Abstract: After the finance crisis, the measure and control of finance risk is on a more important position. The factor analysis and cluster analysis in multivariate statistics are objective and scientific. In order to investigate the risk of life insurance companies justly, this paper introduces the method into its finance system and makes a quantitive and objective evaluation. At last, this paper classifies the life insurance companies by finance condition refer to S&P’s evaluation system, and puts forward different development stratagies for every type.

Key words: Factor Analysis, Cluster Analysis, Finance Evaluation, Life Insurance Company