MARKET OF FINANCIAL SERVICES

BARANOV Andrii ¹

¹Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0003-0032-3128

The essence and directions of investment activities of insurance companies

The article deals with theoretical and methodological basis of the essence and definition of investment and investment activities of insurance companies. Author has substantiated the use of the term “investment of the insurance company” concerning investment of own and debt capital mostly in cash, in various assets and financial instruments of other entities in order to increase the market value of the insurer and to achieve an economic or non-economic effect. The author has proved the need to divide investment activities into two components: the actual investment activities and investment activities, which should be classified as operating activities. Such division of investment activities is based on the type of capital used for investment. It is conducted analysis of the structure of the European insurers’ investment portfolio. Based on critical analysis and generalizations of asset structure in which national insurers invest their own funds and insurance reserves, the authors has made conclusions and has formulated proposals on further development of this segment of the insurance market.

Keywords: investment, investment activity, assets, own capital, insurance reserves.

JEL: G20, G22.

BARANOV A. . The essence and directions of investment activities of insurance companies / A. . BARANOV // Фінанси України. - 2015. - № 2. - C. 83-97.