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Insurance Company Financial Model - 5YR DCF & Valuation   Excel template (XLSX)
$220.00

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Insurance Company Financial Model - 5YR DCF & Valuation (Excel XLSX)

File Type: Excel template (XLSX)

#3 in Insurance $220.00
Created by a Financial Modeling, Planning & Performance Consultant with 15+ years of experience at Ernst & Young, Toyota, Viohalco, and Upstream. Certified by both the Corporate Finance Institute and the Financial Modeling Institute.
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BENEFITS OF DOCUMENT

  1. Informed Decision Making: The insurance financial model empowers company executives to make data-driven decisions ensuring long-term financial stability and growth.
  2. Premium Revenue: The model accounts for premium income from insurance policies.
  3. Loss Expenses: It includes analysis of losses payments and reserves, allowing for estimation of potential loss liabilities.

DESCRIPTION

This product (Insurance Company Financial Model - 5YR DCF & Valuation) is an Excel template (XLSX), which you can download immediately upon purchase.

The insurance financial model is a comprehensive tool designed to analyze the financial aspects of an insurance company. It incorporates key components such as premium revenue, loss expenses, underwriting and commission costs, investment income, and financial projections. This model provides a detailed understanding of the insurance company's financial performance, facilitating informed decision-making, risk assessment, capital management, and strategic planning.

Key Components:

•  Premium Revenue: The model accounts for premium income from insurance policies.

•  Loss Expenses: It includes analysis of losses payments and reserves, allowing for estimation of potential loss liabilities.

•  Underwriting Costs: The model considers costs related to policy underwriting.

•  Investment Income: It incorporates projections for investment returns from the insurance company's investment portfolio, helping to assess the impact of investment decisions on overall financial performance.

Key Benefits:

•  Informed Decision Making: The insurance financial model empowers company executives to make data-driven decisions ensuring long-term financial stability and growth.

•  Risk Assessment: By analyzing loss expenses and potential liabilities, the model aids in risk assessment and allows for proactive risk management measures to protect the company's financial position.

•  Capital Management: The model helps insurance companies optimize capital allocation, ensuring they have adequate reserves to meet policyholder obligations while maintaining solvency compliance.

•  Strategic Planning: Through financial projections, the model supports strategic planning.



In summary, the insurance financial model provides a comprehensive analysis of an insurance company's financial performance. It facilitates informed decision-making, risk assessment, capital management, and strategic planning, all of which contribute to the company's financial stability and success in the insurance industry.

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MODEL GUIDELINES

So, a quick overview of the model, in the contents tab you can see the structure of the model and by clicking on any of the headlines to be redirected to the relevant worksheet.



On the manual tab you can feed the general information for the model such as: model name, timeline of the model and date and currency conventions.



Additionally, there is a description of the color coding of the model in the same tab. Inputs are always depicted with a yellow fill and blue letters, call up (that is direct links from other cells) are filled in light blue with blue letters while calculations are depicted with white fill and black characters.



There is also color coding for the various tabs of the model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations tabs, blue tabs are outputs tabs (that is effectively results or graphs) and finally light blue tabs are admin tabs (for example: the cover page, contents, and checks).



Moving on to the 3 assumptions' tabs, you can adjust the various assumptions of the model based on the specifications and requirements of your business (in yellow whatever can be amended as an assumption):

•  Premium, Losses and Commissions: the user can set the gross written premiums and growth rates, the reinsurance percentages, the loss cost trend, and loss adjustment expense ratio, as well as the net commission rates and underwriting expenses as percentage of net written premiums.

•  Balance Sheet Inputs: the user needs to set the initial balance sheet, as well as assumptions related to investments (funding, proceeds and interest rates). Additionally, the user sets the capex and depreciation years, as well as any impairment occurring. Finally, the user sets the interest rate and the repayment years for the existing debt, and the amount of financing, new debt issuance date, interest rate, and loan maturity.

•  Other: in this tab, the user can set the number of staff and average cost per staff, the other operating expenses, the percentage income taxes, the cost of equity assumptions, the dividend payout ratio, as well as the minimum ratio of equity to assets.

On the calculation tab, all calculations are performed. The calculations follow the same logical flow as in the inputs tab. As already mentioned, no inputs from the user are needed here, as all the inputs are fed in the yellow cells on the inputs tab mainly.


On the Financial Statements tab everything is aggregated into a profit and loss, balance sheet and cash flow statement.

On the Valuation tab, the dividend discount method is used to calculate the equity value.

The most important ratios / metrics are presented on the Metrics tab where you will find all the relevant KPIs summarized.

Additionally on the charts tab, a series of charts are presented: revenues, expenses, profitability, margins, income generating assets, returns, premiums and recoverable, reserves, insurance ratios, solvency and reserve ratio, and premiums.

Finally, the checks tab where the most critical checks are aggregated. Whenever you see an error message on any page, you should consult this page to see where the error is coming from.

Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Integrated Financial Model, Insurance, Coworking Excel: Insurance Company Financial Model - 5YR DCF & Valuation Excel (XLSX) Spreadsheet, Big4WallStreet


$220.00
Created by a Financial Modeling, Planning & Performance Consultant with 15+ years of experience at Ernst & Young, Toyota, Viohalco, and Upstream. Certified by both the Corporate Finance Institute and the Financial Modeling Institute.
Add to Cart
  

OVERVIEW

File Type: Excel xlsx (XLSX)
File Size: 1.1 MB

ABOUT THE AUTHOR

Additional documents from author: 77

We help small and midsize businesses' leaders with their strategic problems by creating or improving financial models, implementing tools to drive efficiency, performance, and better decision making. [read more]

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