Factors Influencing the Profitability and Loss of Chinese Insurance Companies Based on Factor Analysis

Zhenjie Wang

2024

Abstract

The insurance industry has a significant impact on economic development. This study selects the balance sheets of 55 Chinese insurance companies as samples for the year 2021. Selecting multiple items from the balance sheet for factor analysis. The factor analysis of Chinese insurance companies’ balance sheets has identified three crucial factors: Financial Activity Diversity, Insurance Liabilities and Investment Strategy, and Financial Risk Management. Ridge regression analysis revealed that these three factors have a positive impact on the net profits of insurance companies. These factors collectively contribute positively to company operations, underscoring the significance of diversifying financial activities, aligning insurance liabilities with investment decisions, and strategically managing financial soundness and risk. The findings highlight key considerations for insurance companies seeking to enhance their financial resilience, optimize investment strategies, and ensure effective risk management. The study aims to uncover the relationship between the balance sheet and company profits, further assisting in enhancing the market value of insurance companies.

Paper Citation

in Harvard Style

Wang Z. (2024). Factors Influencing the Profitability and Loss of Chinese Insurance Companies Based on Factor Analysis. In Proceedings of the 1st International Conference on Data Science and Engineering - Volume 1: ICDSE; ISBN 978-989-758-690-3, SciTePress, pages 64-69. DOI: 10.5220/0012821800004547

in Bibtex Style

@conference{icdse24,
author={Zhenjie Wang},
title={Factors Influencing the Profitability and Loss of Chinese Insurance Companies Based on Factor Analysis},
booktitle={Proceedings of the 1st International Conference on Data Science and Engineering - Volume 1: ICDSE},
year={2024},
pages={64-69},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012821800004547},
isbn={978-989-758-690-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Data Science and Engineering - Volume 1: ICDSE
TI - Factors Influencing the Profitability and Loss of Chinese Insurance Companies Based on Factor Analysis
SN - 978-989-758-690-3
AU - Wang Z.
PY - 2024
SP - 64
EP - 69
DO - 10.5220/0012821800004547
PB - SciTePress