厄立特里亚国家保险公司的财务业绩分析

摘要

The study designed to assess financial performance of National Insurance Corporation of Eritrea Share Company(NICE).In addition,the study explores how the Eritrean Insurance industry evolved through time.The study is exploratory in nature.Secondary and primary data was collected from National Insurance Corporation of Eritrea Share Company,beginning from2008to2015.They were analyzed using different ratios.Basically,these ratios can be grouped into Liquidity ratio,Profitability ratios,Asset management ratios,and Debt management ratios.And,the result was converted into tables and graphs and interpreted by comparing with overall insurance industry standard or average Kenya's insurance ratios.The study find out that the company is profitable.Its premium growth on average 10.19％ which is satisfactory if we compare with other emerging market countries of growth rate of 8％.However,the study find out that the growth is erratic sometimes negative some time above 20％.Thus,the study recommends that the company has to increase its market share and find out new opportunity in the market to smooth its growth premium.NICE has a loss ratio of average 33.63％which is much lower than industry average68.1％.The research concluded the main source of profit for the company is low claims made or less loss ratio.This could be attributed to the culture that those who are injured or killed in accident they didn't accept compensation for accident.On its investment side its ROE is on average 14.81 which is within satisfactory world insurance standard of 10-15％.ROI of the company is on average is 9.05％ which among good performing insurance companies of which the average is 5-10％.But,majority of the investments are in nonliquid asset in real east or creating other not similar companies.Which will affect its liquidity negatively.Thus,we can say that NICE investment return or its return on equity is at the expense of its liquidity holding.Thus,if we see its liquid,NICE liquidity position is below industry average its current ratio is on average1.39which lower than normal business of 2 to 1 ratio.Its cash ratio is on average0.9but getting lower yearly which is lower than normal business average of1to1.Thus,we can say NICE is vulnerable in case of any unexpected large claim happens.Thus,we recommend that the company to find ways to invest in low risk bonds,equities,or money market to boost its liquidity.
　　By analyzing the efficiency of asset usage of the company,the research found out that generally the account receivable turnover of the company is low this is due to liberal credit policy of the organization.But,in 2015 the ratio was high 4.069 this is due to new government law regarding the amount money an individual can hold in cash in which most customers paid the company though bank transfer which dramatically increased the amount of current asset or of the company.
　　Its fixed asset and total asset turnover was better in earlier years this is due to less fixed asset at that time.But,since the company built new building its fixed asset increased dramatically and the ratios was also low.However yearly the ratios improved as the company began to rent out some of its building for restaurant and other offices.Asset usage of the companies improved so as the ratios.Regarding its debt management,the research found out that the company has low debt ratio.The company goals of 40％ debt is not met in all years.However,in 2011 the company issued shares since then the company has improved its debt to equity ratio.The standard set by management is 40∶60 debt to equity is not met in all eight years.The research has also found out that the company didn't change its premium rate since1992.Most of profit of the NICE is based on its low loss ratio.

目录

声明

ACKNOWLEDGEMENTS

ABSTRACT

CONTENTS

CHAPTER ONE OVERVIEW OF THE STUDY

1．3 OBJECTIVES OF THE STUDY

1．4 RESEARCH QUESTIONS

1．5 BRIEF INTRODUCTION ABOUT THE COUNTRY，ERITREA

1．7 REGULATOIRY ISSUES

1．8．3 BARGAINING POWER OF BUYERS

1．9 COMPANY PROFILE

1．10 CORPORATE GOVERNANCE AND ORGANIZATIONAL STRACTURE

1．11 THE GENERAL MANAGER／CHIEF EXECUTIVE OFFICER

CHAPTER TWO LITERATURE REVIEW

2．1 INTRODUCTION TO FINANCIAL STATEMENT ANALYSIS

2．1．1 THE BALANCE SHEET

2．1．2 THE INCOME STATEMENT

2．1．3 STATEMENT OF CASH FLOWS

2．1．4 STATEMENT OF SHAREHOLDER’S EQUITY

2．2 USERS OF FINANCIAL STATEMENT ANALYSIS

2．3 USES AND LIMITATIONS OF FINANCIAL STATEMENT ANALYSIS

2．4 RATIO ANALYSIS OF FINANCIAL STATEMRNT

2．6．1 LIQUIDITY ANALYSIS

2．6．2 PROFITABILITY ANALYSIS

2．6．3 ASSET MANAGEMENT RATIOS

2．6．4 DEBT MANAGEMENT RATIO

2．7 STRENGTH AND WEAKNESSES OF FINANCIAL RATIO ANALYSIS

CHAPTER THREE CONCEPTUAL FRAMEWORK AND RESEARCH METHODOLOGY

3．2．1 BRIEF EXPLANATIONS OF THE VARIABLES

3．3 RESEARCH METHODOLOGY

3．3．2 UNITS OF ANALYSIS

CHAPTER FOUR FINDINGS AND DATA ANALYSIS

4．2．1 PREMIUM GROWTH

4．2．2 CLAIMS

4．2．3 UNDERWRITING RESULTS

4．2．4 REINSURANCE COST

4．2．5 MANAGEMENT EXPENSES

4．2．6 PROFIT

4．3．1 LIQUIDITY RATIO

4．3．2 PROFITABILITY RATIO

4．3．3 ASSET MANAGEMENT RATIO

4．3．4 DEBT MANAGEMENT REATIO

CHAPTER FIVE CONCLUSION AND RECOMENDATIONS

5．1 INTRODUCTION

5．2 PROFITABILITY

5．3 LIQUIDITY

5．4 ASSET MANAGEMENT

REFERENCES