According to the notice of the Ministry of Finance, in order to better play the role of medium and long-term funds in stabilizing the market and boosting economic development, the Ministry of Finance will conduct a long-term evaluation of state-owned commercial insurance companies. According to the notice, the assessment method of operating efficiency indicators was changed from "current year indicators" to "three-year cycle indicators+current year indicators", in which the weight of three-year cycle indicators and current year indicators each accounted for 50%.
At the same time, the circular requires state-owned commercial insurance companies to balance investment returns and risks in terms of capital investment, and according to the long-term nature of insurance funds, invest funds in assets with controllable risks, stable returns and stable cash flow returns. In addition, the notice also clearly pointed out that state-owned commercial insurance companies should effectively improve the return on capital under the premise of reasonably controlling risks.
If the return on net assets is lower than the medium level of industry standards, the management should find out the reasons in time and adjust the capital investment and investment ratio reasonably. If it is lower than the industry standard value for three consecutive years, the financial department can dynamically adjust its performance evaluation level. The announcement aims to guide the long-term steady investment of insurance funds and promote the sustainable development of state-owned commercial insurance companies.
The value and significance of this notice:
1. Improve the return on capital and operational efficiency: The circular requires state-owned commercial insurance companies to effectively improve the return on capital on the premise of reasonably controlling risks. If the return on net assets is lower than the medium level of industry standards, the management should find out the reasons in time and adjust the capital investment and investment ratio reasonably. This will help to improve the profitability and capital efficiency of insurance companies and promote the healthy development of the industry.
2. Dynamically adjust the performance evaluation level: The Notice stipulates that if the return on net assets of a state-owned commercial insurance company is lower than the industry standard value for three consecutive years, the financial department can dynamically adjust its performance evaluation level. These measures can encourage insurance companies to actively improve their operating conditions, improve their performance, and promote the competitiveness and sustainable development of the industry.
3. Promoting the sustainable development of the insurance industry: This circular is conducive to promoting the sustainable development of the insurance industry by guiding the long-term steady investment of insurance funds, strengthening the assessment of state-owned commercial insurance companies and improving the return on capital. Insurance companies will pay more attention to long-term operation and risk control, improve profitability and capital efficiency, and make contributions to the stable development of the insurance industry and the healthy development of the economy.