New York City (NYC)

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Course details

Non-Life Insurance: Forecasting and Valuation

Delegates familiarize with the insurance business, starting with the property and casualty sector. Delegates complete a fully integrated forecasting and valuation model for a non-life insurance company.

 

Learning outcomes

  • How do insurance companies make money?
  • Key non-life insurance products
  • Reinsurance and risk-transfer
  • Accounting for non-life insurance: deferral and matching principle
  • Unearned premium reserves and claims reserves
  • Building loss reserve triangles
  • Key performance ratios
  • Building a non-life insurance forecasting model
  • 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
  • Using solvency requirements to establish capital surplus/deficit
  • Completing a dividend discount valuation for the case company

Life Insurance: Embedded Value and Valuation

Life insurance is a rather technical sector with specific additional voluntary disclosure called embedded value which should provide a better basis to assess performance. This program demystifies the embedded value concept and uses it as a basis to value a life insurance company. The course concludes with a review of insurance trading multiples and sum-of-the-parts valuation for multi-line businesses

 

Learning outcomes

  • Features of the life insurance business
  • Key life insurance products: traditional vs. unit linked business
  • 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
  • Analysis and valuation of multi-line insurance companies combining life and non-life
  • Insurance solvency requirements under solvency I v solvency II
  • Sum-of-the-parts valuation of multi-line insurance companies
  • Trading multiples for insurance companies: P/E vs. P/EV earnings and P/EV
  • Summary and conclusions

 

"Using AMT Online (AMTO) was excellent as it allowed me to work through the course material at my own pace. AMT Online was very easy to use and navigate through." ~ graduate, leading business school

What will you receive on the course?

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:

 

  • printed course binder with copy of the slides
  • laminated summary sheets
  • 24/7 access to DELTA online learning environment
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

Who should attend the course?

  • New hires who have joined the firm late and missed the in-house program
  • Individuals looking to fill a knowledge gap
  • Experienced bankers looking to refresh their technical skills
  • Teams employed in financial strategy roles from non-banking corporations
  • Graduates preparing to interview for a role in the finance sector
  • Students at business school and looking for a career in finance

NB.

This course is non-residential. The venue will provide light refreshments. AMT reserve the right to cancel or postpone sessions or change content if registrations are insufficient to continue 2 weeks prior to scheduled commencement date. Registrants will be given at least 5 business days’ notice of such changes.