Insurance Company Analysis

Duration: 3 Days ・ CPD Points: 21 CPD Points ・ Level: Intermediate

Deepen your understanding of the insurance sector with our comprehensive three-day Insurance Company Analysis course, delivered live online or in person, to master a systematic approach to assessing the credit risk and financial strength of life, non-life, and reinsurance companies.

Delivery Method Classroom
Location London
Dates 4-6 Dec 24
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Course Details

The overall goal of this course is to provide a systematic approach to the credit risk and financial strength analysis of life insurance, non-life insurance and reinsurance companies.

Key Learning Outcomes:  

  • Apply a structured approach to identify key risks and mitigants when transacting with insurance and reinsurance companies, and to appreciate the main methods of capital-raising by insurers
  • Appreciate how economic, competitive and regulatory issues impact the risk profile, performance and financial health of an insurance company
  • Understand the business and financial risks inherent in the life and non-life insurance and reinsurance industries
  • Use qualitative and quantitative analysis to distinguish strong and weak performers and to detect early warning signals of deteriorating financial strength

Course Content

Analytic Overview

A structured approach to the credit analysis of insurance and reinsurance companies, why and how they borrow and the risks to serving debt and equity capital. 

  • Purpose/payback model: A structured approach to credit analysis and its applicability to insurance and reinsurance companies; why insurance companies borrow/issue debt (Purpose) and how it is repaid (Payback); double leverage

Operating Environment

A review of the key macro-economic, regulatory and sector trends which may impact adversely or favorably on certain insurers and business lines.

Macroeconomic and sector issues

  • Investment cycles: Stock, property and credit market levels and their volatility
  • Causes of recent fluctuations in strength of the life, non-life and reinsurance sectors
  • Underwriting cycles in various markets
  • Mortality, morbidity and longevity trends
  • Climate change; trends in insured losses from catastrophes
  • Impact of inflation and cultural changes in litigation
  • Non-life reserving issues: Redundancy or deficiency
  • Competitive factors: Market fragmentation; penetration levels in emerging vs. mature markets

Regulation and supervision

  • Overview of EU Solvency II regulation; Solvency II, Pillar 3 Solvency and Financial Condition Reports
  • SII group supervision, group solvency and equivalence

Financial Fundamentals

The derivation from the financial statements of key indicators for assessing financial strength and performance of life and non-life insurers against appropriate benchmarks.

Statement logic

  • Review of key items in income statement and balance sheet
  • Key accounting standards for insurers: key differences between European GAAP and IFRS 4, including overview of IFRS 17 insurance contracts and IFRS 9 hedge accounting for insurers
  • Items subject to management expert judgement: write-downs, IFRS Fair Value hierarchy, temporary and permanent impairments, provisions for IBNR claims (non-life) and for investment guarantees (life)

Business risk

  • Underwriting risk: Assessing the quality and diversity of the underwriting portfolio, loss, expense, combined and operating ratios
  • Non-life provision adequacy: Loss development triangles, calendar year vs. accident year analysis, survival ratios
  • Catastrophe and reinsurance risk: Degree of reinsurance utilisation; adequacy of reinsurance cover, credit and dispute risk

Financial Fundamentals (continued)

  • Investment risk: Quality and liquidity of the investment portfolio, asset and liability matching, cost of investment guarantees, use of derivatives for hedging, concentration risks; Asset Liability Management stress testing disclosures
  • Investment returns: Inclusion of realised and unrealised gains and losses, investment return requirements of the life and non-life insurance businesses
  • Life insurance risks: Persistency, mortality and expenses

Performance measurement

  • Diversity and stability of income: Profitability measures and benchmarks
  • Embedded value techniques for measuring and analysing life profitability, profit margins on new business

Financial risk 

  • Liquidity: Operating cash flow, liquidity of investments, liquidity shocks
  • Capital adequacy: Regulatory solvency coverage; stress testing; quality and fungibility of capital; tangible vs. intangible capital; non-risk-based capital measures: operating leverage, asset and liability leverage
  • Financial leverage, interest cover, use of hybrid capital, refinancing risk, debt servicing ability, total commitments including off-balance sheet

Who Should Attend?

  • Equity, fixed income and credit analysts
  • Insurance company treasury officers and staff
  • Insurance brokers and security analysts
  • Investment managers
  • Commercial and investment bankers
  • Bank risk, portfolio and relationship managers
  • Supervisors
  • Lawyers
  • Insurance company public relations
  • Corporate communications officers
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Course Highlights

Real Case Studies

Real company case studies to test your newly learnt skills

CPD Recognized

This course is Continuous Professional Development (CPD) recognized

Highly Interactive

Highly interactive with small group size and industry expert trainers

Frequently Asked Questions

Currently, course can be taken either in an in-person setting or in a live online setting.

Our virtual live online courses are designed to keep the same levels of engagement and networking as our in-person courses. You will attend the course virtually on a set date, at a set time.

What time zones do the courses run in?
Currently, we run live online training across London, New York and Singapore time zones.

How are the courses delivered?
We deliver virtual training via Zoom.

What are the start times?
The courses will run during scheduled class times, and vary per course.

Reclaiming VAT
Most delegates who attend our courses in the UK are able to claim back their VAT once it has been paid. The below information details why we need to charge VAT and how you can claim it back.

Why does Fitch Learning charge VAT?
The EU VAT Directive (Council Directive 2006/112/EC) article 53 says that for the right of entry to cultural, artistic, sporting, scientific, educational, entertainment or similar events in exchange for a ticket or payment, the place of supply is where the event physically takes place. Since, the event is held in the UK, the place of supply is the UK and therefore UK VAT has to be charged.

How can you claim back the VAT you paid for a course?
The most efficient way to claim back VAT is directly through the UK’s HM Revenue and Customs (HMRC) by completing the required forms and sending back to HMRC.

Please follow the links below for further details;

EU businesses
Non-EU businesses
To claim back VAT or if you have any questions please contact HMRC;

Telephone - 0044 (0) 3000 537 381

Email Overseas Repayment Unit - enq.oru.ni@hmrc.gsi.gov.uk

On the Fitch Learning website you will find learning paths which will explain the courses available at different levels within a topic area. We would always prefer to speak with you to discuss which course is most appropriate rather than run the risk of you signing up for an inappropriate course. If you are unsure, please contact the Public Courses team:

Phone: +44 20 7496 8600
Email: enquiry@fitchlearning.com

All of our instructors are industry practitioners turned trainers. Their training style is case study based and interactive. They will coach, challenge and inform participants to ensure immediate and practical real-life application from the courses. To discuss our instructors further please email enquiry@fitchlearning.com

Class sizes are dependent on the course, but are small enough to permit active interaction and participation.

Q. Am I able to gain CPD/CE/CPE credits for my course?
A. We award continuing professional development credits for the following:

Global
CFA Institute
The CPD Certificate Service
UK
CFA Society
The CPD Certificate Service

Q. What do I need to do to receive my credits?
A. Please email enquiry@fitchlearning.com to request a certificate. Fitch Learning will send you a certificate stating how many points you are eligible for.

Q. How many credits will I receive?
A. We award 8 credits (7 for the CFA) for each day of training you attend.

You will be contacted by email within 2 working days of processing your registration to confirm your place on the course.

In order to optimise class time we ask participants to read some background information on the main illustration case(s) prior to attending the class. This also helps to ensure that all are able to participate in case discussions. In some cases additional background reading is provided. The length of pre-course reading is advised to participants in advance and typically ranges from 2-3 hours.

We try to send out the pre-course reading by email one week before the start of the course. There may be a delay in sending this out due either to late registrations or to the fact that the case study needs to incorporate recently-published financial information.

Q. If I am unable to attend can I send a substitute?
A. Absolutely and it is completely free of charge. We do however ask that we have at least 2 working days’ notice of this change before the course start date. Please email enquiry@fitchlearning.com with full contact details of the substitute and who they are replacing.

Q. Can I transfer my booked course to another date?
A. Yes you can. If you email us your request to transfer to the next available course date and give us more than 30 days’ notice, there will be no charge. If you notify us within 30 days of the course start date, there will be an additional payment of 25% of the course fee, provided the original course fee has been paid in full.
A transfer can only be made onto a course taking place within a period of 6 months of the original course date and only one transfer can be made in respect of any booking.

Q. Can I cancel my course booking?
A. Yes. If you email us with your request more than 30 days before the course start date, there will be no charge. If you notify us within 30 days of the course start date you are liable for the full course fees.

Q. What happens if I do not attend my course?
A. If you do not attend your course and you do not give us any prior notice you are liable for the full course fee and no refunds can be given.

Notice contact details:
Email: enquiry@fitchlearning.com

We can develop a customized training solution to meet your learners' needs - at all levels in your organization. Please email enquiry@fitchlearning.com for more information.

Please get in touch with us via email at enquiry@fitchlearning.com to request more information on running one of our courses in-house for larger groups.

Discount offers cannot be used in conjunction with each other or any other offer nor applied retrospectively to anyone already registered for any Fitch Learning course.

To speak to a member of our team, please get in touch via the below:
Phone: +44 20 7496 8600
Email: enquiry@fitchlearning.com

Q. How do I make a complaint?
A. Anyone who wishes to make a complaint may do so in writing. Complaints need not be made to the actual service which is the subject of the complaint. In the first instance complaints should be sent to Grace Heighington, Head of Public Courses.

Q. Where do I send my complaint?

A. Complaints can be submitted using the following options:
Email: enquiry@fitchlearning.com
Post: Grace Heighington, Fitch Learning, The Corn Exchange, 55 Mark Lane, London, EC3R 7NE
Wherever possible and appropriate, staff are requested to elicit from the complainant the nature of the complaint, as well as the actions the complainant feels are necessary to resolve the complaint.

Complaints Policy and Procedure
Q. What are the stages involved?

A. There are two main stages to our complaints procedure:

Stage 1 - We always try to resolve issues quickly. From the moment we receive your complaint, we must get back to you within three working days. At the very least we must acknowledge the problem in writing and give you the name of the person dealing with the complaint. We must give you a full reply within ten working days if possible, or keep you fully informed of the progress and reasons for delay.

Stage 2 - If you are not happy with the full response at Stage 1, please contact us again. One of the Managing Directors will then review the issue. You can expect our acknowledgement within three working days of us receiving your complaint. We will also explain how long the director's review will take.


Make an Enquiry

To find out more about the course get in touch with the
Fitch Learning team on +44 20 7496 8600 or fill out the form below.



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