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DAY ONE
Registration opens at 7:30 a.m. Program begins at 8:30 a.m.
Introduction
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Instructor introduction |
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Course overview |
Overview
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Insurance industry business profile |
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Accounting regimes for insurance companies |
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Make-up of an insurance company |
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Regulation of insurance companies |
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Role of the rating agencies |
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The perspectives and positions of the stakeholders: investors, creditors, policyholders, regulators |
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Financial analysis |
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Causes of insurance company failures |
Break
The Balance Sheet (Part 1)
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Capital structure and quality of capital |
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Capital ratios and leverage |
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Intangible assets |
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Existence of guarantees or support agreements |
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Reinsurance |
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Asset leverage |
Lunch
The Balance Sheet (Part 2)
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Investment portfolio composition |
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Asset quality |
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Credit risk and interest rate risk |
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Affiliate investments |
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Policy reserve composition |
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Other liabilities |
Break
Practice Exercises
The Income Statement
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Key revenue sources |
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Key earnings drivers |
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Impact of accounting rules on reported revenues and earnings |
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How growth can cause operating losses |
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GAAP vs. statutory operating earnings |
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Quality of earnings |
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Profitability |
Q&A Session
Day One concludes at approximately 5:00 p.m.
DAY TWO
Program begins at 8:30 a.m.
Cash Flow and Liquidity
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Insurance company cash inflows and outflows |
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Operating company vs. holding company sources and uses of cash |
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Regulated vs. non-regulated cash flows |
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Organizational structuring to help cash flows |
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Intercompany transactions |
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Understanding and analyzing Statutory Statement Schedule Y |
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- Assessing holding company and operating subsidiary liquidity needs and positions
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Liquidity of the investment portfolio |
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Liquid assets vs. liquid liabilities |
Break
Asset/Liability Management
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Composition of liabilities |
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Understanding the characteristics of various liabilities |
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Optionality embedded in policy reserves |
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Importance of closely matching asset and liability durations |
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Temptation to mismatch assets and liabilities |
Financial Flexibility
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Assessing holding company and operating subsidiary capital needs and access to capital |
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Financial leverage and coverage ratios |
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Measuring additional debt capacity |
Lunch
The State of the Industry
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Impact of the financial crisis |
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The current outlook |
Break
Case Studies
Summary and Closing Q&A
Day Two concludes at approximately 5:00 p.m.
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