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Objectives

• Distinguish The Risks Inherent In The Main Products Offered By Life, Non Life And Re-Insurance Companies And Recognise How They Are Reflected In The Financial Statements .
• Understand The Components Of An Insurance Company Technical Account, Income Statement And Balance Sheet .
• Recognize The Impact Of Differing Accounting Standards, Reserving Policies And Changes In External Variables (Such As Interest Rates And Asset Prices) On The Financial Statements .
• Calculate And Apply Basic Ratios To Quantify An Insurance Company’s Performance.

The Delegates

This Course is designed for analysts, who have limited or no experience in the analysis of insurance company financial statements

The Contents

• Types Of Insurance Company :
• Life, non-life and re-insurance
• Relating the business to the balance sheet and income statement.
• Key activities and products :
• Risk profile and accounting for differing products
• Non life products: short tail and long tail lines
• Life products: term assurance, with profits (endowment), guaranteed investment contracts, annuities, asset management and other savings products
• Re-insurance: treaty and facultative re-insurance.
• Accounting and disclosures :
• Sources of information and quality of disclosure
• Financial statements: technical / revenue accounts and regulatory filings, balance sheet and income statement, cash flow analysis
• Premium accounting: gross versus net, written versus earned
• Claim accounting non-life: claims incurred versus paid, un-expired risks
• Claim accounting life: benefits and surrenders, annual and terminal bonuses
• Technical reserves: claims reserves, unearned premiums, mathematical provisions, equalisation and investment reserves
• Investment accounting: marked to market versus cost accounting
• Impact of re-insurance on assets, liabilities and claims
• Intangible and other assets: deferred acquisition costs, PV in force business, embedded value
• Ratio Analysis :
• Investment risk: types of investment and quantifying investment risk .
• Underwriting risk: claims / loss ratio, combined ratio and other indicators of underwriting performance, reserve adequacy .
• Profitability: key profitability ratios .
• Capital adequacy: types of capital and ratios used to measure gearing and capital adequacy.
• Course summary.

The Discount

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