Global Financial Markets Institute»Insurance Company Business and Financial Analysis – Level II

Insurance Company Business and Financial Analysis – Level II

This 2-day Business and Financial Analysis Program provides participants with a deeper understanding of the dynamics of the insurance industry, the business models of insurance companies, and the financial information used to assess financial strength and performance. This 2-day course focuses on understanding the impact of regulation on the insurance products offered and the implications for our various business functions. It includes a discussion regarding the causes of insurance company insolvency and the relationship to regulations.

An in-depth financial analysis of an insurance company will also be covered during the course. The specific focus here will be on the income statement in terms of revenue generation, allowable and distributable earnings, and reserving policies and approaches. The balance sheet will be analyzed with a focus on investment risk and the duration matching of the liability structure.

This program is built around the introductory (“Level 1”) program and uses a series of group exercises and in-depth case studies, designed to demonstrate the application of key learning points. The cases will include two major insurance companies so that learners can distinguish and identify the key business differences and their implications for financial performance.

Course Objectives

By the end of the course, the participant will be able to:

  • Identify the risks which might lead to insurance company insolvency and the regulations designed to protect against this.
  • Describe the impact of regulations on the products and operations of an insurance company.
  • Explain the key dynamics that drive the income statement and cash flow of the company.
  • Determine how the business model and the product mix is reflected in the balance sheet of an insurance company.
  • Apply the key ratios used in financial statement analysis to assess an insurance company’s financial strength, performance and risk profile.
  • Recognize the limitations of benchmarking of the case study insurance firm’s performance against key competitors.

Suggested Prerequisites:

  • Introduction to Insurance Company Business and Financial Analysis – Level 1

Program Level: Intermediate to Advanced

Advance Preparation:None

Computers and Financial Calculators: Calculators; laptops for case studies

Recommended CPE Credits:14