...Wemmer Chief Financial Officer UBS Conference on P&C Insurance and Reinsurance in Europe Zurich, June 26, 2007 How has the insurance cycle changed? Capital Industry loss experience Six main cycle drivers Industry discipline Investment returns © Zurich Financial Services - UBS Conference on P&C Insurance and Reinsurance in Europe, June 26, 2007 2 Profitability and ‘payback’ Market sentiment Strategic transformation Capital Margin ROE 16%1 Volume Operational Transformation Platforms Data quality Expense base 1 Transformational Growth Enhanced service delivery Scale Cost advantage Larger data set Customer insight Customer Product Distribution Business operating profit (after tax) return on common shareholders’ equity 3 © Zurich Financial Services - UBS Conference on P&C Insurance and Reinsurance in Europe, June 26, 2007 Strategic transformation supports insurance cycle management • Strong optimized capital base • Active diversification • Portfolio management Capital Margin • Platforms delivering consistently ROE 16%1 Volume • • • Customer experience Product differentiation Distribution excellence high standards • Data quality driven analysis • Operational Transformation powered by The Zurich Way 1 Business operating profit (after tax) return on common shareholders’ equity 4 © Zurich Financial Services - UBS Conference on P&C Insurance and Reinsurance in Europe, June 26, 2007 Capital: strong optimized capital base...
Words: 1178 - Pages: 5
...Case: Reinsurance Group of America and Fonterra: Going for Unified Global Operation 1. What is the business value of these global systems developments for the companies mentioned in the case? The business value of these global system developments for the companies mentioned in the case is very high. In case of RGA, the employees can analyze data by client, contract, and product and can find client errors very easily. This has been made possible because data is not stored at one place. This is very important for supporting the reinsurance business. It has made it easy to manage the reinsurance business. The global system developments help RGA data validation and data quality. This enables better risk analysis, and retention analysis leading to greater profits. Similarly in case of Fonterra the upgrading of the Fonterra business so that that the silos at the diary group are of large stainless steel variety. The global systems program aimed at improving the supply chain of a diary giant from cow to manufacturing to storage to customers. How did they achieve these benefits? RGA achieved these benefits because it was relieved of the problem of worrying about how the business should be managed. In addition, the system helps strengthen data validation and data quality. These useful benefits were achieved by engaging the business and adapting its own practices to the demand of the situation. The company has achieved the benefits by setting up an integrated, multicurrency...
Words: 703 - Pages: 3
...Management Information Systems, AB plc should make sure they are using MIS to their full advantage to help them keep track of their targets and give an overall picture of how the business is performing, detailed reports can be made and sent out to managers so they can see if they are reaching their targets and how new products are performing. From these reports they would also be able to identify any areas which are performing badly and changes can be made to reduce the impact. Budgeting and forecasting, it is very important for managers and higher level staff to budget and forecast as accurately as possible to help monitor the company’s performance and allows it to stay in line with its targets. The advantage of this is that if the forecast shows a negative effect on business, there is still time to put measures in place and change this if...
Words: 2300 - Pages: 10
...Berkshire Hathaway AFIN250 Monday 5pm Christopher Lam 43820832 Savneet Kambo 44677987 Jason Weng 43885772 Table of Contents Executive Summary ............................................................................................................................2 Culture, a catalyst for Berkshire’s success ...........................................................................................2 Heir to Berkshire Hathaway ...............................................................................................................3 Graham & Dodd valuation model .......................................................................................................3 Bruner’s Disaster Framework, a risk assessment tool ..........................................................................4 Diversification of Berkshire Hathaway ................................................................................................5 Volatility timing .................................................................................................................................6 Conclusion .........................................................................................................................................7 Appendix ...........................................................................................................................................8 Reference ..........................................................................
Words: 3371 - Pages: 14
...aviation portfolios. All four planes that crashed on the World Trade Center and other sites during the 9/11 attack were reinsured in the Fortress Re pool. During this period, Taisei ascribed its failure - only the second bankruptcy in Japanese non-life insurance since World War II - to the freak events of 11 September. The expected loss from reinsurance was caused purely by the terrorist attacks and we could not foresee that such a huge loss would be generated because the four airplanes simultaneously crashed. The participated companies’ lack of skills in management of Fortress Re and their limited understanding of liabilities in the pool were revealed after the event. Apparently, TFMI had completely relied on Fortress Re’s management decisions. Even though it was true that the unforeseen nature of terrorist attack was a trigger for TFMI’s bankruptcy, this event showed that delegating the entire authority of managing the pool to the Fortress Re management added considerable risks to the company’s portfolio, and did not reduce any risks. TFMI’s collapse was an example of how a company overlooked the potential risk of “reinsurance”, and transferred risk only on the accounting book, not in the real world. As of December 2002, Taisei Fire and Marine Insurance Co., Ltd. was acquired by Sompo Japan Insurance Inc. Taisei Fire & Marine...
Words: 4036 - Pages: 17
...| Insurance a system of spreading the risk of one to the shoulders of many. It is a contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against.Insurance is not a new business in Bangladesh. Almost a century back, during British rule in India, some insurance companies started transacting business, both life and general, in Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49 insurance companies transacted both life and general insurance schemes. These companies were of various origins British, Australian, Indian, West Pakistani and local. Ten insurance companies had their head offices in East Pakistan, 27 in West Pakistan, and the rest elsewhere in the world. These were mostly limited liability companies. Some of these companies were specialised in dealing in a particular class of business, while others were composite companies that dealt in more than one class of business.The government of Bangladesh nationalised insurance industry in 1972 by the Bangladesh Insurance (Nationalisation) Order 1972. By virtue of this order, save and except postal life insurance and foreign life insurance companies, all 49 insurance companies and organisations transacting insurance business in the country were placed in the public sector under five corporations. These corporations were: the Jatiya Bima Corporation...
Words: 1684 - Pages: 7
...Table of Contents CHAPTER 1 3 1.0 Introduction 3 1.1 Background of Study 4 1.2 Problem Statement 7 1.3 Research Questions 9 1.3.1 Main Research Question 9 1.3.2 Specific Research Questions 9 1.4 Research Objectives 10 1.5 Scope of Study 12 1.6 Significance of Study 13 CHAPTER 2 14 2.1 Literature Review on Insurance Sector (Conventional & Takaful) 14 2.2 Literature Review on Topic 16 2.3 Literature Review on Stability of Underwriting Operation 18 2.4 Literature Review on Solvency Margin 19 2.5 Literature Review on Retakaful/Reinsurance Dependence 20 2.7 Literature Review on Equity Return 22 CHAPTER 3 23 3.1 Data Collection 23 3.2 Variables 23 3.2.1 Dependent variables 24 3.2.2 Independent variables 24 3.3 Theoretical Framework 27...
Words: 9580 - Pages: 39
...Wrappers based on the same architecture as LifeSystem. “eBaoTech’s SaaS offering based on LifeSystem is very useful for us to execute our vision and strategy especially in the economic conditions that is full of uncertainty and also very competitive insurance market. eBaoTech SaaS definitely will bring WanaArtha Life to different level of customer service where we can offer faster and more convenient service towards our customers. During installing period, the solid cooperation between eBaoTech team from Shanghai-Singapore-Indonesia with our dedicated team is the key of success.” Managing Director, WanaArtha Life End-to-End Suites eBaoTech LifeSystem GroupLife AssetLink Typical Sub-Suite Component Offerings SalesPlatform Reinsurance Product Definition Claims The LifeSystem Suite has been developed over the last 10 years into a highly mature solution, currently supporting more than 20 million life insurance contracts in 36 installations across 16 countries globally. It is a modern Policy Administration solution that supports the complete process of managing life insurance products,...
Words: 3009 - Pages: 13
...EXAM 1 Material Pure risk – when there is uncertainty as to whether loss will occur. No possibility of gain is presented by pure risk----only the potential for loss. Loss or no loss. Ex – the uncertainty of damage to property by fire or flood Not an example of pure risk? Fluctuations in the price of fuel Speculative risk - when there is uncertainty about an event that could produce either a profit or a loss. Loss or gain. Ex---business ventures and investment decisions. Gains as well as losses may occur. Exchange rate risk and Marketing campaign Not an example of speculative risk? Employee injury risk Static risks – can be either pure or speculative, stem from an unchanging society that is in stable equilibrium. More predictable Ex of pure static risks – uncertainties due to random events such as lightning, windstorms, and death. Ex of speculative static risks – business undertakings in a stable economy Dynamic risks – produced b/c of changes in society. Ex of dynamic risk – urban unrest, increasingly complex technology, and changing attitudes of legislatures and courts about a variety of issues. Political risks Political risk in developing countries is an example of = Dynamic risk Subjective risk – refers to the mental state of an individual who experiences doubt or worry as to the outcome of a given event. Is essentially the psychological uncertainty that arises from an individual’s mental attitude or state of mind...
Words: 4472 - Pages: 18
...In 2011, the United States exported $92.5 billion in financial services and had a $23.0 billion surplus in financial services and insurance trade (excluding re-insurance, the financial services and insurance sectors had a surplus of $59.5 billion.) The financial services and insurance sectors employed 5.87 million people in 2012. The securities subsector of the industry shows great potential for employment growth, with a 12 percent increase expected by 2018. According to the U.S. Department of Labor, 818,000 people were employed in the securities and investment sector at the end of 2012. Investment in the U.S. financial services industry offers significant advantages for financial firms. In 2012, at least 132 of Fortune’s Global 500 companies have chosen to locate their headquarters in the United States to take advantage of its creative, competitive, and comprehensive financial services sector. The industry offers the greatest array of financial instruments and products to allow consumers to manage risk, create wealth, and meet financial needs. Industry Subsectors Banking: As of the end of 2012, the U.S. banking system had $14.45 trillion in assets. It supports the world’s largest economy with the greatest diversity in banking institutions and concentration of private credit. In the second quarter of 2013, earnings grew...
Words: 535 - Pages: 3
...Executive Summary The scope of this report is to study the insurance sector in Saudi Arabia and analyze current trends with the objective of ascertaining where the industry is placed amid intense competition, profitability and capitalization pressures. Remarkable growth for the insurance industry: Though relatively young, as indicated by the low penetration and density, the insurance market grew 18% per annum over 2008–12 and was the second largest market in GCC. It contributed 33.5% to the region’s total Gross Written Premiums (GWP) in 2012. Several growth drivers are in place for the insurance industry. Highly fragmented industry, intensifying competition: The sector comprises nine segments, with health and motor accounting for over three-quarters of total GWP. The industry is highly fragmented; of the 33 insurance companies, the top three contributed 52.7% to the total GWP and 87.5% to the industry’s profits in 2012. High concentration is fueling competition in the sector. Company analysis: We analyzed insurance companies’ financial performance by classifying 30 firms into three categories based on their equity capitalization (shareholders’ equity). The first set of 11 companies with capitalization over SAR200 mn accounted for a market share of 70% in 2012. The second set of 12 companies with capitalization between SAR 100 mn and SAR 200 mn reported an improvement in financial strength in 2012, and a few exhibited the potential to gain market share and scale. The third group...
Words: 7093 - Pages: 29
...Chapter One Background of the Study 1.1 Introduction As an indispensible part of BBA Program under Department of Management Studies of University of Dhaka, Internship is designed to bridge the gap between academic knowledge that we explore from studying books and practical working environment to large extent. It is really a great opportunity we got to have a real life experience while passing through the process of practical learning. The preparations of internship report on the topic “Overall Performance of Bangladesh General Insurance Company (BGIC)” was no doubt a challenging task, particularly for a student. I have tried my level best to analyze in depth the overall International and Domestic Trade and business insurance Services provided by BGIC Bangladesh. My pain will be fruitful if my report serves any purpose of BGIC or my department or my fellow friends interested in having insight into the related matters. 1.2 Rationality of the study . No business can exist without having insurance policy, which is much talked about subject now –a- days. In some cases getting insurance is made compulsory for example motor insurance. But unfortunately a very few studies has been made for insurance services. The report is assigned by our course teacher Professor Dr. Shahid Uddin Ahmed as a part of our BBA program. The report is on the assigned topic...
Words: 18660 - Pages: 75
...Attachment Report Keith Tapfuma C096993A Chinhoyi University of Technology Department of ICT and Electronics Baobab Reinsurance (Pvt) Ltd March 2010 to February 2011 This report is submitted in partial fulfilment of the requirement for the honours degree in Computing and Information Technology. Table of Contents Chapter One 4 Introduction 4 ZISCOSTEEL Background Error! Bookmark not defined. MISSION STATEMENT Error! Bookmark not defined. Objectives and Values Error! Bookmark not defined. Relevant Duties /Activities Carried out 7 Chapter Two 8 Procedures for solve the problems 10 1) Developing a Vehicle monitoring system 10 2) Resetting switch 12 Chapter Four 16 Chapter Five 17 Conclusion and Recommendations 17 Recommendations 17 ACKNOWLEDGEMENTS I would like to thank the following ZISCOSTEEL employees who contributed in supervising me during my attachment period: My supervisor Mr Gudyanga for his assistance and all the effort he made to make my attachment period successful, Mr Chibwe the Training Manager for offering an attachment place and Mrs Matutu the secretary for her assistance, the IT staff (Mr Muzavazi, Mrs Sibanda, Mrs Chadi and Mrs Mlaba ) for assisting me during may period of attachment. I would like to thank these people for the knowledge, encouragement, advice, guidance, love and discipline which they imparted on me. The attachment period...
Words: 5109 - Pages: 21
...“fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.” Berkshire Hathaway Berkshire Hathaway (Berkshire) is a holding company that engages in a number of diverse business activities through its subsidiaries. The group's business activities primarily comprise insurance and reinsurance operations. Additionally, the group is also engaged in non insurance businesses including building products, finance and financial products, flight services, retail, and apparel production. A strong capital position together with strong credit ratings enhances its bargaining power in the debt markets and gives it a competitive advantage. However, Europe's Solvency II project may put pressure on its profitability in Western Europe. Berkshire Hathaway | Parent Company | Berkshire Hathaway Inc. | Category | Property and Causality Insurance | Sector | Financial Institutions | Tagline/ Slogan | So easy a caveman could do it; Fifteen minutes could save you fifteen percent or more on car insurance | USP | A diversified company with major interest in GEICO, life insurance, annuity sales and sales of jewelry | STP | Segment | Enterprise and Individuals who are seeking financial help and...
Words: 536 - Pages: 3
...How Fair Value Measurement Changes Risk Management Behavior in the Insurance Industry JANUARY 2013 SPONSORED BY Financial Reporting Section Society of Actuaries PREPARED BY Bruce B. Rosner, FSA, MAAA Ernst & Young LLP Mark J. Freedman, FSA, MAAA Ernst & Young LLP The opinions expressed and conclusions reached by the authors are their own and do not represent any official position or opinion of the Society of Actuaries or its members. The Society of Actuaries makes no representation or warranty to the accuracy of the information. In addition, the discussion and examples presented in this paper are for educational purposes. They are not to be viewed as an authoritative statement by the Society of Actuaries or Ernst & Young LLP on the quality and/or appropriateness of an individual company’s practices or an indicator of “better” practice from one company relative to another. © 2013 Society of Actuaries, All Rights Reserved Acknowledgments We would like to acknowledge and thank a number of individuals who contributed to the success of this study: • Ronora Stryker and Jan Schuh from the Society of Actuaries for providing leadership and coordination The Project Oversight Group for guidance throughout this project: • Robert Baldwin • Mark Bergstrom • Jim Bridgeman • Joonghee Huh • Kathryn McCarthy (Chair) • James Norman • Jim Reiskytl • Doug Van Dam The companies that volunteered to be interviewed anonymously for this study Other members of the Ernst & Young team who...
Words: 15078 - Pages: 61
