Management of financial stability of PJSC «IG «TAS»
Students Name: Yanuta Anna Dmytrivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2023-2024 н.р.
Language of Defence: ukrainian
Abstract: Solvency is the ability to fulfill one’s financial obligations in full and in a timely manner at the expense of a sufficient amount of liquid assets at the disposal of the insurer. In order to ensure solvency, the insurer must create a stable insurance portfolio through the conclusion of a large number of insurance contracts, adhere to the regulatory ratio between accepted insurance liabilities and assets, and also place insurance reserves under the conditions of sufficiency, diversification and quality. Study object – insurance activity of PJSC «IG «TAS», the process of ensuring the required level of solvency of the insurance company. Scope of research – financial relations that arise during the activities of the insurance company in order to ensure its solvency and financial stability. Goal of research: to determine the theoretical basis for ensuring the solvency of the insurance company, to calculate and analyze indicators of financial condition, as well as to provide recommendations for improving solvency on the example of PJSC «IG «TAS». According to the results of the research, the most significant problems in the insurance activities of PJSC «IG «TAS» were identified. The most notable issues include a large quantity of highly liquid assets, indicating the inefficient utilization of funds by the insurer. Additionally, the insurer’s dependence on external sources of financing is a concern. The decrease in reinsurance volumes is also a negative development. On a positive side, the insurer’s actual solvency margin exceeds the estimated regulatory solvency margin. The amount of eligible assets surpasses the regulatory amount of assets, and profits are increasing annually. However, forecasting the inverse solvency indicator reveals a sharp decline in the analyzed indicators in 2023, posing a potential risk of insolvency for the company in the future. The text provides ways to maintain the insurer’s solvency, and it predicts changes to the financial statements of PJSC «IG «TAS» due to the annual investment of one-third of the most liquid assets in military bonds with a yield of 11%. Keywords: solvency, financial condition, insurer, reverse solvency ratio, equity, liabilities, forecasting, bankruptcy. .References. 1. Shustova, I. (2019). The essence of the concept of «insurance company’s solvency». Kharkiv National Economic University. Retrieved from https://conf.ztu.edu.ua/wp-content/uploads/2019/01/217.pdf 2. Lishchynska, U., Chubka, О. (2020). The current state of the life insurance market in Ukraine. International scientific-practical conference, March 2-3, 81-83.