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Fundamentals of Insurance Company Credit Analysis - November 2013  -  November 20-21, 2013

7:30 am

DAY ONE - Wednesday, November 20

  • Registration and continental breakfast open
  • All sessions taught by Jukka Lipponen, CFA, unless otherwise noted
8:30 am

Introduction & Overview

  • Instructor introduction
  • Course overview 
9:00 am

Summary of Introductory Materials

  • Overview of Insurance Company Credit
  • Insurance Company Financial Statements
9:30 am

Financial Analysis – Balance Sheet

  • Capital structure
  • Quality of capital
  • Capital ratios
  • Leverage
  • Intangible assets
  • Guarantees or support agreements
10:30 am

Balance Sheet (continued)

  • Reinsurance 
  • Policy reserve composition
  • Other assets and liabilities
11:00 am

Balance Sheet Practice Exercises

11:30 am

Balance Sheet – Investment Portfolio

  • Asset/investment leverage
  • Investment portfolio composition
12:00 pm

Balance Sheet – Investment Portfolio (continued)

  • Credit risk and interest rate risk
  • Asset quality
  • Affiliate investments
12:30 pm

Balance Sheet Practice Exercises

1:00 pm


2:00 pm

Guest Speaker

  • Intricacies of analyzing P&C companies
  • Understanding P&C reserves from a credit analysis perspective
3:15 pm

Case Studies

4:45 pm


7:30 am

DAY TWO - Thursday, November 21

  • Continental breakfast opens
8:30 am

Income Statement

  • Key revenue sources
  • Key earnings drivers
  • Impact of accounting rules on reported revenues and earnings
  • GAAP vs statutory operating earnings
  • Quality of earnings
  • How growth can cause operating losses
  • Profitability
9:30 am

Cash Flow

  • Insurance company cash inflows and outflows
  • Net to gross operating cash flow
  • Regulated vs non-regulated cash flows
  • Organizational structuring to help cash flows
  • Intercompany transactions
  • Understanding and analyzing Statutory Statement Schedule Y
10:40 am


  • Assessing holding company and operating subsidiary liquidity needs and position
  • Assessing disintermediation and “Run-on-the-Bank” risk
  • Liquidity of the investment portfolio
  • Liquid assets vs liquid liabilities
11:10 am

Practice Exercises

11:50 am

Asset/Liability Management

  • Understanding the characteristics of various liabilities
  • Optionality embedded in policy reserves
  • Importance of closely matching asset and liability durations
  • Temptation to mismatch assets and liabilities
12:50 pm


1:50 pm

Financial Flexibility

  • Capital needs
  • Access to capital
  • Financial leverage
  • Coverage ratios
  • Refinancing needs
  • Holding company liquidity
2:40 pm

State of the Industry

  • Impact of the financial crisis
  • Current outlook
3:10 pm

Case Studies

4:00 pm

Summary, Closing Comments & Q&A

Jukka Lipponen, CFA
President, Independent Insurance Analysts LLC

As President of Independent Insurance Analysts, Jukka has more than 20 years of experience in insurance and financial services. He currently provides independent investment analysis and credit research on life and P&C companies to institutional investors, as well as buyers and distributors of insurance company products.

Mr. Lipponen's prior positions include Senior Vice President at Keefe, Bruyette & Woods and President and Managing Director at The Townsend & Schupp Company. He is a CFA charter holder and holds a BBA and MBA from Florida Atlantic University.

Event Date:
November 20-21, 2013
Event Location:
Downtown Conference Center
157 William Street
New York, NY, US
Registration Fee:
Your registration includes all conference materials, continental breakfast both days, and lunch both days.

Fundamentals of Insurance Company Credit Analysis is designed for:

  • Buy and sell-side sector analysts
  • Credit analysts
  • Private equity investors
  • Investment banking analysts and associates
  • Corporate development and corporate finance professionals
  • Investor relations professionals
  • Insurance regulators and staff
  • Advisors to insurance companies

This program presumes familiarity with basic finance concepts, as well as a working knowledge of insurance company income statements and balance sheets. Intermediate spreadsheet skills are also necessary.

Event Date:
November 20-21, 2013
Downtown Conference Center
157 William Street
New York, NY, US
Although lodging is not provided as part of this program, the hotels listed below are convenient to the Downtown Conference Center. Please call the Downtown Conference Center to inquire about negotiated rates or with any other lodging related questions (212) 618-6990.

Millennium Hilton
55 Church St.

Gild Hall
15 Gold St.

Best Western Seaport Inn
33 Peck Slip

Hampton Inn Seaport
320 Pearl St.

Conrad Hotel
102 North End Ave.

Eurostars Wall Street Hotel 
129 Front St.

Wall Street Inn
9 S William St.

Ritz-Carlton Battery Park
2 West St.
CFA Institute
14 Hours of Continuing Education Credit
SNL Knowledge Center is registered with CFA Institute as an Approved Provider of professional development programs. This program is eligible for 14 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary upon request.
National Association of State Boards of Accountancy
16 Hours of CPE Credit
Participants who complete Fundamentals of Insurance Company Credit Analysis qualify for 16 hours of CPE credit (Specialized Knowledge and Applications). Program Level: Intermediate. Delivery Method: Group-Live. SNL Knowledge Center is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 4th Ave N, Ste 700, Nashville, TN, 37219-2417. Website: www.nasba.org.

What is the dress code?
Business casual

Do I need a laptop?

Is there required pre-reading?

Are meals included?
Your registration includes continental breakfast and lunch both days.

Where should I stay?
Information about accommodations can be found under the "Venue and Accommodations" tab at left.

When does the program start? When does it end?
The program begins at 8:30 a.m. and ends at approximately 5 p.m. both days. Registration opens at 7:30 a.m.

What if I need to cancel?
Cancellations for this program are eligible for a full refund, less a $150.00 administrative fee, if received at least 15 business days prior to the start of the program. Cancellations received after that date but at least 5 business days prior to the start of the program receive a credit in the amount of the registration fee, less a $150.00 administrative fee, to attend another SNL Knowledge Center program within 13 months. Due to commitments and expenses, cancellations received fewer than 5 business days prior to the start of the program are not eligible for a refund or credit.

Attendee substitutions from the same company may be made at any time.

In the event of a cancellation from a group discount, refunds or credits are issued beginning with the most heavily discounted price, minus a $150.00 administration fee.

"No shows" - or those who cancel within 15 days of the program - and have registered under the Invoice option, remain liable for the full program fee.

SNL Knowledge Center reserves the right to cancel/change programs, content, speakers or venue at any time. SNL Knowledge Center reserves the right to make portions of the program registration information available to program sponsors. SNL Knowledge Center will not be held liable for any costs incurred by registrant due to individual registration cancellation. In the event that a seminar is cancelled due to inclement weather, faculty cancellation or force majeure, SNL Knowledge Center will refund the registrant's tuition in full, however SNL Knowledge Center will not be liable for incidental or consequential out of pocket expenses incurred by the registrant. If you have questions regarding SNL Knowledge Center's refund, complaint or program cancellation policy, please call us at (434) 951-7786.

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