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Provided by: FitchTraining Insurance Company AnalysisInsurance |
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Training
Provided by FitchTraining
A three-day workshop for credit risk, origination, fixed income and insurance professionals. A systematic approach to credit risk analysis for European and international non-life and life insurance companies
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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Insurance Company Analysis
Course Objectives
Participants will be equipped to:
Identify the business and financial risks inherent in the life, non-life, reinsurance and banc-assurance industries
Distinguish strong and weak performers by sector using both qualitative and quantitative analysis and detect early warning signals of changing credit quality
Evaluate financial statements in the context of differing accounting standards and business practices
Appreciate how economic, competitive and regulatory issues impact strategy
Use a structured approach to identify key exposure risks and mitigants when dealing with insurance companies.
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
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 of the life and non-life insurance industry
Insurance versus general economic cycles; impact of capital markets
Sector growth dynamics and key drivers
Sector analysis
Key business and product risks inherent in general, life and re-insurance
Sector dynamics - industry growth, cyclicality and competitive factors
Re-insurance - differing contract types
Regulation and supervision
Key methods of regulating insurance companies - solvency ratio, investment and business restrictions
International benchmarks and differences between countries; European versus US model
Degree of comfort from quality of supervision
FINANCIAL FUNDAMENTALS
STATEMENT LOGIC
Focal points of analysis - assets versus liability risk
Key accounting issues - premiums, claims and reserves, investment valuation
Accounting principles - statutory, modified statutory, IAS, embedded value
BUSINESS RISK
Underwriting risk - assessing the quality and diversity of the underwriting portfolio, loss and combined ratios
Product risk-life - traditional, endowments, unit linked etc.
Reserve adequacy - adverse development, survival ratios
Re-insurance risk - 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
Investment return - impact of cash yield, realised and unrealised gains and losses
Control of distribution and operating expenses
Embedded value techniques for measuring life profitability; key assumptions in calculating value of life insurance business in force
Financial risk
Liquidity - operating cash-flow and liquid investments to match potential drains
Solvency - regulatory requirements and market norms; assessing resilience and quality of capital, alternative measures e. g. free asset ratios and resilience tests
Gearing - financial leverage, refinancing risk, debt servicing
Sector / peer analysis
Non-life - underwriting risk, reserves adequacy and capital
Life - focus on investment risk and free asset ratios
Re-insurance - focus on capital strength
Early warning signals
Recognising financial and non-financial indicators of distress
Accounting discrepancies
BANC-ASSURANCE
Differing business models
Double counting of bank and insurance capital: national differences between current and proposed
MANAGEMENT AND FRANCHISE
Framework for assessing management and operational risk
Organisational concerns - double leverage, weak affiliates, inter-group support, capital and dividend flows
Franchise evaluating the strength of the business model
STRUCTURE
Funding needs of insurance companies - Who is the borrower / counter-party?
Hybrid capital securities - structure and type of capital issued; impact on credit standing and other concerns
Capital structure - creditor versus policy-holder rights and the impact of ranking and structural subordination.
Participants will be equipped to:
Identify the business and financial risks inherent in the life, non-life, reinsurance and banc-assurance industries
Distinguish strong and weak performers by sector using both qualitative and quantitative analysis and detect early warning signals of changing credit quality
Evaluate financial statements in the context of differing accounting standards and business practices
Appreciate how economic, competitive and regulatory issues impact strategy
Use a structured approach to identify key exposure risks and mitigants when dealing with insurance companies.
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
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 of the life and non-life insurance industry
Insurance versus general economic cycles; impact of capital markets
Sector growth dynamics and key drivers
Sector analysis
Key business and product risks inherent in general, life and re-insurance
Sector dynamics - industry growth, cyclicality and competitive factors
Re-insurance - differing contract types
Regulation and supervision
Key methods of regulating insurance companies - solvency ratio, investment and business restrictions
International benchmarks and differences between countries; European versus US model
Degree of comfort from quality of supervision
FINANCIAL FUNDAMENTALS
STATEMENT LOGIC
Focal points of analysis - assets versus liability risk
Key accounting issues - premiums, claims and reserves, investment valuation
Accounting principles - statutory, modified statutory, IAS, embedded value
BUSINESS RISK
Underwriting risk - assessing the quality and diversity of the underwriting portfolio, loss and combined ratios
Product risk-life - traditional, endowments, unit linked etc.
Reserve adequacy - adverse development, survival ratios
Re-insurance risk - 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
Investment return - impact of cash yield, realised and unrealised gains and losses
Control of distribution and operating expenses
Embedded value techniques for measuring life profitability; key assumptions in calculating value of life insurance business in force
Financial risk
Liquidity - operating cash-flow and liquid investments to match potential drains
Solvency - regulatory requirements and market norms; assessing resilience and quality of capital, alternative measures e. g. free asset ratios and resilience tests
Gearing - financial leverage, refinancing risk, debt servicing
Sector / peer analysis
Non-life - underwriting risk, reserves adequacy and capital
Life - focus on investment risk and free asset ratios
Re-insurance - focus on capital strength
Early warning signals
Recognising financial and non-financial indicators of distress
Accounting discrepancies
BANC-ASSURANCE
Differing business models
Double counting of bank and insurance capital: national differences between current and proposed
MANAGEMENT AND FRANCHISE
Framework for assessing management and operational risk
Organisational concerns - double leverage, weak affiliates, inter-group support, capital and dividend flows
Franchise evaluating the strength of the business model
STRUCTURE
Funding needs of insurance companies - Who is the borrower / counter-party?
Hybrid capital securities - structure and type of capital issued; impact on credit standing and other concerns
Capital structure - creditor versus policy-holder rights and the impact of ranking and structural subordination.
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...
