Key Details in an Insurer's Annual Report
In this video, Ted outlines the 5 key things to search for in an insurance company’s annual report. These are: The mix between the technical and non-technical profit; How the company uses reinsurance to allow them to write more business; The size of the claims reserve compared to the premiums; The amount of available capital; And lastly, the liquidity of the assets and hence the company’s ability to pay claims as they fall due.
Overview
The financial statements of an insurance company are unlike those of any other organisation. Here are 5 key things to look for when confronted with the accounts of an insurance company.
Key learning objectives:
Understand the difference between technical and non-technical profit
Learn the adjustments in translating Gross Premium Written to Net Premium Earned
Examine the size of the balance sheet
Identify whether the company is adequately capitalised
Ensure that the assets are sufficiently liquid to be able to meet claims as they fall due
Summary
Expert
Ted Wainman
Ted Wainman trained and qualified as an Associate Chartered Accountant (ACA) with Ernst & Young before joining JPMorgan on the Investment Management side of the business. He since has over 17 years of experience in designing, developing and delivering financial & business skills training workshops for over 275 clients in more than 35 countries.
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