There are many ways for insurance companies to make money, and they can preserve their value through various bonds, stocks and funds. Specific methods include these:

insurance companies make money by underwriting profits

the expected profits after undertaking insurance responsibilities. The risk rate is a proportion, and the risk compensation amount has a predetermined amount. The multiplication of the two is the average cost of making such a single order. Then the premium received by the insurance company (after deducting the commission)-average cost = underwriting profit (expected) The actual underwriting profit is calculated afterwards.

Insurance companies earn money from investment income

1). Net investment income: Part 1 (income from interest, dividends, etc.). Use the weighted average of net investment income/investment assets to get the net investment return rate.

2) Total investment income: sum up the 1-4 parts to be called (net investment income+bid-ask spread+asset impairment+fair value change of trading financial assets), and use the weighted average of total investment income/investment assets to get the total investment income. (It does not include the floating profits and losses of available-for-sale financial assets. )

3) Real return on investment: (that is, the net growth rate (called net growth rate by CPIC and comprehensive return on investment by Life Insurance)) The real return on investment is actually the sum of 1-5 parts (net investment income+bid-ask spread+asset impairment+fair value change of tradable financial assets+fair value change of available-for-sale financial assets), and the weighted average of 1-5 parts is the net growth rate.