Management of the Company Investment Activity in the Terms of

Risk (based on results of IC "Insurance House")

Student: Andreenko N.I.Scientific supervisor: Senior lecturer Pestovska Z.S.Language supervision: Senior lecturer Glinska O.M. 1

ContentCHAPTER 1. THEORETICAL FOUNDATIONS OF INVESTING INSURANCE COMPANIES AT RISK1.1. The concept investment insurance company1.2. The essence of investment activity of insurance companies in terms of risk1.3. Status of investment of insurance companies in UkraineCHAPTER 2 CURRENT STATUS OF INVESTMENT ACTIVITY IC "INSURANCE HOUSE"2.1. Organizational and economic characteristics of JSC IC "Insurance House”2.2. Assessing the impact of investment on the financial results of JSC IC “Insurance House”2.3. Status of investment activity at risk IC "Home Insurance“CHAPTER 3. DIRECTIONS OF IMPROVEMENT OF INVESTMENT ACTIVITY IC “INSURANCE HOUSE”3.1. Modeling of investment risk in JSC IC " Insurance House"3.2. Investment Opportunities JSC IC “Insurance House" in the Ukrainian stock market3.3. The new investment model for JSC IC “Insurance House" in the foreign exchange marketCHAPTER 4. HEALTH AND SAFETY IN EMERGENCIES IN IC “INSURANCE HOUSE”4.1. Occupational safety and health at IC “Insurance House”4.2. Security Emergency in IC “Insurance House”

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The Topicality of the problem. Investment activity is a very important and interesting research topic. Nowadays, a lot of businesses depend on some extent of investment. State economic performance is very dependent on the performance of investment and development of the country.

The object of investigation - the investment activities of the company.

The subject of the investigation - management of the investment activities of the company at risk.

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Classification of risks according to types of investment

Table 1

Risk classification Type of risks Conception

1 For the definition Economic Political Social Ecological Other risks

Related to changes in economic factors Associated with various administrative limits investment policy changes According to the variety of social programs The occurrence of environmental disasters that adversely affect the operations of the invested activities Other (theft, etc.)

2 Forms of investment

Acquisition of integral property complexes, new construction, renovation, upgrading, renewal of certain types of equipment, investments in financial markets

Associated with the unfortunate choice of location of the invested object, interruptions in the supply of resources, delays in the introduction of the invested object with a reduction in profits during its operation

3 According to the source

Market Specific types of the enterprise activities

Determine the change in stages of economic development cycle, the investment markets, changes in economic legislation Related to the specific investment objects, irrational structure of invested resources, etc.

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Investment Life-insurance Non-life insurance

Terms of investmentDue to the long-term insurance contracts can be used long-term investment processes

Due to the relatively short-term insurance contracts (a year) investments are short-term

Profitability It is necessary to obtain a stable income as income from investments taking into account insurance premiums

Less profitability compared to the liquidity of investments

Liquidity

Does not play a big role because of the terms of maturity investments

There is an important principle of investing

Inflation It is necessary to take into account inflation, as long-term contracts

For most types of insurance inflation can not be ignored

Amount of investments

Significant, often continuously increases due to capitalization

Investments variability

Insurance payments

Term benefits are often specified in the contract of insurance (insurance endowment)

The term of payment is a random variable; necessary to consider the distribution of losses during the year according to various types of insurance and long-term nature of large amount of insurance payments

Table 2

Investment criteria according to the types of insurance companies

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Figure 1

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Dynamics of the charter capital of the company "Insurance House"

Table 3

Indicator 2007 2008 2011 20122013(beggining) 2013(end)

Charter capital 7000 7000 7000 7000 7000 207000

Share capital 0 0 0 0 0 0

Additional paid-in capital 0 0 0 0 0 0

Other additional capital 7,6 8 8 8758 8758 8

Reserve capital 125 125 125 125 125 616

Retained profit (accumulated deficit) -905,5 660 -100 391 391 89244

Unpaid capital 0 0 0 0 0 0

Treasury capital 0 0 0 0 0 0

Accumulated exchange differences - 0 0 0 0 0

Total equity capital (thousand UAH) 6227,1 7793 7033 16274 16274 311539

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Dynamics of financial investments of the insurance company "Insurance House"

Figure 2

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Assets allocation of " Insurance house" in investment establishments

Figure 3

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The dynamics of the inflation index in Ukraine

Figure 4

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Profitability of financial investments

Table 4

Type of investment Profitability

Banking sector 25%(per year)

Gold Depends on situation

Real estate 5-10%( per month)

Business 0-100%(per year)

Financial markets 10-20%(per month)

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To sum up I offer IC " Insurance House" to enter the foreign exchange market, as it is able to give much more profit to the company. My model is based on the gradual reduction of the investment shares in banks, which are not profitable and illiquid.

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Daily amount of trading of the currency market (billion Dollars)

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THANK YOU FOR

ATTENTION !

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