PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

More documents

Recommendations

Info

308 THE APPLICATION OF FUNDAMENTAL VALUATION PRINCIPLES[23] Yunque, Mark, and Len Goldberg, “Taxation Issues in Valuationof Property Casualty Operations,” Casualty ActuarialSociety Discussion Paper Program, 1989, pp. 217—258.
THE APPLICATION OF FUNDAMENTAL VALUATION PRINCIPLES 309APPENDIX ASAMPLE COMPANY VALUATIONThis section presents a detailed example of valuing a property/casualtyinsurance company. The modeled valuation will focuson² Modeling aspects of a property/casualty insurer given currentfinancial statements, investment assumptions, underwriting assumptionsfor current and future business, and loss and expensepayment assumptions;² Determination of future earnings from projected financialstatements based on selected surplus and business volume constraints;² Application of DCF and EVA valuation approaches usingan existing balance sheet and projected financial statementamounts (balance sheet, income statement, and cash flow exhibits);² Testing the sensitivity of indicated value to changes in key assumptions(risk-based capital-to-surplus requirement, loss ratios,investment yield, hurdle rate, and growth rate).Our objective is to provide a thorough and functional discussionof the valuation of a property/casualty insurance companyand a basic discussion of the development of earnings projections.The actuary or other professional preparing the valuationwill, of course, undertake extensive analysis to develop premium,loss, and expense assumptions, investment yields, and other factorsto project earnings. We present many assumptions “as given”without further explanation.A.1.Valuation Estimates Based on Financial Model ResultsThe valuation results for the sample company, Primary StockInsurance Company (PSIC), rely on two basic assumption sets:
Page 1 and 2:
VOLUME XCII NUMBERS 176 and 177PROC
Page 3 and 4:
FOREWORDActuarial science originate
Page 5 and 6:
2005 PROCEEDINGSCONTENTS OF VOLUME
Page 7 and 8:
2005 PROCEEDINGSCONTENTS OF VOLUME
Page 9:
Editorial Committee, Proceedings Ed
Page 12 and 13:
2 AN EXAMINATION OF THE INFLUENCE O
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
10 AN EXAMINATION OF THE INFLUENCE
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 39 and 40:
AN EXAMINATION OF THE INFLUENCE OF
Page 41 and 42:
RISKINESS LEVERAGE MODELSRODNEY KRE
Page 43 and 44:
RISKINESS LEVERAGE MODELS 33There a
Page 45 and 46:
RISKINESS LEVERAGE MODELS 35where f
Page 47 and 48:
RISKINESS LEVERAGE MODELS 37where a
Page 49 and 50:
RISKINESS LEVERAGE MODELS 39Various
Page 51 and 52:
RISKINESS LEVERAGE MODELS 41Then, f
Page 53 and 54:
RISKINESS LEVERAGE MODELS 43This fo
Page 55 and 56:
RISKINESS LEVERAGE MODELS 45This ri
Page 57 and 58:
RISKINESS LEVERAGE MODELS 47differe
Page 59 and 60:
RISKINESS LEVERAGE MODELS 49The las
Page 61 and 62:
RISKINESS LEVERAGE MODELS 51ple. Th
Page 63 and 64:
RISKINESS LEVERAGE MODELS 53the TVA
Page 65 and 66:
RISKINESS LEVERAGE MODELS 55We also
Page 67 and 68:
RISKINESS LEVERAGE MODELS 57Mean Va
Page 69 and 70:
RISKINESS LEVERAGE MODELS 59APPENDI
Page 71 and 72:
DISCUSSION OF A PAPER PRESENTED AT
Page 73 and 74:
RISKINESS LEVERAGE MODELS 63known t
Page 75 and 76:
RISKINESS LEVERAGE MODELS 65to be a
Page 77 and 78:
RISKINESS LEVERAGE MODELS 67implies
Page 79 and 80:
RISKINESS LEVERAGE MODELS 69bad res
Page 81 and 82:
RISKINESS LEVERAGE MODELS 71a maxim
Page 83 and 84:
RISKINESS LEVERAGE MODELS 734. INTE
Page 85 and 86:
RISKINESS LEVERAGE MODELS 75the two
Page 87 and 88:
RISKINESS LEVERAGE MODELS 77that a
Page 89 and 90:
RISKINESS LEVERAGE MODELS 79REFEREN
Page 91 and 92:
RISKINESS LEVERAGE MODELS 81EXHIBIT
Page 93 and 94:
RISKINESS LEVERAGE MODELS 83
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
WHY LARGER RISKS HAVE SMALLER INSUR
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
ADDRESS TO NEW MEMBERS 151ateship a
Page 163 and 164:
ADDRESS TO NEW MEMBERS 153You shoul
Page 165 and 166:
ADDRESS TO NEW MEMBERS 155strength
Page 167 and 168:
MINUTES OF THE 2005 CAS SPRING MEET
Page 169 and 170:
MINUTES OF THE 2005 SPRING MEETING
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Volume XCII, Part 2 No. 177PROCEEDI
Page 189 and 190:
MODELING FINANCIAL SCENARIOS 179Bab
Page 191 and 192:
MODELING FINANCIAL SCENARIOS 181tur
Page 193 and 194:
MODELING FINANCIAL SCENARIOS 183the
Page 195 and 196:
MODELING FINANCIAL SCENARIOS 185Ho
Page 197 and 198:
MODELING FINANCIAL SCENARIOS 187rat
Page 199 and 200:
MODELING FINANCIAL SCENARIOS 189sto
Page 201 and 202:
MODELING FINANCIAL SCENARIOS 191the
Page 203 and 204:
MODELING FINANCIAL SCENARIOS 193Dyn
Page 205 and 206:
MODELING FINANCIAL SCENARIOS 195(ht
Page 207 and 208:
MODELING FINANCIAL SCENARIOS 197In
Page 209 and 210:
MODELING FINANCIAL SCENARIOS 199equ
Page 211 and 212:
MODELING FINANCIAL SCENARIOS 201neg
Page 213 and 214:
MODELING FINANCIAL SCENARIOS 203ide
Page 215 and 216:
MODELING FINANCIAL SCENARIOS 205tra
Page 217 and 218:
MODELING FINANCIAL SCENARIOS 207mod
Page 219 and 220:
MODELING FINANCIAL SCENARIOS 209TAB
Page 221 and 222:
MODELING FINANCIAL SCENARIOS 211mak
Page 223 and 224:
MODELING FINANCIAL SCENARIOS 213FIG
Page 225 and 226:
MODELING FINANCIAL SCENARIOS 215str
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
MODELING FINANCIAL SCENARIOS 223are
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
MODELING FINANCIAL SCENARIOS 231
Page 243 and 244:
MODELING FINANCIAL SCENARIOS 233ete
Page 245 and 246:
MODELING FINANCIAL SCENARIOS 235[10
Page 247 and 248:
MODELING FINANCIAL SCENARIOS 237[30
Page 249 and 250:
WHEN CAN ACCIDENT YEARS BE REGARDED
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268: THE APPLICATION OF FUNDAMENTAL VALU
Page 317: THE APPLICATION OF FUNDAMENTAL VALU
Page 369 and 370:
THE APPLICATION OF FUNDAMENTAL VALU
Page 371 and 372:
Page 373 and 374:
Page 375 and 376:
Page 377 and 378:
Page 379 and 380:
Page 381 and 382:
Page 383 and 384:
Page 385 and 386:
Page 387 and 388:
Page 389 and 390:
Page 391 and 392:
Page 393 and 394:
Page 395 and 396:
Page 397 and 398:
Page 399 and 400:
Page 401 and 402:
Page 403 and 404:
Page 405 and 406:
Page 407 and 408:
Page 409 and 410:
Page 411 and 412:
Page 413 and 414:
Page 415 and 416:
Page 417 and 418:
Page 419 and 420:
Page 421 and 422:
Page 423 and 424:
Page 425 and 426:
Page 427 and 428:
Page 429 and 430:
Page 431 and 432:
Page 433 and 434:
Page 435 and 436:
Page 437 and 438:
Page 439 and 440:
Page 441 and 442:
Page 443 and 444:
Page 445 and 446:
Page 447 and 448:
Page 449 and 450:
Page 451 and 452:
Page 453 and 454:
Page 455 and 456:
Page 457 and 458:
Page 459 and 460:
Page 461 and 462:
Page 463 and 464:
Page 465 and 466:
Page 467 and 468:
Page 469 and 470:
Page 471 and 472:
Page 473 and 474:
A NEW METHOD OF ESTIMATING LOSS RES
Page 475 and 476:
Page 477 and 478:
Page 479 and 480:
Page 481 and 482:
Page 483 and 484:
Page 485 and 486:
Page 487 and 488:
Page 489 and 490:
Page 491 and 492:
Page 493 and 494:
Page 495 and 496:
Page 497 and 498:
ARCHITECTURE FOR RESIDENTIAL PROPER
Page 499 and 500:
Page 501 and 502:
Page 503 and 504:
Page 505 and 506:
Page 507 and 508:
Page 509 and 510:
Page 511 and 512:
Page 513 and 514:
Page 515 and 516:
Page 517 and 518:
Page 519 and 520:
Page 521 and 522:
Page 523 and 524:
Page 525 and 526:
Page 527 and 528:
Page 529 and 530:
Page 531 and 532:
Page 533 and 534:
Page 535 and 536:
Page 537 and 538:
Page 539 and 540:
Page 541 and 542:
Page 543 and 544:
Page 545 and 546:
Page 547 and 548:
Page 549 and 550:
Page 551 and 552:
Page 553 and 554:
Page 555 and 556:
Page 557 and 558:
Page 559 and 560:
Page 561 and 562:
Page 563 and 564:
Page 565 and 566:
Page 567 and 568:
Page 569 and 570:
Page 571 and 572:
Page 573 and 574:
Page 575 and 576:
Page 577 and 578:
Page 579 and 580:
Page 581 and 582:
Page 583 and 584:
Page 585 and 586:
Page 587 and 588:
Page 589 and 590:
ESTIMATING THE WORKERS COMPENSATION
Page 591 and 592:
Page 593 and 594:
Page 595 and 596:
Page 597 and 598:
Page 599 and 600:
Page 601 and 602:
Page 603 and 604:
Page 605 and 606:
Page 607 and 608:
Page 609 and 610:
Page 611 and 612:
Page 613 and 614:
Page 615 and 616:
Page 617 and 618:
Page 619 and 620:
Page 621 and 622:
Page 623 and 624:
Page 625 and 626:
Page 627 and 628:
Page 629 and 630:
Page 631 and 632:
Page 633 and 634:
Page 635 and 636:
Page 637 and 638:
Page 639 and 640:
Page 641 and 642:
Page 643 and 644:
Page 645 and 646:
Page 647 and 648:
Page 649 and 650:
Page 651 and 652:
Page 653 and 654:
Page 655 and 656:
Page 657 and 658:
Page 659 and 660:
Page 661 and 662:
Page 663 and 664:
Page 665 and 666:
Page 667 and 668:
Page 669 and 670:
Page 671 and 672:
Page 673 and 674:
Page 675 and 676:
Page 677 and 678:
Page 679 and 680:
Page 681 and 682:
Page 683 and 684:
Page 685 and 686:
Page 687 and 688:
Page 689 and 690:
INCORPORATION OF FIXED EXPENSESGEOF
Page 691 and 692:
INCORPORATION OF FIXED EXPENSES 681
Page 693 and 694:
Page 695 and 696:
Page 697 and 698:
Page 699 and 700:
Page 701 and 702:
Page 703 and 704:
Page 705 and 706:
Page 707 and 708:
Page 709 and 710:
Page 711 and 712:
Page 713 and 714:
Page 715 and 716:
Page 717 and 718:
Page 719 and 720:
Page 721 and 722:
Page 723 and 724:
Page 725 and 726:
Page 727 and 728:
DISCUSSION OF PAPER PUBLISHED INVOL
Page 729 and 730:
APPLICATION OF THE OPTION MARKET PA
Page 731 and 732:
Page 733 and 734:
Page 735 and 736:
Page 737 and 738:
Page 739 and 740:
Page 741 and 742:
Page 743 and 744:
Page 745 and 746:
THE “MODIFIED BORNHUETTER-FERGUSO
Page 747 and 748:
Page 749 and 750:
Page 751 and 752:
ADDRESS TO NEW MEMBERS-NOVEMBER 14,
Page 753 and 754:
ADDRESS TO NEW MEMBERS 743Now to an
Page 755 and 756:
PRESIDENTIAL ADDRESS-NOVEMBER 14, 2
Page 757 and 758:
PRESIDENTIAL ADDRESS 747use of thes
Page 759 and 760:
PRESIDENTIAL ADDRESS 749just lookin
Page 761 and 762:
PRESIDENTIAL ADDRESS 751The quantif
Page 763 and 764:
PRESIDENTIAL ADDRESS 753me keep my
Page 765 and 766:
MINUTES OF THE 2005 CAS ANNUAL MEET
Page 767 and 768:
MINUTES OF THE 2005 ANNUAL MEETING
Page 769 and 770:
Page 771 and 772:
Page 773 and 774:
Page 775 and 776:
Page 777 and 778:
Page 779 and 780:
Page 781 and 782:
Page 783 and 784:
Page 785 and 786:
Page 787 and 788:
Page 789 and 790:
Page 791 and 792:
REPORT OF THE VICE PRESIDENT—ADMI
Page 793 and 794:
Page 795 and 796:
Page 797 and 798:
Page 799 and 800:
REPORT OF THE VICE PRESIDENT-ADMINI
Page 801 and 802:
2005 EXAMINATIONS—SUCCESSFUL CAND
Page 803 and 804:
Page 805 and 806:
Page 807 and 808:
Page 809 and 810:
Page 811 and 812:
Page 813 and 814:
Page 815 and 816:
Page 817 and 818:
Page 819 and 820:
Page 821 and 822:
Page 823 and 824:
Page 825 and 826:
Page 827 and 828:
Page 829 and 830:
Page 831 and 832:
Page 833 and 834:
OBITUARIESROBERT GRANT ESPIECLYDE H
Page 835 and 836:
OBITUARIES 825SIDNEY M. HAMMER1931
Page 837 and 838:
OBITUARIES 827J. GARY LaROSE1947—
Page 839 and 840:
OBITUARIES 829PAUL J. SCHEEL SR.193
Page 841 and 842:
OBITUARIES 831LEO M. STANKUSCirca 1
Page 843 and 844:
INDEX TO VOLUME XCIIPage2005 EXAMIN
Page 845 and 846:
835GRAVES, CLYDE H.INDEX—CONTINUE
Page 847 and 848:
837INDEX—CONTINUEDREPORT OF THE V
show all

PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

Create successful ePaper yourself

Delete template?

Save as template?