Areas of expertise.

The actuarial conversation usually starts with the basics: reserve reviews, rate filings, or perhaps, financial models.  While we commonly do these projects, our approach is to find ways to provide additional insight into your business looking beyond the numbers.  We are adept at digging deeper into your business to find insights where others can’t.  Below are examples of projects where we provide additional value.

Coordination of actuarial with accounting

We are uniquely qualified to assist with translating actuarial analyses to financial reporting. We understand complex accounting and SEC reporting requirements. We also have worked closely with public accounting firms and supported regulatory examinations. 

Investment and financial strength analysis

Reserves are a key part of the value of an insurance company, as well as other actuarial issues like quality of modeling and underwriting. Analysis of an insurer is complicated, especially when anachronistic statutory filings form the basis for the analysis. Our experience understanding the investor’s perspective on these disclosures can help in evaluating an insurer’s financial strength or the value of an investment opportunity in an insurance enterprise. 

Transactions

Buying an insurer or an entity with insurance risk means accepting the risk that’s associated with your target. While many consultants might be able to calculate a dollar value to be assigned to those liabilities, we also have experience helping acquirers evaluate their ability to handle those risks going forward, for example re-pricing the risk an insurer takes on or benchmarking claims costs and potential for improvement. 

Data issues

Making sense of your data for actuarial, financial reporting, or management decisions is difficult; when transactions, systems upgrades, operational changes, and business shifts occur, even more so. Do you have multiple systems, but need your data on an apples-to-apples basis? Trying to understand how your new underwriting is performing, using prior history as a benchmark? Not sure how to develop industry benchmarks to use as a comparison point to measure success? We’ve done that. 

Strategy

Entering a new market can require the use of industry data, competitors’ filings, or survey data to minimize the risk associated with taking on new business that you’re less familiar with. Our experience includes decisions on markets to enter, how to control risk, monitoring regulatory capital, and measuring volatility tolerance. 

Financial modeling

Projecting future earnings and cash flows is complicated, involving the interaction of actuarial models, financial decisions, and statutory and GAAP accounting rules – our experience modeling these interactions can help you navigate this complex area. 

Risk transfer

Are you concerned whether your reinsurance will receive the financial treatment you desire? We can help you understand the reinsurance program in the aggregate and the implications of changes, and provide independent support to justify your accounting treatment.

Warranty/extended service

Warranties, extended service contracts and maintenance agreements carry a unique set of risks and complications. We have extensive experience understanding the contract terms, earning patterns and loss costs underlying these contracts. Whether evaluating unearned premium and loss reserves for financial reporting or valuing a book of business for a transaction, we understand the dynamics of this complicated business.