Sigortacılıkta fon kaynakları ve fon kullanım alanları

Abstract

ÖZET Birinci bölümde, kurumsal yatırımcı olarak sigorta şirketlerinin mali piyasalarda işlevine ilişkin açıklamalar yer almaktadır. Burada sigorta şirketlerince yaratılan fonların değerlendirilmesi yapılmakta ve sigorta şirketlerinin yatırım araçları tanıtılmakta dır. Son olarak fon kullanımlarına ilişkin sınırlamalar incelenmektedir. Çalışmanın İkinci bölümünde sigorta sektörünün fon akım analizi yer almaktadır. Bu bölümde sırasıyla fon kaynakları, fon kullanımları kısaca tanıtılarak sigorta mevzuatının yatırımlarla ilgili yönleri açıklanmıştır. Sigorta sektörünün fon kaynak kullanım tablosu düzenlenerek sektörün oluşturduğu fon birikimi ve fonların yatırım alanları Sigorta Murakabe Kurulu Raporun'da derlenen veriler de kullanılarak açıklanmaya çalışılmaktadır. üçüncü bölümde, sigortacılıkta fon yönetiminin özellikleri olarak uyulması gereken ilkeler üzerinde durulmaktadır. Sözkonusu bölümde sigortacılıkta yatırım yönetimi ile ilgili karar kriterleri olarak likidite, salvabilite, güvence ve kârlılık politikaları incelenmektedir. Bu bölümde ayrıca, fonların planlanması ve yatırımlar arasında en uygun portföyün oluşturulması için mevcut modeller tanıtılmaktadır. Dördüncü bölümde, sigorta şirketlerinin mali tablolarında yer alan sigortacılığa özgü hesaplar kısaca tanıtılmakta ve prim istihsallerine göre farklı büyüklüklerde nitelendirebileceğimiz sigorta şirketlerinin (Sark Sigorta, Batı Sigorta ve Commercial Union) mali yapısı oranlar yoluyla incelenmektedir. Sonuçta, çalışma kısaca özetlendikten sonra, genel bir değerlendirme yapılmaktadır. vii

SUMMARY SOURCES AND USES OF FUNDS IN INSURANCE COMPANIES The purpose of this thesis is to emphasize the importance of funds constituted by insurance system which plays an important role in the financial market. This thesis contains four parts : Part 1 : The importance of insurance firms in the financial market. Part 2 : The Analysis of sources and uses of funds. Part 3 : Characteristics of the fund management in the insurance companies. Part 4 : Analysis of Financial Structure In Insurance Companies. 1. The importance of insurance firms in the Financial Market Insurance, like most financial institutions, present society with both benefits and cost. Although the insurer is subject to some risk, because it depends upon the experience of many insureds, the actual losses are likely to be close to the expected losses. Being a risk bearer by profession the insurer's uncertainty, should be small. Consequently, the risk, uncertainty and adverse reaction to risk in society are reduced substantially through the purchase of insurance. Insurance can make funds available for investment in the Financial Market, because a constant inflow of cash makes it generally unnecessary for them to liquidate existing assets to provide expected loses. In case of accumulation of new capital to stock market, insurance results in more optimum production, price levers and price structures. In Turkey insurers play less important role in the financial market than other countries. The percentage of direct premium income for 1991 as the Gross National Product (GNP) at the some year is 0.81 % which was 0.62 % in 1990, The ratio mentioned is about 9 % in the developed European countries. Insurer's premium has been raised in the recent 5 years. There was an average increase of 82.4 % in the premium income over the preceding year. This increase was of 44.7 % in the Fire Branch, 51,6 % in Transport Branch, 99.4 % in the Accident Branch, 94.2 % in the Engineering Branch and 87.6 % in the Life Branch. Neverthless, premium production of insurance firms is not sufficient for providing substantial proportion of the funds for the economy. -vm-21.3 % of the premiums came from life insurers in 1991. Because their contracts cover a longer period in which large amount of funds reinvested, life insurers, play a more important role than others. Therefore life insurer's premiums should be raised. As financial instruments are developed, new capital will be required not only to deal with existing instruments but also those to come. Existing instruments of insurance firms are moveables at fixed rate, shares, real estates, loans of mortgages. New financial instru ments used widely in developed countries are money market, certificates of deposit, repurchase agreements, Eurobondsand Commercial Paper. The market is international rather than being confined to a particular country, and new security issues can avoid a great deal of national regulation which may involve registration requirements. This can lead to a significant reduction in the cost of issue. Eurobond is a general term for any long dated depth security issued through the Euromarket. They are long-term instruments with maturities in excess of 5 and up to 30 years and this issues are usually unsecured, reflec ting the quality of the borrowers. Fixed rate bonds are debt securities on which the coupon payments are fixed at the date of issue as a specified percentage of per value. Floating Rate Eurobonds are debt securities whose coupon is refixed periodically by reference to some independent interest rate index. Commercial paper issues are negotiable promisory notes with short term maturities. 2. The Analysis of Sources and Uses of Funds An important aspect of finance is the problem of source that is from where the neceessary funds can be raised. This is a matter of availability as well as suitability to the firm's need. The location of sources of finance must be related to tha circumstances and require ments of the firm. Funds may be available internally or that may be raised from external sources. A new concern may be started by means of capital raised externally, but much of its subsequent development proceeds from self-financing. Because such sources are already within a company. By analyzing the capital structure of the insurance firms and the major sources and uses of funds, it can be clarified from where funds supplied and where funds raised. Thus, fund needs over the long run and liquidity of assets could be evaluated by means of the analysis. As it can observed from table. 2.7., 46.5 percent of long-term funds raised by means of life insurers. In the insurance sector, borrowings based on premiums revenue. Neverthless, medium and long range bank loans are used rarely. In other band, capital structure is diagnostic for types of fund uses and time of fund uses. -ix-The share of moveables in the total fund uses is of 74.7 %. A proportion of 29.5 % of moveables is in snares while the rest 70.5 % is in bonds. As 99.5 % of the bonds pertain to the state or public establishments, securities of public blocked as required by law. Comparing the investment of insurance companies and their returns with financial market returns, lower returns has been owned by insurers. Investment of bonds main pertain is blocked as required by law. Other wise shares owned by insurance companies are belong to the banks and industrial establishments that are partners of the insurance firms. All these factors result in lower returns in investment. The main purpose of restricted investment is to inspire confident and profitable investments. 3. Characteristics of Fund Management In the Insurance Companies. The status of fund management has increased considerably in recent years. Because, more financial income will be provided to handle expenditures. And more fund may become available to needed areas in country development. In a insurance company, fund management shoul conform to some principles like below, a- Risk management. b- Management of assets and liabilities. c- Controlling the investment portfolio. d- Planning of funds. e- Giving details to top management. Decisions for undertaking a particular financial politic from amongst several proposals are made in an environment of uncertainty and risk. It is important to clarify what risk and uncertainty means. Risk relates to insurable events». such as risk of fire, theft, or mortality. The probability of outcome of these events can be estimated on the basis of past experience. There are some business decisions which are unique, in the sense that no past experience throws any light whatever on their chances of success. If a firm contemplates investing, three additional factors will add to the uncertainty. The first concerns currency, for instance, a loss in the value of earnings and investment because of inflation and devaluation of the currency in terms of some foreign currency. The second factor is the possibility of a change in political attitude towards business in general. Finally, the third factor deals with operating conditions and includes law and legal systems, government control, taxes. In other hand, security, profitability, liquidity as priority objectives should be realized in capital investment decisions. -x-Great fund accumulation occurs in the cash balance of insurance companies against to huge losses to appear. But, excessive liquidity may effect the company negatively. Therefore, liquidity objectives should be determined by forming expenditure programs timely. Security determination always have to be realized in investment decisions. In inflation conditions security of assets have to be consi dered important. Specially changeable foreign exchanges make it more difficult to meet payment obligations. Another objective is profitability. Profitability is the ratio between the remainder of income-expenditures and the capital. Insurance companies have to determine at least a profitability ratio while capital investment decisions are made. According to the capital asset pricing model (CAPM), which plays a important role in modern finance theory, in a perfect capital market stockholders with widely diversified portfolios face little or no uncertainty with respect to the pure loss exposures of the businesses whose stock they own. To explain why large corporations buy insurance, CAPM theorists advance other reasons. First and foremost, equityholders who can diversify their holding are not the only claimholders in a corporation. Employees, managers, customers and suppliers also have financial interests. If the firm purchases no insurance the other par ties may worry about what will happen to them in case severe loss occurs. As a result, employees and managers may demand higher salaries, customers may demand lower prices for the firm's products or services and suppliers may demand higher prices for their products or services. The firm may find it less expensive to provide more security for these persons through the purchase of insurance and thus reduce their demands. In the fourth part, selected companies was analyzed for the period of 1988-1991 by using ratio analysis methods. The balance sheets, income statements and other documents used in analyzing the financial structure of the firms. Many ratios calcula ted from financial statements provide an important information about capital structure, liquidity, solvency and profitability of the bussiness. Finally, some conclusions were arranged. -xi-