The Impact of Reinsurance on Operating Performance of Chinese Small or Mid-sized Property Insurance Companies - on the Basis of Dupont System of Analysis

Reinsurance plays an important role in management of property insurance companies, the reasonable arrangement of reinsurance can have important significance for the stable operation of the companies. There are so many differences between the large scale property insurance companies and small or mid-sized property insurance companies. As a small or mid-sized property insurance company, the arrangement of reinsurance become more and more important. In this paper, we choose the reinsurance rate of small or mid-sized property insurance companies from 2009 to 2013, and on the help of Dupont analysis, we try to find the impact of reinsurance on operating performance. In order to find out the different influence on operating performance, we have applied cluster analysis and classified those companies. Finally, on the basis of empirical research, we put forward some proposals on the Chinese middle and small property insurance companies' reinsurance arrangements. It has great significance for the rational development of middle and small property insurance company.