Performance Analysis of Financial ratios-public Non-finacial insurance sector

Performance evaluation is an art through which one can learn about the efficiency achieved in the working of a particular organization. As regards performance evaluation of an organization, there are various measures to analyze performance of any organization. These measures are broadly classified into two categories namely, financial and non-financial factors. Among financial factors, the most important is Financial Ratios. Analysis through ratios is compared to Doctor’ kit for diagnosing the performance of the firm. It is the evaluation of a firms’ prospect for survival and growth. An analyst should develop the skill of identifying red flags. They should be used only to evaluate the performance of the firm as a whole. They, by themselves do not provide any insight into the performance of the firm.
As per the World Insurance Report, published by the reinsurance major “Swiss Re” the premium in non-life insurance business grew by 1.9 per cent. Latin America reported remarkably high growth. The Report mentions that the year 2011 witnessed exceptionally high catastrophe losses in Japan, Australia, and the United States, while European countries generally enjoyed low catastrophe claims. In 2011, total economic losses to Society due to disasters (both insured and uninsured) reached an estimated USD 370 billion, compared to USD 226 billion in 2010. The earthquake in Japan, the country’s worst on record in terms of
magnitude, alone accounted for 57 percent of global economic losses. The insured losses from natural catastrophes appeared to be to the tune of USD 110 billion.