Научно-методический журнал спецвыпуск №1 2021

Figure 2.
Solvency ratios to assess the performance of insurance companies
Note:
 
developed by the authors
Solv
enc
y r
atios
Financial activity
Insurance activity
1) the coefficient of general autonomy;
2) the coefficient of total solvency;
3) the coefficient of maneuvering of equity (working) capital;
4) the coefficient of maneuverability of own working capital;
5) the ratio of own funds;
6) the coefficient of security of subsequent costs and payments;
7) absolute liquidity ratio;
8) quick liquidity ratio;
9) current liquidity ratio;
10) integrated liquidity ratio;
11) the ratio of short-term receivables and payables;
12) the share of current assets in assets
1) coefficient of insurance autonomy;
2) profitability ratio;
3) integrated insurance liquidity ratio;
4) solvency reserve ratio

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between the amount of accounts payable and receivable. 
Note that the solvency ratios have some drawbacks. First, 
they are static because they are calculated on the basis 
of balance sheet figures as of a specific date. This means 
that in fact they are instantaneous. Therefore, there is 
a need to analyze their dynamics over several periods. 
Secondly, there is a risk of overstatement of liquidity 
ratios due to the inclusion in current assets of those 
with a high degree of risk. Given the limited resources, 
the insurer constantly has to choose the optimal ratio 
between available economic resources and volume of 
activity. The achievement of the result can be assessed 
from the standpoint of business activity of the insurer in 
the market of insurance services.
Group 3 — Business activity. 
Business activity covers 
almost all aspects of the insurer’s work. In order to avoid 
crises in financial activities and to ensure sustainable 
economic growth, it is necessary to develop the business 
activity of the insurance company, which minimizes the 
risk of failure in conditions of economic instability of the 
market environment and competition.
Indicators of business activity provide a multi-vector 
assessment of business activity, and they can be used 
to summarize analytical conclusions. Most of the given 
financial indicators for this group are generally accepted 
indicators of financial and economic analysis. At the same 
time, to assess business activity directly in the field of 
insurance, such indicators as the company’s service life 
in the market, the turnover ratio of insurance reserves, 
the effective term of formation of insurance reserves are 
proposed. Analysis and evaluation of business activity 
is carried out in quantitative and qualitative terms. We 
separate indicators of business activity in Fig. 3.
Group 4 — Financial stability.
Financial stability is the 
ability to maintain or improve the financial and economic 
condition of the enterprise when factors change. Financial 
stability is assessed on the basis of the ratio of own and 
borrowed funds in the assets of the enterprise, ways of 
accumulating own funds due to economic activity, the ratio 
of long-term and short-term loans, sufficient provision of 
working capital from own sources [4]. From this point of 
view, the analysis of the stability of the financial condition 
requires the calculation not only of quantitative and 
qualitative indicators of the financial condition of the 
enterprise, but also to determine trends in their change. It 
is this dynamic that characterizes resilience as the ability 
not to worsen one’s condition. From these positions, the 
change in financial results is due to changes in income, 
profits of the insurance company, profitability and growth 
rates of own funds.
Analysis of the financial stability of insurance companies 
involves balancing the growth rate and adjusting the main 
financial results for the reporting period (for the year) and 
for the previous period.