Insurance reserve adequacy ratio formula. Assessment of the sufficiency of insurance reserves (unearned premium reserve) of the insurance company CJSC TSK. Rates of growth, %

In addition to solvency indicators, reflecting the possibility of fulfilling obligations in the event of deviations from the normal course of activity in the analysis process, it is necessary to determine indicators of the adequacy of insurance reserves. This group of indicators is calculated only at the end of the year and serves to assess the reliability of the reflection of insurance liabilities. It includes the following indicators.

1. Indicator of sufficiency of technical reserves:

Insurance technical reserves (line 520 + line 530 + line 540 f.1)
Insurance premium - net reinsurance (line 080 f.2)

This indicator reflects the sufficiency of funds corresponding to the value of technical reserves in relation to the amount of liabilities expressed in the form of premiums for types of insurance other than life insurance, on their own retention. Limit dimensions standards in accordance with world practice should be more than 100%. In Russia, due to the peculiarities of the formation of reserves and the financial results of insurance activities, exceeding 50% of the level is considered sufficient.

2. Ratio of insurance reserves and equity capital:

Insurance technical reserves (line 520 + line 530 + line 540 f.1)
Own capital (line 490 f.1)

The total volume of insurance technical reserves should not exceed the insurance organization’s own funds by more than 3.5 times, otherwise this may adversely affect financial stability insurance organization.

3. Deficit (surplus) of technical reserves
is calculated as the difference between the volume of required reserves and the actually formed reserves. The amount of required reserves is determined as follows:

Average technical reserves for the previous year
Salary insurance premium for the previous year
*
Earned insurance premium.

The earned insurance premium is understood as the totality of income from insurance activities for types of insurance other than life insurance related to the period under review. Earned premium includes premium adjusted for changes in the unearned premium reserve.

Actually formed reserves represent average value technical reserves for the year under review. Thus, the indicator reflects the shortage or surplus of technical reserves formed in this year, compared to the level previous year. Sharp fluctuations indicators require a more careful consideration of the reasons for their occurrence. The indicator is calculated as a whole and taking into account reinsurers. An analysis of the structure of insurance reserves is given in.

Table 3.17.Structure of insurance reserves of an insurance organization

Indicators
Indicators	thousand rub.	% to the end	thousand rub.	% to the end	thousand rub.	% to the end
Insurance reserves - total
Life insurance reserves
Unearned premium reserve
Loss reserves Other technical reserves
Reserves for preventive measures

An analysis of the structure of an organization's insurance reserves shows that total insurance reserves are characterized by a predominant share of loss reserves, the share of which is gradually increasing. As of 01/01/07, the share of losses was 61.4%, and the share of the unearned premium reserve was 37.8%. Other technical reserves and life insurance reserves are not formed in this organization.

The information necessary to calculate the adequacy of insurance reserves is given in, analysis of indicators of their sufficiency - in.

Table 3.18.Data for calculating the adequacy of insurance reserves
for the period 01/01/2005 - 01/01/2007

Indicators
Indicators	thousand rub.	thousand rub.	pace growth, %	thousand rub.	pace growth, %
Own funds
Technical reserves (minus the share of reinsurers)
Insurance premiums - net reinsurance
Earned insurance premium
Volume of required reserves
Formed reserves

Table 3.19.Indicators of adequacy of insurance reserves and
solvency of the insurance company
for the period 01/01/2005 - 01/01/2007

Indicators				growth,
The ratio of insurance reserves and equity capital, %
Indicator of sufficiency of technical reserves, %
Equity to equity ratio insurance premium, %
Deficit (-), surplus (+) of technical reserves, thousand rubles.
Solvency margin
Excess of net assets over size authorized capital, thousand roubles.

Based on the results of analytical calculations, we can conclude that the company's financial position was quite stable in 2004. The high share of equity capital in the structure of liabilities ensured high solvency indicators. Insurance technical reserves have been formed in sufficient volume, in full compliance with the Regulations on the formation of insurance technical reserves. The fulfillment of the indicator of adequacy of insurance reserves indicates full coverage of the amount of upcoming payments under existing contracts in 2004.

The situation changed sharply for the worse in 2005. According to the data, we can conclude that an increase in the collection of insurance premiums (by 114.4%) and insurance technical reserves (by 40.2%) with a decrease in the amount of equity capital (by 18%) had a negative impact on solvency indicators. The sufficiency indicator of insurance technical reserves as of January 1, 2006 turned out to be below the standard value and amounted to only 44%. The remaining solvency indicators maintained their previous fairly high level, but the emerging downward trend threatened to change the current favorable situation, which is what happened next year.

In 2006, the size of technical reserves continued to grow (by 15.8%) and the collection of insurance premiums (by 28.9%), while the amount of equity capital decreased (by 12.9%). Solvency indicators indicate that in 2006 there was a discrepancy between the size of the organization's own capital and the volume of insurance activities.

The solvency margin indicator decreased and as of 01/01/07 amounted to 13%, with a recommended value of more than 0%. In 2005, this figure was 409%. The emerging trend of a rapid decline in the solvency margin indicator may have a negative impact on financial condition company in the near future.

The ratio of equity capital to premium collection for 2006 decreased by 11 points compared to 2005 and amounted to 24%, while the standard was more than 25%. Significant reduction in size own funds led to insufficient equity capital at a given level of insurance premium collection in the analyzed company.

Ratio of reserves to equity increased and amounted to 165% in 2006, with the standard not exceeding 350%. The increase in reserves was due to an increase in the reserve for unearned premiums and the reserve for losses, and the growth rate of reserves for losses was higher than the growth rate for the reserve for unearned premiums. At the same time, the analysis showed a deficit of technical reserves in 2006 compared to the level of the previous year in the amount of 3812 thousand rubles.

A negative trend of deterioration in solvency indicators may lead in the near future to the current insolvency of a given company and undermine its financial stability.

Fear reserves are a collection of funds intended purpose, formed from premiums received by insurers and used by them to fulfill their obligations.

The concept of fear of reserves is defined in Art.

26 of the Federal Law “On Insurance”: “In order to ensure the obligations assumed, insurers, in the manner and under the conditions established by the legislation of the Russian Federation, form insurance reserves for personal insurance from the insurance premiums received, necessary for the upcoming insurance payments, property insurance and liability insurance."

Fear reserves reflect the amount of the insurer's obligations under insurance contracts concluded with policyholders, but not fulfilled at this moment time. Fear reserves are shown in the balance sheet of any insurer for each reporting date and can be determined on any date. But if there are no fear reserves on the insurer’s balance sheet, this does not mean that it does not participate in the formation of the total insurance fund. That's all it means. What's on given date he has paid off all the insurance contracts he has and there is no need to create insurance reserves for unfulfilled obligations.

SR reflect the amount of obligations not fulfilled at a given time. These are probable obligations, which are entirely used for fear of payment, as a result of which the SR cannot be equated with either the SC or the ST.

For each type of reserves, reserves are formed separately according to their own methodology based on data on future losses.

In addition to insurance payments, insurance premiums must include the possibility of unforeseen losses. Sources for covering losses are reserves and income from investments.

In summary, two groups of reserves can be distinguished:

According to life

For other types of fear.

In addition to insurance reserves, insurers also create reserves for preventive measures to finance measures to prevent accidents.

The analysis is carried out in the following directions:

1. Composition, structure and dynamics

2. Sufficient reserves

3. placement of reserves

Source of information: form No. 1, data from reports provided in accordance with the supervision procedure.

The analysis of insurance reserves is carried out taking into account the share of reinsurers. Therefore, for each type of fear of reserves the following is indicated:

Reserve everything

The share of reinsurers in this insurance reserve.

Using the data from Form 8, you can analyze (in general and by type) the movement of insurance reserves by type of insurance.

The share of reinsurers in insurance reserves, except for life insurance reserves – share in total amount(to be determined). It is calculated:

[share p.s. by type of fear / total amount of fear reserves] *100%

The share of p/s depends on:

Briefcase fear

Type of insurance

The risk level ranges from 50% to 80%.

Horizontal analysis of the movement of fear reserves allows us to assess the dynamics of each reserve and the ratio of their growth rates.

Vertical analysis – the structure of fear reserves and their hierarchy.

One type of analytical indicator is the sufficiency of reserves (i.e., compliance of the structure and size with the accepted obligations). In this regard, they study the regulatory and legal validity of calculating reserve reserves, their sufficiency and compare:

1. The nature and amount of obligations under each agreement in the context of their areas

2. Structure and amount of insurance reserves in these areas

To study the structure of the amount for insurance contracts and insurance reserves, the ratios are analyzed:

Dividing the amount of fear reserves by the amount of selected fear reserves

The ratio of the amount of insurance reserves and the amount of insurance payments

The last 2 points must be greater than 1, then the fear of reserves is sufficient.

Insurance companies are required to create insurance reserves, which are intended to fulfill the insurance companies' obligations to pay. insurance compensation(insurance coverage) upon occurrence insured event to your clients. Insurance reserves formed in the amount necessary to fulfill these obligations are the basis for the financial stability of the insurer and a guarantee of payments for policyholders.

A guarantee of ensuring the financial stability of the insurer is economically justified insurance rates; insurance reserves sufficient to fulfill obligations under insurance, coinsurance, reinsurance, mutual insurance contracts; own funds; reinsurance.

Fear reserves are an assessment of the insurer's obligations, expressed in monetary terms, to ensure future insurance payments. The presence of insurance reserves in the prescribed amount serves as a guarantee of the solvency of the insurer and

financial stability of ongoing insurance operations.

Modern insurance companies form three groups of reserves:

1. mathematical (for life insurance);

2. technical (for other types of insurance): reserve of unearned premium; loss reserves (reserve for reported but unresolved losses, reserve for occurred but unreported losses); stabilization reserve (catastrophe reserve, loss fluctuation reserve); other types of technical reserves related to the specifics of obligations assumed under insurance contracts.

3. reserves for preventive measures.

The differentiation of reserves for life insurance and types of insurance other than life insurance (risk types) is associated with different distribution of risk and different methods and structure of the tariff rate as a source of formation of the insurance reserve.

In order to analyze reserves, fear org calculates and examines the dynamics of the coverage ratio of fear reserves.

It will calculate: The amount of assets accepted for coverage / the amount of fear reserves - net of everything. Value >= 1. If coefficient

More on topic 154 Analysis of the sufficiency of insurance reserves and directions for their placement:

Analysis and assessment of the efficiency of using the organization's resources.
Lecture 15. Financial resources of an enterprise: management of current assets
2.1. The meaning and objectives of analyzing active operations of a commercial bank
154 Analysis of the sufficiency of insurance reserves and directions for their placement
Analysis of the sufficiency of insurance reserves and directions for their placement
Formation of legal regulation of environmental insurance in the Republic of Belarus
Organizational and legal forms of environmental insurance
Property basis of the investment legal personality of NPFs
§ 2 Insurance contributions as the financial basis of state pension insurance
§ 3. Guarantees of citizens’ rights in the supplementary pension insurance system
§ 2. Features of the modern classification of insurance financial and legal relations.
§ 1. Subject and method of legal regulation, the system of Russian insurance law.

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1. Indicator of sufficiency of technical reserves:

This indicator reflects the sufficiency of funds corresponding to the value of technical reserves in relation to the amount of liabilities expressed in the form of premiums for types of insurance other than life insurance, on their own retention. The maximum size of the standard in accordance with world practice should be more than 100%. In Russia, due to the peculiarities of the formation of reserves and the financial results of insurance activities, exceeding 50% of the level is considered sufficient.

2. Ratio of insurance reserves and equity capital:

The total volume of insurance technical reserves should not exceed the insurance organization's own funds by more than 3.5 times, otherwise this may adversely affect the financial stability of the insurance organization.

3. The deficit (surplus) of technical reserves is calculated as the difference between the volume of required reserves and the actually formed reserves. The volume of required reserves is determined as follows: Earned insurance premium is understood as the totality of income from insurance activities by types of insurance other than life insurance related to the period under review. Earned premium includes premium adjusted for changes in the unearned premium reserve.

Actually formed reserves represent the average value of technical reserves for the year under review. Thus, the indicator reflects the deficiency or surplus of technical reserves formed in the current year compared to the level of the previous year. Sharp fluctuations in the indicator require a more careful consideration of the reasons for their occurrence. The indicator is calculated as a whole and taking into account reinsurers. An analysis of the structure of insurance reserves is given in Table. 3.17.

Table 3.17 - Structure of insurance reserves of an insurance organization for the period 01/01/2005 - 01/01/2007

Indicators	01.01.05	01.01.06	01.01.07
t.r.	%	t.r.	%	t.r.	%
Insurance reserves - total
Life insurance reserves	-	-	-	-	-	-
Unearned premium reserve		38,5		38,1		37,8
Loss reserves		57,4		60,9		61,4
Other technical reserves	-	-	-	-	-	-
Reserves for preventive measures		4,1		1,0		0,8

The information necessary to calculate the adequacy of insurance reserves is given in table. 3.18, analysis of indicators of their sufficiency - in table. 3.19.

Table 3.18 - Data for calculating the adequacy of insurance reserves for the period 01/01/2005 - 01/01/2007

Indicators	01.01.05	01.01.06	01.01.07
t.r.	t.r.	rate of increase, %	t.r.	growth rate, %
Own funds			-18,0		-12,9
Technical reserves (less the share of reinsurers)			40,2		15,8
Insurance premiums - net reinsurance			114,4		28,9
Earned insurance premium			109,1		45,1
Volume of required reserves
Formed reserves

Table 3.19 - Indicators of the adequacy of insurance reserves and solvency of the insurance organization for the period 01/01/2005 - 01/01/2007

Based on the results of analytical calculations, we can conclude that the company's financial position was quite stable in 2004. The high share of equity capital in the structure of liabilities ensured high solvency indicators. Insurance technical reserves have been formed in sufficient quantities, in full compliance with the Regulations on the formation of insurance technical reserves. The fulfillment of the indicator of adequacy of insurance reserves indicates full coverage of the amount of upcoming payments under existing contracts in 2004.

The situation changed dramatically for the worse in 2005. According to Table. 3.18 we can conclude that the increase in the collection of insurance premiums (by 114.4%) and insurance technical reserves (by 40.2%) with a decrease in the amount of equity capital (by 18%) had a negative impact on solvency indicators. The sufficiency indicator of insurance technical reserves as of January 1, 2006 turned out to be below the standard value and amounted to only 44%. The remaining solvency indicators maintained their previous fairly high level, but the emerging downward trend threatened to change the current favorable situation, which is what happened next year.

The solvency margin indicator decreased and as of 01/01/07 amounted to 13%, with a recommended value of more than 0%. In 2005, this figure was 409%. The emerging trend of a rapid decline in the solvency margin indicator can negatively affect the financial condition of the company in the near future.

The ratio of equity capital to premium collection for 2006 decreased by 11 points compared to 2005 and amounted to 24%, while the standard was more than 25%. A significant decrease in the amount of own funds led to insufficient equity capital at a given level of insurance premium collection in the analyzed company.

The ratio of reserves to equity capital increased and amounted to 165% in 2006, with the standard not exceeding 350%. The increase in reserves was due to an increase in the reserve for unearned premiums and the reserve for losses, and the growth rate of reserves for losses was higher than the growth rate for the reserve for unearned premiums. At the same time, the analysis showed a deficit of technical reserves in 2006 compared to the level of the previous year in the amount of 3812 thousand rubles.

A negative trend of deterioration in solvency indicators may lead in the near future to the current insolvency of a given company and undermine its financial stability.

In order to control the level of risk, banks draw up various shapes reporting, which classifies the loan portfolio by risk groups. Such reporting forms include form 0409115 (section 3).

Analysis of the risk level by quality groups of classified loans individuals presented in table. 12.

Table 12. Classification of personal loans by quality groups

Indicator name	2006	2007	Change, thousand rub.	Rates of growth, %
Indicator name	thousand roubles.	thousand roubles.	Change, thousand rub.	Rates of growth, %
Volume loan portfolio individuals, thousand rubles





Risk assessment (accrued reserve), thousand rubles.





3. Risk level, % (page 2/page 1)





Average level risk on the loan portfolio of individuals, %

In 2006, 86.2% of all loan debt was classified as quality category II (with normal debt service, sufficient collateral and satisfactory creditworthiness of the borrower). In 2007, the share of standard loans was 84.1%, but the share of standard loans of the highest quality (category I) increased significantly: from 4.8% in 2006 to 7.8% in 2007. In general, the bank's loan portfolio can be assessed as high quality.

Important in the risk assessment process is the analysis of the types of security for the repayment of placed loans, which are recorded in the accounts of Form 101: 91311, 91312, 91313, 91414.

An analysis of the types of loan repayment collateral should be carried out using Table 13.

Table 13. Classification of types of collateral for Bank R (thousand rubles)

Type of security	Deviations
	absolute, thousand rubles	relative, %


Surety

From Table 13 we can conclude that there is a gradual increase in the amount of security in two main types: pledge and surety. Thus, in 2006, the total amount of collateral for loans to individuals amounted to 913 thousand rubles. Of these, 773 thousand rubles. accounted for the deposit and 140 thousand rubles. for surety. The high share of collateral in the total volume of collateral is due to the fact that the satisfaction of claims secured by collateral does not depend on financial situation debtor.

The trend of large volumes of collateral continues in 2007. The share of the pledge is 1,484 thousand rubles, which is 0.9% more than in 2006, and the volume of guarantees is 294 thousand rubles. Analyzing the 2008 data, it should be noted maximum amount security for three reporting periods, namely 3599 thousand rubles. The positive dynamics of loan collateral amounts also continues. The deposit was maximum value 2876 thousand rubles, guarantee - 723 thousand rubles, which in general is also the highest figure for the three reporting years and exceeds the 2007 figure by 27%.

An important point in the analysis of the quality of collateral is an assessment of its sufficiency for making a loan investment. The value of the collateral must be sufficient to compensate the bank for the principal amount of the debt, all interest in accordance with the agreement, as well as possible costs associated with the implementation of collateral rights.

To assess the adequacy of collateral, use the formula for calculating the collateral ratio:

Kob= Collateral Amount/Loan Portfolio

The collateral ratio must be greater than one, which allows us to judge that the implementation of collateral rights or the guarantees/guarantees received will cover not only the loan portfolio, but also interest and other bank expenses associated with the placement of the loan.

In general, summarizing the methodological approaches to the analysis of lending to individuals in commercial banks, we can indicate three groups of coefficients that characterize various aspects credit policy jar. They can be divided into three groups of indicators:

Profitability of credit investments;

Quality of loan portfolio management;

Adequacy of reserves to cover possible losses;

The indicators of the group of profitability of credit investments and the procedure for their calculation are presented in Table 14.

Table 14. Formulas for calculating profitability indicators for credit investments

Coefficient name	Formula for calculation
Loan portfolio profitability ratio	Where PD is interest income received from loan investments; Pr - interest expenses paid for lending resources; Message - credit investments (total).	Shows the share of profit from credit investments in the total amount of credit investments
Share of bank interest margin in capital	, K - bank capital.	Shows the share of profit from credit investments in the bank’s capital
Profitability of loan investments	, where C (+) - loan investments that generate income	Shows the share of profit from credit investments in the total amount of income-generating investments
Real return on credit investments		Shows the share of interest income from credit investments in the total amount of income-generating investments

Let us calculate these coefficients using the example of Bank A, the results of which will be reflected in Table 15.

Table 15. Profitability indicators consumer loans jar

Indicators	2006	2007	2008

Interest income on consumer loans, thousand roubles.
Interest expenses, thousand rubles.
Consumer loans, thousand rubles.
Bank capital, thousand rubles.
Loan investments generating income, thousand rubles.
Profitability of consumer loans, %
Share of interest margin on consumer loans in the bank’s capital, %
Profitability of consumer loans, %
Real yield on consumer loans, %

As can be seen from the data in Table 15, in general, the bank’s consumer loan portfolio can be characterized as dynamically developing towards growth. The profitability indicator of consumer loans makes it possible to assess the feasibility of their provision, taking into account the optimal value for this coefficient, which is in the range from 0.6 to 1.4. In 2006-2008, actual values this indicator much higher than the normative ones, which is explained by the large amount of own funds.

The optimal value of the share of interest margin on consumer loans in the bank's capital is in the range from 10 to 20%. The data in Table 15 shows that the share of the interest margin on consumer loans is low: in 2006 it was 0.01%, by 2007 this coefficient was 0.25%, and in 2008 - 0.59%. This indicator indicates a positive dynamics in the development of consumer loans, and the low value of the indicator is explained by the low share of consumer loans in the total volume of bank loans.

The optimal value of the return on a bank's credit investments, the optimal value of this coefficient is 2-3.5%. The data during the entire study period is low, but one can note their positive dynamics, which is explained by the positive growth dynamics of consumer loans and the small number of overdue loans. That is, the amount of the Bank's income-generating loan investments does not differ significantly from the amount of the Bank's loan investments as a whole.

In terms of real profitability of consumer loans, there is no optimal value, but according to actual values From Table 15 it can be noted that the percentage of real profitability of the bank’s consumer loans is quite high, which indicates the high quality of loan portfolio management and credit risks in general.

Important in the assessment of loan investments, indicators of the second group are acquired, characterizing the quality of loan portfolio management commercial bank. These indicators are presented in table 16.

Table 16. Formulas for calculating indicators characterizing the quality of loan portfolio management

Coefficient name	Formula for calculation

	, where C(-) - credit investments that do not generate income; A - bank assets.	Characterizes the quality of management of the bank’s loan portfolio from the perspective of the volume of “non-performing” loan investments, with extended and overdue payment terms
	Message - credit investments (total)	Detailed assessment of the quality of loan portfolio management, showing the share of loan investments that do not generate income to the total volume of loan investments
The ratio of credit investments and deposits,	D - deposits	The coefficient assesses the quality of loan portfolio management based on available lending resources
	A - assets.	The indicator allows you to assess the degree of aggressiveness of the bank’s credit policy, the insufficiency or overload of its loan portfolio, and is calculated as follows:
	Skr. - short-term credit investments	The indicator characterizes the share of short-term credit investments in their total volume
	Ref. - credit investments for the previous period.	Characterizes the growth rate of credit investments over a certain period

Using the formulas presented in Table 16, we calculate the values of the coefficients; The source of information is the data presented in handicap 101 (Table 17).

Table 17. Dynamics of bank loan management quality ratios

Indicators	2006	2007	2008
Share of non-performing loan investments in bank assets, %
Share of non-performing loan investments in the total amount of loan investments, %
Ratio of loan investments and deposits, %
Loan portfolio congestion level, %
Share of short-term credit investments, %
Growth rate of credit investments, %

According to Table 17, the values of coefficient K5, which characterizes the quality of management of the bank’s loan portfolio from the perspective of the volume of “non-performing” loan investments, are within the range permissible norm(from 0.5-3). In 2006, this figure was 0.85 percent. In 2007, the value of the coefficient increased due to the fact that a large share of overdue loans formed in the bank’s loan portfolio, which amounted to just over one twentieth of the total loan portfolio. But already in 2008, the value of the K5 coefficient decreased due to the sale of collateral for overdue loans.

The K6 coefficient, which details the quality of loan portfolio management, is significantly less than the optimal value, both in 2006 and in 2008. This indicator, like the K5 coefficient, is explained by the small share of overdue debt in the bank’s loan portfolio.

The K7 coefficient, which assesses the quality of loan portfolio management based on available resources, is quite high level, which negatively characterizes the bank from a risk management point of view. This ratio shows that the bank's funds attracted from time deposits have an insignificant share in the total amount of funds used by the bank to carry out its activities. This suggests that the bank uses the balances on the client's current accounts, which is not reliable in relation to the risks that arise in the event of a decrease in the balances on the current accounts.

Similar to the K7 coefficient, the K8 coefficient (with an optimal value of 40-60%) during the study period is at an average value of 83.3%. This indicator indicates that the bank’s loan portfolio is overloaded, and a reorientation of credit resources to other areas is required, for example, investments in securities. There is also a downward trend in this indicator, which undoubtedly characterizes the bank’s credit policy positively. Thus, the K8 coefficient from 2006 to 2008 decreased by 15%, from 90.1% in 2006 to 75.1% in 2008.

K9 characterizes the share of short-term credit investments in the total volume of loans issued. Based on the data presented, we can conclude that the structure of the bank's loan portfolio by 99.7% in 2006, 99.5% in 2007 and 99.5% in 2008, respectively, consists of short-term loans. In the conditions of the domestic economy, the structure of banks’ credit investments in terms of urgency does not correspond to the needs of updating fixed assets of the enterprise, that is, the volumes of short-term credit investments significantly prevail over the volumes of long-term loans. This indicator is also explained by the specifics of the bank’s credit policy, which has a priority focus on short-term lending.

The K10 coefficient, which characterizes the growth rate of credit investments over 3 years, amounted to 105% in 2008, while in 2006 the growth of the bank’s credit investments amounted to 113.7%, which is the highest value for the three analyzed dates.

The third group of indicators, to some extent, also characterizes the quality of management of the bank’s loan portfolio, but at the same time is considered as a separate group, because it is associated with the specific activities of the bank in creating a special reserve for possible loan losses. Indicators characterizing the adequacy of the bank’s reserves to cover losses on non-repaid loans include coefficients K11-K13, the calculation procedure of which is presented in Table 18.

Table 18. Formulas for calculating indicators characterizing the adequacy of bank reserves to cover losses on non-repayable loans

Coefficient name	Formula for calculation

	, where Rf.s. is the actually created reserve for loan losses; C(-) - credit investments that do not generate income.	Reflects the degree of protection of the bank from credit risk, indicates the quality of credit policy and loan portfolio management
	, where Calc. - estimated reserve for loan losses.	Characterizes the completeness of the creation of a special reserve to cover possible loan losses
	Total credit investments, total	Shows the level of adequacy of bank reserves in case of non-repayment of loans,

Let's calculate the adequacy ratios of bank reserves to cover losses on non-repaid loans in Table 19.

Table 19. Adequacy ratios of bank reserves to cover losses on non-repaid loans

Indicators	2006	2007	2008
Provisions for loan losses (actually created), thousand rubles.
Credit investments that do not generate income, thousand rubles.
Provision for loan losses (estimated)
Credit investments (total), thousand rubles.
Level of protection against credit risk, %
Loss reserve level, %
Degree of reserve adequacy, %

Coefficient K11, which reflects the degree of protection of the bank from credit risk, does not have a criterion level and is considered in dynamics. The smaller its denominator, that is, the size of investments that do not generate income, the better the condition of the bank's loan portfolio. Thus, it can be noted that the loan portfolio was in the worst condition in 2007, when the level of non-income-generating loans was 5,690 thousand rubles, and K11 was equal to 126.8%. At the same time, the larger the reserve created, the greater the level of security of the bank.

The K12 coefficient characterizes the completeness of the creation of a special reserve to cover possible loan losses; its optimal value is 100%. Throughout all three years, the bank adhered to the optimal value for this ratio.

The coefficient K13 indicates the degree of adequacy of the bank's reserves in the event of non-repayment of loans. Considering the optimal value for this ratio, which is 0.9-5%, it can be noted that in 2006 the bank’s performance was within the optimal value. At the end of 2007, this figure rose to 6.1%, which was due to a larger share of loans belonging to quality category V with a reserve of 100%. And at the end of 2008, the K13 indicator decreased to 0.1%.

Thus, after analyzing all the presented coefficients, it is possible to give a detailed description of the bank’s activities in the personal lending market. In particular, the examples given make it possible to characterize the bank’s loan portfolio as dynamically developing, with a sufficient amount of bank reserves to cover losses on non-repaid loans. One can also note the high return on the bank's credit investments and the positive dynamics of income-generating investments. Quality ratios of loan portfolio management revealed some omissions of the bank management regarding the increase in the number of time deposits, the activity should use not only the funds remaining on the current accounts of clients, which are considered risky, but also cash with moderate credit risk. It is also necessary to highlight the high degree of aggressiveness of the credit policy and the congestion of the loan portfolio, which determines the need to reorient the bank’s credit resources to other areas.

To ensure the fulfillment of accepted insurance obligations, insurers, in the manner and under the conditions established by the legislation of the Russian Federation, form insurance reserves from the received insurance premiums necessary for upcoming insurance payments.

As an element financial mechanism they act as financial resources.

From the perspective financial analysis, insurance reserves adequate to accepted insurance obligations are a necessary condition for ensuring the financial sustainability of the activities of an insurance organization. Therefore, the most important component of the financial analysis of the activities of an insurance organization is the assessment of the sufficiency of insurance reserves to fulfill insurance obligations.

Important Feature insurance is that the insurance reserves formed by the insurer represent assessment obligations of the insurer related to upcoming payments upon the occurrence of insured events. The assessment of these obligations is probabilistic in nature, because There is uncertainty regarding both the fact of the occurrence of an insured event, the time of its occurrence, and the amount of damage, and the distribution of insurance reserves in the form of payments of insurance compensation to the policyholder upon the occurrence of an insured event is made on the basis of actual damage. The likelihood of a discrepancy between the volume of formed insurance reserves and the need for payment of insurance compensation gives rise to the problem of the adequacy of insurance reserves to fulfill insurance obligations.

The probability of non-fulfillment of obligations by the insurance company in the event of insufficient reserves at the expense of insurance reserves alone is quite high. At the same time, there is a need to attract own funds to fulfill obligations under insurance contracts. This may have a negative impact on solvency (in particular, lead to a violation of the regulatory requirement for the ratio of assets and liabilities).

Objectives of the analysis: determining the adequacy of insurance reserves, the validity of placing reserves in various types investments and Assessment of the necessary and sufficient share of reinsurers in insurance reserves. The analysis is carried out according to financial statements, as well as accounting and operational accounting, insurance contracts, marketing research and other sources using traditional and economic-mathematical methods, such as comparisons, balance sheet, chain substitutions, correlation, expert assessments etc.

Insurance companies form the following reserves: 1. For life insurance (LI) - are formed taking into account the long-term nature of life insurance operations. 2. By types other than life insurance (technical insurance reserves - TSR). TSR includes the unearned premium reserve (UPR) and loss reserves (LR). It should be noted that reserves for losses and premiums complement each other: RU are intended for liabilities for losses that have already occurred, and RNP for losses that will occur after the reporting date until the end of the insurance period.

In addition, the insurer can create additional reserves: stabilization reserve (SR), reserves for compulsory insurance civil liability owners vehicles(OSAGO), etc.

Reserve for declared but not settled losses ( RZU) is formed to ensure the fulfillment of obligations under insurance contracts that were not fulfilled or not fully fulfilled on the reporting date, arising in connection with insured events that occurred in the reporting or preceding periods and the fact of which is reported in established by law or in the manner stated in the contract to the insurer. Reserve for incurred but not reported losses (IBNR) evaluates the insurer's obligations to make insurance payments for insured events that occurred in the reporting or preceding periods, the occurrence of which was not reported to the insurer.

The stabilization reserve is an assessment of the insurer's obligations related to the implementation of future insurance payments in the event of a negative financial result from insurance operations or in the event of an excess of the coefficient of losses that have occurred above its average value.

The stabilization reserve is formed by insurers in cases where current insurance contracts provide for liability for risks that carry a huge potential for damage. The situation with catastrophic events requires the insurance company to formulate sufficient insurance coverage.

The accumulation of funds in such an insurance reserve can be carried out only for a period of time exceeding the scope of one business year. This reserve must provide coverage for major damage, and the accumulation of funds in such a reserve requires many favorable (profitable) years. The stabilization reserve is formed by accumulating part of the insurance premium in favorable periods. reporting periods, When financial results from insurance operations is positive, and is spent in unfavorable periods to cover negative financial results.

The adequacy of insurance reserves can be assessed by types of life insurance or types of insurance other than life insurance, through the coefficient of the same name:

Kdsr=SRzh(izh)/SPn*100%, where SRzh are life insurance reserves (p. 510), f. No. 1 - insurer; SRizh - reserves for types of insurance other than life insurance (line 520 + line 530+ + line 540), f. No. 1 - insurer; SPn – net insurance premiums for life insurance (p. 010– p. 150), form No. 2, net insurance premiums for types of insurance other than life insurance (p. 080– p. 150– – p. 160) , f. No. 2-insurer. The ratio of the amount of insurance reserves to the net premium by type of insurance must be at least 100%.

The degree of necessary and sufficient share of reinsurers in insurance reserves is determined through the coefficient of dependence on reinsurance (RDC). It is calculated as the ratio of insurance premiums transferred to reinsurance to the total volume of insurance premiums, the value of which is recommended by the author in the range from 5 to 50%: Kzps = PSP/SP * 100%, where PSP is the amount of premiums transferred to reinsurance (p. 012 , p. 082), f. No. 2; SP – amount of bonuses – total (line 011, line 081), f. No. 2.

Insurance reserves are temporarily accumulated funds and are used by the insurer as a source of investment and provide additional income. income from investment activities, which should be one of the most important sources of profit, especially under life insurance contracts. Too high profit from insurance operations, i.e. included in the tariffs is limited by competition, so we must strive to increase profits through the competent investment of insurance reserves in compliance with the principles:

1. diversification (territorially, by debtors and by type of investment)

2.returnability

3.liquidity

4.profitability

Indicators characterizing the efficiency of the insurer's investment activities (PEIO) can be determined by dividing the investment income received during the year by the average annual volume investment assets. In order to evaluate the return on investment, the result obtained should be compared with the average annual discount rate refinancing Central Bank RF.

It is also necessary to analyze the validity of placing reserves in various types of investments.