Financial Results Management at PrJSC IC "Dnister"
Students Name: Manetska Yuliia Leonidivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2020-2021 н.р.
Language of Defence: ukrainian
Abstract: Manetska Yu.L., Bondarenko L.P (supervisor) Financial results management at PJSC "ASK Dniester". Master’s thesis. - Lviv Polytechnic National University, Lviv, 2020. Extended abstract Study object of the study is the process of managing insurance companies’ financial results. Scope of research of the study is the Ukrainian insurance market on the example of a specific insurance company. Goal of research is to identify the key problems of the insurance company PJSC "ASK Dniester" in the field of managing its financial results and develop key recommendations for improving the profitability of the insurer. The master’s thesis consists of three parts. In the first, theoretical and analytical part, the systematization and elaboration of scientists’ views on the insurance companies’s financial results concept was carried out. Thus, the financial results of the insurance company is considered to be a comprehensive indicator that combines all the insurer’s income from insurance, investment and financial activities. Based on the financial statements for the last three years, the financial condition of PJSC “ASK Dnister” is analyzed, where special attention is paid to the analysis of income and profit, which resulted in highlighting the insurer’s main financial problems. It is found that the company’s insurance premiums are growing quite slowly, and therefore the inflow of new customers to the insurer is quite weak. In addition, the insurance company has very high administrative costs, which affect the operating activity of PJSC ASC "Dniester", which is unprofitable. This would not be a problem for the insurance company if its investment activity is effective. However, the income from investing is not too high in the years under study. All this affected the fact that in 2017-2018 PJSC ASK "Dnister" is in a red zone. In the second, research and forecasting part, a SWOT-analysis of the strengths and weaknesses of PJSC "ASK Dniester", as well as opportunities and threats to outline the main strategic directions of further activities of the insurance company is performed. Using the economic and mathematical model, a new optimal insurance portfolio was determined in terms of minimizing the risk of loss of potential insurance income. To reduce the risk while maintaining the actual level of income of PJSC ASC "Dnister" it is recommended to reduce the share of CASCO insurance policies sales and increase other insurance areas. The forecast values of the net profit and net insurance premiums of the insurance company for 2020 are also calculated. Although according to the trend, net insurance premiums and net profit of PJSC ASC "Dnister" should grow in 2020, but such a forecast is unreliable, as it does not take into account the real market situation regarding the economic crisis caused by the coronavirus pandemic. In the third, recommendatory part, the recommended solutions for improvement financial results management of PJSC “ASK Dnister” are offered. The first recommendation is based on the proposal to resume the sale of insurance policies for civil liability insurance of vehicle owners on the basis of brokerage agreements with another insurer, with the broker being PJSC ASK Dnister itself. This step will stimulate the growth of insurance premiums by attracting new customers, but will not increase costs. The second recommendation is based on the proposal to stimulate demand from customers by activating marketing tools: updating the official website of PJSC ASC "Dniester" and the use of SMM methods in social networks. Such steps do not incur large costs, but allow to slightly increase the customer base. The effectiveness of the proposed recommendations is confirmed by mathematical calculations, the main indicators of profitability of the insurance company will improve significantly. Key words: financial results of the insurance company, insurance premiums, insurance payments, insurance reserves. References. 1. Kondrat I., Yaroshevych N., Svatiuk O. (2019) The impact of investment placement by life and non-life insurance companies on economic growth in Ukraine. Financial and credit activities: problems of theory and practice,. Volume 29, 364-373. DOI:10.18371/fcaptp.v2i29.171992 2. Slav’yuk R., Shkvarchuk L., Kondrat I. (2017). Financial market imbalance: reasons and peculiarities of occurrence in Ukraine. Investment Management and Financial Innovations, Volume 14, 227-235. DOI:10.21511/imfi.14(1-1).2017.09. DOI: 3. Horyslavets P., Plonka M., Trynchuk V. (2018). 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