Financial Analysis of Insurance Companies

Overview

Syllabus

Courses

• 0 reviews

  4 weeks, 1-2 hours a week, 1-2 hours a week

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  In this course, learners will look at how reserving works for P&C, Life and Annuity lines of business. Next, we look at how the capital and surplus for an insurance company is calculated and also the use of Surplus Notes to increase statutory capital. Learners will also explore how regulators calculate risk-based capital (RBC) and use it to monitor the solvency of insurance companies under their jurisdiction.

  Next, we’ll cover reinsurance which is a key component of risk management for insurance companies and is an area where management must decide how much risk (and potential profitability) they wish to retain and how much and what part of the risk to lay off. We will also discuss the different types of reinsurance before moving on to learning how to calculate key performance indicators for the Life and P&C sectors. These indicators are invaluable for analysts to measure a company’s performance and to identify the trend in that performance over time. We’ll also look at capacity, profitability, liquidity and leverage ratios used by agencies to rate insurance companies.

  Next, we’ll look at the factors and risk management failures that lead to the failure of some insurance companies. We’ll also review the key earnings, liquidity and solvency ratios that analysts and regulators use to evaluate the risk and performance of insurance companies.

  We’ll wrap up this course with a case study which looks at how we can use the analysis techniques that we covered in our course to come up with a range of valuation estimates for a P&C business whose main product line is automobile insurance.

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  1 week, 1-2 hours a week, 1-2 hours a week

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  Ready to earn a professional certificate and stand out in your field?

  If you've gained a clear, comprehensive understanding of the courses, your next step is to complete the Financial Analysis of Insurance Companies Professional Certificate Examination from the New York Institute of Finance.

  The exam comprises 24 questions, timed at one hour. To qualify for the certificate, learners must receive a grade of at least 70% or higher.

  Prerequisite for this exam:

  Earn a Verified Certificate in all parts of the Financial Analysis of Insurance Companies program from NYIF:

  • Industry Overview and Analysis of Financial and Regulatory Reporting
  • Insurance Reserving, Risk Management and Analysis of Key Performance and Financial Indicators
• 0 reviews

  3 weeks, 1-2 hours a week, 1-2 hours a week

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  Want to gain a solid understanding of the unique analysis methods needed to assess the financial strength and operating performance of insurance companies in the US and Europe?

  We’ll begin this course with a look at the main lines of business and the current operating environment of the Life and Health sector of the industry. We will also discuss the impact of changes in interest rates on investment earnings and sales of annuity products. Next, we’ll turn our attention to the property and casualty sector and its main lines of business. We will then look at the trends in premium and investment income for this sector. Next, we’ll look at other sources of financial data and at the different accounting methods and standards that you will encounter when evaluating insurance companies.

  Learners will also be introduced to the rules of SAP and how it differs from GAAP and IFRS accounting. We’ll also look at the mandate and organization of the U.S insurance regulators and the information that insurance companies are required to report each period in order to document their ongoing solvency. Next, we’ll examine the operating cycle of a typical insurance company starting with issuing a policy and ending with reporting financial results. We’ll also look at some key terms that you’ll need to understand and important issues that you’ll need to consider in your analysis.

  We’ll wrap up this course with a deep dive into how investments are categorized according to risk, valued, and carried differently on the books of a Life versus a P&C insurance company. We’ll talk about some of the red flags you should look for in the mix of assets a company invests in and in the behavior of its asset managers (internal and external).

  Note: This course is part of the Financial Analysis of Insurance Companies Professional Certificate.

  *Audit the first module on Life and Health sector for free and upgrade to verified to unlock the remaining modules.

Taught by

Jack Farmer

Tags

• united states