Introduction to Insurance Financial Statements

Course Properties

Course date: 17-12-2017
Course End Date: 21-12-2017
Location Sharm El-Sheikh

Course Objective:

         Participants will be equipped to:   

               *  Distinguish the risks inherent in the main products offered by life, non-life, and re-insurance 

                  companies and recognize how they are reflected in the financial statements.       

               * Understand the components of an insurance company technical account, income statement

                   and balance sheet.

               *  Recognize the impact of differing accounting standards, reserving policies and changes in

                   external variables (such as interest rates and asset prices) on the financial statements .

                   calculate and  apply basic ratios to quantify an insurance company's performance .

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Who Should Attend :   

     This program is designed for analysts, who have limited or no experience in the analysis of insurance company financial statements.
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Course Contents:

     *  STATEMENT LOGIC  

               • Types of insurance company
               • Life, non-life and re-insurance
               • Relating the business to the balance sheet and income statement.
               • Key activities and products
               • Risk profile and accounting for differing products
               • Non life products: short tail and long tail lines
               • Life products: term assurance, with profits (endowment), guaranteed investment contracts, annuities, asset management and

                   other savings products
               • Re-insurance: treaty and facultative re-insurance.
               • Accounting and disclosures
               • Sources of information and quality of disclosure
               • Financial statements: technical / revenue accounts and regulatory filings, balance sheet and income statement, cash flow analysis
               • Premium accounting: gross versus net, written versus earned
               • Claim accounting non-life: claims incurred versus paid, un-expired risks
               • Claim accounting life: benefits and surrenders, annual and terminal bonuses
               • Technical reserves: claims reserves, unearned premiums, mathematical provisions, equalization
and investment reserves

               • Investment accounting: marked to market versus cost accounting
               • Impact of re-insurance on assets, liabilities and claims
               • Intangible and other assets: deferred acquisition costs, PV in force business, embedded value


    *  RATIO ANALYSIS

               • Investment risk: types of investment and quantifying investment risk
               • Underwriting risk: claims / loss ratio, combined ratio and other indicators of underwriting performance, reserve adequacy
               • Profitability: key profitability ratios
               • Capital adequacy: types of capital and ratios used to measure gearing and capital adequacy.