Insurance Company Analysis

I need a breakdown of how to analyze insurance companies. What ratios do i need to look at in particular? dcf? Financial statement adjustments? etc.

Anyone just guessing please don’t bother. I need solid knowledge and experience that will hold up against professional scrutiny.

what you got to offer?

I am also interested in this topic.

I’m no expert on the subject but here is a document I read when I was trying to value Berkshire Hathaway a few months back. Around page 150 it gets into valuation methods. The residual income approach seems to make the most sense for most insurance companies.

I am just guessing that CapeCobra is kind of a douche…

op does read like i need someone to do my job for me and i want whomever does it to be an expert.

if you think you can value these guys and know about the industry in under a year,you’re out of your mind. insurance is like a hole in the ground in a model. P&C is the easiest as the risk are short tailed so you can see their historical reserve builds to get an idea coupled with their combined ratios. Life is super long tailed plus you got to factor in equity/interest rate markets in addition to mortality risk and price resetting. cash flow is useless and book value is not too meaningful given the marked to market nature of insurance assets. yes, the original poster is a douche. good luck.

Chad, thank you so very much. Couldn’t have asked for anything better. I’ll pore over the document this weekend. Frank Arabia, Thanks for the input despite the insult.

So you are looking for solid knowledge and experience that will hold up against professional scrutiny on an internet forum.

Came out wrong. Just fed up of non topical bs. …which i ended up getting anyways

why do you need this information anyways?

Title kind of says it already, don’t you think.

I demand advice. But only from people worth talking to. Not like you losers.

you will prove to be inept under professional scrutiny.

And you know a lot about everything and nothing about anything. Get a life and stop breathing down my neck.

@ OP: - if troll, I give you (4/10) - if seriously looking for help, I rate your attempt (2/10). I am voting for troll, because I can’t imagine someone being *that* tactless.

I’ve been in b-val for nearly 20 years and wouldn’t go near an insurance company valuation with a 40’ pole. As Frank pointed out, a very specialized industry from a valuation perspective.