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
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 course 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.
- 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
"I like that the public courses are supported by online training. I can learn at my own pace and time, which has helped increase my confidence in the work that I do." ~ research analyst, global financial institution
What is a Virtual Classroom
Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.