZ is audited under IFRS by PricewaterhouseCoopers.
SOGAZ is one of the most dynamically developing participants in the domestic insurance market. At the end of 2010, the total amount of insurance premium collected by the Group amounted to more than 99 billion rubles, which is 18% more than a year earlier.
For most types of insurance, SOGAZ is among the leaders, occupying a significant market share. According to the FSIS data for 2010, SOGAZ took 2nd place in the ranking of Russian insurers for all types of insurance, and 1st place for direct voluntary (classic) insurance.
SOGAZ traditionally focuses on insurance of the corporate sector, providing insurance protection for enterprises and corporations representing a variety of industries: fuel and energy, transport, chemical, metallurgical, machine-building, aerospace, banking and others. The Group protects the property interests of such backbone enterprises of the Russian economy as OAO Gazprom, OAO Gazprom Neft, OAO NK Rosneft, nuclear enterprises (SC Rosatom) and electric power industry, OAO Russian Railways, OAO West Siberian Iron and Steel Works, OAO Power Machines, OAO United Machine Building Plants. In addition, SOGAZ actively cooperates with the Administration of the President of the Russian Federation, the Federal Customs Service, as well as the leading financial institutions of the country - Sberbank, Vneshtorgbank, Gazprombank and many others.
The Group pays great attention to the insurance of individuals, as well as small and medium-sized businesses, for which insurance programs have been developed that take into account their specifics and features.
The development strategy of the SOGAZ Insurance Group provides for consistent integration into the international insurance market. Among the foreign projects with the participation of SOGAZ are the Blue Stream (construction of a main gas pipeline from Russia through Turkey to Southern Europe), as well as the construction of the North European Gas Pipeline, designed to directly connect gas fields in Western Siberia with consumers in Germany and other Western European countries.
Participation in the projects of the Shanghai Cooperation Organization (SCO), whose international influence is constantly growing, has become a significant area of the Group's foreign economic activity. SOGAZ is the only insurer that is a member of the SCO Business Council, where it participates in the implementation of socially significant projects through public-private partnerships.
An important strategic task of the SOGAZ Insurance Group is the development of reinsurance activities. By 2012, SOGAZ plans to become the leader of the Russian reinsurance market, for which it is actively expanding cooperation with other Russian and foreign insurers, and is also implementing a policy of progressive integration into the international reinsurance market. The Group's policy is focused on cooperation with leading reinsurance companies with worldwide recognition and impeccable reputation, such as Munich Re, Swiss Re, Hannover Re, SCOR, Lloyds of London and others.
One of the key advantages of SOGAZ is a wide regional network. To date, it has over 600 divisions and sales offices throughout Russia, as well as a representative office in the Republic of Kazakhstan. In order to develop a system of high-quality, reliable and affordable insurance services, SOGAZ has developed and is implementing in the regions of the Russian Federation a model of Unified Insurance Centers (UCCs), which are aimed at providing the widest possible range of services to various Group companies. By the end of 2010, the Unified Insurance Centers operated on the basis of 51 branches of the company in 42 regions of the country and united 230 divisions of the SOGAZ Group.
The SOGAZ Insurance Group provides a full range of insurance services - more than 130 products and programs for compulsory and voluntary types of insurance. This allows the Group to take a comprehensive approach to risk management and ensure that the financial interests of its clients are protected comprehensively. The high level of the quality management system adopted at SOGAZ is confirmed by a certificate of compliance with the requirements of GOST R ISO 9001-2008 (ISO 9001:2008) . The validity of the certificate applies to all key activities for the company.
^ 2.2. Economic indicators of IC "SOGAZ"
According to the financial statements, a comparative analysis of the following most important indicators for the organization can be made.
Profit before tax from the results of financial and economic activities of the company for 2012 amounted to 24,032 thousand rubles, which is 21,005 thousand less than the profit of the previous year.
At the end of 2012, the balance sheet totaled 3,800,674 thousand rubles, which is 144.1% of the balance sheet at the end of 2011. The increase was due to an increase in the amount of the unearned premium reserve by 151,041 thousand rubles, the loss reserve - by 299,442 thousand rubles and debt on short-term loans and borrowings by 722,607 thousand rubles, while reducing other accounts payable by 421,349 thousand rubles.
The share of own funds in the balance sheet totals 12.5%, which is 5.3% higher than the value of this indicator in 2011.
The increase in the share of own funds is primarily due to their absolute increase, as well as outstripping growth in relative terms in comparison with the increase in insurance reserves and liabilities.
Indicators of the volume of insurance premiums. The volume of insurance premiums is characterized by the following indicators (Table 2) .
table 2
The volume of insurance premiums, in million rubles
| Types of insurance | 2011 | 2012 | Structure of insurance premiums by types of insurance % |
|
| 2011 | 2012 |
|||
| Total personal insurance, incl.: - life insurance HC insurance VHI | 371,2 30,3 | 427,0 50,0 | 18,8 1,5 | 14,6 1,7 |
| Property insurance: Cargo insurance Property insurance | 1333,7 303,3 | 2049,59 834,7 | 67,5 15,3 | 70,2 28,6 |
| Liability Insurance: - civil liability Other types of liability | 59,7 24,2 | 34,5 8,8 | 3,0 1,2 | 1,2 0,3 |
| OSAGO | 211,0 | 406,8 | 10,7 | 14,0 |
| TOTAL: | 1975,6 | 2917,8 | 100 | 100 |
Let's analyze the structure of income and expenses of the insurance company.
The total amount of income for 2012 for the company as a whole is 3212.5 million rubles. or 139.4% of the previous year. The increase in the company's income from insurance activities was caused by an increase in income from property insurance, voluntary medical insurance, cargo insurance, OSAGO and hull insurance (Table 3).
Two-thirds of the company's insurance premiums are collected in the Central Federal District. In total, the company sells insurance policies on the territory of 72 constituent entities of the Russian Federation. The main share of insurance services sales in the Russian Federation falls on this region, and within its framework - on the city of Moscow and the Moscow region.
Table 3
Income structure of OJSC SOGAZ
| Item of income | 2011 | 2012 |
||
| Amount, million rubles | Specific weight % | Amount, million rubles | Specific weight, % |
|
| Income from insurance activities - total | 1975,6 | 85,7 | 2917,8 | 90,8 |
| Including: Insurance premiums | 1785,6 | 77,5 | 2771,8 | 86,3 |
| - income from reinsurance operations | 190 | 8,2 | 146 | 4,5 |
| Investment income | 258,1 | 11,2 | 65,8 | 2,1 |
| Other income | 71,2 | 3,1 | 228,9 | 7,1 |
| Total income | 2304,9 | 100,0 | 3212,5 | 100,00 |
The main source of income was insurance premiums, contributions under insurance contracts - 2,771.8 million rubles, or 86.3% of the amount of income from insurance activities.
The main share of insurance payments in the reporting year was made up of risky types of insurance - 98%.
The total amount of expenses for 2012 amounted to 3,188.5 million rubles for the company as a whole. or 141.1% of the 2012 level (Table 4) .
Insurance premiums ceded to reinsurance. Insurance premiums under contracts ceded for reinsurance amounted to 803.8 million rubles, accounting for a significant share of insurance business expenses in the reporting year. At the same time, their share in the total volume decreased from 38.2% to 25.2%.
In general, for the company, during the reporting period, 28.0% was transferred to reinsurance against 44.4% in 2012 from the insurance premium received on risky types of insurance. The largest share of the transferred insurance premium in the reporting year fell on cargo and liability insurance.
Table 4
Expenses structure of SOGAZ OJSC
| Item of expenses | 2011 | year 2012 |
||
| Amount (million rubles) | Specific weight % | Amount (million rubles) | Specific weight,% |
|
| Expenses from insurance activities, total: | 1421,6 | 62,9 | 1669,8 | 52,4 |
| Including: Insurance payments | 558,7 | 27,7 | 866,0 | 27,2 |
| - expenses from reinsurance operations | 862,9 | 38,2 | 803,8 | 25,2 |
| - insurance reserves | 111,9 | 4,9 | 447,6 | 14,0 |
| - business expenses | 502,8 | 22,3 | 785,9 | 24,6 |
| - other expenses | 22,36 | 9,9 | 285,2 | 9,0 |
| Total expenses | 2258,9 | 100,0 | 3188,5 | 100,0 |
Business expenses. In the reporting year, they amounted to 785.9 million rubles, which corresponds to 24.6% of the total expenses of the Company (last year this share was 22.3%). The increase in the share of expenses for doing business is due to the following objective factors:
an increase in the number of the company's personnel due to the development of new types of insurance, and, consequently, an increase in labor costs;
an increase in the cost of remuneration for concluding insurance contracts due to an increase in the number of attracted agents and an increase in the number of attracted agents and an increase in the cost of agency services in the insurance market;
growth in advertising costs for new and existing insurance products;
an increase in the number of branches and agencies in the branch network of the company.
Table 5
The structure of insurance payments of SOGAZ OJSC
| Types of insurance | 2011 | 2012 | Structure of insurance payments by types of insurance % |
|
| 2011 | 2012 |
|||
| Personal insurance, total, including: | 366,1 | 312,7 | 50,0 | 31,3 |
| - life insurance | 175,5 | 12,9 | 24,0 | 1,3 |
| - NS insurance | 9,1 | 6,8 | 1,2 | 0,7 |
| - DMS | 181,5 | 293,0 | 24,8 | 29,3 |
| Property insurance, including: | 334,1 | 532,2 | 45,7 | 53,3 |
| - land transport insurance | 188,1 | 345,0 | 25,7 | 34,6 |
| - cargo insurance | 35,4 | 20,0 | 4,9 | 2,0 |
| - property insurance | 110,6 | 167,2 | 15,1 | 16,7 |
| Liability Insurance: | 26,1 | 10,3 | 3,6 | 1,0 |
| - third party liability insurance | 23,6 | 7,5 | 3,2 | 0,8 |
| - insurance of other types of liability | 2,5 | 2,8 | 0,4 | 0,2 |
| OSAGO | 5,0 | 143,3 | 0,7 | 14,4 |
| TOTAL: | 731,3 | 998,5 | 100 | 100 |
The formed insurance reserves are the guarantee of the fulfillment of obligations to the policyholders. At the end of 2012, the reserves amounted to 1,800.7 million rubles. and increased compared to 2011 by 574.2 million rubles.
The increase in insurance reserves was mainly due to an increase in the unearned premium reserve by 151.0 million rubles. (Table 6).
Table 6
Insurance reserves of OAO SOGAZ
| Article | At the end of 2011, billion rubles | Share of fear. in reserve |
|
| billion rubles | In % max |
||
| Unearned premium reserve | 999,1 | 424,9 | 42,5 |
| Life insurance reserve | 75,0 | 0 | 0 |
| Loss reserves | 579,3 | 195,0 | 33,7 |
| Other insurance reserves | 147,3 | 0 | 0 |
| TOTAL: | 1800,7 | 619,9 | 34,4 |
As at 31 December 2012, the reserve for preventive measures is RUB 5,388 thousand. During the reporting year, the reserve of preventive measures was used to finance preventive measures to protect crops from diseases, pests and weeds.
Let us evaluate the competitiveness factors of IC SOGAZ, calculated in Table 7.
Table 7
Initial data for calculating the estimated indicators of competitiveness factors of Russian and foreign insurance companies
| № | Insurance organizations | Amount of assets, thousand rubles | The amount of insurance reserves, thousand rubles. | Amount of capital, billion rubles | The amount of insurance payments, thousand rubles. | Variety of insurance products | Sales technologies | Regional networks |
| Insurance organizations without foreign participation in the capital |
||||||||
| 1 | Rosgostrakh | 118430821 | 56238760 | 8,1 | 32289032 | 23 | 5 | 600 |
| 2 | SOGAZ | 73963734 | 51525818 | 8,0 | 19961208 | 23 | 5 | 600 |
| 3 | MAX | 11634924 | 9001286 | 1,7 | 3531883 | 21 | 5 | 350 |
| 4 | VSK | 24720000 | 17730000 | 5,3 | 13780000 | 23 | 5 | 500 |
| 5 | Alpha insurance | 27159460 | 18213742 | 5,0 | 11547656 | 23 | 5 | 400 |
| Insurance companies with a 100% equity stake |
||||||||
| 6 | ROSNO | 33250557 | 11936951 | 7,4 | 15943972 | 23 | 5 | 400 |
| 7 | Zurich Retail | 3547623 | 3546523 | 1,5 | 2143567 | 23 | 5 | 200 |
| 8 | Oranta | 4063363 | 3449722 | 1,4 | 2712931 | 21 | 5 | 200 |
| 9 | Ergo Rus | 2671587 | 1463570 | 0,7 | 1317141 | 21 | 5 | 200 |
| 10 | Aviva | 2987564 | 2364567 | 0,6 | 1254675 | 20 | 5 | 200 |
The indicators of financial and economic factors of the competitiveness of the insurance company Rosgosstrakh were used as the base ones. The leaders of the insurance market in terms of competitiveness of financial and economic factors are insurance companies without the participation of foreign capital, which include Rosgosstrakh and SOGAZ.
Taking into account that the majority of active global insurers are currently present on the Russian insurance market (out of the top 10 insurers in Russia, 5 companies operate in Russia, out of the top 25 – 9), an increase in their number will not significantly affect the development Russian market insurance services .
To assess the prospects for the development of the insurance company SOGAZ in the Russian insurance market, we will conduct a SWOT analysis, identifying its strengths and weaknesses, opportunities and threats (Table 8).
Table 8
SWOT Analysis Matrix
| Strengths | Weaknesses |
| Formed infrastructure in the field of retail insurance | Low capitalization |
| Developed brand | Low customer orientation of the business |
| Established relationships with credit institutions | High costs of doing insurance business |
| Working with key clients | Low business profitability |
| Service diversification | Low Reliability |
| Highly lucrative corporate insurance sector for large businesses | Low skill level |
| Advanced risk management | Lack of financial stability and control |
| Consolidation and reorganization of the company's insurance business | Inefficient back office and infrastructure |
| Opportunities | Threats |
| Growing interest in the insurance industry on the part of the state | Instability in the world financial markets |
| Insurance Industry Reform | Insufficient quality of supervision of insurance companies |
| Growth of investment attractiveness | Lack of supervision of insurance intermediaries |
| Low penetration | Dumping |
| Fraud |
|
| Lack of the necessary environment and incentives for the development of insurance life |
|
| Parallel existence of CHI and VHI systems |
Inefficient back office and infrastructure: For similar reasons, operational efficiency remains low as SOGAZ's functional activities are duplicated in the regions. Synergies arising from the integration of the back office and infrastructure functions are not used. Achieving efficiency is aggravated by outdated IT solutions that were not created specifically for the needs of the SOGAZ insurance business and do not have uniform standards, a supplier and an owner of source codes. At the moment, the cost of administering an insurance policy remains high compared to other markets. This limits the ability to provide high quality services to SOGAZ. Mutual influences of weaknesses and strengths, opportunities and threats are shown in Table 9.
Table 9
SWOT analysis results
| Capabilities | Threats |
|
| Strengths | The presence of a formed retail infrastructure will contribute to the development of SOGAZ insurance retail The growth of insurance capacity, as well as the creation of corporate infrastructure in preparation for the introduction of HPF will contribute to the development of insurance for legal entities for SOGAZ The presence of built relationships between SOGAZ and banks allows us to offer new joint products (financial supermarket) Growth of investment attractiveness of SOGAZ will make it possible to raise funds for business modernization | The negative effect from the growth of unprofitability in corporate insurance will be mitigated by the solid safety margin of SOGAZ accumulated in this segment The development of risk management and the change of targets after the crisis will increase the reliability of insurance companies, bring their relationship with insurance intermediaries to a new level (guarantees, control) |
| Weak sides | Low operational efficiency may reduce the return on investment in the creation of SOGAZ infrastructure Poor customer focus and a poorly developed product line will hinder development retail types insurance "SOGAZ" Low profitability of SOGAZ insurance business may scare away potential investors | The low reliability of SOGAZ, combined with the low quality of insurance supervision over the market, will adversely affect the image The lack of regulation of insurance intermediaries, combined with the high dependence of the SOGAZ insurer on its activities, will destabilize its business |
The most important task facing SOGAZ for the coming year is the modernization of business processes (transition from a medium business model to a large business model). This is evidenced by the fact that among the main areas of investment in business development are investments in technology and personnel, and not in marketing policy (Fig. 1).
Rice. 1. Key areas of investment in business development
