Financial statements analysis of insurance companies: beyond the numbers
DATE : February 23, March 2 & 9, 2021 LENGHT : 3 x 3h (from 14h to 17h30 with 2 breaks of 15min.) TYPE : Online training via Teams (For all level) INDUSTRY : Insurance REQUIREMENTS : A computer with Excel is needed for the practical parts LANGUAGE : English ACCREDITATION : 9 CPD points | 54 points PPC PRICE : 900€ excl. VAT
The purpose of this course is to help participants to get a deep understanding of financial statements disclosed by insurance companies and to value their activities. Participants will learn to break down the disclosed information into key performance indicators. All concepts are illustrated on a case study of a major international insurer.
The first module reviews the main items of financial statements. We introduce the principles behind IFRS 9 (accounting of investments). IFRS 4 and 17 (insurance liabilities). We also explain the methods for the consolidation of subsidiaries.
The second part focuses on the analysis of financing structure and margins and profitability. We introduce the concepts of capital employed and working capital in order to get a better picture of the balance sheet. We also review market ratios which allows to compare the company market value to its accounting figures.
The third part is devoted to the valuation of insurance companies, exclusively based on public disclosed information. After a review of the costs of corporate funding, we present direct and indirect approaches based and we conclude with a peer-comparison methods (direct and indirect).
1. READING THE FINANCIAL STATEMENTS
1.1 FINANCIAL STATEMENTS
At the end of this training, the participants will be able to analyze the IFRS accounts of an insurance company. They will master concepts such as IFRS9, IFRS4 and IFRS17. They will also master all the performance and structure ratios.
Notice that all concepts are illustrated with a case study (AGEAS) and excel workbooks used during the lecture will be distributed to participants.