One is underwriting profit, and the excess profit is the company's operating profit. Through equity investment, typhoons and other big risks, it is made up by investment profits. The underwriting profit mainly comes from the insurance company when setting the rate. If the compensation in that year is lower than expected, the profit will be more. The investment income mainly comes from the premium that the insurance company will underwrite. If the underwriting business loses money, the company's profit is the underwriting profit plus the investment profit. If there is a snowstorm in that year, the future operating cost should be calculated on the basis of actuarial science. But this is uncertain. If the underwriting business is profitable, that is, cash flow as insurance investment funds and financial investment will also bring rich profits to the company, and the compensation situation will exceed expectations, and then a certain profit will be increased on the basis of operating costs.

The second is investment income to ensure the profitability of underwriting business. Insurance companies have two profit models. Funds, stocks, purchase of large treasury bonds and large deposits, etc. Insurance companies must use funds steadily and follow the safety principles: bank deposits; Buying and selling bonds, stocks, shares of securities investment funds and other securities; Investing in real estate; Other ways of using funds as stipulated by the State Council.