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Wall Street Prep

Insurance Industry Modeling

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What You'll Learn

  • Build an Insurance Company forecast model
  • Understand the challenges with insurance industry valuation
  • Includes Excel Financial Institution model templates

The unique regulatory framework, accounting and business model of insurance companies create challenges in the areas of financial statement analysis, forecasting and valuation. This intensive 2-day course is designed to equip professionals engaged in the analysis of insurance firms with the practical financial skill set they need on the job. We will analyze the financial statements of both P&C and life insurers and then build a forecast and valuation model for a real-life P&C insurance company.

Agenda


Topic 1
Topic 1
Industry analysis
  • Insurance sector overview
  • P&C and life insurance overview
  • Size, structure and key players
  • Personal vs. commercial vs. specialty lines
  • Multi-line Insurance
  • Mutual insurance companies
  • Operating model & structure
  • Key drivers
  • Risks and regulation
  • Dual accounting- GAAP vs. Statutory
  • Key terminology
Topic 2
Topic 2
Financial statement analysis
  • Income statement analysis
  • Loss ratios, expense ratios and combined ratios
  • Premiums & UPR analysis
  • Balance sheet analysis
  • DAC roll-forward
  • Reserving process and reserves analysis
  • Investment portfolio analysis
  • Accounting for life insurance
  • Accounting for annuities
  • Financial leverage analysis
  • Accounting for reinsurance
  • Analyzing P&C and Life insurer’s 10-Ks and financial supplements
  • Analysis of statutory financials (including key schedules)
  • Risk-based capital ratios
  • Identifiable Intangibles (VOBA, VODA etc.)
Topic 3
Topic 3
Case study: Modeling
  • Creating an integrated financial statement forecast model for a P&C insurer
  • Analysis of historical income statement and key drivers
  • Forecasting NPW, NPE & UPR
  • Forecasting Loss and LAE ratios
  • Analysis of historical balance sheet and key drivers
  • Forecasting of loss reserves and reserve development
  • Forecasting investments and yield
  • Incorporating regulatory dividend constraints
  • Incorporating operating leverage constraints
  • Estimating statutory dividends
Topic 4
Topic 4
Case study: Valuation
  • Analysis of valuation frameworks & drivers
  • Comparable valuation methodologies
  • Intrinsic valuation approaches
  • Creating a dividend discount model step-by-step
  • Estimating cost of equity using CAPM
  • Estimating terminal value
Online
Online
Pre-Seminar Excel Training

This boot camp assumes proficiency in Excel. Enrollment includes access to our popular Excel Crash Course for those who need an Excel refresher.

Wall Street Prep training is used at ...

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Who is this Boot Camp For?

  • FIG Investment Bankers
  • Investment professionals & asset managers focused on the Insurance sector
  • Corporate Development and FP&A professionals in Insurance
  • Valuation & Corporate Finance consultants focused on Insurance
  • Students targeting jobs that require an understanding of the Insurance sector
  • Anyone wanting to the learn/refresh skill sets in Insurance analysis and valuation

Why Attend a Boot Camp?

Comprehensive Training

Our live courses pulls no punches. Each boot camp is the same intensive training used to prepare incoming analysts at top financial institutions.

Learn by Doing

Attendees “learn by doing” by working through practical exercises and building financial models from scratch using real case studies.

Networking Opportunity

Boot camps provide an opportunity to network with MBAs and professionals from industries including investment banking, corp dev and FP&A.

Experienced Instructors

Our instructor-practitioners are experienced bankers who give real-world context by connecting training to their own experience on the desk.

Excel Mastery

Our training reinforces speed, efficiency and consistency in Excel that investment banking analysts are expected to have on Day 1.

Continuing Ed & Webinars

Enrollment to most boot camps includes access to our continuing education online training platform and webinar series.

Questions? We're Standing By.

To learn more about this boot camp, fill out the form below or call us at: 617-314-7685

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