Analysis of financial statements in elementary insurance companies by an application

Financial analysis is the deduction of large groups of parameters found in a company? s balance sheet and income statement then in the light of this expressive relations of the parameters, introducing financially positive and negative sides of the company.Every company or people could be interested in the results of a financial analysis in accordance with their benefits. The financial analysis of insurance companies normally attract the attention of insurance holders, investors, creditors and also government. The aim of the government is controlling the insurance companies? ability to pay in order to provide insurance holders against damnificiation.In this study, balance sheet and income statement of the insurance companies explained in detail and then the methods of financial analysis on these statements wil be told. This study consists of three chapters. In the first chapter of the study, the history of insurance trade from past to present, basic concepts of insurance trade, types of insurance and general sector datas about insurance will be told.In the second part of the chapter, the financial statements which have to be prepared by insurance companies and the types of financial analysis formed by using the parameters of these financial tables will be told. In the third chapter, financial analysis will be applied to a company which is active in the elemantary insurance sector by using its balance sheet and income statement.Key Words: Insurance, Insurance Business, Elementary Insurance Companies, Financial Analysis, Application of Analysis