What are the specific issues in valuing Banks and Insurance Companies?
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You need to look at several things:\n\n- asset quality - collateral of lending and sectors lent to\n- credit policies - are these good?\n- corporate governance - are the BOD people who may pose a problem or embezzle etc?\n- market risk - what are the risks inherent in the banks/insurance shareholdings/bonds and maturity risks\n- liquidity risks - is the funding base broad based, concentrations in deposits aren't good or few credit lines - since removal of one can affect the entity \n- geographic concentrations - good or bad?\n- performance - last years performance may not repeat so check what analysts have to say about sustainable side of the business\n\n- what's the market share?\n\nthat should be plenty to watch out for.\n\nValuing is mainly done either by:\n1-net present cash flow of expected business going forward - but this has many many estimates and assumptions - especially terminal values and discounting rates\n\n2-using EPS and P/E ratio to calculate a value\n\n3-using CAPM to calculate the value and using efficient frontier to work out whether the share is over prices or underpriced if actively traded\n\n4-fair market value of business after due diligence - often only available to strategic investors.
214688
It would be an insurance broker who represents insurers that specialize in one line of insurance or a particular industry, for example. \nThe brokers can provide a number of other services you may not think of like risk assessment or risk mitigation which can help you get lower premiums.  \nUsually the broker gets paid by the company through commissions.  You may only have to pay a small policy fee in addition to the premiums.
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The limit is set within the criteria agreed to by the bank and company. The value of the company would be one set criteria as well as the receivables as long as they are not aged beyond the purchasing agreement of established criteria. Companies can also borrow based on their inventories which would be considered value. Working capital is only one facet that a company may need to borrow for, if cash flow is an issue they may need to  borrow for paying of suppliers and payroll until receivables are in.\nThere are many other covenants that companies and banks would look at such as debt to equity ratio and return on net assets employed. so the limit is really depending on what agreement they have with the bank.
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Insurance companies have underwriting income and investment income.  \n\nUnderwriting Income - They charge more in premiums than they pay out in claims and expenses.\n\nInvestment Income - Insurers invest unearned premiums and claim reserves to generate investment income.
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Health insurers are in a really tough business these days.  They face significant and unpredictable liability costs, huge amount of regulations at both the State and Fed level.  \n\nIn your place, I would stay away from investing in such companies.  You'd be a lot better off investing in an index mutual fund. \n\nIf you need clarification, contact me through "Answer" and I will edit my response.
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Import export restriction, plus exchange of currency problems and legal problems such as liability issues, insurance coverage.........\n\nMost companies are not structured to deal with individuals, they deal with their appointed dealer only by legally binding agreement.
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I assume you are asking in a business context.\n\nAdvantage\nSelf-insurance makes economic sense when the premiums you would pay far outweigh the risks you are covering (the yearly damages costs less than the premiums)\n\nDisadvantage\nYou can't predict the future, the once in two hundred year event can happen any year,  (a Tsunami etc), so you could end up with a huge loss.\n\nThe solution that self-insuring companies follow is to self-insure everything below a disaster and only take out insurance for events above a certain amount (for example above $x million).
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Hi, my name is Eunice Saunders and I am an Insurance Agent. Most insurance companies go by the blue book value and it sounds like your car is totaled to me. They will send an Adjuster to look at the damages and he will access the damages and advise the insurance company as to the best way to handle your claim.......remember their title is "adjuster" which means they adjust.......so if you do not agree with their assessment then argue with them.....remember also that the adjuster works for the insurance company and has the best interest of the company and all other policy holders....he does not work for you...although he will want you to think that your best interest is being served...so you look out for your best interest which is to either get your car fixed or get enough money from the deal to bring you back to a financial condition that is comparable to the condition you were in before your car rolled down the drive. So if they give you blue book value you can pay off the loan you owe and buy another vehicle........remember you can not gain from insurance.....meaning you will never get more than what you had to start with. Good Luck! Eunice
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You need to draw out the flowchart logic associated with all of these events.  What are all the decisions, branches, actions, inputs and outputs?\n\nFor example, for the third one, here are some of the steps:\n- Someone has to decide that a premium change is warranted.  Perhaps this is Actuarial, Accounting or Finance.\nHave there been a lot of claims?  Has there been a big hike in inflation?  What specifically would trigger this?\n- Someone has to calculate the change in premium for all insured people for all policies.  Is it going to be a certain % across the board?  Is it going to be a flat $ increase?  What about rated policies?\n- The rate increase probably has to go through a vetting and approval process,\n- Draft information must be written and approved for internal notification of the premium change, including the communication methods to be employed.\n- If the communication method is through computer systems, the systems change must be tested and validated in a non-live enviroment.  The testing must be approved.\n- The "cut-over" date to the new premium rates must be announced and the system changed on that date.\n- You probably want some sort of reminder "pop-up" about the new rates so that people don't think they are doing something wrong.  This must be tested with the "real" changes as well.
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There is no exact definition, its essentially when an employee receives the benefit of their company paying something on their behalf.  I.e providing a company car or paying for private medical insurance.  The value of receiving the benefit is then declared on a form p11d and tax paid on the benefit.
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Sheer is right. It will depend on your particular circumstances. Contact a financial planner in your area that has insurance expertise. They will be able to help you find the right policy for you. I typically find good value from Principal for white collar/entrepreneurs, Illinois Mutual for Blue Collar/Special Risk and Pro Financial for High Comp execs and atheletes.
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Banks are under-regulated.  One need only look back in the mid 1980's with the failure of S & L's due to deregulation.  Basically, financial services need to be regulated (i.e., deposit insurance, capital requirements, staff reductions at the FHLBB, et. al.) to solve "moral hazard" problems (i.e., taking sub-optimal risks to generate higher returns for investors).  Here's a link to an article below which expounds upon my point above - good luck!
83253
My company did this last year.  We asked each department to identify the top risks to our business from their perspective.  We also asked them to get out of the box and look at everything from market changes to having a key employee leave.   \n\nOnce we had a list of risks, we used a scale of 1-10 for three areas:  1) Chance of this happening, 2) Cost to Cure  3) Revenue Risk.  This wasn't a perfect science, but it gave us something to work with and a common language.  \n\nWe found there was a list of about 100 and we tackled them based upon budget and bandwidth of the key employees.  \n\nI am certain there are MBA's out there who will have better answers.  Good luck.
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Try Standard and Poor's.  Call the health insurance company you are interested in and ask them to send you a Fact Sheet on their company.
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probability distribution of various loss amounts\n\namount of surplus and expected profit versus probability of a large loss\n\ncost of reinsurance
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Accounting Rate of Return\nPayback Period\nNet Present Value\nInternal Rate of Return
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is there a particular type of business you're inquiring about ? each one has it own subsets of issues.