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Financial accounting(1201) 2-_#444.pptx;_#1020

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Financial accounting(1201) 2-_#444.pptx;_#1020

  1. 1. FINANCIAL ACCOUNTINGINSURANCE COMPANY 2008111347 WANG HOLIM
  2. 2. INTRODUCTION CHOICE OF COMPANIES[ CONTENTS ] ANALYSIS CHOOSING THE BEST CO. CONCLUSION
  3. 3. INTRODUCTION
  4. 4. INTRO CHOICE ANALYSIS BEST CO. CONCLUSIONINSURANCE COMPANY ?- Life Insurance Pay the benefits upon the death of the insured person- Property Insurance Protection against most risks to property
  5. 5. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION PROPERTY INSURANCE VS. LIFE INSURANCE
  6. 6. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION PROPERTY INSURANCE VS. LIFE INSURANCE 출처 : 금융감독원 (보험회사업무자료)
  7. 7. CHOICE OF THE COMPANIES
  8. 8. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION < TOP 3 COMPANIES >
  9. 9. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Market share (Assets) Samsung 65.6% Kyobo Market Share Daehan ING Shinhan Others These three companies accounted for 65.6% of total market share.
  10. 10. ANALYSIS
  11. 11. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION THE RECENT TREND OF INSURANCE INDUSTRYGrowth : decreased growth rate because of financial crisisProfitability : FY08 Financial crisis → Net income ↓Financial quality : Weak small companies’ financial qualityCompetition : Big 3 companies’ market shares ↓ Small companies’ and foreign companies’ market shares are continuously↑
  12. 12. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Established May, 1957  The largest insurance company in Korea  Dongbang Life insurance company in 1957  Assets : 145 trillion won in 2011 ( 145,000,000,000,000)  Target : private customer and institution Insurance to Services pension  Insurance  Investment – funds  Loan  Pensions
  13. 13. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Key accounts of Samsung LIFE Insurance FY2009 FY2010
  14. 14. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Established Sep, 9, 1946  The first insurance company in Korea  Bankrupt in 1969, and acquired by Shindonga  Built 63 building in 1985  Acquired by Hanhwa group in 1997
  15. 15. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Key accounts of Daehan LIFE Insurance FY2009 FY2010 41,304Stockholders ’ Equity 61,602
  16. 16. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Founded in 1958 / Korean Education Insurance The first education insurance 13 different subsidiaries Promotion of education and formation of national capital
  17. 17. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Key accounts of Kyobo LIFE InsuranceNet profit margin 2007~2010 Growing flawlessly FY2007 FY2008 FY2009 FY2010
  18. 18. CHOOSING THE BEST COMPANY
  19. 19. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 1. Return on equity (ROE) = ROE Net Income / Book value of shareholders’ Equity 2. Earnings per share (EPS) = EPS Net income / Number of common stock shares outstanding Net profit margin 3. Net profit margin = net income/revenues 4. Return on Invested Assets = [Investment Profit / {(Invested Asset Return on Investment Assets during the term+ Invested Asset during last term - Investment Profit)/2}] 5. Debt/equity Debt/Equity Ratio ratio = Total Liabilities/shareholders Equity 6. Required Solvency Margin Ratio = Prepared Solvency/RequiredSolvency Required Solvency  Choosing “The Best Company”
  20. 20. INTRO CHOICE ANALYSIS BEST CO. CONCLUSIONEvaluation Method 1st : 3 points / 2nd : 2 points SCORE 3rd : 1 points We compared each of the six areas And gave Extra Points Extra Points ① High level of growth (1 point) ② High level of Required Solvency
  21. 21. 1. Return On Equity
  22. 22. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 1. Return on Equity (ROE) FY2009 FY2010 19.31% 15.1% 12.5% 9.2% 7.7% 7.5% (unit : Percentage, %) Samsung Kyobo Daehan Kybo showed the highest
  23. 23. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 1. Return on Equity (ROE) 12.5% 67% 7.5% Growth ! ↓ Extra Point ! FY2009 FY2010 We gave them one extra point for large amount of growth
  24. 24. 2. Earnings Per Share
  25. 25. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 2. Earning per share (EPS)30,000 FY2009 FY2010 (Unit : Won)20,000 Daehan is 3rd in EPS session. But, how about the amount of Growth?10,0005,000 Samsung Kyobo Daehan 2 1 3
  26. 26. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 2. Earning per share (EPS) 9,295 352% Growth ! 2,638 ↓ Extra Point ! FY2009 FY2010 We gave them one extra point for large amount of growth
  27. 27. 3. Net Profit Margin
  28. 28. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 3. Net profit margin FY2009 FY2010 3.5% 7.35% 1 4.24% 5.54% 2 2.8% 3.9% 3 210% growth in 1 year ! How they can do that? 0 2 4 6 8 (%)
  29. 29. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 3. Net profit margin The reason is.. Principal repayments Make High Performance Profit-driven policies of the product portfolio
  30. 30. 4. Return On Invested Assets
  31. 31. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 4. Return on Invested Assets FY2009 FY2010 6.38% 5.86% 5.59% 5.79% 5.83%5.2% There is no big difference between 1 each company. 2 3 . (unit : Percentage, %) Samsung Kyobo Daehan
  32. 32. 5. Debt to Equity Ratio
  33. 33. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 5. Debt / Equity Ratio FY2009 FY2010 1301.9% 1268.3% 1259.9%1,200 996.6%1,000% 851.1% 936.1% 800 600 400 200 0
  34. 34. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 5. Debt / Equity Ratio 851.0% 50.3% 삼성전자 FY2010 Samsung Life Insurance Liabilities 16 times higher than the Samsung electronics.
  35. 35. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 5. Debt / Equity RatioWhy these companies debt equity 120,912,253,000,000ratio is so high? ÷ 12,132,820,000,000 ×100 = 996.6%
  36. 36. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 5. Debt / Equity Ratio Insurance Company Because of.. Many Unearned Revenue insurance contracts (Liabilities) Increase!
  37. 37. 6. Required Solvency Margin Ratio
  38. 38. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 6. Required Solvency Margin Ratio FY2009 FY2010400 380.13% 332.79% 299.1%300 261,71% 267.24% 224.72%200100 0 %
  39. 39. CONCLUSION
  40. 40. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 1st 2nd 3rd (3 points) (2 points) (1 points) ROE (%)(+1 for high growth) +1 EPS(+1 for high growth) Net profit Let’s check the score! +1 margin(+1 for high growth) +1 Return on invested assets Cashreserve ratio (+1 for high level) +1 +1
  41. 41. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION 16 Points The score is.. 10 Points Got the highest score ! 9Points
  42. 42. INTRO CHOICE ANALYSIS BEST CO. CONCLUSION Is the best insurance company !
  43. 43. ReferenceDart System http://dart.fss.or.kr/통계청 http://www.index.go.kr/egams/stts/jsp/potal/st생명보험협회 http://www.klia.or.kr/삼성생명 http://www.samsunglife.com/삼성생명 관련 기사http://www.etoday.co.kr/news/section/newsview.php?TM=news&SM=0202&idxno=377271http://www.asiae.co.kr/news/view.htm?idxno=2010111515090164284교보생명 http://kyobo.co.kr/대한생명 http://www.korealife.com/대한생명 관련 기사http://www.newspim.com/view.jsp?newsId=20101110000124http://www.sisaseoul.com/news/articleView.html?idxno=26231ING생명 http://www.inglife.co.kr/ING생명 관련 기사http://www.fnnews.com/view?ra=Sent0701m_View&corp=fnnews&arcid=101117145959&cDateYear=2010&cDateMonth=11&cDateDay=17신한생명 http://shinhanlife.co.kr/
  44. 44. Q&A
  45. 45. THANK YOU

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