Finance in insurance
insurance finance: the combined ratio, loss reserves and their uncertainty, the role of investment income and float, and solvency capital.
Insurance is a finance business wrapped in risk transfer. Premiums, reserves, investment income and capital adequacy interact in ways that differ fundamentally from banking or corporate finance, and getting the underlying mechanics wrong leads to misjudging an insurer's real profitability or solvency. This block builds sector-specific financial fluency: how underwriting and investment results combine to form earnings, which ratios and benchmarks separate healthy carriers from distressed ones in the US and Europe, and how solvency regulation, reserving risk and due diligence checks fit together. You will move from core concepts through concrete calculations to the regulatory and risk framework, gaining the ability to read an insurer's financials the way an actuary or investor would.
Ce que vous allez maîtriser
- Explain how underwriting results, investment income and reserves combine to drive an insurer's profitability
- Calculate and interpret key ratios such as combined ratio, loss ratio, expense ratio and solvency capital ratio
- Compare US (RBC, statutory accounting) and European (Solvency II) capital and reserving frameworks and benchmarks
- Conduct a basic financial due diligence review of an insurer, identifying reserve adequacy, capital strength and key risk flags