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.


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 5 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 8 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 9 years ago