Insurance Company Analysis

Code Date City Fees Register
IR006 August 27, 2023 - August 31, 2023 Dubai – UAE $ 5000

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IR006 November 12, 2023 - November 16, 2023 Online $ 1900

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IR006 February 25, 2024 - February 29, 2024 Sharm El-Sheikh $ 4000

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  • Participants will be equipped to:
  • Identify The Business And Financial Risks Inherent In The Life, Non-Life, Reinsurance And Banc-Assurance Industries
  • Distinguish Strong And Weak Performers By Sector Using Both Qualitative And Quantitative Analysis And Detect Early Warning Signals Of Changing Credit Quality
  • Evaluate Financial Statements In The Context Of Differing Accounting Standards And Business Practices
  • Appreciate How Economic, Competitive And Regulatory Issues Impact Strategy
  • Use A Structured Approach To Identify Key Exposure Risks And Mitigants When Dealing With Insurance Companies.

The Delegates

The Course is designed for fixed income, banking, insurance and credit risk professionals. It is targeted at an intermediate level and assumes a basic understanding of accounting and insurance products .

The Contents

  • Analytic Overview
  • Purpose/payback model: a structured approach to credit
  • Insurance ratings: insurer financial strength and security ratings; capital models and other tools of analysis
  • Debt and equity investors: use of market indicators to evaluate credit risk
  • Operating Environment
  • Macro Economic Issues
  • Current state of the life and non-life insurance industry
  • Insurance versus general economic cycles; impact of capital markets
  • Sector growth dynamics and key drivers
  • Sector Analysis
  • Key business and product risks inherent in general, life and reinsurance
  • Sector dynamics: industry growth, cyclicality and competitive factors
  • Re-insurance: differing contract types
  • Regulation And Supervision:
  • Key methods of regulating insurance companies: solvency ratio, investment and business restrictions
  • International benchmarks and differences between countries; European vs. US model
  • Degree of comfort from quality of supervision
  • Financial Fundamentals
  • Statement Logic
  • Focal points of analysis: assets vs liability risk
  • Key accounting issues: premiums, claims and reserves, investment valuation
  • Accounting principles: statutory, modified statutory, IAS, embedded value
  • Business Risk
  • Underwriting risk: assessing the quality and diversity of the underwriting portfolio, loss and combined ratios
  • Product risk – life: traditional, endowments, unit linked etc.
  • Reserve adequacy: adverse development, survival ratios
  • Re-insurance risk: utilization policy, credit and recovery risk
  • Investment risk: quality and liquidity of the investment portfolio; asset and liability matching .
  • Performance Risk
  • Diversity and stability of income: underwriting, investment and operating returns
  • Investment return: impact of cash yield, realised and unrealised gains and losses
  • Control of distribution and operating expenses
  • Embedded value techniques for measuring life profitability; key assumptions in calculating value of life insurance business in force
  • Financial Risk:
  • Liquidity: operating cash flow and liquid investments to match potential drains
  • Solvency: regulatory requirements and market norms; assessing resilience and quality of capital, alternative measures e.g. free asset ratios and resilience tests
  • Gearing: financial leverage, refinancing risk, debt servicing .
  • Sector / Peer Analysis
  • Non-life: underwriting risk, reserves adequacy and capital
  • Life: focus on investment risk and free asset ratios
  • Re-insurance: focus on capital strength
  • Early Warning Signals
  • Recognising financial and non-financial indicators of distress
  • Accounting discrepancies
  • Banc-Assurance
  • Differing business models
  • Double counting of bank and insurance capital: national differences between current and proposed
  • Management And Franchise
  • Framework for assessing management and operational risk
  • Organisational concerns: double leverage, weak affiliates, inter-group support, capital and dividend flows
  • Franchise evaluating the strength of the business model
  • Structure
  • Funding needs of insurance companies: Who is the borrower / counter-party?
  • Hybrid capital securities: structure and type of capital issued; impact on credit standing and other concerns
  • Capital structure: creditor vs. policy-holder rights and the impact of ranking and structural subordination
  • Course Summary.

The Discount

10% in case of Three P. (or more)