1. 1. Overview of Vietnam National Reinsurance Corporation

2. Charter capital: 1,088,276,640,000 vnd Head office: 141 Le Duan Street, Hoan Kiem District, Hanoi

3. Business activities: - Reinsurance business and transfer - Investment in accordance with the law.

4. II. Analysis of VNR’s Earnings Per Share:

5. In comparison with some firms of the same sector such as PVI, BIC, …, EPS of VINARE is not very high

6. III. Analysis of VNR’s other measurements: 1.Short-term solvency measures 2.Long-term solvency measures 3.Asset Management Measures 4.Profitability Ratios

7. 1. Short-term solvency measures 1.1. Current ratio and Quick Ratio Current RatioQuick Ratio Rc (2009) = 3.63207117 Rq (2009) = 3.631999144 Rc (2010) = 2.730472434Rq (2010) = 2.730437071 Rc (2011) = 2.732090048Rq (2011) = 2.732026021

8. 1. Short-term solvency measures => High value of current ratio and quick ratio in VINARE, which indicates potential capacity to liquidate the assets and settle the short-term payments if necessary

9. 1. Short-term solvency measures 1.2. Cash Ratio: Compared to other companies in the same sector (BIC, PVI…), VNR seems to own higher Cash Ratio with the value of nearly 1 in 2009 and 2010

10. 2. Long-term solvency measures 2.1. Total Debt Ratio: VNR TDR (%) 34.73 (2009) 41.25 (2010) 43.88 (2011)  a stable increase in the total debt ratio of VINARE through 3 years in consideration.  the firm has to use more and more leverage and the more risk it is taking on

11. 2. Long-term solvency measures 2.2. Long-term Debt Ratio: VNR LDR (%) 15.35 (2009) 16.16 (2010) 17.36 (2011)  a tendency to increase its long-term debt ratio  worrying factor

12. 2. Long-term solvency measures 2.3. Long-term Debt – Equity Ratio: VNR LD/ER (%) 23.52% (2009) 27.51 (2010) 30.93 (2011) => the company has been more aggressive in financing its growth with debt

13. 3. Asset Management Measures 3.1. Total Asset Turnover (TAT): VNR TAT (%) 15.51 (2009) 15.16 (2010) 16.13 (2011)  the TA mean = 0.155995128, which is somehow higher than the TAT mean of companies in Banking – Insurance sector (about 0.12).  efficient in using its assets to generate revenue

14. 3. Asset Management Measures 3.2. Fixed Asset Turnover (FAT) FAT (2009) = 9.673343201 FAT (2010) = 17.52273915 FAT ( 2011) = 22.43708621 => increasing ability to generate net sales from fixed-asset investments.

15. 4. Profitability Ratios 4.1. Profit Margin: VNR PM (%) 49.24 (2009) 53.39 (2010) 54.89 (2011) => the ability to gain profit of VINARE is very good

16. 4. Profitability Ratios 4.2. Return on Assets : VNR ROA (%) 7.64 (2009) 8.09 (2010) 8.86 (2011) => VINARE is quite efficient in converting the money it has to invest into net income

17. 4. Profitability Ratios 4.3. Return on Equity VNR ROE (%) 23.76 (2009) 25.08 (2010) 28.75 (2011) => Good ability of the corporation to gain profit

18. References http://www.cophieu68.com http://s.cafe.vn http://www.investopedia.com http://vinare.com.vn/ http://www.wikipedia.org/ Fundamentals of Corporate Finance (McGraw- Hill, Irwin – 2003)