Insurance Broker Financial Projection 3 Statement Model (Excel XLSX)

VIDEO DEMO

BENEFITS OF DOCUMENT

1. Preparation of a 5-year financial projection on a monthly basis for a new or existing Insurance broker business.

DESCRIPTION

This product (Insurance Broker Financial Projection 3 Statement Model) is an Excel template (XLSX) with a supplemental Excel document, which you can download immediately upon purchase.

An Insurance Broker Financial Projection 3 Statement Model is essential for insurance brokerage businesses. It forecasts income, expenses, and cash flows, enabling strategic planning and financial management. This tool supports decision-making related to sales strategies, commission structures, and expense control. Accurate projections empower brokers to adapt to market dynamics, secure financing, and ensure profitability. It enhances financial stability, attracts investors, and supports long-term growth by aligning financial strategies with business objectives. This model is indispensable for both established insurance brokerages and startups, ensuring their financial viability, competitiveness, and ability to capitalize on opportunities in the insurance industry.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing insurance broker business generating commission and fee revenue from the sale of insurance policies.

The model allows the user to model up to 15 different insurance products (can be extended) including new business, renewals, cancellations and mid-term adjustments (MTAs) for each product with applicable commission and fee revenue for each type of transaction. Apart from revenue, the model allows the user to model direct expenses, staff costs, marketing costs, other administrative costs, fixed assets, Insurance premium tax, other sales tax, corporate tax, borrowings, equity additions and dividend distributions.

The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a quarterly basis across up to 5 years and summarised on an annual basis.
•  Dashboard with:
Summarised projected Income Statement and Balance Sheet;
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;
List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average debt to equity ratio;
Bar charts summarising income statement and Balance Sheet projections;
Chart presenting revenue mix, total live policies per month and volumes per insurance product.
KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and quarter;
•  Naming for insurance products, direct expense categories, staff cost categories, marketing cost categories, other expense categories, fixed asset categories and borrowings;
•  Sales tax applicability for revenue and cost categories;

Actuals Inputs:
•  Number of live policies (for existing businesses);
•  Opening balance sheet (for existing businesses);
•  Income Statement actuals (for trend analysis);

Projection Inputs:
•  Commission & Fee Revenue:
Premium rate per product (with separate inputs for new business, renewals, MTAs and cancellations)
Average policy coverage period
Renewal rates
Cancellations rates (% of number of polices written)
MTA rates ((% of number of polices written)
Commission rate
Fee rates (with separate inputs for policy administration, MTAs and cancellations)
•  Staff Costs including:
Staff numbers;
Average Annual cost per staff member;
Average employer's payroll taxes as % of salary;
Average annual bonus;
Average healthcare benefits per staff member;
•  Other cost inputs including
Direct expenses;
Marketing costs;
Staff costs;
Other costs.
•  Insurance premium tax, sales tax and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount or percentage of retained earnings and frequency;
•  Fixed Assets including addition amounts and useful life;
•  Borrowings including addition/redemption amounts and interest rate;
•  Share Capital additions.

MODEL STRUCTURE
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard' and ‘o_DCF'.

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
•  The model is not password protected and can be modified as required following download;
•  The model contains a dynamic timeline that allows for a mix of actual and forecast period across a 5-year period allowing projections to be rolled forward from month to month;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  Costs are split into: direct and non-direct for better driver-based forecasting;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Insurance Products – 15 categories;
Direct Expenses – 5 categories;
Staff costs – 10 categories (5 direct, 5 non-direct);
Marketing costs – 5 categories;
Other expenses – 15 categories;
Fixed Assets – 5 categories;
Borrowings – 3 facilities;
•  Apart from projecting revenue and costs the model includes the possibility to model, payables, fixed assets, borrowings, dividends, corporate tax and sales tax;
•  The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
•  Business name, currency, starting projection period are fully customisable;
•  Revenue, cost, fixed asset and borrowing category descriptions are fully customisable;
•  The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.

Source: Best Practices in Integrated Financial Model, Insurance Excel: Insurance Broker Financial Projection 3 Statement Model Excel (XLSX) Spreadsheet, Projectify