Insurance Valuation Techniques
This training is delivered through a mix of lectures and case studies and addresses the financial modelling of a European life and non-life insurance companies. At the end of the training course, participants will be able to take the historical financials of any insurance, create projections and determine a value developed on a number of methods taught in this course, such as:
- Insurance business and its products;
- IFRS financial statements of a non-life and life insurance companies;
- Additional voluntary disclosure for life insurance called Embedded Value;
- Fully integrated forecasting and valuation model for a non-life and life insurance companies;
- Insurance trading multiples and sum-of-the-parts valuation for multi-line businesses.
About the Trainer:
Joanna has 10 years of experience in the Financial Institutions Group (FIG) of Deutsche Bank in New York. She began her career in Investment Banking at Deutsche Bank in New York where she worked in Mergers and Acquisitions. As an associate, she moved to FIG where she was involved in large public bank takeovers. She completed more than 50 transactions for a combined value of around US$100 billion. More recently Joanna decided to focus her career on training and teaching. She is a visiting professor in a leading MBA programme and trains in the US and Europe on bank-related issues.
Joanna has a Bachelor of Science from the University of Pennsylvania and an MBA in Finance from Wharton. She also holds Series 7 and Series 63 US licenses.
Suitability - Who should attend?
This course is designed for participants who are:
- Financial analysts in investment banks (FIG departments)
- Lateral hires in investment banks (FIG department)
- Junior equity research
- Junior investment managers
- Strategy and corporate development insurance professionals
- All other interested Finance and insurance professionals
Training Course Content
The content of this course is split into eight sessions:
Introduction to Non-Life Insurance
- How do insurance companies make money?
- Key non-life insurance products
- Reinsurance and risk-transfer
Financial Statements of Non-Life Insurance
- Accounting for non-life insurance: deferral and matching principles
- Unearned premium reserves and claims reserves
- Building loss reserve triangles
Financial Modelling of Non-Life Insurance
- Forecasting premium and claims development: non-life insurance cycles
- Building non-life reserves
- Forecasting operating expenses and impact of reinsurance
- Completing underwriting result
- Allocated capital, investments and financial returns
- Completing the forecasting model
Valuation of Non-Life Insurance
- Using solvency requirements to establish capital surplus/deficit
- Completing a dividend discount valuation for the case company
- Discussion over valuation methodologies include P/E and regression analysis
Introduction to Life Insurance
- Features of the life insurance business
- Key life insurance products: traditional vs. unit-linked business
Financial Statements of Life Insurance
- Forecasting income statement, reserves and cash flows of a traditional life policy: calculation of new business value
- Limitations of IFRS accounting for insurance
- Embedded value: key concept, calculation and disclosure
- Embedded value earnings: new business value and return on existing business
- European embedded value and market consistent embedded value
- What is EEV? A DDM produced by actuaries on part of the business
- Using embedded value to complete an appraisal valuation of the life business
- Can you use someone else’s DDM as a basis for your own valuation?
- Sensitivity analysis of EEV to key value drivers
Other Insurance Valuation Methodologies
- Analysis and valuation of multi-line insurance companies combining life and non-life
- Insurance solvency requirements under Solvency I vs. Solvency II
- Sum-of-the-parts valuation of multi-line insurance companies
- Trading multiples for insurance companies: P/E v P/EV earnings, P/EV
Why choose City Training UK
100% specialised on Corporate Finance with more than 20 different topics
Hundreds of participants trained from heads of departments to recent graduates
10 specialised trainers at minimum VP-level in leading financial institutions
City Training is a highly-distinguished supplier of premium public courses, in-house training, and courses for universities and schools. The company focuses solely on financial training and covers the areas of financial accounting, corporate finance, valuation, credit analysis, regulatory capital, mergers and...
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