Research on development potential of agricultural insurance supplies—Based on the comparison of business performance and investment performance of insurance companies

According to the proportion of agricultural insurance premiums，the agricultural insurance companies were classified into three types，including professional agricultural insurance companies，comprehensive agricultural insurance companies and foreign agricultural insurance companies. Based on the improved Dupont financial analysis method in the financial management field，we decomposed the traditional return on equity（ROE）into two parts： the operating ROE and the investment ROE，to calculate operating performance and investment performance of these insurance companies. The results showed that Chinese agricultural insurance companies were in a state of profiting under the support of central and local governments’ financial subsidies. Professional agricultural insurance companies，facing the lower investment ROE，over-depended on the fiscal subsidies. Accordingly，the government should change the existing“ one-size-fits-all” subsidy model to establish the subsidy mechanism for agricultural insurance companies on the base of performance evaluation.