Research on solvency measurement and prediction-based on the analysis of financial indicators of insurance companies

2021 Academic Journal of Business & Management  
In this paper, we use the factor analysis model, and get the prediction function of the solvency of insurance companies. In order to verify the feasibility of the model, we have adopted Accumulated Local Effects Plot. It is proved that the solvency of an insurance company is positively correlated with its monetary funds, term deposits and owner's equity, negatively related to its own liabilities, and that the two indicators of monetary capital and insurance company liabilities are factors that
more » ... ave a high marginal contribution to predicting the solvency of insurance companies.
doi:10.25236/ajbm.2021.030905 fatcat:zwkyernenjbadexkioxdskb6sq