Financial statement analysis of insurance companies: beyond the numbers

D. Hainaut, PhD

Description

Our Scientific Director, Donatien Hainaut, will give you a concise and comprehensive presentation of stock market ratios and of techniques for analysing short term stock market move. 

We start by reviewing ratios like market to book, price to earnings, price-earnings to growth ratios, payout ratio and dividend yields. 

We next introduce chartist tools that are used to forecast stock prices based on market-derived data. We focus on moving averages (MA), MA convergence divergence (MACD), momentum, Bollinger bands and stochastic oscillator. These concepts are illustrated on examples and with free web tools.

Program

Part 1: Reading the financial statements in IFRS

  1. Financial statements
    • The balance sheet
    • The income and cash flow statements
  2. Introduction to IFRS 9, 4 and 17
    • IFRS 9: accounting of investments
    • IFRS 4: principles of shadow accounting
    • IFRS 17: introduction to BBA and VFA.

Part 2: Ratios analysis

  1. Capital employed analysis
    • Working capital and capital employed analysis
    • Liquidity, leverage and debts ratios
  2. Margin analysis
    • Restructuring the income statement
    • Added value, EBIT, Net margins
    • Loss, combined ratios and reinsurance
  3. Profitability analysis
    • ROE, ROCE and ROA
    • Financial and insurance leverages
    • Costs of liabilities, profitability and margins
 

Part 3: Entreprise valuation

  1. Shares & market ratios
    • MBR, PER, PEG
    • Payout ratio and dividends analysis
  2. Cost of corporate financing
    • Capital Asset Pricing Model, CAPM
    • Cost of debts
    • The Weighted Average Cost of Capital WACC
  3. Insurance entreprise valuation

Speaker

Donatien Hainaut

Donatien Hainaut

Scientific Advisor, Detralytics
Professor, UCLouvain

Date : On-Demand

Duration : 9h

Accreditation : 9CPD – 54PPC

Level : All

Acquired skills

At the end of the training, the trainee will be able to analyze IFRS accounts of an insurance company. He/she will master the concepts of IFRS 9, IFRS 4 and IFRS 17 accounting of investments and insurance liabilities. He/she will also master ratios like market to book, price to earnings, price-earnings to growth ratios, payout ratio and dividend yields.

About our Speaker

Donatien Hainaut