Stop struggling when quantifying profitability in your firm or division.
Gain confidence when making capital allocation decisions.
Remove disparate information silos and foster firm-wide understanding.
Navigate the ins and outs of the insurance business – all the esoteric jargon with emphasis on financial statement analysis for both Stat and GAAP accounting.
Understand the myriad types of premiums, identify drivers of each and translate this into a scalable model.
Incorporate the impact of reinsurance and retrocession dynamically.
Intuitively and efficiently project loss triangles & expenses, methodically calculate reserves and connect them to their proper place on each financial statement.
Effortlessly consolidate disparate LOBs, tie everything together with a fully integrated IS/BS/CF and understand how the model self-balances.
Bonus: GAAP to Stat adjustments.
Our approach is to teach you how to fish, rather than give you a fish.
We don't give a one-way lecture where you memorize every cell and formula.
We nudge you toward uncovering answers on your own by leading with the right questions.
The end result? Longer-term knowledge retention that will last an entire career.
I really felt that WST was world class and would recommend it to anyone starting a new career on Wall Street. In particular, the strength of the program is that it concentrates on how analytical work is actually conducted in real life rather than the academic approach of some other competitors.
Balance sheet based companies, such as insurance companies, play by different rules and methodologies based on the unique nature of their business. Focus is placed on our Insurance Industry primer which dives deep into an insurance company’s unique financial statement terminology and drivers. Distinguish between P&C (Property & Casulaty) and L&H (Life & Health) insurance companies. Comprehend all the major players along the insurance spectrum from retail to wholesale brokers, to MGAs and MGUs and captive carriers and much more. Understand the different types of insurance, reinsurance and their financial statement impact. On the Income Statement, differentiate between the different types of premiums (direct, ceded, net, written, earned); comprehend loss triangles and the main differences between statutory vs GAAP accounting. On the Balance Sheet, understand key assets line items (premiums receivable, reinsurance recoverable, prepaid reinsurance premiums) as well as the liabilities (loss & lae reserve, unearned premium reserve). Understand insurance valuation parameters: key insurance multiples (PE, book value, premium/surplus).
2.5 hours / 4 hours
Build a basic, streamlined insurance company financial model that builds upon the insurance financial statements terminology in our Insurance Industry Primer course. Before diving deep into the complex nuances of our Advanced Insurance Company Financial Model, really solidify your understanding of the major items on an insurance company’s Income Statement and Balance Sheet. Take the time to further immerse yourself with understanding insurance.
1.5 hours / 3 hours
Build a fully integrated, scalable, new insurance company model including detailed build-up by line of business from Gross Written Premiums to Net Premiums down to Underwriting Income. Consolidate the lines of business performance into a GAAP Income Statement with statutory adjustments. Integrate income statement projections with a self-balancing balance sheet, an automated cash flow statement and the balancing cash flow sweep schedule. Learning objectives include: build an integrated set of financials, including LOB, income statement, balance sheet & cash flow; project direct, ceded and net premiums and underwriting income based on assumed loss triangles; consolidate multiple lines of businesses, calculate GAAP and Stat Net Income with Tax Schedule; project self-balancing balance sheet including items such as premiums receivable and recoverables.
5 hours / 9 hours
Most training firms focus on general financial modeling, valuation, M&A and LBO modeling. However, an experienced modeler cannot immediately understand insurance, and an insurance expert does not necessarily know how to build a complex financial model.
Our strength comes from combining both to present a holistic, comprehensive view. This comprehensive understanding of the insurance business is invaluable whether you're examining your own firm, or assessing another.
Our rigorous approach is reflected in our training methodology: we believe in teaching independent thinking and emphasizing deep conceptual understanding, leading to stronger, faster analytical skills that last an entire career.
Wall Street Training & Advisory, Inc. (WST) has a nearly two-decades-long track record of successfully providing services to asset managers, hedge funds, and other buy-side institutional investors. Learn more on our company website.