What acquisition price, sources and uses, and sponsor economics create a credible transaction case?
Model profile
Insurance Valuation
Value a listed insurer the way insurance analysts do. Forecast premiums, claims and expenses (the combined ratio), investment income and the solvency capital the business needs, then value the equity by what the insurer can distribute and against peers' price / book for their return on equity.
Decision scope
Questions this model helps you examine
How do operating projections, cash generation, and debt paydown support the proposed capital structure?
How do exit timing, exit multiples, and downside cases affect sponsor returns and value per share?
Model capabilities
What this model includes
The profile below is generated from the same catalogue and workspace definitions used by the application.
- Unearned premiums, explicit reinsurance, reserve development and discounting, an asset mix with duration matching, risk-module solvency capital, and life business with the CSM, embedded and appraisal value
- An offer price build with a control-basis fairness view, a valuation report, and an audit trail with reviewer sign-off
- Gross written premiums, retention and net earned premiums, fading to long-term growth
- Loss and expense ratios with targets, and the combined ratio
- Investment income on invested assets funded by technical reserves and equity
- Solvency capital against the requirement and a target; dividends capped by capital and the surplus returned
- Dividend discount at the solvency target and price / book against return on equity
- P / E comparables, broker targets, a loss-ratio stress test and a Monte Carlo on the loss ratio, yield and cost of equity
Build the case
Inputs and workspaces
- DocumentsUpload up to ten annual reports, filings, presentations and lists; review what was read, then apply it.
- Valuation settingsCompany and market data, cost of equity, comparables, distributions and the football field.
- Forecast assumptionsPremium growth, retention, loss and expense ratios, investment yield, reserves and solvency capital.
- Reported financialsThe insurer's reported years and option tranches.
- PeersComparable companies: earnings, book values and betas.
- Market evidenceBroker targets, share price history and the macro outlook.
- Audit trail and sign-offEvery saved change to the case, and the preparer and reviewer sign-off of each run.
Review the result
Outputs and analysis
- Average implied value per shareMethods in the average
- Upside to the average implied valueAgainst the share price
- Dividend discount value per shareAt the capital target
- Cost of equityCAPM
- Price / book value per shareAgainst return on equity
- Price / bookAt the share price
- Return on equity, next yearOn opening book
- Combined ratio, next yearLoss and expense ratios
- 9 additional metrics in the workspace
- Financial statements and capitalDetailed schedules
- Valuation, comparables and market evidenceDetailed schedules
Designed for review
Who this model is for
- Private-equity sponsors and corporate development teams
- Investment and financial analysts
- Transaction advisers
- Investment committees and lenders
Governed evidence
The review trail stays with the result.
Each completed calculation preserves the model version, saved inputs, reporting-currency snapshot, immutable run, and result fingerprint used for its reports.
- Version-controlled calculation logic
- Saved assumptions and scenarios
- Immutable calculation runs
- Reporting context preserved in exports
Ready to explore the case?