Fundamentals of Insurance Company Credit Analysis

Produced by the Knowledge Center, expert training from S&P Global Market Intelligence

The need for credible, independent judgment on the solvency and creditworthiness of insurance underwriters has never been greater.

Over the course of two days, Fundamentals of Insurance Company Credit Analysis shows you how to evaluate an insurer's credit risk and financial stability so you can apply that analysis to your fixed income and equity decisions.

Through lectures, classroom exercises, analysis and case studies, you'll learn the time-tested quantitative and qualitative framework you need to examine and assess the relevant risk factors.

Topics include:

  • Reviewing the unique dual-accounting environment that insurers operate under and the impact on financial analysis
  • Measuring the risks inherent in an insurer's investment portfolio, reserves and affiliate relationships (credit, asset/liability mismatch, liquidity)
  • Determining the structure, quality and adequacy of a firm's capital position through ratio analysis, incorporating guarantees, support agreements and reinsurance
  • Understanding insurance company cash flows and evaluating the quality of earnings
  • Current issues influencing insurance company analysis, including the potential for greater government intervention in light of the current credit environment

Attendees will leave the program with:

  • The ability to evaluate key financial results, ratios and trends, and incorporate these into your credit risk analysis
  • The skills to analyze the key components of capital - both in the current environment and under stress scenarios
  • An understanding of the role and approach of rating agencies and regulators as well as their impact on company performance and risk profile
  • Experience assessing the quality of an insurer's asset portfolio, including the composition of policy reserves
  • Insight into an institution’s liquidity position and what its sources of funding imply about potential events
  • The confidence to develop a structured and comprehensive opinion of an insurance company's key risks


This program presumes familiarity with basic accounting and finance concepts, as well as a working knowledge of insurance company income statements and balance sheets, plus basic-to-intermediate industry experience.


Jukka Lipponen, CFA


As president of Independent Insurance Analysts, Mr. Lipponen 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.

Fundamentals of Insurance Company Credit Analysis Agenda

WEDNESDAY, December 6th
08:00 AM
Registration and Continental Breakfast Open:
08:30 AM
Introduction & Overview:
  • • Instructor introduction
  • • Course overview
09:00 AM
Insurance Company Financial Statements:
09:30 AM
Financial Analysis-Balance Sheet:
  • ● Capital structure
  • ● Quality of capital
  • ● Capital ratios
  • ● Leverage
  • ● Intangible assets
  • ● Guarantees or support agreements
10:15 AM
10:30 AM
Balance Sheet (cont.):
  • ● Reinsurance
  • ● Policy reserve composition
  • ● Other assets and liabilities
11:15 AM
Balance Sheet Practice Exercises:
12:00 PM
1:00 PM
P&C Reserve Analysis:
William Wilt, CFA, President, Assured Research, LLC
2:00 PM
Balance Sheet-Investment Portfolio:
  • ● Asset/investment leverage
  • ● Investment portfolio composition
  • ● Credit risk and interest rate risk
  • ● Asset quality
  • ● Affiliate investments
3:00 PM
3:15 PM
Case Studies:
5:00 PM
5:15 PM
Day One Concludes:
THURSDAY, December 7th
8:00 AM
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
10:30 AM
10:45 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
11:15 AM
Practice Exercises:
12:00 PM
1:00 PM
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
2:00 PM
Financial Flexibility:
  • ● Capital needs
  • ● Access to capital
  • ● Financial leverage
  • ● Coverage ratios
  • ● Refinancing needs
  • ● Holding company liquidity
2:50 PM
State of the Industry:
3:00 PM
3:10 PM
Case Studies & Wrap-Up:
5:00 PM
Summary, Closing Comments and Q&A:
5:10 PM
Program Concludes:

Ticket Info

Early bird rate - $1,995
(expires on October 20)

Regular rate - $2,295


Event location

New York, NY

Group pricing discounts and in-house options are available.

Lodging is not included as part of this program.

Registration includes continental breakfast and lunch for both days.

Downloads & FAQs

Insurance Sector Training Course Catalog

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.

What are the terms and conditions?

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 Knowledge Center program within 13 months. 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.

The Knowledge Center reserves the right to cancel/change programs, content, speakers or venue at any time. The Knowledge Center reserves the right to make portions of the program registration information available to program sponsors. The 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, the Knowledge Center will refund the registrant's tuition in full, however the Knowledge Center will not be liable for incidental or consequential out of pocket expenses incurred by the registrant. If you have questions regarding the Knowledge Center's refund, complaint or program cancellation policy, please call us at (434) 951-7786.

Registrant, as an individual person attending a Knowledge Center conference, seminar, or other program, hereby grants permission to the Knowledge Center to use and publish his or her image, likeness, or testimonials collected in connection with the program for advertising and trade purposes in connection with the Knowledge Center’s conferences, instructional, and/or marketing activities.

Continuing Education Credits

15 Hours of Continuing Education Credit
The Knowledge Center is registered with CFA Institute as an Approved Provider of professional development programs. This program is eligible for 15 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.
17.5 Hours of CPE Credit
Participants who complete this program qualify for 17.5 hours of CPE credit (Specialized Knowledge and Applications). Program Level: Intermediate. Delivery Method: Group-based internet. 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: