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Provided by: FitchTraining US Insurance Company AnalysisInsurance |
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Training
Provided by FitchTraining
A two-day workshop for credit risk, origination, fixed income and insurance professionals. A systematic approach to assess the credit risks in US Property casualty and life insurance companies, using both statutory and GAAP accounting.
Related Awards, Degrees or Certifications: Earn CPD credits
We are an accredited training provider with a number of institutions including:
ACCA
NASBA
Securi
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US Insurance Company Analysis
Course Objectives
The goal of this workshop is a structured approach to identifying early warning signals of credit migration in P & C and life insurance companies.
Specifically, participants will be equipped to:
Distinguish the business and financial risks inherent in the different sub-segments of the insurance industry
Evaluate both statutory and GAAP financial statements in order to distinguish strong and weak performers and recognise early signals of changing credit quality
Appreciate how economic, competitive and regulatory issues impact strategy.
Target Audience
The workshop is designed for fixed income, banking, insurance and credit risk professionals. It is targeted at an intermediate level and assumes a basic understanding of accounting and insurance products. The separate but preceding one-day workshop "Introduction to Insurance Financial Statements" is designed as a preparation for those with limited experience of insurance company accounts.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
ANALYTIC OVERVIEW
Structured approach
Purpose/ payback model - a structured approach to credit
Insurance ratings - insurer financial strength and security ratings; capital models and other tools of analysis
Debt and equity investors - use of market indicators to evaluate credit risk
OPERATING ENVIRONMENT
Macro economic issues
Current state and outlook for the different sectors of the insurance industry - P & C, life and re-insurance
Sector analysis - insurance versus economic cycles
Product risks, growth dynamics and topical issues
Competitive issues - barriers to entry, relative bargaining power of key players
Re-insurance - risk profile of differing contract types
Regulation and supervision
Regulation of insurance markets - availability, premium terms and rates etc.
Risk-based capital model - impact on investment decisions, business growth and types of capital raising
FINANCIAL FUNDAMENTALS
Statement logic
Focal points of analysis - liability versus asset risk
Key accounting issues - premiums, claims and reserves, investment valuation
Statutory accounting principles (SAP) versus GAAP accounting
Business risk
Underwriting risk - P & C - quality, diversity and growth of the underwriting portfolio, loss and combined ratios
Reserve adequacy - adverse development, survival ratios
Re-insurance: utilisation policy, credit and recovery risk
Investment risk - quality and liquidity of the investment portfolio; asset and liability matching
Performance risk
Diversity and stability of income - underwriting, investment and operating returns
Product risk and migration-life - guarantees, variable annuities etc.
Investment return - impact of cash yield, realised and unrealised gains and losses
Control of distribution and operating expenses
Financial risk
Liquidity - operating cash flow and liquid investments to match potential drains
Solvency - operating leverage, level and quality of statutory capital position at operating and consolidated levels; risk-based capital level, resilience of capital to unforeseen losses and high growth
Gearing - financial leverage, refinancing, debt service
Sector / peer analysis
P & C - focus on underwriting risk, reserve adequacy and capital strength
l Life - focus on investment risk and minimum guaranteed death and living benefits
Re-insurance - focus on capital strength
Early warning signals
Recognising financial and non-financial indicators
Accounting discrepancies
MANAGMENT AND FRANCHISE
Assessing management and operational risk
Organisational concerns - double leverage, weak affiliates, inter-group support, capital and dividends
Franchise - evaluating the business model.
The goal of this workshop is a structured approach to identifying early warning signals of credit migration in P & C and life insurance companies.
Specifically, participants will be equipped to:
Distinguish the business and financial risks inherent in the different sub-segments of the insurance industry
Evaluate both statutory and GAAP financial statements in order to distinguish strong and weak performers and recognise early signals of changing credit quality
Appreciate how economic, competitive and regulatory issues impact strategy.
Target Audience
The workshop is designed for fixed income, banking, insurance and credit risk professionals. It is targeted at an intermediate level and assumes a basic understanding of accounting and insurance products. The separate but preceding one-day workshop "Introduction to Insurance Financial Statements" is designed as a preparation for those with limited experience of insurance company accounts.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
ANALYTIC OVERVIEW
Structured approach
Purpose/ payback model - a structured approach to credit
Insurance ratings - insurer financial strength and security ratings; capital models and other tools of analysis
Debt and equity investors - use of market indicators to evaluate credit risk
OPERATING ENVIRONMENT
Macro economic issues
Current state and outlook for the different sectors of the insurance industry - P & C, life and re-insurance
Sector analysis - insurance versus economic cycles
Product risks, growth dynamics and topical issues
Competitive issues - barriers to entry, relative bargaining power of key players
Re-insurance - risk profile of differing contract types
Regulation and supervision
Regulation of insurance markets - availability, premium terms and rates etc.
Risk-based capital model - impact on investment decisions, business growth and types of capital raising
FINANCIAL FUNDAMENTALS
Statement logic
Focal points of analysis - liability versus asset risk
Key accounting issues - premiums, claims and reserves, investment valuation
Statutory accounting principles (SAP) versus GAAP accounting
Business risk
Underwriting risk - P & C - quality, diversity and growth of the underwriting portfolio, loss and combined ratios
Reserve adequacy - adverse development, survival ratios
Re-insurance: utilisation policy, credit and recovery risk
Investment risk - quality and liquidity of the investment portfolio; asset and liability matching
Performance risk
Diversity and stability of income - underwriting, investment and operating returns
Product risk and migration-life - guarantees, variable annuities etc.
Investment return - impact of cash yield, realised and unrealised gains and losses
Control of distribution and operating expenses
Financial risk
Liquidity - operating cash flow and liquid investments to match potential drains
Solvency - operating leverage, level and quality of statutory capital position at operating and consolidated levels; risk-based capital level, resilience of capital to unforeseen losses and high growth
Gearing - financial leverage, refinancing, debt service
Sector / peer analysis
P & C - focus on underwriting risk, reserve adequacy and capital strength
l Life - focus on investment risk and minimum guaranteed death and living benefits
Re-insurance - focus on capital strength
Early warning signals
Recognising financial and non-financial indicators
Accounting discrepancies
MANAGMENT AND FRANCHISE
Assessing management and operational risk
Organisational concerns - double leverage, weak affiliates, inter-group support, capital and dividends
Franchise - evaluating the business model.
About The Training Provider: FitchTraining
FitchTraining - Fitch Training is a specialist training firm focused on the provision of credit and corporate finance training. Courses are offered in three areas: financial institutions, corporate credit and securitization. Fitch Training is part of Fitch Solutions, a division of the Fitch Group. We also work in partnership with Fitch Solutions to provide quantitative training.
Fitch Training operates...
