Certificate in Insurance Company Analysis

Insurance market overview: Types of insurance co: mutual vs. proprietary, multi-line vs. monoline, underwriters vs. brokers, captive insurers and Lloyd’s entities, Investment bases for life products: fixed (stable value), unit-linked (variable), with profits, interest-sensitive, Reinsurance products: proportional vs. non-proportional, finite risk, excess of loss and catastrophe covers. Statement Logic: This section explains the key financial items in insurance company financial statements and how the business model is reflected in the balance sheet. Accounting and Disclosures: This section explains the key areas of divergence between insurance accounting standards: international differences; the differences between the approaches for shareholder accounts and for statutory supervision; embedded value reporting for life insurance; and accounting for Lloyd’s syndicates. Ratio Analysis: This section provides an introduction to the basic analysis of insurance companies using some key ratios from the financial statements. Operating Environment: A review of the key macro-economic and sector trends which may impact adversely or favourably on certain insurers and business lines, and a look back at how the life, non-life and reinsurance sectors have previously been affected by stressed operating conditions. Management and Early warning Signals: A structured approach to assessing management; implications of the ownership structure; and early warning signals of credit deterioration.