Package: Insurance Financial Modeling

Insurance companies, similar to banks, play by a different set of accounting rules in which the normal approach of building financial models don't apply (such as revenue growth, COGS and SG&A, % of revenue, BS and days outstanding working capital). When it comes to balance sheet based companies, it's a whole other world out there, so strap in and get ready! But don't worry, we'll take it easy with a detailed insurance industry primer and overview to familiarize ourselves with the new terminology and then tee you up methodically to before diving into the complex stuff.

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Last 10 posts

Treatment of Change in DAC in IS
Hi, I quite don't understand why 'change in DAC' would be booked as a negative item under the expenses section of the income statement. Shouldn't it be booked as a positive item, so that it can be conclusively deducted as a true expense in the calculation of operating income?
Go to post added 3 years ago
Part 3 - LOB: QS
Why are you continuously locking cell $F$102 rather than letting it float across to the corresponding year? Shouldn't the cells referencing the Quota % (row 102) float with the year? For example, cell G90 would read "G9*F$102" rather than "G9*$F$102" ? Thanks
Go to post added 6 years ago
Insurance financial modeling
Hi, I completed the insurance finacial modelling course (self-study). One issue I have found is that in the sweep, based i=on the formulas provided in the video, the minimum cash balance does not actually drive cash equirments. For example you could change the minimum cash balance in row 15 to $50... Read More
Go to post added 7 years ago