This 2-day Business and Financial Analysis Program provides participants with a broad understanding of the dynamics of the insurance industry, the business models of insurance companies and the financial information that is used to assess the financial strength and performance of insurance companies.The course focuses on understanding the fundamentals of the insurance business, the products offered and the business and financial drivers, as well as the overall financial reporting both on a statutory and GAAP accounting basis.The approach links the industry and product information to the financial reporting aspects of the insurance industry.In addition, the course addresses the approach used by rating agencies and insurance regulators to assess the risk in insurance companies.
This program is built around a series of group exercises and illustration cases, which are designed to demonstrate the application of key learning points.The illustration cases will be a life insurance company and a P&C insurance company so that learners can distinguish and identify the different business drivers and financial reporting accounts associated with each.
By the end of the course, the participant will be able to:
- Identify the risks inherent in the different business models (life, P&C and reinsurance) and the products offered by each
- Describe the operations and structure of an insurance company and describe the business flow in key product lines
- Explain the key regulatory concepts used in the insurance industry
- Recognize how the business model and the product mix is reflected in the financial statements
- Determine the key differences in the presentation of an insurance company’s financial statements under US GAAP versus statutory accounting
- Calculate and apply the key ratios used in financial statement analysis to assess an insurance company’s financial strength, performance and risk profile
- Discuss the benefits and limitations of key financial ratios
Suggested Prerequisites: None
Program Level: Foundational
Advance Preparation: None
Computers and Financial Calculators: Calculators only
Recommended CPE Credits: 14